Lured by a $50,000 grand prize bait, 13 brave souls took the plunge Saturday night at Old City Hall and pitched their business ideas in hopes that Gilroy’s “Sharks” would smell the scent of success.
The competition – which aimed to get a new business into one of Gilroy’s 24 vacant downtown properties – was masterminded by President James Suner of the Gilroy Downtown Business Association.
He was impressed by what he saw Saturday night and thinks the event – inspired by a popular ABC network TV show – could yield more than one new downtown entrepreneur in the months to come.
“The applicant pool really rose to the occasion,” Suner beamed of the event, which drew business pitches that included Brenden Zimmer’s locally-sourced juice bar and Kori Westfall’s skating facility and pro-shop.
Ultimately, it was 32-year-old Heather Pacheco, who wowed the “Sharks” – local business owners/judges Amber Madrone, Katherine Filice and Jose Montes – and walked away with a $50,000 check from the GDBA to help get her blow-dry bar up and running.
“I’m in awe right now,” said a visibly emotional Pacheco after her name was announced. “I feel like I’m in a dream.”
Along with the cash, Pacheco will receive mentoring from a crack team of local entrepreneurs. Her new business – which Pacheco is confident “will be a success” – will open in the next 100 days as stipulated in the contest guidelines.
The newly-crowned Shark Tank winner is considering setting up shop in Suite 101 of the Spanish colonial-style La Aldea building – a three-story, 17,000-square foot, multi-use property built in 2009 by local developer Gary Walton and owned by Santa Barbara Bank & Trust – located at Fourth and Eigleberry streets opposite the Gilroy Post Office, but isn’t ruling out any of the other properties available downtown.
The premise behind a blow-dry bar is simple: no cuts, no colors – just a shampoo and blow-out for any woman (or man!) who feels like giving their noggin and locks a little practical pampering.
Blow-dry bars are enjoying a renaissance, explained Pacheco, as women take a retro approach to their beauty regimen. The process –once highly popular and common in the ’50s and ’60s – features a hair wash with salon-quality shampoo and conditioner, blow-drying and styling. LAist.com describes blow-dry bars as “blow-on-the-go salons” that are “currently the best trend in affordable luxury with new ones popping up in Los Angeles daily.”
Pacheco says prices will range from $40 – for a scalp massage, shampoo and blow out – to $85 and above for a special occasion hairstyle such as a French Twist.
“Shag Beauty Bar,” as her forthcoming business will be named, isn’t taking a chemical step back to the swinging 60s, however. The salon will use organic-based Aveda hair products. As first of its kind for Gilroy and the Aveda company, Pacheco hopes that Shag Beauty Bar will net some of the dollars being thrown at blow-dry bars in the Bay Area. According to Pacheco, Shag Beauty Bar will be entering the market at exactly the right time since there are only “around 10” within driving distance of Gilroy.
“This is the perfect time for us,” said Pacheco, whose mother, Rhonda Rodgers, owns a full-service hair salon on Fifth Street called Shag Salon, where Pacheco has worked for nine years as a stylist.
Pacheco explained that her family has built the Shag name and brand over nine years and are ready to capitalize on it.
Shag Beauty Bar will “be our sister salon and it’s brand recognition,” she added. “This will draw (customers) into our other salon.”
Hooking disposable income and helping other local businesses is at the core of the Shag Beauty Bar concept. Featured hairstyles will be named after wines – “The Merlot” for instance is “full-bodied and smooth” – and Pacheco intends to showcase many of South County’s 22 local wineries to customers by serving a “wine of the month.”
“We’re going to tie in the fun wine bar theme,” Pacheco explained.
Pacheco’s neighbor-to-be, Susan Valenta is ready to offer a helping hand in her role as president of the Gilroy Chamber of Commerce.
“Anyone who is investing in developing a business in downtown gets kudos,” Valenta said.
When it comes to budding entrepreneurs and innovative business ideas, Saturday’s competition proved that Pacheco is one of many in the Garlic Capital with a bright idea that could potentially bring more life to downtown Gilroy.
As the roughly 130 people packed into the upstairs event room inside Old City Hall Restaurant munched on fish tacos and shrimp balls, “Shark” Madrone – owner of Mango Street Kids on Monterey Street – was feeding off the vibe in the room.
“This is exciting,” she said. “People are energized.”
For 23-year-old competitor Richard Legends of Gilroy, who was getting ready to pitch his “Raw Legends Co.” retail clothing store idea, being so close to reeling in $50,000 was unsettling.
“I’m really nervous. I’ve never done anything like this since high school,” he laughed. “I think I’m the youngest here.”
As prospective business owners tried to lure in the judges with smart business plans, strategic financial planning, long-term visions for the future and engaging creative strategies, the crowd became absorbed in the wide range of promising business ideas. So much so, in fact, the event had to be cut short by Old City Hall management, nixing a second round of questioning Suner had planned.
Regardless of how different the concepts were, it all boiled down to a primary sticking point for the “Sharks,” who repeatedly asked, “how is your plan going to generate more revenue and foot traffic for Gilroy’s downtown?”
Pacheco made her case with confidence to the trio of judges, enlightening the audience on how a “blow-dry bar” is poised to thrive Gilroy.
“We’re turning people away,” explained Pacheco, who said her mother’s business has been getting more people than her salon can handle who want blow-dry services. “People are going to San Francisco and Los Gatos.”
That sort of talk was enough to make the “Sharks” snap at Pacheco’s bait, but first they played cat and mouse, grilling the contestant with a series of questions.
“Are you concerned about the name?” asked judge Filice. “You’re going to have two Shag salons in downtown and that concerns me a little bit.”
Madrone wanted to know why an already successful business should get the money, instead of something new.
“We’ll cross-promote business and get the synergy back in Gilroy,” Pacheco responded, referring to Shag Beauty Bar’s plan to offer a “pairings” section on their website featuring menus from coffee shops and restaurants for customers to order in while they’re at the salon. Shag would also promote local events and their chosen winery of the month through the “all dressed up and nowhere to go” link on their website.
While the night ultimately belonged to Pacheco, Suner underscored the difficulty the judges had in reaching a decision.
“It was a spirited debate. They were torn,” Suner said.
Still, there was some good news for Tawnya Lancaster’s “The Wild Pizza Kitchen” and Elena Castaneda’s “Haute Couture Designer Resale Shop.” Lancaster and Castaneda were first and second runners up, and Suner has promised to help by forming an investor pool to raise capital for their respective ventures. Either woman taking up the offer would pay back the loan with interest over two years before applying for a more conventional small business loan, explained Suner.
“I’m excited if they can get financing for me,” Lancaster said, as she watched Pacheco’s family and friends celebrate Shag Beauty Bar’s win. “This is a great concept.”
Suner confirmed he is meeting Lancaster “early next week” to discuss a possible financing deal.
The Wild Pizza Kitchen concept is a farm-to-table artisan pizza cafe highlighting Gilroy’s storied agricultural history while celebrating the wide array of local produce, breweries and wineries.
“Gilroy could do a better job of trumpeting its history and its agriculture,” Lancaster said.
With her 15 years in marketing and branding, Lancaster thinks that she can provide an iconic pizza cafe to draw people off the U.S. 101.
“I believe in small towns,” Lancaster promised. “I don’t see why Gilroy can’t surpass Morgan Hill.”
Castaneda was somewhat less upbeat than Lancaster, but a winning smile began to spread across her face as she pondered her options.
Haute Couture Designer Resale Shop would sell pre-owned, gently used top name designer brands for up to 80 percent less than upmarket department stores such as Neiman Marcus, Saks Fifth Avenue and Nordstrom. A $300 pair of True Religion brand jeans sold at Neiman Marcus would cost around $55 at Haute Couture, Castaneda said.
“Downtown will have a Haute Couture for sure,” she grinned. “It might take longer, but I’m going to make it happen.”
Shark Tank Gilroy results
1st Place “Shag Beauty Bar” – Heather Pacheco
2nd Place “The Wild Pizza Kitchen” – Tawnya Lancaster
3rd Place “Haute Couture Designer Resale Shop” – Elena Castaneda
