Surprise Cake Shark Tank Update – Shark Tank Season 12
Special events needed a special cake too. A cake that was different from traditional ones, a cake that carried surprises with it. That was exactly what the business Surprise Cake offered. Mother-son team Liz Charm and Jordan Long hoped the Sharks would take a slice out of Surprise Cake, their cake stand that popped a sealed vessel containing gifts out of a cake, in Shark Tank Season 12, Episode 5.
Liz came up with the idea for her daughter’s 12th birthday. She sealed a new cell phone inside a plastic bag and placed it between layers of a cake. When her daughter blew out the candles, the phone started ringing. They cut into the cake to reveal the gift, and it became a huge hit.
Since food safety rules don’t allow placing gifts inside a cake, she turned to her son Jordan (an engineer) to come up with a solution. Together, they created a cake stand that gives the illusion of a gift popping out of the cake. They also added music to the popping stand. When you hit a special trigger attached to the stand, up pops the gift cylinder, just like a Jack-in-the-Box.
Liz and Jordan likely wanted a shark’s cash and help with cutting manufacturing costs. Would a shark want a piece of this business?
About Surprise Cake
| Category | Details |
|---|---|
| Business Name | Surprise Cake |
| Founders | Liz Charm and Jordan Long |
| Industry | Celebration Products |
| Product | Cake stand with a pop-up gift feature |
| Funding (Pre-Shark Tank) | Self-Funded |
| Investment Asked | $200,000 |
| Equity Offered | 8% |
| Deal Status | No Deal |
| Valuation | $2.5 Million |
The core product was a patented popping cake stand that allowed gifts, money, notes, jewelry, toys, and other surprises to emerge from the center of a cake when triggered.
The stand featured a spring-loaded mechanism that required no batteries and was reusable and hand-washable. Customers could use homemade or store-bought cakes, and each stand came with a special corer designed to create the perfect opening for the gift cylinder.
The company also offered upgraded versions that included a music box trigger and cupcake display plate, making the product suitable for birthdays, engagements, gender reveals, holidays, and other celebrations.
Surprise Cake Shark Tank Pitch
Liz and Jordan entered the Tank seeking $200,000 for 8% equity in their company.
The mother-son pair presented a very fun pitch with beautiful visuals. Just like their product, they got into a giant surprise cake and started their pitch. They demonstrated how the surprise popped out of the cake, followed by some music to enhance the vibe. They provided each Shark with a personal sample surprise cake, each containing exciting surprises. The Sharks were pleased to join in the fun.
The entrepreneur duo explained how their cakes could fit into any event and add their magic. You could have them for birthdays, gender reveal parties, and much more. Each Surprise Cake Stand came with a special corer to cut a perfect hole for the gift cylinder.
They recommended getting a cake with no decorations in the center and using extra frosting to cover the top of the cylinder. You could also get a stand with a plate if you wanted to stack cupcakes. Since the stand was spring-loaded, it required no batteries. It was reusable and hand-washable too.
The basic stand cost $37, but the most popular item was the stand with the music box trigger and cupcake plate for $68. The products were in stock on Amazon and ready to ship.
The founders also revealed plans to expand beyond cake stands and eventually sell complete cakes with built-in surprises.
What Makes Surprise Cake Unique?
Surprise Cake stood out because it transformed an ordinary cake into an interactive experience. Some of the features that differentiated the product included:
- Hidden compartment that revealed gifts, money, notes, toys, jewelry, and other surprises.
- Spring-loaded pop-up mechanism that required no batteries.
- Food-safe design that complied with safety regulations.
- Reusable and hand-washable construction.
- Compatible with homemade and bakery-made cakes.
- Available with optional music triggers and cupcake display accessories.
Did Surprise Cake Get a Deal on Shark Tank?
Although the Sharks enjoyed the demonstration, concerns quickly emerged regarding the business model. They made quite a splash, jumping out of a life-sized cake. Unfortunately, that was the high point of their pitch.
The Sharks pointed out one too many problems with the business, from the business model to the product. Kevin explained that mixing cakes and gifts together is a bad idea when it comes to doing business, as gifts have no shelf life, but cakes do. While selling cakes, there are many things one needs to keep in mind.
Barbara Corcoran guessed that maybe because the entrepreneurs aren’t able to make enough sales with the “cake stand” alone, they are selling cakes with it, too.
Kevin O’Leary pointed out that each piece could be sold only once because the stands are reusable, so no family is going to buy it again. The entrepreneurs say that they plan to curate gift pods that will ensure customers come back for more business.
Mark Cuban felt that was a horrible idea.
The Sharks also questioned the company’s financial performance. Despite being on track for approximately $900,000 in annual revenue, the business was expected to generate only about $50,000 in profit. Several Sharks felt the entrepreneurs were focusing on revenue growth rather than profitability.
Lori Greiner likes their idea; she feels it could become a family tradition. The only thing she did not like very much was the high valuation.
The Sharks unilaterally thought the duo wasn’t focused enough to make the company good for an investor. All the Sharks declined to make an offer, and they leave with no deal.
Surprise Cake Shark Tank Update
Even though Liz and Jordan left the Tank without an investment, the exposure from the show helped introduce the product to a national audience and it was featured by Good Morning America, TODAY, and several major online publications.
The company continued to sell products. They were very active on their social media pages, and the company also added cake stands and cake-carrying kits to their line.
In the spring of 2022, they began shipping cakes direct to recipients. The 4-inch cakes come in a box that, when opened, shot confetti out. You can pick from a dozen different flavors for the cakes and customize the box with photos, handwritten phrases, gift cards, champagne, stuffed animals, and more.
They started at $54.99 and went up as you customize. All Surprise Cakes are shipped next-day air. As of July 2024, annual revenue was $1-$2 million, and the company’s net worth was $3.5 million.
Where Can You Buy It?
Customers could make celebrations unforgettable with Surprise Cake’s interactive, reveal-filled cakes, available on their official website. Ditch the ordinary desserts and find a truly unique experience by ordering your Surprise Cake from Amazon.
For more information about the company and their show-stopping cakes, could visit them on Facebook, Twitter and Instagram.
Quick Summary
- Liz Charm and Jordan Long sought $200,000 for 8% equity in Surprise Cake, a cake stand that revealed a hidden gift when triggered, creating a memorable surprise for special occasions.
- Despite their energetic presentation, the Sharks expressed concerns about the duo’s focus and scalability, ultimately deciding not to invest.
- Post-Shark Tank, Surprise Cake continued to thrive, expanded its product line, and shipped customizable surprise cakes, with annual revenue reaching $1-$2 million as of July 2024.
Read other Shark Tank Season 12 Episodes.
Curious about the other businesses featured in Shark Tank Season 12 Episode 05? Explore more updates and see which ideas made a splash in the Tank.
