CBS Foods Before Shark Tank
Shawn Davis, also known as Chef Big Shake, started a company called CBS Foods. Shawn Davis states that he had a pretty rough childhood, growing up in a rough neighborhood in New York. According to Shawn Davis, his mom decided it is best that he would live with family friends, who happen to be an Italian family. That Italian family also happen to own and run a very successful Italian restaurant, which sparked Shawn Davis’ culinary interest.
Shawn Davis states that he has learned a lot from the Italian family that he lived with throughout his teenage years. Because of them, Shawn Davis enjoys cooking food, trying out new recipes and spices, and trying to invent new dishes. The reason why Shawn Davis decided to start his own company is because his daughter wanted to become a vegetarian, which meant that she wouldn’t eat meat products. He took this as a challenge and came up with an idea to replace regular meat products with seafood, thus CBS Foods was born.
You can imagine how surprised Shawn Davis was when he saw CBS Foods skyrocketing in popularity and success. In order to be able to expand his company and bring CBS Foods to more locations in the United States of America, Shawn Davis needs an investment and the expertise from one of the Sharks. He is hoping to bring CBS Foods to every home in America.
CBS Foods On Shark Tank
“Shawn Davis walks confidently, claps his hands a couple of times and stands in front on the Sharks, ready to start his presentation”
Shawn Davis starts his presentation by introducing himself to the Sharks, telling them that he is better known as Chef Big Shake, and states that he is the president of CBS Foods. Shawn Davis continues by stating that he is looking for an investment of two hundred thousand dollars, in exchange for a twenty five percent stake in his company.
Shawn Davis continues his presentation by showing some of his products. He states that his flagship product is called The Original Shrimp Burger, which are being manufactured in four different flavors; Original, Teriyaki, Cajun and Jalapeno. He also brought samples of all of his shrimp burgers for the Sharks, which they can try out if they want.
“Shawn Davis walks over to the Sharks with burger platters”
“Kevin O’Leary, Daymond John and Mark Cuban tell Shawn Davis that the burgers are really good and that they like how the food looks in general”
Shawn Davis continues his presentation by stating that he has already sold twenty two thousand burger units all across the United States of America, mostly to mom and pop stores and different kinds of restaurants. According to Shawn Davis, his sales have grossed him around thirty thousand dollars, which made him look at his company in a bigger picture.
Shawn Davis states that his burgers needs to be in every single supermarket all across the United States of America. The facts are that the hamburger business is a multi-billion dollar year business, such as the turkey burger being a billion dollar year business.
Shawn Davis continues by stating that CBS Foods has positioned itself perfectly to grow the shrimp burger to a billion dollar year business, just like its counterparts.
“Shawn Davis asks who is ready to add some zeroes to the bottom line”
“Kevin O’Leary asks Shawn Davis how much it costs to make one case of shrimp burgers and how much it sells for in stores”
Shawn Davis answers the question by saying that it costs eighty seven cents to make a single burger, which then sells for one dollar and sixty three cents. Shawn Davis continues by stating that shrimp is all protein, which means that it is simply going to be more expensive.
Kevin O’Leary states that it is pretty expensive to make a shrimp burger, and that the margins are pretty light compared to other businesses.
Shawn Davis counters what Kevin O’Leary just said, by saying that the Sharks will not only buy the shrimp burger, but they are buying a brand. The brand includes the name CBS Foods, and of course, Shawn Davis, also known as Chef Big Shake himself.
“Mark Cuban asks Shawn Davis what other products are under CBS Foods”
Shawn Davis answers the question by saying that the Lobster Slider is also under CBS Foods, which he has sold three hundred cases of. Shawn Davis continues by stating that collectively, all of his margins together are around sixty three percent.
“Robert Herjavec asks Shawn Davis how CBS Foods is worth eight hundred thousand dollars, while he has only thirty thousand dollars in sales”
Shawn Davis answers the question by saying that he already has commitments from two different supermarkets. The owners of those supermarkets flew him out and tasted his burgers, after which they said that they want to order cases of shrimp burgers.
Robert Herjavec states that Shawn Davis doesn’t have that order yet.
Shawn Davis responds by stating that he will have that order within the next ten days.
“Robert Herjavec asks Shawn Davis how big that order will be”
Shawn Davis answers the question by saying that the order will be for six hundred cases of shrimp burgers and three hundred cases for the lobster sliders.
“Robert Herjavec asks Shawn Davis what the dollar amount will be for those orders”
Shawn Davis answers the question by saying that the dollar amount will be around eighty seven thousand and two hundred dollars.
Robert Herjavec states that Shawn Davis has already made thirty thousand dollars in sales this year, and if he would add the eighty seven thousand dollars, it will be just over a hundred thousand dollars in sales.
“Robert Herjavec asks Shawn Davis how much profit he would make on a hundred grand”
Shawn Davis answers the question by saying that he would make roughly fifty three percent.
Mark Cuban states that he really likes the product and concept, and that Shawn Davis definitely has another customer. Mark Cuban continues by stating that he really cannot add value, because he doesn’t know the food business, and for that reason, he is out.
Barbara Corcoran states that she doesn’t really like shrimp at all, and that she doesn’t feel like investing in something that she doesn’t even like. Barbara Corcoran is out as well.
Kevin O’Leary states that he and Shawn Davis are already doing business right now, but Shawn Davis doesn’t know it yet. Kevin O’Leary continues by stating that he owns the debt of one of the largest manufacturers of proteins off of the bottom of the ocean.
“Barbara Corcoran responds by saying that she always knew that Kevin O’Leary was a bottom feeder”
“Kevin O’Leary gives Barbara Corcoran a weird look”
Kevin O’Leary continues by stating that his concerns are how low Shawn Davis’ margins are. According to Kevin O’Leary, Shawn Davis’ margins should be north of seventy percent, especially for seafood, because it requires a heavy commitment to a refrigeration storage.
Access to the supply of protein that Shawn Davis is using, which is one of the most expensive food that humans eat, and the most vulnerable to price increases and decreases. Kevin O’Leary states that at the end of the day, for him, the shrimp burger is a very interesting concept, but it is also one of the risky ones, and for the reason, he is out.
Robert Herjavec states that he loves the product, but that asking for two hundred thousand dollars is a big mistake by Shawn Davis. Robert Herjavec continues by stating that he doesn’t think CBS Foods as a whole is worth two hundred to three hundred thousand dollars today, which means that the valuation is wrong.
Shawn Davis responds by saying that his products aren’t one dimensional, because his products are shrimp burgers, and America loves shrimps. According to Shawn Davis, shrimp is the number one seafood product in the United States of America.
Robert Herjavec states that he loves the shrimp, but that he hates the valuation. According to Robert Herjavec, the company is not worth much today, and for that reason, he is out.
Daymond John really likes the shrimp burgers, because he already ate two of them. He continues by stating that he will most likely eat the burgers that are left on the platter. Daymond John states that he cannot get around the number that Shawn Davis is asking, and that the valuation is simply incorrect at this time.
Before Daymond John can finish what he was about to say, Shawn Davis states that he is willing to increase the percentage to buy into CBS Foods.
“Daymond John asks Shawn Davis what the increased percentage is”
Shawn Davis answers the question by saying that he will happily increase the percentage to thirty percent. He continues by stating that he is very passionate about the product, and that he really loves the business that he is in.
“Daymond John thinks for a couple of moments”
“Shawn Davis asks Daymond John if he would make a deal, if he would increase the stake percentage to forty percent, instead of thirty percent”
Daymond John answers the question by saying that everything about Shawn Davis is right, except for the valuation of his company. The valuation for CBS Foods went down from eight hundred thousand dollars to five hundred thousand dollars. Daymond John states that he would be buying more into Shawn Davis, because he is a great guy, instead of his company.
Daymond John doesn’t want to make an offer and states that he is out as well.
At the end interview, Shawn Davis states that when he gets home and tells his family that he didn’t get an investment, they will initially get upset and disappointed. Shawn Davis continues by saying that everything happens for a reason, and he will definitely not stop.
CBS Foods Now in 2018 – After Shark Tank Updates
Shawn Davis started his very own food company called CBS Foods, and with his flagship product, the original shrimp burger, he tried to win the hearts and stomachs of the Sharks. Shawn Davis really needed an investment from the Sharks, in order to open up doors and get his products to larger supermarkets all over the United States of America. Unfortunately, the Sharks believed that Shawn Davis valuated his company wrong, which is why they didn’t want to invest in it. Kevin O’Leary believed that CBS Foods was too premature and too risky of an investment, because shrimps constantly increase and decrease in price.
Even though Shawn Davis was unable to get an investment from the Sharks, it doesn’t look like he stopped working on CBS Foods. On one of the Shark Tank Update episodes, Shawn Davis states that he initially was tremendously disappointed about not getting an offer from the Sharks; however, when he returned home, he was welcomed by a lot of support from his family members and random people that saw him on the show.
Davis Shawn states that he received thousands of emails, from fans and investors. He continues by stating that he received an offer that was better than the one he initially asked for on the Shark Tank, which meant that he could continue with his business and make a lot of money selling shrimp burgers. Before the Shark Tank, CBS Foods had about thirty thousand dollars in sales, but after Shawn Davis returned home, his projected sales are upwards of five million dollars. CBS Foods is now selling in over two thousand grocery stores.
You can find the official CBS Foods website at http://www.cbsfoods.com. The website consists of one page, and you will quickly notice that there is a banner that states that a new website is coming soon. This makes me believe that something is up with CBS Foods as a company, because no company that makes a lot of money would allow their website to be down, even if they were developing a new one. It would be a shame to see Shawn Davis failing with CBS Foods, especially because he was so passionate about it.