Shark Tank season 12 featured a pitch from The Pizza Cupcake founders Michelle Jimenez and Andrea Meggiato, who hail from New York City. They sought $125,000 for 5% of the company.
Their business provides a twist on the classic pizza experience. After appearing on the show, they garnered nationwide recognition. Their product soon became an innovative solution for pizza lovers who were looking forward to the hybrid between their favorite dish and a cupcake.
During their pitch, the entrepreneurs brought out a life-sized pizza cupcake mascot who charmed the sharks. Their business model had impressed the sharks along with the taste of the cupcakes.
However, they did face some challenges when the sharks identified their weak point of frozen food deliveries. After their presentation was over, Robert, who seemed overjoyed, exclaimed,
"Stop talking! Let's eat!"
Soon, the sharks were presented with two types of pizza cupcakes on Shark Tank, the Margherita and Pepperoni. They all appreciated its taste reflecting on how Andrea, a chef and native of Italy, has done good work on the product.
Shark Tank entrepreneurs Andrea and Michelle pitch The Pizza Cupcake
Reflecting on their journey on Shark Tank, Michelle revealed that Andrea had asked her on a pizza date when they first met. Talking about the ingredients, the entrepreneurs revealed that their pizza cupcake does not have any butter and is made with just olive oil.
As for the bread, it is a hybrid between brioche and sourdough which gives it fluffiness while also maintaining the crunch.
Soon, the negotiations for the product started on Shark Tank and everyone opted out except for Lori. She has previously worked with the frozen foods category and thus knows the right people and the right doors that could help the business boom.
However, they soon got into a very tough back-and-forth about the equity percentage of their company.
Shark Tank investor Lori Greiner explains that she had worked with Bantam Bagels who started with stuffed bagel balls and then they got them into Starbucks nationwide. They even expanded to retail in grocery stores all across the country.
She made an offer of $125,000 for a 20% stake in The Pizza Cupcake. Trying to explain herself, she said that she brings the expertise that could help the company skyrocket.
Michelle countered by saying that 20% would be a lot for them to give away because they have worked hard on the company and even found a co-packager by themselves and thus, suggests doing the deal for 10%.
Lori offered again and said her "bottom line" would be 15%. Ultimately, Lori and Michelle settled for a deal at $125,000 at 12.5% plus 2.5% advisory shares.
Since their appearance on Shark Tank, the company has grown tremendously. Even today, The Pizza Cupcake continues to expand its presence in the frozen food market. Revealing her thoughts in a confessional after the pitch, Michelle said,
"We're living that American dream where we have our family business, we have our dream shark on our team and we can just really start scaling and having pizza cupackes as a household brand."
Shark Tank season 16 episodes drop out weekly on ABC at 8 PM Eastern Time on Fridays. Later, they can be streamed via Hulu.
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