Mark attempts to make his biggest investment yet and Kevin calls someone a “cockroach” in the new episode of “Shark Tank” Season 6 Episode 13 “Coffee Meets Bagel, SkinnyShirt, Doorman, Bantam Bagel,” which aired last Jan. 9, 2015 at 9:00 p.m. on ABC.
The episode kicks off with the first entrepreneurs Soo, Arum and Dawoon Kang with their dating service Coffee Meets Bagel. They seek $500,000 for a 5 percent stake. Their service aims to change the way a person discovers new people and fall in love. It is another dating site. They emphasize that online dating “sucks” because people are treated as pieces of information on the web. Their service is all about “happenstance” and “stumble upon someone special” through a mutual friend. Their goal is to have a high quality dating site for singles.
About the searching process, a person only has 24 hours to review someone’s profile who is a “friend of a friend.” The user has the power to “like” or “pass.” Mutual likes lead to a private chat that expires in seven days. The Kang sisters aim to please women for their success. In common online dating sites, women are usually hit on by a “creepy stranger” who sends them “disgusting messages.”
“Kevin…” Mark teases.
The sisters emphasize that women love Coffee Meets Bagel. From their national launch, they earn “double digits monthly.” They want to expand their service internationally, so they are seeking financial support from the sharks.
Kevin finds the idea interesting. Robert asks about the service’s name. The Kang sisters are aware that there is an existing “stigma” with online dating services that their users are happy that Coffee Meets Bagel sounds like it has nothing to do with a dating service. If people talk about it, non-users cannot relate. It is like a “code.”
Kevin asks about the sisters’ business model. They explain that basic service is free, but they have online currencies called “coffee beans” to unlock premium features. One of their most popular items is Open Sesame. Users must use coffee beans to identify mutual friends. Mutual friends are always unknown or a “mystery” on Coffee Meets Bagel. People will be curious why they are connected with a certain person. Every coffee bean costs 2 cents. Open Sesame needs 95 beans. The users must sign up through Facebook because their information is based on it. It takes “less than a minute” to sign up because registration forms are not needed.
Robert asks what he thinks is the most important question: “Have you met the man of your dreams?”
Arum is married, and Dawoon is currently dating someone because of Coffee Meets Bagel. On the other hand, Soo is having fun knowing different kinds of people in their dating service. Arum announces that they currently have “several hundred thousand” users. Mark asks if what he heard was 200,000 or 700,000. The sisters do not want to say the specific number of users. Arum attempts to explain why, but Mark says he is out.
Robert asks about their sales. In 2013, they got $87,000. In the first five months of 2014, they generated $275,000. They expect to generate $1 million for the year. They aim to generate $10 million. Their current profit is “negative” because they have to give salary to the developers. On the other hand, the sisters’ own salary is $100,000 each, so they get $300,000 a year from the sales. So far, they raised $2.8 million as company fund. Their first investor is a co-founder of Match.com. They expect to lose $1 million for the year. Robert is caught off-guard that they will lose $1 million from $1 million sales. Dawoon explains that it is for the expansion of their dating service. Barbara asks how much will the sisters get from the projected $10 million sales for the next year. The sisters want to “break even” because they expect 4 million users that will spend $2.50 each.
Robert concludes that the sisters are in an “all or nothing play” because they lose so much money. He says that they are more focused on getting users than getting money. He thinks it is risky, so he is out.
Kevin starts to talk about how valuable he is as the show goes on. He says it made him “greedy.” He thinks 5 percent deals are worthless to him, so he is out.
Lori says that anyone can create Coffee Meets Bagel on the internet, so she is out. Barbara commends the sisters for their great effort in raising money. She likes how their dating service gives women the power to choose. However, the break even at $10 million sales and 5 percent stake for a shark horrifies her. She thinks the percentage is not enough for the big risk, so she is out as well.
Suddenly, Mark asks the sisters if they will take a $30 million investment from him. Arum says no without any hesitation because she and her sisters think that their dating service will grow as big as Match.com which generates $800 million a year. Mark is still out, but he commends the confidence and firm decision of the sisters about rejecting his attempt of giving $30 million.
Next up is Julie Kalimian for her product SkinnyShirt. She seeks $100,000 for a 20 percent stake. She aims to solve the problem of women looking bulky after putting a sweater on a button-down shirt. Her assistant demonstrates the difference by changing her bulky clothes to SkinnyShirt. She changes her clothes behind a white panel that shows her sensual silhouette. The sharks laugh because the female sharks tease the male ones. After the assistant come out in less than a minute, Lori and Barbara commend the product’s effectiveness and presentation.
