Family-Run Spaghetti Operation May Need To Split | Shark Tank AUS

Nathan Baws and brother-in-law Joel Sneeuwjagt are seeking an investment of $350,000 for 15% share equity in the company. Tommy Sugo is a Spaghetti and Espresso restaurant run with deep family roots, so deep, the Sharks fear a deal could split them all apart...
Company Website: tommysugo.com.au
An international sensation, Shark Tank AUS features entrepreneurs pitching for investment in the Tank from our Sharks, five venture capitalists willing to invest their own money in exchange for equity.
As Seen On Shark Tank Australia Products: amzn.to/2ZJBbyf
Shark Tank US Products Collection: amzn.to/3bMNjmI
#SharkTank #TommySugo #HowSeriousAreYou

[@commanderkeen3787]

LOL Janine offers worse deals than the Mafia

[@hollystiener16]

Yeah, I find it really mean.

[@Iswhatitisssss]

@@hollystiener16 welcome to the real world . This is BUSINESS

[@hollystiener16]

@@Iswhatitisssss uh...been in the business world in NYC for 20 years, and no, it is not.

[@Iswhatitisssss]

@@hollystiener16 so you are in it to make friends ? She’s in it to make money . 🤦‍♂️ so mean 😪

[@hollystiener16]

@@Iswhatitisssss Money, but not enemies.

[@johnmantovani1939]

I have a very long time fan of all the American sharks. However I must concede, the personalities, and the compassion and politeness of the Aussies has won me over 100%

[@SuperpowerBroadcasting]

These sharks are awesome

[@bennyloppo]

Yes, exactly!!!

[@mariamswaleh9571]

Agree

[@bodhi8260]

Didn't show with the disabled daycare business.

[@RomanPearce11]

Shut up

[@Hasan-ir5zl]

Janine is actually the greediest shark of all. She will always try to rip off the entrepreneur with her cunning deals

[@bpmgaming3351]

She's been my long time disliked shark on here for that reason, or how she'll say all these great things about the thing, and then say "And for those reasons, I'm out."

[@cevcena6692]

Well, it's the shark tank they're expected to be brutal

[@jerikoslots9665]

Take a $100,000 business and turn it into a million dollar business. Her deal is more than fair.

[@rag660]

My phone is on 2%, and for that reason, I’m out.✌️

[@cupcakeman4371]

Omg same

[@adamwilliams5849]

And at 3a.m. !!! 😆 lol lol-- 😆

[@DiinoBrown]

My phone died before she said yes

[@DaveTexas]

Naomi: I saw a cat last Tuesday. And for that reason, I’m out.

[@summitlt]

Has she done any deals? I think I saw one once...

[@DaveTexas]

@@summitlt I have seen her do several deals, actually. You have to watch a LOT of videos before you see her make an offer, though.

[@mahbubmo]

She makes stupid nonsensical comments when she goes out.

[@robocop308]

😂😂😂

[@cooldawg2009]

@@mahbubmo so she’s the Barbara of AUS shark tank?

[@manoman0]

Man, I love Steve. He gets to the core of an issue. Brilliant.

[@jeroen3194]

"I want 51%." "Will you accept 50%?" "Yes"

[@nezmo4906]

It was 50% for full amount they asked for, not as she initially said where 200k is a loan. So you need to follow better.

[@jw3384]

"Done"

[@supersilverhazeroker]

@@nezmo4906 no it wasn't, where did you hear the loan part was removed from the deal? the only modification to janine's proposal was 50% in stead of 51%

[@karanthakkar6554]

Why this matters is because legally a 51% shareholder is always going to be a majority stake holder and all votes towards the decision making of a 51% shareholder will always have to be honoured. In case of 50% both would have equal say in decision making. It is a big deal.

[@DJLiddle]

Thanks for ruining it for everyone Don't need to watch it now..

[@AdamFrancisco]

Wow Janine FLEECED them. They have a solid product. Should have done 33% each.

[@ManKidCS]

It ended up falling through from the looks.

