Roboburger Net Worth Shark Tank Update

Managing a fast-food chain can be challenging, as it often requires a large team of staff to operate smoothly. Additionally, fast are is not always located in the exact places where customers might need it, making availability a common issue. From making the food to front desk services, running a chain demands huge effort to ensure that all areas are well-maintained and customers are satisfied with their food.

This can be particularly difficult in remote or high-demand locations, where setting up and maintaining them becomes even more complex.

Audley Wilson, Andy Siegal, and Dan Braido, the owners of Roboburger, have launched a 12-square-foot box that didn’t need a staff to maintain. Their system is the world’s first, autonomous, and robotic restaurant that makes fresh hamburgers. The machine only takes four minutes to prepare a burger and it is a multi-patented system that does not need any vending or plumbing.

The owners came on Shark Tank to request $1.5M in exchange for 5% of their company. They also invited Rubin, the guest shark, to experience the making of the burger himself through their Roboburger. Let’s explore their journey on the show. 

Roboburger Net Worth Shark Tank Update

Audley, Andy, and Dan were looking for an investment of $1.5M in exchange for 5% equity in their company, RoboBurger. At the time of the episode, they valued their company at $30 million. They successfully secured a deal with Kevin and Rubin for an investment of $1.5M as a loan for 9% equity in the company. The investment adjusted the company’s net worth to around $16.67 million. After the show aired, the company experienced a big boost in exposure. As per my rough estimate, the current net worth of RoboBurger in 2024 is around $40 million.

Shark(s) name	Offer & Demand	Counteroffer	Accepted?
Kevin O’Leary + Micheal Rubin	$1.5M for 5% equity	$1.5M as a loan and 9% equity	Yes
Mark Cuban	Out	N\A	N\A
Lori Greiner	Out	N\A	N\A
Barbara Corcoran	Out	N\A	N\A

The Owners’ Backstory

Audley, a Jamaican immigrant, began working on food automation as a teenager. His early invention earned him a scholarship to Carnegie Mellon, where he met Dan. During college, Audley launched a restaurant and came up with the idea for RoboBurger, building the first prototypes in his Queens garage. His career then led him to data science and analytics, where he met Andy. In 2019, Audley, Dan, and Andy joined forces to make RoboBurger a reality.

Dan has always been passionate about automation and robotics. He founded a high school robotics team, winning the US FIRST Robotics competition. After earning a BS, MS, and PhD in engineering, Dan brought his expertise to RoboBurger.

Andy, a direct marketing expert with over $1 billion in TV sales, also owns three restaurants in Jersey City. His experience in business and hospitality has been key in shaping RoboBurger’s success.

Initial Pitch

The owners came on the show to seek $1.5M for a 5% equity stake. Their product is a robot that prepares hamburgers in just under four minutes. Their system operates only on electricity and it does not need a staff to work. The machine cooks every part of the burger separately and then assembles it.

Queries about the Product

Corcoran asked the first question if the machine provides medium rare meat as well. Dan related that their system is stocked with pre-cooked products that are first re-thermalized on a proper grid according to the health standards.

Rubin wanted to know if they wanted to make these robotic machines for themselves or for other companies as well. Andy mentioned that their company is based on robot restaurants that want to extend other businesses’ brands. They started 18 months ago as a burger company.

The guest shark also asked about the scalability of their business. One of the owners replied that they already have a chain of some of the largest companies in the world. They even have four patents and they not only heat the burgers but also cook them perfectly. One of their patents covers the process of making the food just like made in restaurants.

Kevin asked about the price of these machines. Andy highlighted that for each machine they charge $3K per month according to their lease program. The customer then gets the recipe, the contact with the food logistic company, warranty, and maintenance of the machine.

He also added that as their machine runs 24 hours, it sells up to 50 burgers a day. During the 18 months, they were operating in their beta.

Cuban asked for the selling price of the burgers. Audley highlighted that during the beta period, they sold their burgers between $5.99 to $6.99. The cost to make a single burger is about $2.25.

Kevin was interested to know about their sales and their lost money. Andy related that in Beta they sold almost 12K burgers and they also have a contract for about 14 units. For this year, their revenues are $1.4M with $700K lost.

Kevin asked about their next year’s revenues too. It will be about $7M and the profit will be $1.6M.

Shark’s Response and Final Decision

Cuban was the first shark to drop the deal as he considers their business to be physically driven and thus outdated in the face of evolving technology.

Rubin was next to leave the deal as he thought their business model was huge and thus difficult to maintain.

After relating her poor experience with machines while selling Daisy Cakes, Corcoran also backed out.

Lori also passed the deal as it was very confusing for her to understand their business model.

Rubin then suddenly jumped back in and offered them $1.5M as a loan at market interest rates for a 10% equity in their business.

The trio then counter-offered Rubin $1.5M as a loan for a 2% equity stake. Rubin readily rejected it.

Then, Rubin and Kevin partnered up and offered them $1.5M as a loan at market interest rates for a 10% equity in their business.

The owners then counter-offered both of them $1.5M as a loan at market interest rates for an 8% equity in their business.

The sharks revised their offer $1.5M as a loan at market interest rates for a 9% equity in their business.

Finally, the trio accepted their offer and left the tank with two sharks by their side.

Product’s Availability

After getting a deal on the show, the company is still functioning. There is no evidence that their deal with Kevin and Rubin has been finalized or not but their leasing program is still functioning on the RoboBurger website.

Conclusion

In conclusion, Roboburger made a strong impression on Shark Tank with their unique, fully automated burger-making machine, which needs no staff and can make a fresh burger in just four minutes. Although their business faced some skepticism, they ultimately got a $1.5M loan with 9% equity from Sharks Kevin and Rubin.

With four patents and a unique leasing model, Roboburger aims to revolutionize the fast-food industry by offering convenience and efficiency. While it’s uncertain if the deal has been finalized, the company continues to operate and offer its services through its website.