Shark Tanks avoids Project Pollo due to over valuation concerns, Lucas Bradbury feels Sharks made a mistake: The Shark Tank team were presented with an interesting deal from Project Pollo which is into vegan fast food business. The Sharks were clearly not interested in the deal due to over valuation concerns right from the beginning of the presentation.
It was surprising to see Lucas Bradbury present an aggressive deal to the Sharks as they are usually known for conservative investments. The founder of Project Pollo, Lucas wanted an investment of $ 2.5 million and the offer was for 5% stake in the business. The vegan food chain business has been expanding rapidly in the last few months and it is going to be a big thing in the next few years according to the founder.
The sharks usually prefer businesses that have good growth story and they are also careful about risky investment deals. Businesses that have good profit margin immediately attract the attention of such investors and the offer from Project Pollo seemed very aggressive for the common investor.
Kevin Hart, Lori Greiner and Mark Cuban felt that the business plan needed to be more strong and the focus should be on strengthening the business model and not on scaling rapidly. It is interesting to note that Project Pollo is on an expansion spree in the last 12 months. They have managed to open about 12 stores in the last one year and this has raised lot of eyebrows in the market.
The sharks were also of the opinion that the vegan fast food business will not survive for more than three years and it was just a fad. They compared it to a tornado which would cause lot of hype in the initial stages and then die out slowly. The sharks said that most people associate vegan food with healthy food and serving fast food in this category is not going to sustain in the long run.
Some of the comments made by fans also reflected the same mindset where they felt that Project Pollo was expanding at a rapid pace and they may not sustain in the long run. However, the founder disagreed with the sharks and mentioned that he was from Kansas and not afraid of hurricanes and tornados.
Lucas mentioned that he would continue with the expansion spree in its current pace and open more stores in the near future. He is confident that the business will become a huge success in the next few years.