Vending machine founders get $1.5 million 'Shark Tank' offer—despite a business model Mark Cuban called 'a huge mistake'

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Kevin O'leary,Shark Tank,Mark Cuban

RoboBurger's 'chaotic' presentation scared investors on ABC's 'Shark Tank,' but the burger vending machine startup still got a big loan offer. Here's how.

Dan Braido, Audley Wilson and Andy Siegel are the co-founders of RoboBurger, which makes vending machines that dispense customized burgers — a concept they call "the future of fast food."Shark Tank

"'Rethermalized' is a fancy word for 'reheated,'" noted Mark Cuban — though Braido, the company's CTO, said the pre-cooked patties are grilled in the machine to form a crust and ensure the meat is "fried in its own juices."Source: Disney/Christopher Willard The company needed funding to scale up its production process — "to get these machines out there at a faster rate and continue to grow," said Wilson, RoboBurger's CEO.Robotics is a highly competitive industry, and its technology can quickly become outdated, Cuban noted. He called vending machines "hard capital assets that cost a lot of money" to produce and maintain, and suggested that RoboBurger would be better off making "a licensing play.

"This is a big idea, and for that, I commend you guys. I just don't think you have the business model right," said Rubin. "But I think this could be very successful ... If it actually works, it could be massive. It could be a multibillion-dollar business."

 

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