A dairy- and lactose-, egg-, and cholesterol-free vegan cinnamon roll bakery are pitched by Florian and Shannon Radke in Shark Tank episode 525 on May 9th.
If they’re successful, they’ll be able to open franchised Cinnaholic stores across the country.
Shannon used to be a veterinary assistant, but she switched to vegetarianism and began baking.
Florian used to be a punk rock scenester in Germany. Florian and Shannon began dating in 2008 after Florian used Couchsurfer.com to find her while researching a trip to the California coast.
The two fell in love and decided to marry and start their own business together, Cinnaholic.
They started as a food truck, but they opened a brick-and-mortar shop in Berkeley, California, soon as the concept gained traction.
Everyone seemed to enjoy their roles, even though they were vegan.
The company has gained so much positive press and increased revenue that it has now offered franchises.
They’ve received well over a hundred serious inquiries so far. They’re most likely looking for a Shark to assist with the launch of their franchises.
What Is Cinnaholic?
Cinnaholic is a homemade cinnamon roll, delicious frostings, and tasty toppings. They are dairy-free, egg-free, and 100 percent vegan.
The cinnamon roll is like a frozen yogurt place, where you can pick all the toppings you want.
|Founder||Florian Radke And Shannon Radke|
|Business||Dessert and cinnamon roll shop for vegans|
|Investment Seeking||$200,000 For 20% stake in Cinnaholic|
|Final Deal||$200,000 For 40% stake in Cinnaholic|
|Episode||Episode 28 Season 5|
|Business Status||In Business|
Who Is The Founder Of Cinnaholic?
Christina Radke and Florian Radke are the founders and owners of Cinnaholic, a bakery in Berkeley, California.
Cinnaholic Before Shark Tank
Shannon Radke and Florian Radke combined their talents and created a lovely idea: vegan cinnamon rolls free of dairy, lactose, and eggs.
The backgrounds of Florian and Shannon in branding and marketing made for an ideal partnership.
Cinnaholic was started by Florian and Shannon Radke, a husband and wife team.
It offers many mouthwatering desserts, such as almond-raspberry pie, banana cream pie, and strawberries drenched in cream.
A 20% stake in their company is worth $200,000 to them, so they’ve come to the Shark Tank hoping to get it.
Florian drew on his marketing skills, while Shannon relied on baking to create the world’s best cinnamon roll. Custom gourmet cinnamon rolls are the focus at Cinnaholic.
It all starts with freshly baked cinnamon rolls, but customers can customize their order by selecting 30 different frostings and 30 different toppings.
As a result, returning to Cinnaholic always results in a brand-new, never-before-tried treat.
How Was The Shark Tank Pitch Of Cinnaholic?
Florian and Shannon are looking for $200,000 in exchange for a 20% stake in their company. They tell their story and make a sales pitch to potential customers.
There are groans of delight from the Sharks when they taste the samples they’ve been given.
Although the rolls are free of dairy, eggs, and cholesterol, they still contain only 500 calories per serving, less than half the caloric content of a standard roll.
The sharks are a little taken aback by the veganism of the cinnamon rolls. You can’t tell they’re vegan because they taste too good to be true. However, they have managed to do so in a miraculous way.
They need the money from the Sharks to fund the opening of a second location. They sold $260,000 worth of products at their Berkley store last year.
Florian estimates that there are 50 million Americans who are intolerant to dairy products.
“There are also an additional 5 million people in the United States who suffer from severe food allergies.
The vast majority of them are children. Many mothers come to us with special requests for their children, so we get many of them.
Barbara claims that the success of Cousin’s Maine Lobster has made her complacent, so she’s leaving.
Robert believes that opening a store would be a mistake and instead intends to ship the rolls directly to customers via the postal service or other delivery services.
Inquiring minds want to know whether the company has a long-term strategy for increasing sales that go beyond brick-and-mortar locations or whether multiplying locations is the end goal in and of itself.
He offers them $200,000 in exchange for 40% of the business, but only if they don’t open another location.
A second retail location isn’t necessary for Kevin because he also plans on shipping Wicked Good Cupcakes rolls.
As soon as he gets his money back, the royalties drop to 60 cents per unit until he gets his $200,000 back.
Florian and Shannon discuss the royalty offer and then inform Kevin that they find it objectionable.
They make a 35 percent counter-offer to Robert, but he refuses to budge. They finally agree to Robert’s terms.
Final Deal: Robert Herjavec agrees to invest $200,000 for a many40% stake in Cinnaholic
What Happened To Cinnaholic After Shark Tank?
The agreement with Robert was never signed and sealed. Cinnaholic partnered with Atlanta Franchise Group to focus on expanding their business.
Southlake, Texas, and Ocean City, Maryland will be the first 25 planned locations to open. Las Vegas, Anaheim, and Dallas are a few more options.
Atlanta has also opened a store, and there are plans for more in the greater Atlanta area.
They have 56 locations as of November 2021 and expect to open an additional 10 by the end of the year.
Another 60 franchises are currently under construction. All locations saw an increase in same-store sales of 137 percent on average. The franchising company makes $1 million a year in revenue.
Is Cinnaholic Still In Business?
Cinnaholic appears well on its way to becoming a full-fledged franchise three years after making its Shark Tank debut.
Cinnaholic has opened shops in Texas, Georgia, and Las Vegas, after starting in Berkeley, California.
The cinnamon rolls are no longer available for purchase online as of 2021, as the company is focusing on expanding its brick and mortar stores instead.
Cinnaholic has franchise opportunities, which explains why they are expanding even after turning down Robert’s initial proposal after the shark tank episode aired.