Is The Pizza Cupcake BETTER Than Pizza? | Shark Tank US | Shark Tank Global

Summary

In this Shark Tank episode, Michelle Jimenez and Andrea Machado pitch their innovative pizza snack, the 'Pizza Cupcake,' seeking a $125,000 investment for 5% equity. The New York-based couple aims to revolutionize the frozen pizza market with their gourmet, bite-sized pizzas made from a unique dough recipe. Despite initial skepticism, their product impresses the sharks with its taste and quality. After negotiations, they secure a deal with Lori Greiner for $125,000 in exchange for 12.5% equity and 2.5% in advisory shares, promising a potential partnership with Bantam Bagels and national distribution opportunities.

Takeaways

• 🍕 Michelle Jimenez and Andrea Machado, a married couple from New York City, are seeking a $125,000 investment for 5% of their company, which specializes in pizza cupcakes.
• 🎂 They introduce a new snack concept: pizza cupcakes, which are high-quality gourmet snacks that are easy to serve and made with a unique dough recipe, aiming to revolutionize the frozen pizza snack category.
• 🎈 The pizza cupcakes come in various flavors, with the margarita and pepperoni being their best sellers, and are designed to be enjoyed in more ways and places than traditional pizza slices.
• 👨‍🍳 Andrea, originally from Venice, Italy, has a background as a chef and has worked in renowned kitchens, including Soho House, before moving to New York City.
• 🤝 The couple met through a mutual friend, and their shared passion for pizza led to the creation of their business.
• 📈 They have a clear business plan and have already achieved $344,000 in revenue the previous year, projecting $100,000 in sales for the current year.
• 🛒 Their sales strategy includes direct-to-consumer sales, catering, participation in Smorgasburg (a popular New York City market), and stadium sales, with their first partnership being with Citi Field, home of the New York Mets.
• 🏭 The pizza cupcakes are currently made by hand in a commercial kitchen, but they have a co-packer in place to help scale production and reduce the cost per cupcake from 95 cents to 48 cents.
• 📦 The product is sold in packs, with a 12-pack priced at $24.99 and a shipping cost of $9.99, aiming to find fulfillment centers across the U.S. to improve distribution.
• 💰 Lori Greiner, a shark known for her experience with Bantam Bagels, offers $125,000 for 20% equity, recognizing the potential synergy between her company and the pizza cupcakes business.
• 🔄 After negotiations, the couple counters with a request for $125,000 for 10% equity, highlighting their strategic investors and ongoing discussions with a large distributor for a potential incubator program.

Q & A

Who are Michelle Jimenez and Andrea Machado?

Michelle Jimenez and Andrea Machado are a married couple from New York City who appeared on the show seeking investment for their company.

What are they seeking from the sharks?

They are seeking a $125,000 investment for 5% equity in their company.

What product are they pitching on the show?

They are pitching a product called 'Pizza Cupcakes,' a gourmet, high-quality snack that is a new take on frozen pizza.

What is unique about their Pizza Cupcakes?

The Pizza Cupcakes have a unique cupcake shape and size, making them easy to serve and eat on the go. They also have a trade secret dough recipe that delivers a fluffy texture.

What is the calorie count for one Pizza Cupcake?

The Margarita Pizza Cupcake has 160 calories per cupcake, and the Pepperoni has 170 calories.

What is Andrea's background in relation to the food industry?

Andrea was born and raised in Venice, Italy, and has been working as a chef since he was 16. He also worked in London at a fine Italian restaurant owned by Soho House before moving to New York in 2006.

How did Michelle and Andrea meet?

Michelle and Andrea met through a mutual friend, and their first date was a pizza-making session.

What was the initial reaction to the Pizza Cupcakes from their target demographic?

The initial reaction was very positive, especially from a group of Italian people at an event, who are known to be picky about pizza.

What are their current sales channels?

Their current sales channels include direct-to-consumer sales, catering, Smorgasburg (a popular market in New York City), and stadium sales, specifically at Citi Field, home of the New York Mets.

What is the cost breakdown for one Pizza Cupcake?

The cost to make one Pizza Cupcake is currently $0.95, but they believe they can reduce this cost to $0.48 per cupcake with the help of an investment to start production with a co-packer.

What offer did Lori make to Michelle and Andrea, and what was the final agreement?

Lori initially offered $125,000 for 20% equity. After negotiations, the final agreement was $125,000 for 12.5% equity plus 2.5% in advisory shares.