[@UTubeTulip]

That's what I thought their counter was going to be.

[@manoman0]

She's dealing with sicilians. She's doing right. Love her for that.

[@mukkaar]

In the end it's restaurant business. Overall it's very high risk and very competitive market.

[@noahollington9946]

yeah thats what I thought. But they did need some money to start a few stores and get some revenue happening. Not to mention their step dad might bail em out, etc. so for one store, you gotta all have equal skill to share equal equity. But Janine has way more skill so can then focus on leading the advancement and should then own more equity

[@rohan2609]

It couldn't have been worse for those guys, Janine cracked the best deal of her life..!!

[@wavytraps700]

Frr lmfao

[@sdey1230]

True

[@brooklynbound0]

WAVYTRAPs i don’t know anything about business yet I know that that doesn’t sound like a good deal for them at all...

[@Host_ino]

Thanks for the spoiler :(

[@ImShiftehh]

They didn’t even follow through with the investment

[@chrisstephens3196]

The 51% was a slap in the face. It would then no longer be their company, it would be hers. She did that as a power move and I’m proud of them for not falling for it.

[@meetdavid2024]

Yeah Janine does this all the time. Why I can’t stand her

[@miketwomey4923]

I would've told her 49% but she will blow it up a passionate partner and you have done the right thing...

[@gt123451000]

Now - "We pitched our restaurant concept on channel 10’s Shark Tank to a bunch of hungry investors. Although we did receive offers from the sharks, at this stage we are still independent". Luckily it seems it never went through

[@jaykaria6718]

They shouldn't have accepted the deal, she knew she was asking for too much of the equity and she didn't even give the 350k for equity. She spilt the investment as loan which the company will have to pay later on in the future.

[@EstrellaViajeViajero]

Though at 51%, it would basically be a loan to herself, so she would have a vested interest in making sure the business didn't go under.

[@ericmaloney3889]

They still only have 1 store, so this most likely fell through.

[@EthanSmokes]

eric maloney probably realized it was a shit deal

[@bluesky6386]

Go to their website... The offer didn’t happen later

[@obi-wankenobi1312]

They didn't even accept the deal in the end

[@CaptureKing247]

Did she really take that long to make a 1% decision or was that just bad editing for dramatic affect where there was no drama?

[@jonathanm2690]

editing, the even use old clips of "reactions" to slot into the dramatic pause etc

[@fuad4159]

Its not about the 1 percent, if she got 51% she would’ve been in control of the company, with 50% they both have to agree in making decisions

[@CaptureKing247]

@@fuad4159 You can negotiate a 51% say in the contract and/or she can request advisory shares. Also, part of the investment is a loan so she has 100% say in releasing those funds. Regardless, she is still a majority owner. Maybe it did take her a few moments to reminder herself of that.

[@fuad4159]

Capture King yeah, i think it was a terrible deal but atleast she’s not the majority shareholder

[@JewTube001]

i would pause too, just for show of course. don't want them to think i got an easy win.

[@NvTeddy]

I require your entire business and your father in-laws heart + all your hard work and preparation. In addition ill need 20% on that 200k I loaned you.. DEAL!

[@shashwatrocks1]

Australian startups - 1million revenue, 500k valuation Indian Startups - 1million loss, 10 million valuation

[@tech4life884]

Janine claims that nobody can run multiple businesses at once because you have to put your soul into one business for it to have the best chance in succeeding but yet Janine is making deals left and right and is the part owner and owner of over 200 businesses worldwide. So Janine can run 200+ businesses but nobody else can run 2 businesses by themselves. Janine must be majical.

