David and Joanna Parker pitched their innovative meal service, Yumble, on Shark Tank, seeking $500,000 for 4% equity, aiming to simplify healthy meals for busy parents.
Key Takeaways: Yumble Shark Tank Update
- Innovative Meal Solution: Yumble offers a subscription-based meal service targeted at parents, providing healthy, convenient meals for children.
- Wide Variety and Engagement: Features 22 different meals per week with options for 6, 12, or 24 meals, each including a collectible toy to keep children engaged.
- Impressive Financials: Yumble reports $1.3 million in sales with a month-over-month growth rate of 30% and a significant decrease in customer acquisition costs.
- Market Concerns: Despite strong sales and product appeal, concerns about intense competition from both online and brick-and-mortar retailers pose challenges.
- Investment Secured: Bethenny Frankel offered $500,000 for a 6% share, becoming a spokesperson for Yumble, despite competing offers from other Sharks.
Yumble Company Overview
New Jersey based, Yumble, entered the Shark Tank in hopes of walking away with $500,000 in exchange for 4% of their rapidly growing business.
Husband and wife duo David and Joanna Parker created this subscription-based meal service as a way to help parents feed their children healthy yet convenient meals when they are pinched for time.
Most parents can relate to the feeling of rushing home from work to make a quick dinner for your family.
Yumble is an alternative to making unhealthy, processed foods for your children. Each meal also includes a collectible toy for children to stay excited and engaged with their meal service.
To keep variety in their meals, there are 22 meals to choose from each week and families are able to decide if they would like a 6, 12, or 24 meals in their subscription. Some meal choices include chicken pops, empanadas, and smac and cheese (which contains as much protein as a piece of chicken). Each meal comes in a tray that is able to fit into a lunch box.
Say goodbye to frozen chicken nuggets and hello to a healthy and fun alternative you can feel great about! Our chicken pops are made from 100% anti-biotic and hormone free chicken, rolled in whole wheat panko crumbs, then baked to golden perfection. pic.twitter.com/BfM8rDCMB3
— Yumble! (@yumblekids) December 4, 2018
Yumble’s Performance on Shark Tank
The Sharks are all very impressed with the taste of the food and ask about the financials. Each meal sells for $6.99-7.99 per meal. Their current sales are at $1.3 million with a 30% growth rate month over month.
They have also reduced their new customer acquisition to $40 from $100. Another promising metric is that 70% of their customers are re-ordering at the first opportunity that they are given.
While the Sharks are impressed with their product and the current financial health of Yumble, many are concerned about the competition in this market, specifically brick and mortar stores as well as large e-commerce businesses like Amazon. Without a retail partnership, this is a very risky company for a Shark to invest in. Because of this fear, Kevin O’Leary and Mark Cuban declined to make Yumble an offer.
Bethenny Frankel offers Yumble $500,000 for a 15% share in their company and she agrees to be a spokesperson for their product.
Rohan Oza also extends an offer to Yumble. He offers $500,000 for a 12% share.
He feels that he can help them with their branding and story and is willing to go in with Lori Greiner to help with their packaging and marketing as well. Bethenny really wants this company and counters back with $500,000 for 6%, threatening to withdraw her offer and walk away. They accept Bethenny’s offer.
@RohanAOza is right. No matter what your idea is, a Wal-Mart or an Amazon is always going to be able to execute it cheaper and easier. This means you MUST be able to differentiate yourself with your brand and your story. When you're starting out, that's all you have!
— Kevin O'Leary aka Mr. Wonderful (@kevinolearytv) December 10, 2018
I wouldn’t have invested in this already crowded not that innovative meal delivery service. #sharktank and I’m surprised @Bethenny bit on that worm. It’s not that difficult to cook decent and inexpensive meals for your children. All it takes is planning ahead.
— Susan Nagy (@Susan_Nagy) December 10, 2018
I didn't know @Bethenny was a chef. That gives her credibility as a spokesperson for @yumblekids #SharkTank
— Novafan23 (@Novafan23) December 10, 2018
I think two strategic #SharkTank
Partners would have been better than a visiting Shark! Just my humble opinion.— angela alston (@jenean123) December 10, 2018
If your picky kid won't eat your cooking, why will he or she eat something that's completely unfamiliar? Mine wouldn't. #yumble #SharkTank
— Claire Collins (@clairec345) December 10, 2018
I would take @Bethenny offer; she’s more passionate and can relate better to the product! #sharktank @ABCSharkTank
— eyeheartmedia (@eyeheartmedia) December 10, 2018
@kevinolearytv & @mcuban make very valid points. The big players (Walmart & Amazon) will likely whack them before they become a million dollar company. The food industry is cut throat. #yumble #SharkTank https://t.co/Wo6M9yIWBb
— Dale Sams (@dalesamsWx) December 10, 2018
yes @Bethenny #Yumble needs a strategic marketing partner to take this startup through its growth phase #sharktank https://t.co/DIqHZJHJyJ
— Irene Marie Plavcic (@ireneplavcic) December 10, 2018
What do you think of Yumble and their business model? Do you feel this is a risky business venture? Do you think they made the right decision by going with Bethenny over Rohan and Lori? Let us know what you think of this product and their deal in the comments below!
For a full summary of this episode, check out this article. Shark Tank airs on Sundays at 9:00 PM EST on ABC.