RoboBurger Shark Tank Update – Net Worth, Pitch & Deal

Andy Siegel, Dan Braido, and Audley Wilson are on a mission to change the future of the fast food market. Their company, Robo Burger, has a patented burger-cooking vending machine that grills the recipe instead of microwaving it. 

The robotic food manufacturing industry is jam-packed with different vendors selling unique restaurant solutions. The robotic business is capital-intensive and requires a lot of investment and careful lease pricing. Did the trio successfully give a convincing explanation regarding their business model? Find it out on our Robo Burger Shark Tank Update. 

RoboBurger Net Worth

Robo Burger is a highly capital-intensive business that makes vending machines to reduce the involvement of human resources in the restaurant business. Making vending machines costs more than consumable products, so a high valuation is understandable. The business owners demanded investment at a $30 million valuation. However, the valuation is lower because the company did not sell as many products as other robotic companies. Given the machine-intensive business model, RoboBurger net worth is around $10 million.

What Happened To RoboBurger After Shark Tank?

Nothing much has changed for Robo Burger after the Shark Tank appearance because the website has the same product features and pricing as discussed in the negotiations. Moreover, the website mentions Shark Tank, which confirms that the company has formally signed or agreed to the discussion done on the Tank.

Did RoboBurger Get A Deal On Shark Tank?

Robo Burger impressed the Sharks with its quality and technological superiority. However, the business and revenue models were not catchy enough to get them interested in the deal. Mark Cuban opted out of the deal due to the capital-intensive nature of the business.

Barbara Corcoran and Lori Greiner bowed out because the business model did not appeal to them.

Michael Rubin was initially interested in the deal because the vending machines felt relevant to Hart House (a restaurant owned and managed by Michal and Kevin Hart). However, his interest faded because the economics of the business did not make sense.

Audley Wilson explained that the purpose of the investment was to finance the working capital to fulfil the orders. Michael reentered the negotiations and offered the trio $1.5 million as a loan at market interest for a 10% share in the company. Kevin joined in with Michael, and each Shark agreed to contribute $7.5 million to get 5% of the equity.

In the end, the deal was made on a loan of $1.5 million at market interest rate, strictly for the financing of hard orders. The company would give 9% of its equity in return.

Shark(s) NameOfferDemandCounterofferAccepted?
Kevin O’Leary and Michael Rubin$1.5 million as loan available only for financing hard sale ordersInterest at the market rate ‘and’ a 10% of equity in the company$1.5 million as loan available only for financing hard sale orders against interest at the market rate ‘and’ a 9% of the equity in the companyYes
Michael Rubin$1.5 million as loan available only for financing hard sale ordersInterest at market rate ‘and’ a 10% of the equity in the companyN/AN/A
Barbara CorcoranN/AN/AN/AN/A
Mark CubanN/AN/AN/AN/A
Lori GreinerN/AN/AN/AN/A

Robo Burger Shark Tank Update

roboburger net worth

Initial pitch

Andy Siegel, Dan Braido, and Audley Wilson entered the Tank with high hopes to shape the future of the fast food industry. They explained the people’s need for delicious food, especially during the off hours or at remote locations. 

Restaurant business requires high capital expenditure, long-term leases, and dealing with the volatile kitchen staff. The trio presented the Sharks with Robo Burger. It was a 12-square-foot box that needed only electricity to operate.

Andy explained that the machine was fully automated and could prepare freshly cooked hamburgers in less than four minutes. Robo Burger machine was similar to any other ATM or vending machine when considering the operations. The Robo chef could grill patties, toast buns, add sauces, and deliver it hot. 

The trio invited Michael to use the Robo Burger vending machine. The operating procedure and payment method seemed straightforward. Other Sharks loved the taste of the burgers presented to them. Meanwhile, the burger popped out of the vending machine. Michael grabbed it and ate it. He liked the taste. 

Queries About Product

what happened to roboburger after shark tank

When asked about the quality and type of burgers they sold, Dan confirmed that the burgers were precooked initially. However, the Robo Burger vending machine rethermalized the recipe in the grill instead of reheating it like a microwave.

Michael asked the trio about their plan regarding the branding of their burger machine. Andy explained that they had been testing machines for 18 months. They tested equipment, fixed operational issues, and did hardware & software. He confirmed that the company wanted to become the brand extension for other brands. 

Michael wanted to know how big the company could get and where the owners saw it going in the future. Audley told Michael that they could sell thousands of machines around the world. 

