Back in 2013, How Do You Roll, an existing restaurant franchise that specializes in the create-your-own sushi menu and fast-casual service, was offered on Shark Tank. Siblings Yuen and Peter Yungs got an idea and first business knowledge about the restaurant business from their parents, who used to run a family eatery in Chinatown, New York. The Yuen brothers launched the first ever How Do You Roll restaurant in Austin after graduating from college. While being on Shark Tank they have managed to make a deal with one of the “sharks” – Kevin “Mr. Wonderful” O’Leary. The deals was huge – $1 million for 20% ownership.
In this blog post, we will be talking about the How Do You Roll business after being featured on Shark Tank. We will discuss what happened in the months following their appearance on the show and how they have been doing since. If you are looking for a great way to get your business off the ground, then you should definitely read this article!
How Do You Roll in the Shark Tank
In the interesting episode 416 of Shark Tank, siblings Yungs – Yeun and Peter – appear on Shark Tank in order to acquire a $1 million investment in ROI for 12% of their business shares. The siblings claim that their sushi restaurant allows people to design their own sushi, which is made fresh every day. They also provide “featured rolls”.
To start the presentation, Yuen informed the sharks about the typical difficulties that consumers face when attempting to grab a fast sushi meal. A sit-down dinner at a restaurant was option one, but it wasn’t a quick experience for people who had limited time to eat because of its lack of quality and freshness. The alternative was to pick up a sushi roll from a local grocery store, but this option usually entailed food that was not as high quality or fresh.
“We’re looking at some different ideas,” said Yuen. The How Do You Roll model was fully customizable, and it offers a third choice: low-cost, high-quality cuisine that is served fast and simply without the hassle of a restaurant. During Peter’s professional presentation, Barbara Corcoran was invited to sample the How Do You Roll experience for herself, which she enthusiastically accepted.
In a matter of seconds, Barbara placed her order at the counter, choosing a wrap, fillings, and sauces. Peter provided her with a personalized snack in just a few seconds. The other “sharks” were astonished by the speed of the process. They appeared to be hungrier now as well, but Yuen quickly reassured them that there were samples of the companies’ rolls for them to sample as well. The “sharks” had no time to waste and immediately got down to business with their delectable samples. It was apparent right away that the food was of excellent quality.
Robert Herjavec inquired about the brothers’ background and expertise once the samples were happily eaten and compliments had died down. Yuen said that he and Peter grew up in their parents’ restaurant, where they received an early education in the culinary business. He explained that he focused on the commercial side of things, while Peter handled food preparation and menu selection.
Mr. Mark Cuban wanted to talk about the company’s early growth. Yuen revealed that just two and a half years ago, the firm had only established one corporate location and fifteen franchise outlets, with another 25 franchises to be opened in the following year.
Mr. O’Leary wanted to know if the company locations and franchises were all successful. Yuen responded that the franchises were earning $250,000 in total royalties each year. Robert asked what sales had been made from the two corporate businesses in the previous year. Yuan said they’d earned a million dollars combined in sales over the course of last year.
One restaurant served as the beginning for the pair; later they opened 15 shops throughout Texas.
What do the Shark Tank Investors say about How Do you Roll?
On cash flow, Kevin O’Leary’s interest was huge. Yeun explained that the company was going to earn roughly $250,000 per year – and that is only from franchise royalty payments, not speaking of other profit sources. The corporate store should make an average of $1 million in sales each year. Each franchise outlet was supposed to cost between $250,000-$300,000, and a franchisee’s royalty was going to be 7% annually.
The billionaire Mark Cuban said he didn’t want to be in such a restaurant business. He’s gone. Kevin O’Leary thought the firm is “extremely well run,” and he was very interested, but felt that the valuation was too excessive. He offered to get 75% of the firm for $6.6 million by Yeun.
The margins on sushi sales, according to Daymond John, were “not going to be high enough.” He didn’t want to invest.
Robert Herjavec thought he “couldn’t help this business with its food model,” so he was out.
Barbara Corcoran felt the presentation was too dry to invest. She was out as well.
The brothers talked about how they can raise capital. They suggested making a transaction with Kevin O’Leary. He was prepared to invest $1 million, but he’d want 22% of the company, with a portion of franchise payments going to the partners – the brothers and himself. Yeun asked if they can go down to 15%. O’Leary is prepared to compromise; he met them at 20% for his $1 million investment if they lowered it by half.
How Do You Roll Shark Tank Update
Despite Corcoran’s warning about concluding the deal with “the devil”, the siblings were ecstatic at the prospect of collaborating with O’Leary. Nevertheless, after a few months of discussions since that memorable episode, the deal fell apart like poorly-made sushi. The brothers and O’Leary were unable to reach an agreement on many things, and O’Leary subsequently withdrew his generous offer. In 2015, the guys sold out to a private restaurant organization. It appears that they are no longer operational as of August 2021.
FAQ
What percentage of Shark Tank deals fall through?
A study of 100 episodes found that only 30% percent of deals end up with a post-Shark Tank deal. This is a very large number in support of the show.
In fact, it seems that most people who end up on Shark Tank have already been hard at work making their business dreams come true! While many companies do not succeed after their appearance, 60% say they received investment or order from one of the Sharks and 95% reported that they either were better off financially or saw no negative impact, as a result, of going on the show. That’s pretty good for “reality TV”!
Is How Do You Roll sushi still in business?
In 2015, the boys sold their business to a private restaurant company. It appears they are currently closed as of August 2021.
What are the most successful products from Shark Tank?
