Cinnaholic Cinnamon Roll Bakery Update | Shark Tank Season 5
Shannon and Florian Radke’s custom cinnamon roll bakery is making serious dough, and they’re ready to open a second store. Getting an investment from the sharks would be the icing on the cake. Will they get a deal on
Shark Tank Cinnaholic Update
- Entrepreneurs: Florian and Shannon Radke
- Business: Vegan cinnamon roll bakery
- Ask: $200,000 in exchange for 20% equity
- Result: $200,000 in exchange for 40% equity
- Sharks: Robert Herjavec
Husband and wife team Shannon and Florian make a great team– she’s a baker and he has a marketing background. They started a bakery called Cinnaholic, that lets customers start with a cinnamon roll, then choose from dozens of different icing flavors and toppings to make it their own.
At the time of the 2014 episode, the pair had a 650 square-foot location in Berkeley, California where they sold their rolls for about $5.50 each. In the year prior, the store had $260,000 in sales and they netted 17%, or $45,000.
Florian explained that they wanted to use the $200,000 to help open a shop in San Francisco and turn the brand into a franchise. The sharks were doubtful that $200,000 would be enough to accomplish the goals the couple had for their company.
Barbara Corcoran said that she thought the company’s plans to start opening more locations were half-baked. Daymond John was next out, citing the company’s numbers. Both sharks were out. Robert Herjavec made an offer of $200,000 in exchange for 40%, but wanted the company to stick to one store only, and channel their growth into online sales.
Kevin O’Leary offered $200,000 in exchange for $1.20 royalty per unit sold until the $200,000. Then the royalty would drop to $0.60 per unit sold in perpetuity. The couple wasn’t interested in a royalty deal, however. Florian asked Robert to come down to 35% equity, but Robert refused.
When the pair looked to Mark Cuban for an offer, he deferred to the other offers on the table, saying he had nothing. With that, Florian and Shannon accepted Robert’s deal. What happened next? Keep reading our Cinnaholic update to find out!
We have great news to share in our Cinnaholic update! While the deal with Robert never closed, their plan to stick with a franchising model has proven to be wildly successful! In 2021 alone, they sold $20 million worth of cinnamon rolls! The company is enjoying the sweet taste of success, and now operates over 75 bakeries in the United States and Canada with plans for many more. Find out more on the Cinnaholic website.
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Andrew Smith is the founder and owner of Shark Tank Recap. He is a longtime Shark Tank fan that has been watching it for years and has seen every episode multiple times. His friends know him as the Shark Tank expert, because he can answer any question about the show! His favorite Shark Tank products are Bertello's pizza oven and Bug Bite Thing!