Why Life Raft Treats walked out of 'Shark Tank' with no offer despite $1.7M sales
LOS ANGELES, CALIFORNIA: This week, ABC's 'Shark Tank' featured a pastry chef who is regarded as one of the most innovative in the country. On Friday, October 25, Chef Cynthia Wong and her husband John David Harmon of Life Raft Treats presented their Charleston-based dessert business to investors on the famous reality television show. However, they ultimately left without securing a deal.
After leaving the restaurant industry, Wong and her husband launched their business in 2018. Its name alludes to the concept of escaping the rigors of work in the food and beverage sector by swimming away on a liferaft. Cynthia, a six-time James Beard semifinalist, has created edible artwork that resembles a Thanksgiving meal, a sandwich, a taco, a bunch of bananas, peaches, and much more. Perhaps the most well-known product from Life Raft Treats is its buckets of Not Fried Chicken Ice Cream, which resemble fried chicken drumsticks almost exactly thanks to the mix of waffle ice cream, a chocolate-covered cookie 'bone,' and a covering of white chocolate and Corn Flakes. The married couple, who had good sales to support themselves, entered the Tank looking for $250K for 5%.
Life Raft Treats has made $1.2M in sales with 0 marketing
Life Raft Treats are available in the frozen products department of around 500 retail stores nationwide. Dry ice is used to send the bucket straight to the customer. The buckets are delivered and cost $109. The couple reported a 5% net operating income on $1.2 million in sales the year before their appearance on 'Shark Tank'. They have already sold $750,000 this year, and by the end of the year, they expect to reach $1.7 million in sales.
The founders revealed that they are not currently paying for slotting in most retailers. They also have no client acquisition costs, as they operate through a third party, which allows them to avoid spending on marketing for which they charge 20%. The money they planned to raise from Tank would be used to update their website and handle DTC in-house.
Life Raft Treats walks out of the Tank empty-handed
Mark Cuban admitted that he dislikes frozen meals, despite being pleased by the founders' accomplishments. He believes the frozen food business is extremely challenging unless you know the industry, which he doesn’t. For these reasons, he decided to pass on the opportunity. Daymond John was uncertain about the value he could bring to a frozen food business, although he felt he could assist with direct-to-consumer efforts. However, he believed there were more qualified Sharks on the panel who would be better investors for the company.
Lori Greiner noted that she has an entrepreneur in the refrigerated sector, Frozen Farmer. She expressed concerns that Life Raft Treats would be competing with her brand, which led her to decide against investing. Kevin O'Leary started to question whether the business fit within his portfolio. When Cynthia disclosed that her business was organic, Mr Wonderful became even more concerned because he could not see the business's stats. As a result, he opted not to invest as well.
Guest Shark Todd Graves, who we believe could have invested, also chose to sit out. Even though he appreciates the idea and the entrepreneurial ambition of the founders, he just isn't into frozen food since his firm deals with FRESH FRIED CHICKEN! He also chose not to invest. We believe Todd should have explored placing it in his stores, but we understand his stance about never altering the menu. The treats are plenty of fun, and although it's a tough business, we genuinely hope they find success.
Where are Life Raft Treats now?
Given that it doesn't seem to have raised any money for its founding or other activities, Life Raft Treats seems to be a self-funded business. In addition to selling ice cream to customers nationwide through Goldbelly for prices ranging from $36 to $150, the artisan ice cream truck can be reserved for special events, including weddings and corporate gatherings.
Pricing for personalized ice cream projects starts at $7,000, while similar events start at $5,000. However, according to reports, Life Raft Treats is completely booked through the middle of 2025. Life Raft Treats may be purchased through Gourmet Foods International, P10 Foods in the Southeast, and Wholly Cow in South Carolina in addition to their own website.
These unusual ice creams are also available from Central Market, Fresh Direct, and DoorDash. Cynthia won the 2018 James Beard Foundation semifinalist for Outstanding Pastry Chef for her inventive ice cream creations during the first year of Life Raft Treats, while she was operating out of the ice cream truck. Many ice cream enthusiasts indulged in Life Raft Treats at Cynthia's pop-up event at the Old Village Holiday Market in December 2023.
'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.
