"We'll put our heads together"- When Shark Tank investors Lori and Steve teamed up for Cookie Dough Cafe deal

During a Shark Tank season 5 pitch, sisters Joan Pacetti and Julie Schmid secured a dual-investor deal of $100,000 from Lori Greiner and Steve Tisch for their edible cookie dough business. The Cookie Dough Cafe founders presented their egg-free dough meant for direct consumption, with manufacturing costs of around $2.20 per unit and a retail price of $6.99.

The business needed automated equipment to replace manual packaging processes and meet growing demand. During discussions, Greiner stated,

"I don't mind doing hard work and you don't mind doing hard work, so I think we'll put our heads together, do a lot of hard work, and get it out there everywhere. But I also was sitting here thinking when you said it would be good in stadiums. I've got a guy next to me, he's got some stadiums himself."

She then turned to Steve, asking,

"Would you want to partner with me? We go 50-50."

Steve accepted Lori’s proposal to team up for the deal. Initially, they asked for 40% equity in exchange for $100,000. However, after some negotiations, the final deal happened at 30% equity.

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Lori Greiner and Steve Tisch invested $100,000 in The Cookie Dough Cafe on Shark Tank season 5

The sisters showcased their product line to the panel by distributing samples of their gourmet cookie dough. Financial records revealed first-year sales of $24,000, with their top-performing retail location generating $11,000. Meanwhile, a regional chain comprising 50 stores had submitted a substantial purchase order, which remained unfulfilled due to production limitations.

Three Shark Tank investors opted out quickly. Mark Cuban cited the company's early development phase as his primary concern. Daymond John praised the product quality but stated his inability to dedicate sufficient mentorship time. Meanwhile, Kevin O'Leary highlighted the modest sales figures as his main reservation.

Greiner assessed the market potential and started negotiations. Her initial proposition offered $100,000 for 40% equity while suggesting collaboration with Tisch. However, the entrepreneurs responded by reaffirming their original equity position of 20%. Further discussions led to a middle-ground agreement of $100,000 for 30% equity.

The investment structure was split evenly between Greiner and Tisch, each providing $50,000 for 15% ownership stakes. Meanwhile, The Cookie Dough Cafe confronted a crucial challenge with Walgreens. The national pharmacy chain wanted to stock the products across multiple locations.

However, the Shark Tank company's limited production capacity and lack of distribution channels prevented them from accepting this significant opportunity. The founders needed expert guidance on manufacturing partnerships and operational scaling.

The combination of Lori Greiner's retail industry knowledge and Steve Tisch's extensive venue management expertise created a complete business solution. This strategic partnership addressed immediate distribution requirements while establishing foundations for sustained growth. The founders' request for $50,000 was aimed specifically at purchasing automated packaging equipment to increase production speed.

Manufacturing partnerships posed another substantial challenge. The founders lacked connections with co-packers and needed guidance on establishing these crucial relationships. Meanwhile, quality control and consistency became increasingly difficult as demand grew.

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Post-show growth

The business expansion following the appearance on Shark Tank showed remarkable results. The Cookie Dough Cafe's products gained placement in major retail chains across the US, per Shark Tank Blog. Their distribution network grew to include Walmart locations, BJ's Wholesale Club stores, and Fresh Markets. The company also secured a significant presence in Aldi's refrigerated section.

The founders opened their first brick-and-mortar location in Portland, Oregon. This physical store, marketed as a "scoop shop," allowed customers to experience their products in new ways. The retail presence supplemented their growing wholesale business.

Sales figures also demonstrated sustained growth. From initial annual sales of $24,000, the company reached approximately $5 million in yearly revenue by 2023. Their product line expanded beyond the original flavors shown on Shark Tank. Additionally, The Cookie Dough Cafe maintained its position in the refrigerated dessert market through multiple retail channels.

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Fans can watch new episodes of Shark Tank on the ABC network.