Shark Tank's Kevin O'Leary loses Taverns-To-Go deal to Lori Greiner despite playing the Irish card
Paul Convey and Enda Crowley, two Irish friends from New York, created Taverns-To-Go to mitigate the pandemic predicament of the inability to hit bars or pubs. With the Irish knowledge of rollicking parties and a bit of engineering, the duo created custom wooden bars that can be installed in backyards in under 90 minutes.
Taverns-To-Go helps people craft their perfect yard bars, which can be customized as per your liking, and offer coast-to-coast delivery.
The duo walked onto the 'Shark Tank' stage in Season 16 Episode 6, which aired on Friday, November 22, seeking $400,000 for 10% of their company.
Taverns-To-Go impresses 'Shark Tank' panel with 40% profit margin
Taverns-To-Go offers models ranging at different price points, including the one they showed the Sharks, which was for $3,795. And depending on where you live, delivery might be free or cost you up to $590. The founders spent about $2,200, including overhead, to make the particular model presented on the show.
Their year-to-date sales were $2.2 million, having started in 2020. They were about to hit the $10 million mark at the time of filming the 'Shark Tank' episode. Interestingly, the founders invested a couple hundred dollars to build the first bar.
As per Convey and Crowley, the wooden bars are built by their in-house crew, and their customer acquisition cost ranges between $200 and $250. They're on track to reach the $4 million mark in sales this year.
Their profit margin happens to be about 30% to 40%.
Kevin O'Leary plays his Irish man card to score a deal with Taverns-To-Go
The only way Kevin O'Leary would do this deal was by becoming the "third Irish dude," given he is, in fact, Irish. His only role would be to blow this thing on social media, for which he felt he deserved the 33.33%.
Guest Shark Todd Graves agreed to become a customer but refused to make a deal. Mark Cuban mirrored the same emotion, stating he wouldn't be able to add much value to the company, so he chose to sit it out.
Daymond John doesn't seem to be a construction guy either, but the Shark, who has been sober for two years, said he'd definitely be a customer. Maybe he will use it as an ice cream bar for his backyard?
Lori Greiner makes a shockingly cheap deal with Taverns-To-Go
Lori Greiner loved the concept as well, but she was on the fence. She wondered how she would get her money back fast enough.
Taking a page out of Irish Shark's book, Greiner thought of a royalty deal. She agreed to offer the $400,000 for a 15% stake with a $30 royalty until the $600,000 is paid back.
John couldn't believe Greiner only went for a $30 royalty. However, the founders did try to bring down Greiner's equity demand to 12.5%.
Greiner stuck to her guns, given she could have asked for $100 a piece royalty. For a change, Mr Wonderful found this royalty deal to be greedy. We wonder why. Hmm!
Finally, the Irish lads turned their backs on our Irish Shark to seal a royalty deal with Greiner.
'Shark Tank' Season 16 airs on Fridays on ABC at 8 pm ET. For those who miss the episode, it will be available on demand the following day and on Hulu. Additionally, viewers can explore past seasons and episodes on Amazon Prime Video and iTunes.