The milkshake is undoubtedly one of the classic sweet drinks of all time, but The Yard Milkshake Bar from Shark Tank was able to turn this timeless classic into a crazy dessert that has customers lining up around the block.
What happened to The Yard after appearing on the Shark Tank TV show and getting a $400,000 investment deal from Mark Cuban? Is the company still in business today? How much is the The Yard’s net worth now?
What is The Yard Milkshake?
The Yard Milkshake is a specialty milkshake shop with outrageous, overloaded, Instagram-worthy milkshakes.
The Yard offers at least 18 specialty shakes and sundaes in their menu while at the same time giving customers a chance to create their own concoction. The milkshake bar offers a buffet-style of ingredients where customers can choose from a wide variety of at least 30 ice cream flavors and at least 30 specialty toppings.
Ingredients range from the usual nuts and marshmallows to the extreme whole cupcakes, waffles, brownies.
The milkshake bar also comes up with creative, Instagram-worthy pre-designed shakes. They also sell their own egg-free cookie dough.
The Yard Milkshake was first started in 2017 by Chelsea Green. She first opened an ice cream shop with her mother, until she had the opportunity to open her own with her husband Logan and her sister-in-law Ali.
What were the Sharks’ offers for The Yard Milkshake?
The owners of The Yard milkshake bar walked into the Shark Tank asking for $400,000 investment for a 10% stake in the company, but excluding the original shop.
The Sharks were not happy with the structure of their offer, but they were definitely impressed by the sales numbers of the ice cream shop and the assistance they give to franchisees.
Mr. Wonderful said he’d heard enough and made the first offer of $400k for 15% stake in the franchise businesses and the corporate-owned locations.
Shark Daymond John explained that the ice cream shop business would be in conflict with his other business partnerships and decided to bow out.
Shark Lori Greiner went up next to say that she really liked the business and their marketing. She offered $400k for 12.5% stake in all of The Yard, both franchise and corporate-owned.
“When I’m in, I want to really be all in,” Greiner said.
Finally, Shark Mark Cuban buzzed in and started his offer by saying “I’m fine with you guys owning those four stores.”
Cuban then went on to offer $400k for a 25% stake in the existing franchises and the new franchise businesses to come.
Logan and Chelsea Green discussed quickly and made a counteroffer for lower equity of 20%, which Cuban then countered with 22%.
Did The Yard Milkshake get a deal on Shark Tank?
The owners of The Yard made it out of the Shark Tank with a deal and a new business partner, Mark Cuban.
After hearing Cuban’s counter offer of 22% stake in all of the franchises, the Greens grabbed the opportunity and agreed that Cuban had a deal.
It was almost exactly what the Greens originally asked for, and they only gave up 12% additional equity versus their original ask.
Here’s a YouTube video of the Shark Tank negotiations for The Yard Milkshake, courtesy of ABC.
What happened to The Yard Milkshake after Shark Tank?
After appearing on the show, The Yard’s popularity blew up in social media.
Just months after the airing of the Shark Tank episode, they have since opened three (3) additional franchise locations.
According to the company’s website, there are more franchises that are about to open showing that the business is thriving despite the impact of the COVID-19 pandemic.
Is The Yard Milkshake still in business today?
The Yard Milkshake shops are now open again as quarantine was lifted in the United States.
In social media, the brand is very popular and has high engagement with their followers. In their Instagram alone they have 117k followers.
The ice cream shop brand also has a 4-star rating on their Facebook page where satisfied customers and fans leave their glowing reviews and share photos of their dessert creations.
How much is The Yard Milkshake worth now?
With Mark Cuban’s $400,000 investment for 22% equity in the company, The Yard Milkshake’s valuation stood at $1.8 million.
This looks like a bargain, considering that the time of the airing of the Shark Tank episode, the year-to-date sales of the company was already $3.4 million.
With the popularity boost from appearing on the show, newly-opened franchises, and the shops back in business after the lockdown due to COVID-19 pandemic, it’s possible the company is earning more than $3.4 million in 2020. Cuban likely got a good deal in this particular investment.
Lessons from The Yard Milkshake on Shark Tank
Mar Cuban, unlike the other Sharks, agreed with the crucial condition of the owners of The Yard that they’re only offering equity on the franchise branches.
As an investor, you should weigh your options well in terms of value for your investment and potential for the business. Gauge how much the entrepreneurs are willing to change their offer but don’t push it too far, or you risk losing the chance to seal a partnership.
For entrepreneurs, The Yard is a great example of pairing a unique and appealing product with the knowledge of utilizing the advantage of being visually appealing for social media. It also helped that they had a great franchise system in place.
The milkshake is a classic, but they managed to take it to the extreme and leave customers coming back for more.