[@GlueFactoryBJJ]

Wow! She wanted 50% of the business for a $150K equity stake, valuing the business at 3x that year's profits (based on existing growth/sales) for ONE store, when they will, most likely, add at least 3 more stores (according to her), making their annual profits in a year or two, what she valued the company at. AND she becomes the largest equity holder in the business. They would have been better off to get the Australian equivalent of the US Small Business Adminstration loans and commercial interest loans to expand the business themselves. It seems obvious to me that she will increase her stake to over 50% (gaining total control) because of the capital they will need to expand quickly and they will lose control of their hard worked for business in less than 5 years. Or the partnership will go bust and there will be nothing. IMO, this was one of the most predatory Shark Tank deals I have ever witnessed. I lost a lot of respect I previously had for her. UGH! I'd love to know how they are doing now...

[@varisgupta]

Iirc, most restaurants will fail within the first 12 months of business, so investing in new restaurants is always a very high risk investment. It's the reason most restaurants you see are chain restaurants. Although I hate her tactics, it was the only way they could reasonably get a 350k investment when they aren't a year old. Also, with the way bankruptcy works, she actually made a genius play since debts are paid before equity is paid, so she'd get her loan back before remaining cash and assets are split 50/50 if they go under.

[@GlueFactoryBJJ]

@@varisgupta I worked in many restaurants when I was younger. Some were successful over the long term. Most suffered from bad management (poor money management, see "Restaurant Impossible"), not a failure of the "business". What you are referring to (re: chains) is the expansion of the revenue base. Multiple locations helps insulate the business from individual failures (there are many in the larger chains). Additionally, their growth is typically fueled by franchising, which puts the risk on the franchisee, not the chain. Regardless, the owners will likely lose control of their business and it likely won't be because they failed. The money they received was insufficient for their needs and will result in their needing more, which will result in their losing control of the business due to their "partner" demanding more ownership for the additional money. IMO, they would have been better getting a business loan (or two). At least then, if they go out of business, it will be because the business failed, not because their company was stolen from them.

[@tor13128]

it was a greedy offer, but i feel like they should have followed through with the contract signing after the show. i will assume they said no (rare occurrence). i will also assume this was aired in 2017 as are the majority of recent uploads. this means that after years, they still are just a single family run restaurant. with 50/50 split and the loan, as Janine said, they would have branches immediately. Janine is greedy, so she'll try to expand it. We might've seen it across Australia, or even in the States by now. Instead, here they still are, 1 family run restaurant dependent on their father-in-law.

[@FozzyBBear]

So apparently the deal fell through, and instead of 50% of 12 restaurants, they still have just 100% of 1 restaurant.

[@SiLoMixMaster]

Probably the worst deal anyone has accepted on Shark Tank or Dragon's den, not only did they give 50% away but they had to pay back a $200k loan plus whatever interest rate Janine stuck on it afterwards lol, hopefully they came to their senses and rejected it after the show was filmed.

[@jaykaria6718]

Exactly. And idk why they took out so happily. No one in their right senses would accept that deal unless they knew their valuation was crazy or they were really having some problem and needed the deal for some reason

[@SiLoMixMaster]

@@jaykaria6718 Yep me neither, should have just got a bank loan and kept the equity. I tried looking on google to see what happened after the show but couldn't find much, it appears like they still just have 1 location so maybe that deal didn't go through after all.

[@jaykaria6718]

@@SiLoMixMaster yeah, it didn't look like they had any USP as such too

[@littlejonathorn6860]

Ya. Hope they rejected deal.

[@ethank5681]

Yeah but don’t forget their father in law is Italian

[@gem-mint-cardscom]

father in law is Sicilian which means b4 the divorce or losing the supply chain, he will be killed. no worries. sounds like a solid investment

[@gpelletier2196]

1:28 janine trying to hide the joy of profit

[@rtushar61]

Ridiculous! The least that they could've done is ask her if she can drop the equity after getting back the money.

[@patrikpatrik8421]

They still own 1 store in Australia, so i dont think it went well after the show

[@utubestud]

The video was uploaded the same day as your comment. The business isn't going to blowup in one day

[@ethansmith7]

utubestud all these videos aired years ago

[@syd7801]

@@utubestud This episode is from 2015. Shark Tank Aus went off air in 2018 mate.

