How Do You Roll? That's the question Austin, TX brothers Yeun and Peter Yung will ask the Sharks in episode 418. The brothers pitch the Sharks on their growing franchise chain of custom-made sushi. The brothers grew up working in their parent's restaurant and when they finished high school, Yeun went off to college while Peter pursued a career as a chef. Yeun was working the 9-5 routine and he lamented to Peter that he couldn't find any decent, but quick, sushi options for lunch. They decided to start How Do You Roll, a restaurant where the customer designs their own sushi rolls from a wide variety of fresh ingredients and wraps. The brothers also offer “non-traditional” ingredients at How Do You Roll so folks who don't like raw fish can get in on the sushi experience. As an added convenience, you can call or order online so your custom sushi is “ready to roll” when you pop in to pick it up. How Do You Roll is a franchise opportunity, with fifteen locations in Texas, Arizona, California, North Carolina, and Florida.
How Do You Roll in the Shark Tank
Brothers Yeun and Peter Yung come to the Shark Tank in episode 416 in hopes of landing an investment of $1 million in return for 12% of the company. The brothers explain that their sushi restaurant allows visitors to customize their sushi, which is made fresh. They also offer “featured rolls.” The pair started with one restaurant in Austin, Texas. Currently, 15 stores are open, and 40 franchises have been sold.
Kevin O'Leary wants to know about cash flow. Yeun explains that the corporation is making, on royalties from the franchises alone, $250,000 a year. The corporate store is making an average of $1 million in sales a year. Each franchise costs $250-300,000, and the royalty for a franchisee is 7% a year.
Mark Cuban doesn't want to be “in the sushi business.” He's out. Kevin O'Leary believes the business is “very well managed,” and he's interested, but believes that the valuation is high. Yeun explains that they've had an offer to buy 75% of the compay for $6.6 million.
Daymond John believes the “margin is going to be too low” on the sales of sushi. He's out. Robert Herjavec “can't understand this particular food model,” and doesn't believe he can help the business, so he's out. Barbara Corcoran thinks the presentation is “a little too buttoned up.” She's out.
Kevin O'Leary makes an offer. He's willing to invest $1 million, but he wants 22% of the business, with a percentage of the franchise royalties distributed to the partners- the brothers and himself. Yeun asks if he'll come down to 15%. O'Leary is willing to come half way, meeting them at 20% for his $1 million investment.
The pair accept the offer, partnering with Mr. Wonderful.
How Do You Roll Shark Tank Update
In spite of Barbara Corcoran's warning that they've “made a deal with the devil,” the pair are excited at the prospect of partnering with O'Leary. After a few months of negotiations, however, the deal fell apart like a poorly-rolled sushi. The brothers and O'Leary weren't able to reach an agreement on several points, and O'Leary eventually withdrew his offer.
The loss of the Shark Tank deal hasn't stopped the brothers from growing their business, however. Today the company has over 100 franchises across the country. The sushi business is doing just fine without a fillet of fresh Shark, and the brothers appear to be rolling with the punches and creating success for themselves.