Savor Cake boys receive investment from Shark Hung Anh in the final episode of Shark Tank season 6
Savor Cake specializes in producing and delivering birthday cakes and was founded by Vy Tuan Anh and two associates. According to the founder, Savor Cake "can provide fruit birthday cakes that ensure both freshness and speed to any happy birthday party within just 1 hour of the customer's order" with an average price of about 200,000 - 250,000 VND/cake.
To operate this model, Savor Cake has applied technology to management, from purchasing management, inventory management and production to sales management. All cake recipes have been digitized and uploaded to the system, so inventory can be checked in real time, controlling loss to less than 1%. In addition, Savor Cake's management system also manages each employee to assign each person responsibility for the products they make, and at the same time evaluate work performance to calculate effective salaries.
Vy Tuan Anh revealed that after 7 months of researching and developing the model, 12 months of focusing on marketing and sales, Savor Cake now has 3 "cloud kitchens" in Hanoi, with revenue last year of 15 billion VND. To help Savor Cake enter the take-off phase, the group went to Shark Tank Vietnam to find investors to join them with an offer to invest 3 billion VND in exchange for 6% of the company's shares.
Co-founder Vy Tuan Anh entered the birthday cake market from a sad memory
Savor Cake's specific development plan for 2024, 2025, 2026 is to open 8, 18 and 30 kitchens. It is expected that by 2026, the revenue of this start-up will reach nearly 200 billion VND. Convincing the Sharks, Tuan Hiep said that this model has been successful in China with more than 1,000 kitchens. For the Vietnamese market, he estimates that it is possible to open at least 90 kitchens.
Although not convincing Shark Binh, Savor Cake's model has attracted the remaining 4 "sharks" to "launch deals" fiercely. Initially, Shark Hung offered to invest 3 billion VND in exchange for 36% of shares. Shark Tue Lam and Shark Hung Anh made the same investment offer of 3 billion VND in exchange for 25% of shares. Shark Minh Beta offered to invest 3 billion VND in the form of a convertible loan.
To compete, Shark Tue Lam emphasized that she has invested in an event organization company and can immediately connect with Savor Cake to cooperate. In addition, she can also support the start-up to raise capital for the next rounds. Shark Hung said that he is studying vocational training in Germany and baking is one of the professions he is focusing on. Shark Minh Beta affirmed the opportunity for Savor Cake to reach Beta Cinemas' customers, while emphasizing that if the start-up's business results in 2024 are good, the conversion rate will be lower.
Cloud Kitchen's cloud kitchen model
Shark Hung Anh quickly reduced his ownership stake from 25% to 20%. Immediately, Shark Tue Lam also changed his investment offer to the same as Shark Hung Anh's, which was 3 billion VND in exchange for 20% of the shares to get this deal. Next, Shark Hung Anh and Shark Tue Lam continued to compete fiercely with an offer of 3 billion VND in exchange for 18% of the shares. When the founder of Savor Cake offered to invest 3 billion VND for 15% of the shares, only Shark Hung Anh continued to negotiate. After the negotiation process, the two sides reached an investment agreement, closing the final deal of Shark Tank Vietnam season 6.
"It's been a long time since we've seen something sweeter than our own cake," Vy Tuan Anh humorously shared. "I've been selling baking supplies for 8 years, but I never thought about opening my own bakery until 2022, after an unpleasant experience on my mother's birthday. My mother loves sweets, so that day I proactively ordered early to get the most satisfactory cake. But in the end, I received a product that was too sweet, thick with cream and not fresh. The whole family could only eat an eighth of it and then threw it away. Suddenly, the birthday celebration was much less fun," Tuan Anh recounted.
From that experience, Tuan Anh was determined to open his own bakery with the desire to elevate the sweet experience on special occasions for everyone. For Tuan Anh and his two partners, not everyone has enough money to buy an expensive cake, but everyone deserves a fresh and delicious cake to make the most of happy moments with loved ones.
To solve these problems, Tuan Anh and his colleagues chose the "Cloud Kitchen" model and applied the management technology they developed themselves to optimize the operation process, meet the most reasonable price and commit to delivering fresh cakes within 2 hours of ordering to customers, controlling the damage rate to less than 1%. These are truly impressive numbers that traditional cake business models find difficult to achieve. Combined with impressive delivery speed thanks to the internal shipper team and the commitment to refund 100% or remake the cake if the delivery is damaged, Savor Cake is gradually attracting the attention of many young people.
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