The Dough Bar Doughnuts
DEAL
EPISODE SUMMARY
🕓 Air Date: January 28, 2018
Asking For:
$300,000 for 15%
Investor:
Barbara Corcoran
Deal:
$300,000 for 20%
PRODUCT SUMMARY
The Dough Bar offers protein-packed, baked doughnuts that are low in fat and sugar, providing a healthier alternative to traditional doughnuts.
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Background Story
Ondrea and Marquez, the founders of The Dough Bar, both hail from Vallejo, California. Marquez’s upbringing in a challenging neighborhood was shaped by his single-parent father’s relentless hustle. Their shared love for fitness brought Ondrea and Marquez together, and the idea for The Dough Bar sprouted during a moment of creativity.
Motivated by a desire to turn an unhealthy craving into a nutritious delight, they started experimenting with making healthy doughnuts. Their journey includes renting a commercial kitchen, getting engaged, and, most recently, becoming new parents to their baby boy, Mason. The couple has dedicated themselves entirely to the business, bringing Marquez’s father on board full-time and navigating the challenges of entrepreneurship with a focus on family.
The Product
The Dough Bar’s doughnuts are protein-packed, baked instead of fried, low in fat, and sugar-deprived. Each doughnut contains 11 grams of protein. The ordering process is convenient—customers can place orders online, and the doughnuts are shipped directly to their door, individually packaged.
The product’s shelf life is enhanced by storing it in the fridge for up to four or five days or in the freezer for longer periods. With flavors like apple pie and cookie butter topped with chocolate crackers, the Dough Bar aims to provide a tasty yet healthy treat.
How It Went
The company’s position before Shark Tank
The Dough Bar has achieved lifetime sales of $1.2 million, selling over 280,000 doughnuts since June 10th, 2015. They have maintained a 31% customer return rate, and their business is solely direct-to-consumer through online sales. The founders attribute their success to effective marketing strategies, with a 5X return on ad spend through paid advertisements.
The company’s margin stands at 53%, and they are projected to break $1 million in sales for the current year. The funds raised will be used to increase marketing efforts and improve the doughnuts’ shelf life, reducing shipping costs.
The Negotiations:
The negotiation saw Barbara Corcoran offering $300,000 for 30%, and Alex Rodriguez, in collaboration with Lori Greiner, proposing $400,000 for 30%. Mark Cuban opted out due to concerns about the single-product focus. After a back-and-forth, Barbara dropped to 20%, securing a deal with the founders.
The negotiation showcased the Sharks’ interest in the product’s potential, with Barbara emphasizing her enthusiasm for working with entrepreneurs who are “poor, hungry, and driven.” Ultimately, The Dough Bar accepted Barbara’s offer, marking a successful partnership on “Shark Tank.”
