"I knew they’d be successful"- When Mark Cuban regretted passing on a Shark Tank pitch

Mark Cuban passed on Chef Big Shake (CBS) Foods during season 2 episode 1 of Shark Tank in 2011, a decision he later called his biggest regret from the show. Chef Big Shake’s Shawn Davis pitched his shrimp burger company seeking $200,000 for 25% equity at an $800,000 valuation. The company reported $30,000 in annual sales at the time of filming. Cuban declined to invest, citing unfamiliarity with frozen foods, despite praising the product's taste and quality.

Within months of airing, CBS Foods' sales multiplied to over $1 million, later reaching $5 million. Recalling the pitch in The LIVE with Kelly and Mark show, Cuban specifically stated,

"I knew they'd be successful, but I just didn't know anything about the frozen food business."

The pitch stands as one of the most notable examples of post-tank success without securing a deal.

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Mark Cuban admits missing million-dollar Shark Tank opportunity with CBS Foods

When Shawn Davis walked into the Tank, he brought four varieties of shrimp burgers along with financial data. His numbers showed careful market research. The Big Chef Shake’s production costs were $0.87 per unit, while retail prices stood at $1.63. The company maintained strong financial health with a 63% margin across all products.

Mark Cuban's response centered on specific business factors. He acknowledged the product quality but pointed to his lack of connections with the frozen food industry. He explained that this gap in relevant experience would limit his ability to help grow the company.

Despite extended talks and multiple counter-offers, the deal remained out of reach. Davis left the Tank without securing investment but with valuable exposure for his brand.

The CBS Foods story took an unexpected turn after the episode aired. Media coverage brought attention to the brand, leading to rapid market expansion. According to FandomWire, sales figures jumped from $30,000 to exceed $1 million within months. The company attracted interest from several market segments, including retail chains and food service providers.

The growth continued steadily. CBS Foods reached over the $6 million sales mark while maintaining its core product line. The company also secured additional funding from private investors who recognized the market potential.

ABC chose to feature Davis again in Shark Tank season 3 for an update segment, marking a rare follow-up appearance for a business that didn't secure a Tank deal.

Mark Cuban addressed the CBS Foods decision in multiple media appearances. Explaining his decision, the Shark Tank investor stated,

“One of the worst things an entrepreneur can do is lie to themselves about what they know and what they don't know and so I couldn't help him but he went on and leverage it from there he didn't get an investment but now he's just killing it”

In another interview with ABC News, when Cuban was asked to recall his one biggest Shark Tank misses, he stated,

“Yeah, there's this guy Big Chef (shake)...I like the guy (Chef Big Shake founder) who's a great entrepreneur, he had a great idea, the heart behind it, and I passed. Now he went from 200,000 sales just a year ago to over 6 million”

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Shawn Davis's Shark Tank pitch

The pitch meeting disclosed interesting dynamics between Davis and the Sharks. Each investor took time to sample the products, expressing positive reactions to the taste and quality.

Kevin O'Leary was the one who led the financial questioning, focusing on manufacturing costs and retail margins. His analysis suggested concerns about profitability in the frozen food sector.

As stated earlier, Cuban declined investing citing lack of experience in industry. Barbara Corcoran moved away from the deal based on market fit considerations. Robert Herjavec questioned the valuation metrics, analyzing the numbers against industry standards.

The longest discussion occurred with Shark Tank investor Daymond John, who showed strong interest in the concept. The conversation progressed to detailed negotiations, with John considering a larger 40% equity stake.

Davis's business concept emerged from a family moment when his young daughter showed interest in moving away from traditional meat products.

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Fans can catch Mark Cuban in Shark Tank season 16.