[@lightgamers6096]

They do have a store in the Netherlands tho

[@klownvandamn7946]

@@lightgamers6096 no they dont

[@leemcmullan]

If Janine was half as reasonable as she is attractive she would be legit my favorite person alive. $700k in revenue with a $2.3M Valuation is NOT DREAMING!!!!

[@nugget7865]

0 / 2 is 0

[@leemcmullan]

@@nugget7865 ;)

[@steveomac385]

Yeah, but all of them are like that to a degree. Maybe it's an Australian thing, but they never even considered the assets of a business it seems. Which is just weird.

[@cbmtrx]

Never has so much dramatic music been written to fill the space between 50% and 51%.

[@gauravpatil6289]

I feel I am lucky to got to know about this channel..... I see this as sort of education for me

[@SwadeshNow]

She Literally Bought Their Business

[@lovelife9954]

That counter offer was one of the best lines ive seen on this show. How can anyone say no to that

[@henrikmatiasemilsenraanaa8557]

0:34 "Joels gonna get started and cook up a meal sample for you to try" Me: that's literally just blended grass in water.

[@chinchillamdgamer]

it's pesto sauce xD AHAHAHA hope you're joking

[@jay-dubdubb2292]

I liked the boiling water "fryer baskets" tho!! 🍝

[@roycemoney]

What a great episode!

[@gabriellegp9935]

It’s a great idea, here in the uk there are no quick pasta joints unfortunately; try pitching for dragons den actually might go down better x

[@sanjaytrasy6705]

I'd like to see more participation of sharks in conversations. A few sharks are just keeping the seats warm.

[@ismawan1980]

i honestly think Dragons Den and Shark Tank USA are better than this Aussie one

[@OhhTyox]

I hope the next episode has glen in it!

[@sailingsolar2371]

Opening music starts the show. "Our family pasta recipe predates Marco Polo's travels to China!"

[@OrcishSouljah]

"At the drop of a hat, anything can happen.. I'm out" lol

[@harril6631]

Wow I had Tommy Sugo food it's awesome.

[@ejaayej3465]

and still only 1 store.. kind of think this episode was bogus as no other stores in operation

[@magusxxx]

I watch the UK-US-AU versions of this show on KZbin. And this is the first time I ever saw one of the investors use a calculator. 3:57

[@randydiomaboc6904]

Yeah.agree hehe janine used calculator hehee

[@thevan3293]

@ Whomever decided to add in this over excited background music, you are off your rocker.

[@jrandomx8548]

That was crazy amount of equity

[@foofy3406]

it’s amazing to me that things new to australia have been in america for years, and vice versa. my parents had their first date at one of these, in 1964. no cap

[@fyiaustralia9686]

...and in the end, she called both of them "arancini balls"...poor guys.

[@prasenjitdey4222]

"Tummy Sugo" the team really cooked up a deal, absolutely 'deal'icious!!👍 Aussie power bravo!!👏👏

[@littlejonathorn6860]

Excellent Pitch!!! Would love to see it in United States! Terrible deal.

[@ruthlessgaming7southafrica804]

Red riding hood never offers but wants freeb's lol

[@MikeC77]

From 2.3 million to 300k valuation and they just accept it instantly. iI you have that little confidence in your own abilities you shouldn't be running a business. She robbed you blind. Just say no and present it to other investors a year down the line when you have grown more. At least have some belief in yourselves.

[@hemanthkumar171]

Waiting for more new episodes, i think these are early ones ., But something is better than nothing 😉

[@lowfightiq]

these are all old episodes

[@hemanthkumar171]

@Panda Monium show cancelled 😱

[@adamsdailydriveway]

Longest 1% Pause ever lol

[@Miffybros]

I remember when I ate pasta, I put on weight and for that reason I'm out.

[@napriaa5175]

They have a awesome product these guys are ridiculous to act as if they were offering anything less than that. I've seen them go for way less interesting things. If the problem for them was the connection to family then instead of leaving immediately, ask if they'd remove that supplier to grow the business. Janine knew she was the only option left and she played it up as much as she could. Those are great guys and she knew it and still tried to take advantage. I heard the deal didn't go through, I hope that's true, I think they'll do just fine with what they're offering. Stand strong by your passion and business guys ❤.

