Everytable
Everytable is a chain of grab-and-go food outlets based in Los Angeles, CA, with the mission of making healthy food available to everyone, regardless of wealth.
Everytable has a central kitchen that distributes their good to the locations around Los Angeles built to keep food costs the same even though prices vary based on the average incomes of the various neighborhoods they serve.
Everytable locations in Century City and Santa Monica may sell an item for $8 but that same product in Compton or Baldwin hills will sell for only $4. This hypothetical item would cost between $2.50 and $3 to make, resulting in a 40% margin in low income neighborhoods and between 60% and 70% in high income areas.
In terms of previous fundraising, Everytable raised $2,900,000 on a convertible note valuing the company at $7,000,000. They then raised a subsequent $2,000,000 at a $23,500,000 valuation.
Their first location opened the year before this episode aired and grossed $650,000. They have since opened four more locations and gross an estimated $2,600,000.
Unfortunately, Everytable is not profitable and are currently burning their capital at a $125,000 a month burn rate. They do project an estimated $6,000,000 in sales in the next year, however.
This deal aired on Episode 9.21.
Making A Deal
Rohan Oza sat in on this pitch as the episode's guest shark and was interested in both the message of healthy food and relative pricing for the neighborhoods they served. However, the deal he offered represented a substantial bite off of the value of the company.
The entrepreneurs behind Everytable were already offering a discount to the sharks based on their past fundraising, offering the sharks 5% for $1,000,000 at a valuation of $20,000,000 versus the $23,000,000 valuation their prior investors had given them. Still, Rohan wanted 10% for his $1,000,000, taking a 50% bite (or $10,000,000) from the value.
Despite this, however, the entrepreneurs must have believed having Rohan on board represented a serious value because they accepted and brought him on as an investor.