Highlights
- Cinnaholic, a vegan cinnamon roll shop, pitched on Shark Tank.
- Accepted an intriguing offer, but the deal took an unexpected turn.
- Expanded rapidly, reaching over 100 franchises and significant revenue growth.
Overview
| Category | Details |
|---|---|
| Name | Cinnaholic |
| Founders | Florian and Shannon Radke |
| Industry | Vegan Bakery |
| Product | Vegan cinnamon rolls |
| Funding | N/A |
| Investment Ask | $200,000 |
| Equity Offered | 20% |
| Valuation | $1 million |
Florian and Shannon Radke pitch Cinnaholic, their dairy & lactose-free, egg-free and cholesterol-free, 100% vegan cinnamon roll shop in Shark Tank episode 525 on May 9. They hope the Sharks will bite on their business and help them put franchised Cinnaholic shops all over the country.
Shannon is a former veterinary assistant who got into baking for her vegetarian lifestyle. Florian is a former German punk rock scenester. The couple met in 2008 when Florian connected with Shannon on Couchsurfer.com whilst planning a trip to the California coast. The pair hit it off and decided to get married and start Cinnaholic.
They initially ran the business as a food truck and moved into a brick and mortar location in Berkeley, CA after the concept took off. Even though all their goodies are vegan, it seems like everyone loved their rolls. After a few years of rave reviews and business growth, they’ve been so successful, they are now offering franchises nationwide. They’ve received over 100 serious inquiries to date. They likely want a Shark to help them roll out franchise operations.
Cinnaholic Shark Tank Recap
Florian and Shannon enter seeking $200,000 for 20% of their business. They tell their story and give their pitch. When the Sharks taste their samples, there are groans of delight. Even though the rolls are dairy, egg and cholesterol free, each one contains 500 calories – less than half a “traditional” roll. They want the Sharks’ cash to open a second store. Their Berkley store, which is only 650 square feet, did $260,000 in sales last year.
Did Shark Tank Invest In Cinnaholic?
Barbara says she’s been spoiled by the success of Cousin’s Maine Lobster; she’s out. Robert thinks opening up a store would be a mistake, he wants to ship the rolls direct to consumer. He offers $200,000 for 40%, contingent on them not opening another store. Kevin doesn’t want another retail location – he also wants to ship the rolls like Wicked Good Cupcakes. He offers $200,000 for a $1.20 per unit royalty until he gets his money back, then it goes to 60 cents in perpetuity. Florian and Shannon confer and then tell Kevin they don’t like the royalty offer. They counter Robert at 35% but he stands firm. Eventually, they take Robert’s deal.
Cinnaholic Shark Tank Update
The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show. The deal with Robert never closed. Cinnaholic sold its Berkeley location as the first franchise and teamed up with the Atlanta Franchise Group to fully focus on getting their stores nationwide. They also stopped selling online to focus on franchise growth.
The first of 25 planned locations to open will be in Southlake, TX and Ocean City, MD. Other locations include Las Vegas, Anaheim and Dallas. Additionally, an Atlanta location is open with more stores in the works for the greater Atlanta area.
In the spring of 2022, the company opened two more locations: one in Pensacola, FL and one in Des Moines, IA. At this time, they have over 60 locations nationwide. 2021 Sales were over $20 million, up 64% from 2020. During the Covid-19 pandemic, they didn’t close a single store.
As of July, 2021, they have 56 locations and they plan to open 10 more by the end of the year. There are also another 60 franchise locations in development. Same store sales increased an average of 137% across all locations, too. Annual revenue for the franchising business is $1 million. The company opens its 70th store on July 8, 2022 in Atlanta.
In November, 2021, the company announced it’s opening a third New Jersey location in Metuchen and a location in Pensacola, Florida in the spring of 2022.
In January, 2022, the company announced it had signed 62 new franchisees and has plans for 25 new stores in Florida, Ohio, New York, New Jersey and Massachusetts. In the same month, a new franchise opened in Ann Arbor, Michigan, The third New Jersey location opened August 5, 2022 in Metuchen. 18 more stores are “coming soon” at this time. In December, 2022, a new shop opened in Gambrills, MD and there are 13 more “coming soon” for the first quarter of 2023. In February, 2023, they announced the addition of 7 more franchises in 2023. They currently have over 80 franchisees in the US and Canada with over 20 new locations planned for the next year. As of August, 2023, annual revenue is $25 million and growing. By April, 2024, there were over 100 franchises and annual revenue is estimated at $87 million.
Posts About Cinnaholic on Shark Tank Blog
Cinnaholic Information
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