Will The Sharks See Potential In Yumble's Healthy Kids Meals? | Shark Tank US | Shark Tank Global

Summary

In this Shark Tank pitch, David and Joanna Parker present Yumble, a subscription service delivering healthy, kid-friendly meals to busy parents. They seek $500,000 for a 4% stake in their company. Yumble provides nutritious, ready-to-eat meals with fun activities for kids. With a growing customer base and strong sales, they discuss their business model and competition, addressing concerns about larger retail competitors. The founders face tough questions from investors, but ultimately secure offers, negotiating down to a 6% equity deal, with additional marketing and branding support from two Sharks.

Takeaways

• 😀 Yumble is a subscription service that delivers healthy, fresh meals for kids directly to busy parents' doors, with no cooking required.
• 😀 The company aims to eliminate the stress of meal planning by providing easy-to-prepare meals for children, complete with fun activities and collectibles.
• 😀 Yumble offers a range of meal plans: 6, 12, or 24 meals per week, with 22 different items on the menu.
• 😀 The meals are designed for children and include options like chicken pops, empanadas, and mac & cheese cups, all made with healthy ingredients.
• 😀 Yumble's pricing ranges from $6.99 to $7.99 per meal, including delivery and collectibles.
• 😀 The company has achieved over $1.3 million in sales and is growing at a rate of 30% month-over-month.
• 😀 Their customer acquisition cost is $40, and they initially spent about $4,000 a week on marketing, which they have optimized to lower the cost.
• 😀 The company faces competition from large retail giants like Amazon and Albertson, but it targets parents, which is a different demographic from traditional grocery shoppers.
• 😀 Despite concerns from investors, Yumble's founders are confident in their unique market position and business model.
• 😀 Offers from investors included $500,000 for equity in exchange for varying percentages, with a strong emphasis on customer acquisition and brand building.
• 😀 Yumble aims for significant growth, projecting $35 million in revenue in 2019 and plans to counter investor offers with a 6% equity proposal.

Q & A

What is the main problem that Yumble aims to solve?

Yumble aims to solve the problem of busy parents struggling to prepare healthy meals for their kids. The company provides a subscription service that delivers healthy, fresh, and convenient meals, eliminating the stress of meal preparation and helping parents avoid unhealthy alternatives.

How does Yumble's meal delivery service work?

Yumble is a weekly subscription service that delivers healthy kids' meals directly to parents' doors. Each meal comes with a fun activity and collectible to keep kids engaged. The service offers three different meal plans with a variety of meal options to choose from.

What are the different meal plans offered by Yumble?

Yumble offers three different meal plans: six meals, twelve meals, or twenty-four meals per week. Parents can choose from 22 different meal options available on the menu.

What are some examples of meals Yumble delivers?

Some of the meals Yumble delivers include chicken pops (made from antibiotic-free white meat chicken), handmade baked empanadas, and 'smack and cheese' cups (which are high in protein). All meals are designed to fit in a lunch box for easy convenience.

What is the customer acquisition cost for Yumble, and how has it changed over time?

Yumble's customer acquisition cost has decreased from $100 per customer to $40 per customer after optimizing their marketing strategy and brand recognition.

What is the pricing structure for Yumble's meals?

Yumble's meal prices range from $6.99 to $7.99 per meal, which includes delivery and the collectible items. The exact price depends on the meal chosen.

What is the projected revenue for Yumble in 2019?

Yumble is projected to generate $35 million in revenue in 2019, based on their current growth and customer acquisition strategy.

What is the main competition for Yumble in the meal delivery industry?

Yumble competes with large companies like Amazon and grocery chains such as Albertsons, who also offer meal delivery services or related products like Lunchables, which target similar customers.

How did the Sharks respond to Yumble's pitch and business model?

The Sharks had mixed reactions. Some, like Kevin O'Leary, expressed concerns about the competition from larger companies with brick-and-mortar stores. Others, like Lori Greiner, saw potential in Yumble's branding and offered a partnership deal. Eventually, the company received offers but chose a deal with a combination of two investors.

What were the final terms of the deal Yumble accepted from the Sharks?

Yumble accepted an offer of $500,000 for 6% equity from a combination of Rohan and Lori Greiner. Rohan also highlighted his experience in building brands and proposed support in acquiring customers and navigating retail partnerships.