'Rethermalized' Burgers And A $30M Dream: RoboBurger Lands $1.5M Shark Deal After Selling 12,000 Burgers In Beta

What if your next burger didn't come from a drive-thru or grill but a vending machine? That's the idea behind RoboBurger, the Jersey City startup hoping to reshape fast food with machines that whip up fresh, customizable burgers in under four minutes. 

Cofounders Dan Braido, Audley Wilson, and Andy Siegel recently presented their ambitious pitch on ABC's Shark Tank. They aimed for $1.5 million in funding for just 5% of their company. A roller coaster of skepticism, surprises, and a deal followed.

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The pitch didn't start on a high note. Investor Kevin O'Leary immediately labeled the presentation "chaotic" and demanded clarity on RoboBurger's profitability. "How do I make money? All the rest doesn't matter," he said. 

Undeterred, the team demonstrated their $3,000-per-month vending machine, which turned out a "rethermalized" burger – a term that sparked some laughs. Mark Cuban joked it was "a fancy word for ‘reheated,'" though Braido clarified the patties are grilled in the machine, creating a crust while locking in the juices.

The Sharks agreed the burgers were tasty, but eyebrows shot up when the founders revealed a $30 million valuation. 

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RoboBurger sold over 12,000 burgers during an 18-month beta test, with prices ranging from $5.99 to $6.99 and projected annual revenue of $1.4 million. However, with a $700,000 expected loss for the year, the request for $1.5 million seemed like a gamble.

Another point of contention was the financial model. RoboBurger leases machines for $3,000 per month or sells them outright, leaving buyers responsible for stocking. Mark Cuban warned that vending machines are costly to produce and maintain, calling them "hard capital assets" in an industry where technology quickly becomes outdated. 

He suggested RoboBurger pivot to licensing its technology. Michael Rubin, Fanatics CEO and guest Shark, echoed the concerns. "How many businesses can realistically afford $3,000 a month plus food costs?" he asked. Still, Rubin saw potential, calling it a "big idea" with the possibility of scaling into a multibillion-dollar business.

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Instead of an equity investment, Rubin proposed a $1.5 million loan with market-rate interest and a 10% equity stake. "This is a very high-risk project with a low probability of success," he said. 

Barbara Corcoran criticized the offer as "greedy," but O'Leary warmed to it, calling it a "very Mr. Wonderful structure." Ultimately, O'Leary and Rubin agreed to split the deal, reducing their equity stake to 9% during negotiations.

As RoboBurger secured its $1.5 million, it joined a growing movement toward automation in food service. According to Allied Market Research, the global food vending machine market was valued at $18.3 billion in 2022 and is expected to grow 7.5% annually through 2032. 

With consumer demand for convenience at an all-time high – Statista reports the U.S. quick-service restaurant (QSR) sector has grown consistently since 2004, reaching over $349 billion in consumer spending in 2023 – RoboBurger's timing could be just right.

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