While the sharks are scrutinizing the samples, Julie insists that her product is 100 percent unique. In the last three years, she generated $500,000. She expects $200,000 for the current year. Last year, she got $50,000. Mark clarifies if her sales went down. She explains that a manufacturer gave her bad production, so she had to look for another one. Her new manufacturer agreed with $12.75 each shirt. Another manufacturer is willing to do $9.50. The sleeveless shirt costs $68, and $76 for the long-sleeved. So far, she generates $75,000.
Mark is appalled of the slow sales increase after her business tragedy. He says the difference is too big from the speedy increase before the manufacturing problem. Julie reasons that it was because of inventory and investment problems. Kevin attacks that if her product is a good idea, nothing will stop a person to make new inventory and crush her like a “cockroach.” He reiterates that she is indeed a cockroach. He tells her that she does not know what she is doing. He describes that 75 percent of her presentation was all about how she “screwed up.” He wants to know how she fixed it which is not yet done, so he is out.
Mark commends her for standing up from the tragedy, but he finds the numbers too slow. For that reason, he is out.
Robert does not think that her product is a “stand-alone category,” so he is out. Lori’s issue is she does not wear button-down shirts and sweaters. She worries that only a specific group of women are going to buy her product. Because she does not get the fashion statement, she is out as well.
Barbara commends Julie for standing firm despite the “bullies” Kevin and Mark. However, she thinks Julie had a long time reviving her product from the tragedy, so she is out.
The next entrepreneur is Zander Adell for his delivery service Doorman. He seeks 250,000 for a 10 percent stake. Doorman is a mobile app that organizes preferred delivery schedules until midnight for the whole week. It is beneficial for people who usually do online shopping. Zander’s aim is to expand his service nationwide.
Zander says that his next city is Chicago. Lori is excited about it because she lives there. Barbara concludes that all the sharks love it and likes Zander because he seems trustworthy. Lori, Robert and Barbara confirm that they are in. Their first offer is $250,000 for a 20 percent stake. Zander seems to be doubtful of the 20 percent stake, but Lori says that they deserve it because they are influential in different cities. The counteroffer is $250,000 for 12 percent stake. Robert immediately agrees and takes off Barbara and Lori from his deal.
After Lori reminded Zander that she is from Chicago, Robert attempts to make a deal with her again. Barbara is out because Zander wants more cash for 20 percent stake. Lori offers $250,000 for 15 percent stake. She convinces Zander that she also wants to be a customer. Robert wants to be with Lori’s deal. Zander insists he wants to give only a 12 percent stake. Lori is out. Robert agrees and is the only shark left.
The last entrepreneurs are Nick and Elyse Oleksak for their product Bantam Bagels. The couple seeks $275,000 for an 11 percent stake. They sell mini bagel balls filled with cream cheese to veer from the big ones with high calories. In less than year, they are voted one of the top three bagels by New York Daily News. They aim to expand their company nationwide.
Talking about numbers, the couple generates $200,000 so far. Each bagel costs 30 cents to make and $1.50 to sell. Despite the slightly expensive bagels, the couple insists that they have a lot of regular customers especially mothers and children. They managed to put out their product on QVC. For the first five minutes, they were sold out. They think that QVC was the only great way to present their product to eight million people. They invested $50,000 from their savings and Nick’s six-figure job.
Robert criticizes the couple that they do not have enough “desperation” compared to most entrepreneurs coming to the show. He believes that their above-average economic status can affect their drive to expand the business. Mark disagrees with Robert’s comment because he is an above-average businessman as well. However, he is out because he thinks the couple does not know yet “where to go.” Robert is out as well.
Barbara makes an offer. She is confident about her experience in the food industry. Her condition is the couple must be willing to drop QVC. The couple is willing. Barbara’s offer is $275,000 for 51 percent stake because she believes the business will not succeed without her. She knows the good and bad people in the industry, especially the ones who will steal their ingredients.
Kevin’s conditions are Nick must quit his job and they must find a commercial kitchen for a faster movement. His offer is $275,000 for 50 percent. Lori also has an offer, but she wants the name to be changed because it does not capture the product’s essence. She also wants food trucks that will serve coffee and bagels. Her offer is $275,000 for 30 percent.
The couple thanks Barbara for her offer, but 51 percent is too much for all the hard work they put on the product. Barbara is willing to hear their counteroffer. The couple offers $275,000 for 25 percent. Before Barbara can speak, Lori is willing, but they must choose her immediately. The couple is in. Barbara thought she was going to be chosen.
What company does Mark want to own completely? Catch it on Jan. 16, 2015.
There you have it for the recap on “Shark Tank” Season 6 Episode 13 “Coffee Meets Bagel, SkinnyShirt, Doorman, Bantam Bagel,” which aired last Jan. 9, 2015 at 9:00 p.m. on ABC. For more updates about this show, including spoilers and recaps, follow Movie News Guide (MNG).
Photo Source: Wikimedia Commons/Lamonttroop