When Sam Stephens pitched her oatmeal-based restaurant concept, OatMeals, on Shark Tank in 2018, she had high hopes for her business’s future. With a unique build-your-own oatmeal bar featuring 80 topping options and 30 signature bowls, OatMeals offered a fresh take on a classic breakfast staple. But as with many entrepreneurial ventures, the road ahead was not without its challenges.
The OatMeals Pitch and Deal at Shark Tank
During her appearance on Season 10 of Shark Tank, Stephens sought a $500,000 investment in exchange for 20% equity in OatMeals. She intended to use the funds to expand her single 380 square-foot New York City location. Despite having made $2.5 million in sales over the previous six years and projecting just under $500,000 for the current year, the Sharks expressed concerns about the scalability of the business.
Nevertheless, two Sharks showed interest in Stephens’ concept. Lori Greiner offered $500,000 for 33.3% equity, proposing to get OatMeals into companies like Starbucks. Barbara Corcoran matched the investment amount but requested a 50% stake, suggesting that OatMeals expand into a cart business across North America. After some negotiation, Stephens accepted Greiner’s offer, seemingly securing a promising future for her company.
OatMeals Is Gone Out of Business
Unfortunately, the deal with Greiner never materialized, leaving OatMeals unable to expand into Starbucks or other retail outlets as planned. The company continued to operate its original location until around 2021 when the COVID-19 pandemic dealt a final blow to the business. OatMeals officially closed its doors, though it still sells its signature granola through its website.
What Was OatMeals Net Worth?
At the time of Stephens’ Shark Tank appearance, OatMeals had a valuation of $2.5 million based on the proposed deal with Greiner. However, with the failure of the deal to materialize and the subsequent closure of the business, the company’s net worth has likely diminished significantly. The exact current net worth of OatMeals is not publicly known.
Challenges and Lessons Learned
The story of OatMeals serves as a reminder of the unpredictable nature of entrepreneurship. Despite a strong concept, impressive sales, and the backing of a Shark Tank investor, the company ultimately faced insurmountable challenges.
The failure of the deal with Greiner and the impact of the COVID-19 pandemic highlights the importance of adaptability and resilience in the face of unexpected setbacks.
Business Overview
OatMeals was founded by Sam Stephens as an oatmeal-based restaurant in New York City. The company’s unique selling proposition was its build-your-own oatmeal bar, which offered customers a choice of nearly 80 toppings and a menu of approximately 30 signature oatmeal bowls.
The offerings ranged from healthy to indulgent, with both sweet and savory options available. Despite initial success and a promising future after appearing on Shark Tank, OatMeals ultimately closed its doors around January 24th, 2021.
Conclusion
The journey of OatMeals, from its promising beginnings to its eventual closure, is a testament to the challenges and uncertainties faced by many small businesses. While Sam Stephens’ passion and innovative concept captured the attention of Shark Tank investors, the company’s story serves as a reminder that success is never guaranteed.
Despite the closure of OatMeals, Stephens continues to work in the food industry, demonstrating the resilience and determination necessary for entrepreneurs to navigate the ups and downs of business ownership.
Also Read: