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Shark Tank season 10 episode 12 introduced viewers to OatMeals' founder, Sam Stephans. She pitched her business idea of selling oatmeal with a twist. Sam shared that she wants to expand her restaurant business so that a variety of unique and creative flavors for oatmeal are available.
Sam was seeking $500k for 20% of her company and envisioned expanding her business. Shark Tank investor Lori shared that she would introduce Sam's products to Starbucks and was willing to give $500,000 for 33.3% equity. Meanwhile, Barbara wanted to transform the idea into a cart business in corporate America, so she gave an offer of $500,000 for 50% equity.
Upon hearing these two offers, Kevin said:
"We must be on the planet Zurtron right now. You with a store that makes no money have two half-a-million dollar offers, that never happens on the planet Earth. So you better think about this right now and make a decision."
Shark Tank investors Lori and Barbara place two offers for Sam Stephans' Oatmeals business
All Shark Tank investors were impressed by Sam's business idea and how she had creatively introduced various oatmeal products. She shared her vision of expanding the business to multiple locations and changing the perception of the majority who associate oatmeal with products. Sam stated that she wanted to bring her packaged flavourful oatmeal to the pasta aisle. Lori was the first shark to praise Sam. She said:
"We get a lot of different things that come into the shark tank a lot of different foods, these are some of the most delicious things ever brought in here and the interesting thing is they're all very different."
Additionally, Sam mentioned that 80 toppings were available, with up to 30 signature oatmeal bowls alongside flavors, including parmesan cheese, truffle oil, poached eggs, and bacon. Shark Tank investor Kevin O'Leary was impressed by the business idea as well. However, he pointed out the problems in the overall strategy.
When Sam mentioned she made $2.5 million in sales over the last six years, Kevin decided to back out from placing an offer. According to Mr. Wonderful, Sam was to face a major challenge in the future, changing people's perceptions about oatmeal, which is fixed only to be had during breakfast. Mr. Wonderful said:
"I think you face a pretty high mountain decline because the perception of the consumer in America with oatmeal is going to be forever with breakfast."
He continued expressing concerns regarding the overall sales despite Sam having a proper restaurant space. The Shark Tank investor stated Sam was "making no money"; hence, it would be a problem for her to expand and franchise. He concluded:
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"But I'm more concerned about the numbers, 350 square ft, you need to be doing a million, a million two a year to make this an interesting opportunity to expand to more locations or to franchise. You're basically making no money.You are not worth two and a half million dollars as an opportunity. I'm out."
In the end, Sam ended up accepting Lori’s offer of $500,000 for 33.3% of the equity. Due to Covid-19, the business was shut down in 2021, and later, it was also revealed that the deal was not finalized with Lori. All episodes of Shark Tank are available on ABC.
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