Shark Tank has been on the air for twelve seasons, with each episode seeing new entrepreneurs enter the tank in their quest to secure funding from some of America’s most successful business minds.
ABC initially broadcasted the show until 2015, when it moved over to CNBC following a change in direction for both channels at that time. There are now five series per year across two networks – which also means investors Mark Cuban and Kevin O’Leary have more opportunities than ever before to invest.
The show has certainly had its fair share of successes – however, there are some products that have proved to be more lucrative than others.
Here we take a look at the Shark Tank business pitches that turned into major income earners for their founders and investors alike:
- Sleep Styler;
- The Bouqs;
- Tipsy Elves;
- The Original Comfy;
- Simply Fit Board;
- Squatty Potty;
- Scrub Daddy;
- Bombas;
What are the advantages of How Do You Roll?
“How Do You Roll?” (HDYR) was a fast-casual sushi franchise headquartered in Austin, Texas. The very first location opened its doors in October 2008 and not long after that, the company began franchising in 2010. As of April 2016, there were stores running in California and Florida; however, it has since been closed.
At HDYR, you can order and customize your maki roll with a variety of meats, fish, vegetables, fruits, and fillings. You also get to choose between white or brown rice. There are eight proprietary sauces and six toppings to pick from.
If you’re not in the mood for rolls, they also have seaweed salad, cucumber salad, squid salad, edamame, and miso soup. Some franchises might offer tempura goods or local specialties but this is not guaranteed at every location.
HDYR’s focus is on swiftly making high-quality and affordable food. To achieve this, they use maki machines that mix the rice, press it down, and cut the rolls. Apparently, customer feedback caused them to introduce objects such as brown rice and sake.
The advantages of How Do You Roll:
- Well, one is the ability to customize your rolls;
- Another is the convenience and fast service;
- And lastly, their prices are generally lower than sit-down sushi restaurants;
- They also offer vegetarian and gluten-free options;
Overall, HDYR is a great option for those looking for a quick sushi fix without breaking the bank.
What are the disadvantages of How Do You Roll?
- One potential disadvantage is that the sushi rolls may not be as aesthetically pleasing compared to those made by hand;
- Another possible drawback is that the options and menu offerings may be more limited than at a traditional sushi restaurant;
- Additionally, some franchises might not offer specialty or local items;
Overall, it really depends on personal preferences and taste. HDYR caters more to those who prioritize convenience and affordability over traditional sushi presentations and extensive menu options. Whether or not this suits you are up to your own preference.
What were the mistakes of How Do You Roll?
Unfortunately, the deal with Kevin fell through. Shortly after filming, he proposed that they make a board of directors for the company which three of his selected members would sit on. Yuen ultimately rejected Kevin’s idea, so he withdrew his offer.
Despite the challenges, he continued to grow the business. If anything, the exposure from the show boosted their revenue and before long they had over 100 locations across America as well as franchises in Canada and The Middle East.
The couple eventually sold the business to a private restaurant group in 2015. They updated their Facebook page for the last time that year, with a post about the store locator feature on their website. Their Twitter account was active until 2016 when they tweeted about their North Hollywood location. It’s unclear who is running the account now, but it hasn’t been updated since then.
The last time their website was updated was 2015, and as of 2022, all that remains is a copyright notice and a link to the privacy policy. Even if you try Googling the business’ name, there are no results.
Some may consider this a mistake, as the lack of presence and updates on their online platforms may have led to the decline and eventual closure of HDYR. Additionally, perhaps not making a deal with Kevin was also seen as a misstep by some. However, it is ultimately up to personal opinion and speculation as to whether or not these were mistakes.
Do How Do You Roll plan to come back?
What is Yuen Yung up to now? It looks like he’s currently the Chief Executive Officer at two companies – Upside Avenue (since June 2018) and the Castro Group (since June 2019). Before that, he was a Premier Advisor for Investopedia. What’s interesting is that he also listed on the same page that he was the Founder of “How Do You Roll” from September 2009 to November 2014, so maybe the business ended sooner than we thought. Yuen currently has two jobs listed on his Crunchbase page.
Unfortunately, there is no recent information about Peter Yung. It’s likely that he returned to a day job after selling the business, just like his brother. He might be back in the kitchen now – before co-founding the sushi restaurant business, he used to work as a head chef in Houston, Texas.
As for a potential comeback, it doesn’t seem likely at this point. With both founders moving onto different ventures and the lack of recent updates on their online presence, it looks like How Do You Roll has closed its doors for good.
Did How Do You Roll have a good business model?
After 40-50 franchises were running in the US, How Do You Roll’s owners said every store suddenly closed. Yuen Yung decided to join a real estate firm, putting an end to the food service company. The primary issue with having food franchises is localization. One location might be profiting while another nearby is losing money.
Also, franchisees have to go through the process of lease re-negotiation for each individual establishment regularly.
Even though Subway has a great reputation, they lost the lease re-negotiation near me. The store had to close because they refused to budge on the terms of the agreement.
Was the “How Do You Roll” business worth it?
Though the owners did get to own and operate a franchise, they had to close all the stores eventually because of financial difficulties. However, they were able to rebound and find success in real estate.
Before making the final decision to buy a franchise, it is crucial that potential owners look into the market and location in order to increase the chances of success.
Additionally, they should also be prepared for the possibility of unexpected challenges and closures. In the end, it is up to personal opinion-whether or not the experience was worth it.
Related Video: The How Do You Roll? Story
Final Words
After appearing on Shark Tank, the How Do You Roll? company experienced a huge surge in popularity. The company was able to use this newfound popularity to make a lot of progress in terms of expanding their business.