Things Get INTENSE With Beyond Sushi! | Shark Tank US | Shark Tank Global

Summary

Chef Guy Vacin introduces Beyond Sushi, a vegan restaurant chain in New York City, seeking a $1.5 million investment for 25% of a new West Coast venture and 5% of the East Coast operations. The brand is known for its innovative sushi made with vegetables, fruits, and whole grains, avoiding fake meats. With six locations and annual sales reaching $4 million, Vacin aims to expand, leveraging his experience and a partnership with Ruby Tuesdays' founder. Despite initial pushback on valuation concerns, strategic negotiations lead to a deal with investors offering 30% in LA and 15% in New York, promising access to a vast network and support for aggressive expansion.

Takeaways

• 🍣 Guy Vacin is the chef and owner of Beyond Sushi, a vegan restaurant in New York City known for its modern approach to sushi using vegetables, fruits, and whole grains.
• 💼 Guy is seeking a $1.5 million investment for a 25% stake in his West Coast expansion and 5% of his current East Coast operations.
• 📈 Beyond Sushi is a pioneer in the vegan sushi movement, aiming to provide a healthier and more sustainable alternative to traditional sushi.
• 🥗 The menu includes a variety of vegan options such as salads, wraps, dumplings, and rolls, with a focus on unique flavor profiles.
• 💰 The average cost for eight pieces (one roll) of sushi at Beyond Sushi is $7.50, with a production cost of approximately $5.
• 🏢 The business model involves a central kitchen that supplies multiple smaller restaurants, allowing for efficient operation and expansion.
• 📊 Sales have been growing, with $4 million in sales the previous year and a projection of $5.6 million for the current year, despite a net loss of $272,000 the previous year.
• 🤝 Guy partnered with Sandy Be, the founder of Ruby Tuesdays, to help grow the business, with Sandy holding a 25% stake and Guy 75%.
• 📈 The company has seen significant growth, doubling in size from $250,000 to $978,000 in one year.
• 💸 There is a debate over the valuation of the business, with some investors finding the asking price too high based on the pre-tax earnings.

Q & A

What is the name of the restaurant Guy Vacin is seeking investment for?

Beyond Sushi

How much investment is Guy Vacin seeking and what equity is he offering in exchange?

He is seeking a $1.5 million investment in exchange for 25% of the planned venture on the west coast and 5% of the current operation on the East Coast.

What is unique about the sushi served at Beyond Sushi?

Beyond Sushi takes a modern approach to traditional sushi by creating unique flavor profiles using vegetables, fruits, and whole grains without relying on fake meats.

What are the three types of rolls Guy Vacin brought as samples?

The three types of rolls are the mighty mushroom, sunny side, and another roll which is not named in the transcript.

How does the calorie count of Beyond Sushi's rolls compare to traditional sushi?

It averages about 280 calories for a roll, which is about the same as a traditional sushi roll.

What is the cost for eight pieces of sushi roll at Beyond Sushi?

The cost for eight pieces, which is one roll, is $7.50.

How many locations does Beyond Sushi currently have?

Beyond Sushi has six locations.

What was the initial investment Guy Vacin made to open the first Beyond Sushi location?

The initial investment was $70,000 of his life savings.

What was the sales figure for Beyond Sushi in the last year mentioned in the transcript?

The sales figure for the last year was $4 million.

What was the net profit for Beyond Sushi in the year they made changes and opened two big locations?

They were negative $272,000.

What was the sales projection for the current year mentioned in the transcript?

The sales projection for the current year is $5.6 million.

What is the issue one of the investors has with the proposed deal?

The investor finds the valuation too high, as they would be paying 20 times the pre-tax earnings for a share in the west coast operation which is not yet established.

What is the final agreement reached regarding equity in the deal?

The final agreement is for 12% equity in the west coast and 30% equity in the east coast.