Sara Schulz, founder of Schulzies Bread Pudding (364 Hayes), competed on the ABC TV show “Shark Tank” this week.
Each episode of the show features a handful of entrepreneurs pitching their business ideas to five “sharks” — wealthy potential investors like Mark Cuban, Kevin O’Leary, and Barbara Corcoran. The sharks pepper the entrepreneurs with a bunch of questions, and then each shark decides individually whether they want to invest in the business or not.
Caution: spoilers ahead.
At the beginning of this week’s episode, Schulz announced that she was seeking an investment of $160,000 for 20% equity in the business. She handed out samples of different bread pudding flavors to the investors, who all raved about the product. “Amazing.” “Delicious.” “Incredible.”
Schulz then spoke about the history of the shop — how she had started with a small (140 square foot) kiosk in Venice Beach, which earned $190,000 in annual revenue, but then sold the operation of that kiosk so she could open her “dream” — the Hayes Valley store. Schulz revealed that the store measures 800 square feet and has monthly sales of $30,000. She’s now looking to expand her business into an empire of bread pudding parlors.
When it came time for the big decision, each investor expressed mixed feelings. While several praised the bread pudding itself and Schulz’s passion, others questioned her business plan, with one noting that her revenue per square foot had dropped significantly in the move to SF. Another recommended that she find a business partner, while yet another thought it was too early to invest in the company. In the end, none of the five “sharks” chose to invest.
You can watch the full episode online here. Schulzies is featured in the first segment.
Thanks to reader Larry R. for the tip.