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

  • 📰 CNBC
  • ⏱ Reading Time:
  • 54 sec. here
  • 6 min. at publisher
  • 📊 Quality Score:
  • News: 39%
  • Publisher: 72%

Jersey City News

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grow," said Wilson, RoboBurger's CEO.Robotics is a highly competitive industry, and its technology can quickly become outdated, Cuban noted.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."

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in CA

Canada Canada Latest News, Canada Canada Headlines