2 things: 1 Mark backed out from deal and Kevin came in later on. Company got acquired for $340m by Albertson's in 2017 so it was considered a huge success at at time. 2 The service got cancelled in 2019 by Albertson's because there was nothing proprietary about the model and companies like HelloFresh outcompeted it. So technically the sharks were right thinking this business is risky. Even though the company was "successful" the ACTUAL concept lost Albertson's a ton of money so Plated was lucky to have such a huge exit before competitors came in
i think mainly it might be because HelloFresh and others deliver frozen meals right? If I understand correctly, Plated focused on ingredients so you still had to cook..
@@unitish97 Look at Blue Apron stock... I think that is what this stupid industry will end up at... Another groupon type nonsesne biz model that got caught up with the novelty bias in their analysis.
Their responses are funny since this episode is 8 years old. This business plan absolutely took off a few years later. There has to be regrets from the sharks.
Kevin just did an interview this week with the Breakfast Club where he revealed that Plated is the highest valued company in Shark Tank history. The company was recently bought for like $400M EDIT: HIghest valued company which the sharks made a DEAL with. Doorbot/Ring is the biggest company but it did not secure a deal with the sharks
The problem with what Lori's comment that 'most people cook' is that so many of the younger generation do not know how to cook at all. Multiple companies now do things like this and it is allowing people a relatively simple way of learning to cook.
Hello Fresh is what got me back into cooking. I love cooking, but being a mom and working full time, my cooking dwindled to kraft mac and cheese and chicken nuggets pretty fast. I subscribed to Hello Fresh and it reminded me how much I love cooking and makes it so easy. It's such a great idea.
Yeah I knew how to cook but have always prepped meals. One ingredient dishes with some seasonings on the protein. Could easily cook a gourmet meal without having to look for recipes, buy quality ingredients, cook it, and rinse and repeat till I find a similar quality.
I agree and I think the owners messed up by talking about targeting people who are in a rush instead of targeting people who want to learn to cook for themselves. All these competing brands that popped up since did well because of that market, but Lori was right in that their explanation didn’t make sense, they just talked about people who cook and people who get takeout
They had no idea what they missed out on. Yes there’s a lot of companies that do the same thing, I’ve tried it. I live in a high rise lots of nurses doctors some lawyers etc. SOOO many people in my building subscribe to these services. It’s extremely popular.
Same thing in the Netherlands. Americans just don’t understand the hassle of having to find something different to cook and gathering the ingredients, because take out is such a big thing there.. Maybe the US just isn’t the right market for this particular product
Canada here! I use Hello Fresh too, literally cooked a meal with them like 2 hours ago. It's a great service and I actually cook waaaay more than if I go out an buy groceries and let them go bad in my fridge.
I love how the Entrepreneur said at 8:00 "You don't need a lot of customers to make this a giant business" I'm definitely using that in my upcoming pitch.
LOL first time I saw the sharks become little goldfish. Especially Robert. These guys answered all their questions perfectly. They simply didn’t believe and lost out on $$$$
Yeah, what happen is that Sharks putting themselves on the shoes of the customer, and judge that if they would try the product out for themselves. So when they dont think they would use it, they dont feel good about it and ultimately dont want to make an offer.
I live in the Midwest and haven’t heard of this company. However, these entrepreneurs have an impressive pedigree and the COVID lockdown must of been amazingly beneficial to their business.
@@drewramosgimenez6022 no, it was sold to Albertson’s in 2017 for $200m and was shut down later that year. Their deal with Cuban also fell through but O’Leary got involved and helped them build it up to the $200m sale.
Here is what to remember for all the young entrepreneurs out there. It doesn't matter if there are similar products or businesses out there. If you can find a way to make it better or more useful, you'll be the one on top.
Here’s where they messed up in their pitch: say it’s for millennials You’re pitching old rich people. Say it’s for millennials. Explain your target demographic. Cuban understands millennials so he understood customer base.
@@ElliotK2 oh well that is a good story to have rather than losing a bunch of money lol. Plated seems like they were really innovative because they were ahead of their time regarding the whole food subscription service thing. Now there are like two dozen of them
I've never been a cook, but I ordered Hello Fresh for a while and love cooking now. It's relaxing and therapeutic. I've saved the recipes to reuse at my leisure.
@@evanscott9473 See that's exactly what the sharks were fearful of. Once you learn to keep using the service you must want to spend the money just to eliminate shopping. That reduces the target market after the first 3 months. There are perhaps 4 successful companies still doing this but its a tough market that keeps shrinking.
@@adedaremayowa1347 Yes Mr. Wonderful ended up making a deal with plated without Cuban. There numbers were herendous and alot was lost Mr wonderful said it was well. it took them years to make money.
They should pitch that experience to cook by yourself and or eating something your family cooking for you is another experience than just have some food to eat. And this help anyone who want to cook save alot of time and effort.
this guys dont want to say it obviously but this already exists , every podcast has a commercial of "blue apron" which is the one i am talking about .. theres 20 more
Eventually they backed out afterwards and Mark didn't invest Kevin ended up investing and earning some good money while the company had the largest Tank exit after it was sold for 300m$
"Plated appeared on episode 22 of the fifth season of Shark Tank, which aired on April 4, 2014;[6] on the show, Plated struck a deal with Mark Cuban of $500,000 for 6% of the company. However, the deal never closed because Taranto and Hix, who had initially asked for a $500,000/4% deal on the show, wanted to renegotiate the deal based on growth after the show. Four months after the deal with Cuban fell through, the Plated founders made a deal with Shark Tank's Kevin O'Leary for an undisclosed sum.[1"
So it seems like the Sharks underestimated the future popularity of the concept; but were correct about the risk factor (nothing proprietary; limited barriers to entry).
Fast forward today, it’s one of the biggest deals ever made on shark tank. Hindsight is always 2020 but man, it just goes to show that you have to believe in yourself!
After watching this show for many years now, you either bring good product with good numbers ( a bidding war will occur ) you will a deal you didn't except, or you bring a meduim product with notable numbers and you will definitely be a prey to one of the sharks.
I’ve tried this service, the meals come out to be $11 per person so it doesn’t save you money and it doesn’t save you time because you still have to cook the food and make a mess in your kitchen
I’ve noticed that the businesses with 2 partners always come in with really low equity, while the single owned businesses usually are offering equity in the 20% range.
Living alone with reduced storage space , I would love to have such service where I live. I always end up buying more than I need. Today I cooked pumpkin soup. I had to get a 2kg at the supermarket because small pumpkins or portioned simply don’t exist. So before it spoils I will have to be living on pumpkin the whole week LOL. Soup, boiled? Any suggestions 😂 And if I search for recipes using pumpkins… I’ll probably need other products that I won’t need for my next recipe 😢
The reason the sharks don’t understand is because they can make split decisions with the snap of their fingers Whereas I know people that will take almost an hour to decide what to eat
Why do they think this is so novel? There are at least 10 other companies that have been doing the exact same thing for year, ie, Blue Apron, Hello Fresh, Freshly..
The sharks were wrong... however... we use Hello Fresh and it is absolutely wonderful and it keeps the monotony of same thing over and over from dominating your life. Food is fun, exciting, and the Hello Fresh box arriving is like Christmas every week. So we tried another company doing the same thing.... and... IT IS NOT THE SAME! Recipes suck, food is not always fresh or properly packaged. Nothing ruins the experience more than opening a box coated in unidentifiable goo. We haven't tried Plated, but there is no guarantee the Sharks made a bad decision. The concept is good, but the devil is in the details and quality of the company. Since I haven't tried Plated, I don't have an option. But Hello Fresh is very impressive.
"this is for people who are too busy to cook." No Lorie. This is for people who are broke who want to learn how to cook so they can save money down the line.
You're pitching a product to a group of people who haven't made a meal for themselves in their entire adult lives. None of them could survive if they had to either....natural selection here, folks!
It makes perfect sense for a grocery chain like Albertson's to buy into this they have stores all over the country to supply the ingredients. Just that the trend for a long time is for stores like Albertson's and Publix and others to provide more cooked foods you can take right home and eat so Robert was right. I agreed with both Robert and Lori. I would probably not use a service that just gives me the ingredients then I have to cook them. And Lori was right in that people who like to cook tend to not need that help and would find their own recipes and do their own shopping.
I feel like this was genius. Lazy people who want a bunch of steps done for them want this. I love knowing what I want to eat and someone else getting all the ingredients and portions ready for me and I just cook it all together.
Mark invested at a 9 mill evaluation. The company got bought for 200 million. He x22 his 500k . What a way to make 11 million dollars out of 500k for not doing anything
i bet they were all out because they felt intimidated by their intelligence and sharpness.. to be a shark u need a partner who is not 100% sure about his capacities
Another pitch where the entitled sharks dont get the product because they have everything in their lives done for them. But mark always understands these and ironically is the richest one out of all of them.
Listen, Man United might not thank me but get the contract out, put it on the table. Let him sign it, let him write whatever numbers he wants to put on there, given what he's done since he's come in. RANGNICK'S (Ole 3.0) at the wheel, man. He's doing it. He's doing his thing. MAN UNITED ARE BACK!!!!!!
Some people love to cook, and yes it can be a togetherness thing with couples. Anything that pairs lovely recipes with only the necessary high end ngredients in a convenient package was going to have success on the market for upper middle class to upper class families. I was literally saying? Hello? Hello Fresh anyone? This was the precursor.
