Shawn Davis loves cooking and eating, so he started a business called CBS Foods (Chef Big Shake), which primarily sells shrimp burgers. His goal is to make his product available in nationwide restaurants and mom-and-pop stores, so he needs help from the Sharks.
He appeared on Shark Tank Season 2 to seek investment and grow his business. Let’s find out if he got the investment and how his business is doing now.
| Company Name | CBS Foods | |
| Founder/Co-Founder | Shawn Davis | |
| Founded | 2007 | |
| Product | Shrimp burgers | |
| Asked For | $200k for 25% equity | |
| Final Deal | No Deals | |
| Shark | No Sharks | |
| Episode | S2 E2 | |
| Air Date | March 20th, 2011 | |
| Business Status | Out of Business | |
| Website | Visit Website | |
| Headquarters | Ashville, North Carolina, United States | |
| Lifetime Sales | $5M *estimated | |
| Buy and Watch | Buy Now | Amazon Prime |
Business Pitch Episode Recap
Shawn explained that his flagship product is shrimp burgers, which come in four different flavors, each with a unique taste. He also mentioned that he has sold a total of 22,000 burger units, generating a gross revenue of $30,000.
Each burger costs $0.87 to make and is sold for $1.63, which provides a good profit margin. The Sharks questioned how the company could be worth $800,000 with such low sales. In response, Shawn explained that he has commitments from two supermarkets worth $87,200.
Mark Cuban said he could become a customer but wouldn’t add any value to the business, so he is out.
Barbara Corcoran said she doesn’t like shrimp burgers, so she is out. Kevin O’Leary expressed concern about the business’s margin, which is only 53%, whereas in a food business, margins should ideally be around 70%. Therefore, he is out.
Robert Herjavec said he doesn’t believe the company is worth more than $300,000 at this time, and the valuation is too high. Therefore, he is out.
Daymond John said he doesn’t see the company’s valuation as justified. Shawn offered to increase the equity stake to 40%, but Daymond still declined to invest.
Sharks Offers list!
| Sharks | Offers |
|---|---|
| Mark Cuban | No Offer |
| Kevin O’Leary | No Offer |
| Robert Herjavec | No Offer |
| Barbara Corcoran | No Offer |
| Daymond John | No Offer |
| Founder’s (Countered) | $200k for 40% equity (Daymond) |
| Final Deals | No Deals |
CBS Foods Shark Tank Update
Unfortunately, CBS Foods did not secure investment from the Sharks. Despite this setback, Shawn persevered, focusing on growing his product sales. He eventually succeeded, achieving an annual revenue of $5 million.
He received offers from several other investors for funding to help grow his business. During this time, Shawn also started a restaurant called Big Shake’s Nashville Hot Chicken and decided to focus on the restaurant business, leading him to close CBS Foods.
He has opened 4 restaurants in Tennessee and Alabama and plans to open more restaurant chains in other states. The company’s annual revenue is $3 million.
Check out Shark Tank Season 2 Business Update.
If you want more updates on the businesses that appeared in Season 2, visit here.
