From left, Crispy Cones founder Jeremy Carlson and Chief Marketing Officer Kaitlyn Carlson aim to popularize their recipe for the Czech chimney cakes as they expand via franchising.
Pitching a specialty treat concept in front of a panel of ultra-wealthy investors is scary, but Crispy Cones founders Jeremy and Kaitlyn Carlson did just that on “Shark Tank.”
“Kate and I have always told each other that we’ll go as far as our business takes us,” Jeremy Carlson said. “One day we’re watching the show and we’re like, what’s the difference between them and us?”
The pair applied and made the cut, appearing in an episode that aired in March 2023. They had their fingers crossed for a deal with real estate mogul Barbara Corcoran or multi-billionaire Mark Cuban, two longtime “sharks” on the show. The Carlsons walked away with a $200,000 investment from Corcoran in exchange for 20 percent equity in the ice cream cone business.
Crispy Cones uses a rotisserie grill to cook ice cream cones on a stick, which creates a pastry-style consistency different from the traditional waffle or sugar cones offered in most American ice cream shops. The warm cones are then dipped in a coating, like sugar or crumbled Biscoff cookies. Carlson learned of the style while on a mission trip in the Czech Republic. There, the treat is called Trdelník, or chimney cakes in English.
The cones originated in Hungary in the mid-19th century. The dessert grew in popularity this century among tourists visiting the Czech Republic, Hungary and Slovakia.
Carlson knew he wanted to bring the sweet treat to the United States following his mission trip and started making the chimney cakes in his aunt’s kitchen in St. Anthony, Idaho. Later, he sold them out of a tent before investing in a trailer.
“We basically just grew out of the trailer,” Kaitlyn Carlson told the sharks on “Shark Tank.” She serves as the chief marketing officer. “We knew if we wanted to scale this business that we couldn’t do what we wanted to do in the trailer.”
Cones come in two flavors, traditional or a monthly special (April’s was Biscoff cookie). Customers can pick from spreads such as Nutella or cookie butter and soft serve ice cream flavors, with a rotating weekly flavor. There are a variety of topping and sauce options as well. Jeremy Carlson’s favorite doesn’t include ice cream. He fills a cone with cookie butter, fresh fruit and whipped cream.
The Rexburg, Idaho-based brand had five stores open in three states as of late April: Utah, Idaho and Arizona. Crispy Cones has a handful of units on the way, too, in Utah, Florida, California and Arizona. The company has 30 franchises sold.
The franchise started as a trailer and later evolved into a brick-and-mortar location in Logan, Utah. The Carlsons were franchising prior to their “Shark Tank” appearance, but hadn’t signed any agreements yet. “Barbara Corcoran is known for franchising and investing in franchises,” Jeremy Carlson said. “We got her, and she’s phenomenal. She’s helped us out a ton.”
On the show, Corcoran invested in franchise Cousins Maine Lobster about 12 years ago, when she put $55,000 into the food truck brand. Cousins now has more than 50 trucks on the streets to go along with several restaurants.
The longtime “Shark Tank” star also invested in Press Waffle Co., a Liege-style waffle franchise with a handful of stores open, in 2019.
The cost to open a Crispy Cones franchise ranges from $199,250 to $567,000, including the $30,000 franchise fee. Gross sales for its two corporate stores in 2022 were $225,027 and $190,576. Gross profits were $168,770 and $140,950, respectively. Royalty fees are 5 percent of gross sales. Stores are about 1,400 to 1,600 square feet.
Crispy Cones’ franchisees are a mix of passive investors and single-unit owners, Jeremy Carlson said. “From what we’ve seen so far, the best franchisees are the ones who are smaller and they take their stores more seriously,” he said. “My favorite kind of franchisees are those who are willing to get down in the trenches, boots on the ground, and build their business.”
The company doesn’t have a lot of competition among chimney cake franchises, and others in the category have just a few stores open. There’s House of Chimney Cakes, which has three locations open. Szandra Sazbó, born and raised in Hungary, founded the brand in Los Angeles and is president and pastry chef. There’s also The Chimney Cake, founded in 2018, and Thailand-based Flavorly.
“We have something that’s extremely unique in the market and the country,” Jeremey Carlson said. “We’re the first ones to break out with this product and to grow quickly.”