'Shark Tank' offers a massive $500,000 deal to entrepreneur who had a simple oatmeal idea

Entrepreneurs from all sectors have been turning to "Shark Tank" for funds as well as exposure since it opened up reality television for businesses. Brands selling food products are also part of those that dish out pitches for sharks, and while they may like the taste, sometimes they aren't able to digest the numbers. Sam Stephens, the owner of "OatMeals," knows this better than most, as her menu got rave reviews from the Sharks, but the business model failed to impress investors on "Shark Tank."

Stephens brought her oatmeal-based restaurant business to the Tank in season 10. Pitching her build-your-own oatmeal bar, she explained that she wanted to take the comfort of a childhood favorite and put a modern twist on it. Her New York-based restaurant served steel-cut, hot oatmeal, with nearly 80 toppings to choose from. Her menu had nearly 30 signature oatmeal bowls, ranging from healthy, to sweet, and savory as well. 

She handed out some samples of her oatmeal bowls, with toppings of parmesan cheese, truffle oil, granola honey, bacon, and more. It seemed like each and every Shark on the panel was impressed by the products.

"I hate oatmeal but I love this, it's amazing," Daymond John said, while Lori Greiner couldn't seem to have enough of the truffle oil oatmeal. Stephens sought $500,000 for 20% of her business which was valued at $2.5 million. While the samples impressed the Sharks, they couldn't wrap their head around the business model.

Stephens shared that she ran all of her operations from her only 380-square-foot restaurant. "So what is this, am I investing in just a single store?" Kevin O'Leary asked. Stephens explained that she plans to open more locations in New York, which is why she was raising funds. The Sharks then quickly asked her to share the numbers. The OatMeals founder shared that in six years her business had earned $2.5 million from sales. She made about $470,000 in the previous year and netted only $45,000 after paying herself just $40,000. 

O'Leary expressed that it wasn't nearly enough for him to invest and a business needs to do at least a million dollars per year to expand. Furthermore, he thought Stephens' profits were too small as well. "You made $40,000? Rats make more than that in New York!" he said as he took himself out. 

Citing similar concerns and issues with her business model Mark Cuban was out as well. Coming to Daymond John, the FUBU founder estimated that it would take him 12 years to recoup the money if he invested, thus, he chose to sit out too. In the end, only two Sharks, Greiner, and Barbara Corcoran were left. While both seemed interested in investing, they had issues with OatMeals' business model.

Greiner asked Stephens if she was willing to create a packaged product that could be sold on shelves. When the entrepreneur agreed, she offered her $500,000 for 33.3% equity, with the contingency that she would create a line of packaged products of the top flavors. She further pledged that she would try to get her oatmeal into companies like Starbucks, something she did for another company, Bantam Beagles. 

Corcoran suggested Stephen take her products out in a cart and sell them to offices across North America. She too offered  $500,000 but for 50% equity, given that all the money would be used to set up the cart business. After an intense dogfight between the two sharks, Stephens finally decided to accept Greiner's deal.

While Stephens and Greiner had high hopes for the business, it seems like their deal never went through. While Greiner promoted the business on X (formerly Twitter), no product from OatMeals ever made it to the shelves.

As per the company's official website, the lone store in New York also shut down permanently in January 2021, after suffering losses during the COVID-19 pandemic.