Season 5 | Episode 508 | EP508
In Season 5, Episode 8 of Shark Tank, Sarah Schulz approached the Sharks seeking an investment of $160,000 in exchange for 20% equity in ‘Schulzies Bread Pudding’. The company is currently based in Los Angeles, California.
Schulzies Bread Pudding is a company which specializes in the retail of bread puddings. Sarah Schulz had a couple of retail locations where she sells her products. These retail locations (only one of which is operated by Sarah at the moment) are apparently the only locations in the world which specialize purely in bread puddings.
It took a while for the Sharks to get to the bottom of her figures with the pitch being all over the place however Sarah finally announced that her original retail location was profitable. This location, a small window on Venice Beach, was able to make $190,000 in sales. The Sharks calculated this as $1,300 per square foot. The new location, an 800 square foot location in the heart of San Francisco, was able to make just $450 per square foot over the year. This was less than impressive. The Sharks believed that a company that was making such a small amount like this would likely succumb to debt in the future and for this reason it is unlikely that it is something that they would be willing to invest in.
Sarah announced that one of the main reasons as to why she had struggled to gain a ‘foot hold’ in San Francisco was the lack of marketing on her part. She stated that she spent a $300,000 inheritance in getting the business up and running but to no avail. She was seeking investment in her parlour in San Francisco in a bid to get the name out there and hopefully start to get people through the doors.
As Sarah was unable to receive any offers from the Sharks, she had to leave the room empty-handed.
The Sharks did not believe that this was a viable business investment. They did not see anything there that really made them believe that it was likely that they would ever get back their investment. They also believed that Sarah was a little lacklustre when it came to her business presentation and they did not believe that she had the skills to take the company forward. All of them withdrew from the proceedings.