Shark Tank US | Todd Graves and Lori Team Up For Deal With Topsail Streamer

Summary

Danielle Mann, the founder of Topsel Steamer, pitches her seafood boil business to the Sharks, seeking $350,000 for an 8% stake. She offers a unique product, a signature bay bucket filled with fresh seafood and seasoning, designed for easy steaming at home or on the go. Danielle shares her journey from a corporate career to launching the business in 2017. With eight locations and impressive growth, she's looking to expand through franchising. The Sharks, impressed by the product and Danielle's passion, ultimately make an offer, agreeing to invest in exchange for 18% equity, marking her first deal on Shark Tank.

Takeaways

• 😀 Danielle Man, the founder of Topsel Steamer, is seeking $350,000 for an 8% stake in her business, which offers fresh seafood boil kits.
• 😀 Topsel Steamer's signature bay buckets come with a variety of seafood, sausage, corn, potatoes, and homemade seasoning for customers to steam at home.
• 😀 The average order price for Topsel Steamer's seafood kits is $177, with a cost of goods sold of 40%.
• 😀 Topsel Steamer operates eight brick-and-mortar stores along the East Coast and ships seafood kits through Gold Belly.
• 😀 In 2024, the business generated $4.5 million in sales and expects $5.7 million in sales this year.
• 😀 Each restaurant's average unit volume (AUV) is $987 for full-time locations and $450 for seasonal ones.
• 😀 The company maintains a 28% food cost and a 17% labor cost, which are considered good for a seafood business.
• 😀 Danielle is interested in franchising the business to scale, seeing a potential for 400 units in the future.
• 😀 Danielle's entrepreneurial journey began after a girls trip with her mom and sisters, where she came up with the idea for Topsel Steamer in 2016.
• 😀 Two sharks, Todd and another investor, offer to partner with Danielle for $350,000 for 20% equity, suggesting they will help scale the business rapidly.
• 😀 After some negotiations, Danielle agrees to a deal where she gives up 18% equity in exchange for the $350,000 investment from the two sharks.

Q & A

What is the main business idea behind Topsel Steamer?

Topsel Steamer offers a unique seafood experience where customers can enjoy a seafood feast at home. They provide signature bay buckets filled with seafood, sausage, corn, potatoes, and proprietary seasoning, which can be easily steamed at home with just water or beer.

How does Topsel Steamer simplify the process of cooking seafood for customers?

Topsel Steamer simplifies cooking by providing easy-to-follow instructions for steaming the seafood at home, allowing customers to enjoy a restaurant-quality seafood boil in just 40 minutes with minimal effort.

What is the average order price for a Topsel Steamer meal, and what are the cost of goods sold?

The average order price for a Topsel Steamer meal is $177. The cost of goods sold (COGS) is 40%.

How many brick-and-mortar stores does Topsel Steamer currently have, and what are the sales figures?

Topsel Steamer currently has eight brick-and-mortar stores located along the East Coast, from New Jersey to Florida. Last year, they did $4.5 million in sales, and this year they are projected to reach $5.7 million.

What is the target market size for Topsel Steamer, and what is the company’s expansion plan?

Topsel Steamer's total addressable market for growth is 400 units, and they plan to expand the business through franchising. Their goal is to grow their presence significantly in the coming years.

Why is Danielle, the founder, interested in franchising Topsel Steamer?

Danielle wants to franchise Topsel Steamer to allow other entrepreneurs to help grow the brand and to expand the business beyond her own involvement, which has been a solo effort so far.

What challenges does Danielle foresee in franchising the business?

Danielle acknowledges that franchising could lead to challenges in maintaining the same quality and level of execution as she does in company-owned stores, as franchisees may not operate the business as effectively as the founder.

What were the Sharks' reactions to Topsel Steamer’s performance and potential?

The Sharks were impressed by the company’s performance, solid prime costs, and cravable product. They recognized the potential for scaling the business and appreciated Danielle's entrepreneurial journey. Despite the challenges of franchising, they saw potential in a partnership.

What offer did the Sharks make to Danielle, and how did she respond?

The Sharks made an offer of $350,000 for 20% equity in the business. Danielle initially countered with a request for 16% equity. After some negotiation, they agreed to a deal where Danielle would retain 18% equity in exchange for the investment.

What is Danielle's background before starting Topsel Steamer?

Danielle had a career in corporate sales, specifically in the life sciences and biotech industries, before transitioning into entrepreneurship. She started Topsel Steamer later in life after becoming an empty nester and having a moment of inspiration during a family trip.