Mark Cuban did not like the optimism of the trio. He explained that there were zillions of robotic food manufacturing companies in the world. Andy shook his head in disapproval and claimed that their product had four different patents. 

They owned the burger because they reconstructed it. The machine did not reheat the food but cooked it like it is done in the restaurant. Mark did not agree. He explained that doing things differently did not mean they had no competition. 

Kevin O’Leary interrupted the discussion by showing interest in buying a machine. He had thousands of employees to serve in his office with food. He required two machines but wanted to know whether it was a lease.

Andy recommended Kevin install the machine in a cluster of four. The purchase plan required a buyer to pay $3000 per month per machine. The Sharks were shocked after knowing the numbers. However, Kevin stuck to his question.  He asked if he got service and burgers in the $3000 instalment. 

Andy elaborated on the business model, where Robo Burger gave the vending machine and arranged the recipe from food logistics companies. Robo Burger also offered warranties and maintenance on each machine. 

Michael was struggling to understand the machine’s profitability for the restaurant because each machine should produce $150,000 of revenue per year if it were assumed that the food made a 30% gross margin and the buyer had to pay $3,000 per month for the machine. Andy clarified that the machine could operate for 24 hours daily. It could easily sell 50 to 60 units daily because the beta run has reached 20 to 30 units of output per day.

Mark inquires Andy about the selling price of the burgers. Audley confirmed that each burger was sold from $5.99 to $6.99. An unoptimized cost per burger was $2.25. They started talking with the bigger companies to act as their service partners.

Kevin still found the business model ambiguous because he could not determine how to get his money back from the investment. Andy explained that the company had been in the beta phase for the last 18 months, during which it sold 12,000 burgers and contracted 14 out of 20 machines that they were planning to manufacture that year.

The sales estimate in the current year was $1.4 million, where the company was expected to make a loss. However, sales of $7 million were expected in the next year, earning the company a profit of $1.6 million.

Sharks’ Responses And Final Deal

did roboburger get a deal on shark tank

Mark Cuban did not make an offer and tried explaining the robotic business to the trio. He started with the vulnerability of the robotic industry to technological innovations. He added that the pitch would have interested him if the owners presented them with a licensing business model. Producing vending machines required heavy capital investment, and updating every machine for the technological change was hard.

Michael disclosed that he was one of the founding members of the Hart House, a plant-based restaurant in Los Angeles. The restaurant was owned by Kevin Hart and had four stores in the USA. Michael was initially interested in installing the vending machine at the Hart House, but he could not understand the economics of the business.

Barbara Corcoran opted out by stating that she had a prior experience with Daisy Cakes. The business has installed pie-vending machines in airports. The idea seemed feasible initially, but the maintenance problems hit the company hard in the guts.

Lori could not understand the business model, so she refrained from investing in the business.

Audley tried convincing the Sharks and explained that they required financing for the units and the working capital. This got Michael interested in the deal. He offered the trio $1.5 million as a loan at the market rate, where he got 10% of the company. However, the loan was strictly for the fulfilment of hard orders.

Kevin O’Leary joined Michael, and they offered to finance the company equally. The company trio requested the Sharks to lower the equity ask to 8%. The deal was made in the end for a 9% stake in the company.

Product Availability

Robo Burger is a fast-food vending machine manufacturer selling 12-square-foot boxes that only require electricity to function. The system is fully automated and robotic. It can be termed as a miniature restaurant. The customers can have customized hamburgers in less than four minutes.

Robo Burger’s vending machine grills the patty, toasts buns, adds sauces and delivers it hot. Every burger is available to the customers for $5.99 or $6.99. The vending machine is sold through a finance lease where the buyer has to pay $3,000 per month.

The vending machines have four registered patents that secure them against competition from other robotic food manufacturers. However, capital-intensive stock is the major problem, as the company would require additional funds via loan or equity financing.

Robo Burger could have adopted a licensing business model where they could have focused on technological advancements rather than wasting resources on machinery production. Moreover, maintaining the vending machines is another important aspect of the purchase that can determine the product’s profitability in the future.


Robo Burger is a one-of-a-kind company set to shape the future of the fast food industry. The product has been developed and is well past the prototype phase. However, the business is going through financial difficulties to arrange working capital and meet the sale orders.

Robo Burger’s deal with Michael and Kevin is the best it could get in the current situation. $1.5 million as a loan gives Sharks security against non-recovery risk and solves the issues faced by the company in financing its operations. The possibilities and opportunities are high, but finding the right business model is the key to improving.

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