[@SrJhonRoger]

This kind of business already exist in Brazil and is a BIG franchise, it's called Spoleto.

[@Train.ByLaw_]

I love Naomi that smile get me every time 😹

[@baimken3001]

everytime after shark bite ... most of th enterpreneur eyes start watery

[@nugget7865]

12:38 had to get a good feel

[@v3rw0lfsd3n]

Did you see us on Shark Tank? We pitched our restaurant concept on channel 10’s Shark Tank to a bunch of hungry investors. Although we did receive offers from the sharks, at this stage we are still independent and working hard at delivering awesome food in our restaurants and via our home delivery methods on our own. We are passionate about growing Tommy Sugo and feel with great food, great value and a great team at our helm, we can make more and more customers lives that much more enriched and tasty.

[@charianwarid451]

Tommy Sugo sounds like an Italian mob boss who likes to get paid and eat pasta and spaghetti just like the way it was back in Sicily in old times. Love the name wish you all the best

[@1QKGLH]

Wait WHAT!? I didn't think Jenine was allowed to make an offer.

[@tiamta]

where does the espresso come in?

[@biancabogdan2177]

the other guy doesn't know what's happening, he's just there smiling, yeah i think it's coachable at 50% now.

[@TheLochs]

Arancini is awesome? the place by my house in Boston sells out by noon every day.

[@indyjones1173]

Five years since this aired, and they only have one outlet?? looks like Janine did a great job lol..they should rename it "Asta la pasta baby"

[@ArtrixGaming]

The investment did not go through

[@ethank5681]

Just to be sure, is their father in law Italian?

[@kahea2018]

They went way too hard with the dramatic pauses in this episode.

[@hydrastrategy6844]

Whenever the sharks hear $x for 15% equity they go; okay so 45% equity sounds fair

[@EstrellaViajeViajero]

To be fair, a lot of the low-percentage valuations are really unrealistic. The sharks had a point; at least for now, it's worth no where near the millions the owners think it is.

[@rawritstayl0r866]

Tommy Sugo clearly did not expand rapidly nor meet their 2.3 million dollar valuation but they are still around. Based on what I can tell from their website and Instagram, their business has actually shrank and are currently running things out of what appears to be an Italian restaurant (their father in law's...?) quite interesting but I would reckon they are a very, very small business currently. Probably making far less than 6 figures net profit now. A far cry from their ambitious plans originally in 2015 when this episode aired.

[@durgaprasad1833]

She did not mention the interest rate

[@deadpool3636]

Jeanne was hoping they would say no...

[@mr.brightside1266]

Food on shark tank is always the best

[@mayowa_adegoke]

51%!!!!! WHAT?!! THAT IS INSANE

Eeeeerrrrrrrr....WTF Did I just see the biggest con take place

[@beautyns12]

They should have offered 1/3 ownership

[@BabySpidersHearthstone]

8:20. SHE KNEW ABOUT THE RONA

[@stefhannington2218]

They would have been better getting a business loan and getting the new stores open as there business model clearly works and that way they would have complete control still over there business. That deal they made was an impulse moment and they will regret later down the line if they want to pass on the business to there children etc.

[@teddym2808]

They totally got Janined. I think it must have fallen through as there's still only the one location... covid I am sure played a part, or maybe they decided to just keep it as a small family business, which is all one needs.

[@readmycomment3157]

The offers in Australian shark tank are insane, why would any entrepreneur agree to this

[@austiniscoolduh]

Dang, they got played lol

[@ey693]

never saw the sharks dont invest in food, especially if they get a decent sample that replaces their production's meal.. l

[@MYOLOLS]

I always read comments before i watch start video.

