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In episode 21 of Shark Tank season 14, Jeremy and Kaitlyn Carlson presented their soft-serve ice cream business, Crispy Cones, seeking $200,000 for 10% equity. Their sales grew from $20,000 in 2018 to $500,000 by 2022, supported by two successful stores in Utah and Idaho. Their Czech Republic-inspired concept featured ice cream served in freshly made dough cones, grilled on rotisserie equipment.
After reviewing their financials and expansion plans, four Sharks opted out. Robert Herjavec examined their rapid franchise strategy and store model, stating,
"Really impressive what you've done. For me, you're moving too quickly. When you take a franchisee's money, it's a commitment to them and makes me nervous without having a proven model on the store. I mean, you might get there, but it's not for me. I'm out."
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The Shark Tank pitch concluded with Barbara Corcoran offering $200,000 for 20% equity.
Crispy Cones gets turned down by Robert on Shark Tank over expansion concerns
Crispy Cones founders entered the Shark Tank with samples of their signature treats. Their demonstration showcased the meticulous process of creating each cone. The presentation emphasized their pricing strategy, with production costs at $1.50 per cone and a retail price of $7.50. They elaborated on their menu options, featuring a variety of toppings from classic cinnamon sugar to cookie crumbles.
Crispy Cones exhibited consistent revenue growth year after year. Its 2018 roadside launch generated $20,000. Sales increased to $70,000 in 2019, indicating market acceptance. In 2020, despite market challenges, the company achieved $80,000 in revenue.
The following year marked significant advancement with $200,000 in sales. By 2022, they reached their highest annual revenue of $500,000. In Shark Tank, the Carlsons showcased their unique cooking method. Staff wrap fresh dough around specialized rotisserie equipment, ensuring even cooking through constant rotation. Once cooked, each cone receives a layer of various spread selections.
Customers can choose between options like chocolate spread or nut butter. The process concludes with soft-serve ice cream and custom topping combinations.
During the Shark Tank pitch, Robert Herjavec questioned the company's franchise strategy, stating that the current model required more testing. His main concern was the extraction of funds from franchisees without evidence of long-term store success. As a result, he chose to withdraw from the deal.
Mark Cuban highlighted their existing operational model. After tasting the product and checking store data, he opted not to invest. Lori Greiner inquired about production speed and customer wait times. Kevin O'Leary calculated the franchise investment returns. Despite positive feedback about the product, these Sharks decided against investing.
Barbara Corcoran remained engaged after the others withdrew. She evaluated their expansion strategy and store performance. After discussing the growth pace, she made her final offer of $200,000 for 20%. The Carlsons attempted to negotiate better terms but ultimately accepted her original offer.
Post Shark Tank journey
The company swiftly implemented changes after securing the investment, according to Shark Tank Blog. They partnered with food distributor Sysco to support their expanding operation. The business introduced self-service kiosks in their stores, which boosted revenue by 60%.
Their expansion continued with new locations in Utah and Arizona. By March 2024, they operated seven stores across several states. The Provo, Utah store opened alongside locations in Chandler and Gilbert, Arizona. During this growth phase, their annual revenue surpassed $1 million.
The franchise program gained traction after the show aired. Within 24 hours of the episode's broadcast, they received applications from every state. The company initially sold 27 franchise units. Their development plans included agreements for 55 additional stores nationwide.
Current operations encompass locations in Florida and Texas markets. In May 2024, the company signed a 10-unit development deal for the Dallas area. The company's strategy emphasizes maintaining consistent service across all franchise locations while expanding into new territories.
Shark Tank season 16 is airing on ABC network.
