The Topsail Seafood Steampots Pitch On Shark Tank
Highlights
- Danielle Mahon pitches her seafood steampot business on Shark Tank Season 16.
- Topsail Steamer came into existence in the year 2017.
- The investors are heavily impressed by the taste of the food and the numbers related to the business.
Overview
| Category | Details |
| Name | Topsail Steamer |
| Founder | Danielle Mahon |
| Industry | Food and Beverages |
| Product | Seafood Steampots |
| Funding | Self funded |
| Investment Ask | $350K |
| Equity Offered | 8% |
| Valuation | $4,375,000 million |
Danielle Mahon, a Top Sail Island-based entrepreneur, approaches the investors on Shark Tank Season 16 with Topsail Steamer. She originally hails from New Jersey and looks back on her seafood steampot-eating experiences with friends and family down the shore. They used to have fun rolling brown papers, dumping the food, and peeling the shrimp.
But with Topsail Steamer, you do not need to have a vacation or be on the beach to savor the steamed seafood. With this venture, Danielle offers Signature Bay Buckets in single-use pots. The pots are jam-packed with different types of fresh seafood, andouille sausage, sweet corn, red bliss potatoes, and proprietary seasoning.
The idea came in 2016 when Danielle, along with her mom and sisters, visited a full-service restaurant that sold Lowcountry boil in black-and-white lobster pots. A year later, Topsail Steamer came into being.
The entrepreneur knows the fear people have regarding cooking seafood due to its complex making process. Topsail Steamer attempts to make things simple using its Bay Buckets. Using its easy instructions, one can simply add two cups of water or beer to steam at home, at the beach, at a tailgate, or at the campground.
This way, one can relish mouthwatering seafood in just 40 minutes of preparation.
Topsail Steamer: What Happened On Shark Tank Season 16
Danielle Mahon enters the Shark Tank new season seeking $350K for 8% equity. She presents a sample of the brand’s most popular bucket, Wrightsville. The bucket has a lobster added for the day with Jimmy’s Way seasoning (Jimmy is Danielle’s son). Lori Greiner loves the sausages. Guest Shark Todd Graves says it is Andouille sausage.
Lori lists out all the items in the bucket, including Jalapeño cornbread, key lime pie, shrimp, crab, corn, potatoes, and clams. She asks Danielle if all of it comes frozen along with the spices in the market. Danielle says that they have brick-and-mortar stores (total eight), and they ship as well.
The brick-and-mortar stores are spread throughout the east coast.
There are seven signature pots, all of which are available in two sizes. The pots vary due to the unique combination of ingredients in each. Users can also prepare them on their own. The average order price is $177, and the total cost of goods sold is 40%.
Sales in 2023 were $4.5 million. Danielle is projecting a $5.7 million sales for this year. Online sales are currently made through Goldbelly. The Sharks are impressed. But questions are still on for Danielle.
The average unit volume for their full-time restaurants is 987, and that for the seasonal restaurants is about 450. The restaurants are spread in an area of 700-800 sq. ft. While the size is small, it works for the venture as they do not cook anything. Mark Cuban asks Todd if that is a good size, he replies with a ‘yes.’
Food costs are 28% and labor costs at about 17%, which impresses Todd.
Calling herself a ‘late-in-life-entrepreneur,’ Danielle is looking to go with a franchise system in the future.
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Did Topsail Steamer Get A Deal?
Owing to his career history, Todd Graves is the most interested Shark in the Topsail Steamer Shark Tank deal. But he does not think the franchising concept will do well for Danielle as he believes franchises cannot run a business as well as a founder can.
He then claims that he can help her raise the salary of her manager to six figures through increased sales. The manager will then become her ideal partner, working harder than franchises, making her more sales and representing the brand.
Todd then makes his offer of $350K for 20% equity. The other Sharks are amazingly shocked. Kevin O’Leary sarcastically says the offer is ‘generous.’ Daymond John thinks it is ‘shellfish.’ and comments sarcastically.
Lori is a ‘foodie’ and feels Danielle’s idea is ‘cool.’ She cites her previous success with Boarderie and asks Todd if he is okay with having her as a partner in the deal, which he agrees to. The duo then collectively offer $350K for 10% equity each. Danielle counters with $350K for 16% equity.
Lori then says the two Sharks can help her reach the ‘moon.’ Todd revises his offer to $350K for 18% equity. Danielle takes the offer.
This is how the Topsail Steamer Shark Tank journey concludes with a deal.
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More products from this episode! Check out other businesses that participated alongside Topsail Steamer.