[@zackwilson1124]

Me too 😂😂😂

[@deandrelyons6199]

Janine looks like the female version of Mark Cuban

[@brunotoutpuissant1665]

I would say mr. Wonderful

[@Nimrod336]

Wow she's going to cut them out and do some shade stuff

[@swastikofficial98]

Went to their website : they didn’t accept the offer

[@LoversandtheSun]

Hi, I have an English question...at 7:12 Andrew said "I am ready to make a decision so I will pile in here.", is that right? what does it mean to "pile in" in this situation?

[@jamesbuchen6256]

In the American Midwest we say "pile in" when getting everyone to "pile into" a car to start a road trip. Basically, he is bringing the conversation into a pile to start the decision process.

[@zydhas2838]

She got the business at at valuation that was 40% *lower* than the projected gross revenue.

[@nonstickwater]

Still only the one location ??

[@matthewbell4273]

Ask valuation: Approx AUD 2,333,333.33 (100% of ask valuation). Offer valuation: Approx AUD 294,117.65 (approx 12.6% of ask valuation). Counter-offer valuation: AUD 300,000.00 (approx 12.9% of ask valuation). Will they be hiring new staff to manage any external negotiations on their behalf?

[@randydiomaboc6904]

Many times janine use calculator.hehehe

[@devonhendrix5476]

She said 51% because I think I can work with you, what she was really saying was because I think you could work for me

[@shakthidhasan4544]

Once again why are these guys seeking funding. Grow it slowly and by yourselves.

[@rachmadsuhartono]

I would have countered with 33%

[@dsgrbrowne1]

I would never by deep fried pasta, ever.

[@jay-dubdubb2292]

I thought it was boiling water and "boiling baskets" (?)

[@tanneragren725]

I would have done the same thing. Especially if I was a first time entrepreneur. Those guys aren't bound by Tommy sugo. Tommy sugo is their stepping stone and Janine is gonna show them how to unplug from the matrix.

[@hollystiener16]

No she is not, thankfully!

[@user-wickedflower]

For people who don’t understand the shark tank rule after the company reps do their pitch, the deal is done on the show for the monies & percentages stated. After the show the deal is taken through due diligence to ensure the pitch stated numbers correctly & they didn’t make mistakes about their profits or projected profits. If everything works out by the lawyers the deal is done. If not, the deal collapses. There are no hidden agendas to the program or sharks there that don’t make offers or sharks that are there for free food or any other nonsense reasons people like to post about. The shows are in varying formats around the world & are a very popular show. Its not made up or just for views.

[@michalwalks]

Naomi is out. She only just paid off her first home, and that's big thing in Australia, but just not enough for her to be a serious investor.

[@whitneycaldwell3767]

Bring it to south fl in the USA

[@dannyldart]

So Naomi just sits on her chair with her arms on the arm rest not taking notes. Is she even a serious investor? Every other shark is is taking notes.

[@premiumzoo8632]

I worked at there store in Nedlands when I was 14/15 and the bald man fired me for having gastro and not being able to come into work !

[@sean1x_]

She hit the jackpot

[@visheshgoyal3999]

why is 3x top line revenue as the valuation extremely high?

[@jthompson13]

Well I decided to look up this poor company because of the offer. The website shows only 1 location - might be a mall from the map. On yelp the latest review was 3 years old. In the states this isn’t new and probably would do very well here but I’m surprised that they didn’t grow since this show was aired. If there were growing at 12% a month you would think that they would have at least 2 more stores. Maybe Australians does like pasta?? Any. Aussies able to answer that for me?

[@RosalinaSama]

i actually live in perth and have a friend who worked here, they did have 2 more restraunts open up but they both closed down due to bad management lol

[@philipwallace90]

We at 200k now

[@SalaarArifKhan]

Ciao! What a great deal!

[@sennaandrieu7587]

Ciao

[@DevinsDen]

How is that a great deal she took half the company? That's beyond a horrible deal.

[@SalaarArifKhan]

@@DevinsDen For where they are at this point and the risk involved in their supply chain, it's a pretty fair deal!