The Fat Shack is a business that appeared on Shark Tank in Season 10. The business is a restaurant that specializes in burgers and fries. And they even managed to strike a deal with Mark Cuban. After appearing on the show, Fat Shack saw a huge increase in sales. However, did that success continue after the show? The fast food business is a competitive industry, so it can be challenging to maintain success. In this article, we’ll take a look at what happened to Fat Shack after Shark Tank.
What is Fat Shack?
When Tony started, he had only $ 5,000 in seed money. And what’s more, he worked from the bagel shop that he partnered with, when the bagel shop closed for the day (at 6 PM), he began working until 4 AM.
Within a few years, Fat Shack had grown to more than 13 franchises in three states!
However, things weren’t always smooth for him and his growing business. At one point things got too hard for Tony and he had to move his business from New Jersey to Colorado. However, he was assisted by his college friend Kevin Gabauer. He was the one who gave him the idea of making his business big!
It’s hard to overestimate just how much fat goes into those sandwiches. Each sandwich starts with a double-stacked hamburger patty, then piled high with cheese, bacon, and multiple combinations of slaw, mayo, and special sauces.
Besides these, they are also selling cheesesteaks and wings, making them the perfect destination for any foodie. And they aren’t open only at night anymore as they now offer breakfast sandwiches as well.
Fast food is obviously not good for your health, but in moderation, it can be really tasty. You cannot be blamed for wanting to try out these delicious fat sandwiches at least once. And that’s exactly what Fat Shack was offering: a delicious treat, stuffed with quality ingredients, that you could enjoy occasionally.
However, in the USA the fast food market is already stocked and while the Fat Shack team managed to establish a foothold and gain some traction, they have yet to make it big. That’s why in 2018 Tony Armenti decided to apply for Shark Tank with the aim of expanding his business and making it a success on a national level. [1] [2] [3]
Fat Shack at Shark Tank
In the 2018 episode of Shark Tank, Tony Armenti and his friend Kevin Gabauer performed a pitch for the panel of investors. They wanted $ 250,000 for a 7,5% stake in their company.
They begin their pitch by telling the sharks their story and how they managed to grow the business from a single location in New Jersey to dozens of locations in many states. The duo then proceeds to serve them samples of the sandwiches and impress them with their unique and tasty product.
They even showcase the entire assembly line and the process of making their signature sandwich. The panel was really impressed by them, as well as their passion for the business.
Then the discussion moves to the sales and numbers. The Fat Shack team reveals that they’ve managed to sell a total of $ 22 million worth of sandwiches over the last year, which was very impressive. They have 11 locations as of the time of the pitch, 9 of which were franchises and they were expecting even more locations by the end of the year.
While their franchises are profitable, they aren’t making enough franchising royalties from them, which is why they needed the $ 250,000 investment. However, this fact concerns the sharks a little.
Still, Kevin decides to offer the team a deal. He offers a $ 250,000 investment for a 27% stake in the company. Daymond too decides to join the deal and offers $ 250,000 for a 17% stake. Mark ponders whether to invest or not. He doesn’t like how unhealthy their product is and invests in healthy foods only, but he loves the team and their enthusiasm.
Eventually, Mark decided to make a deal with the team and invested in Fat Shack. He believes that they could become a big success, just like the other food chains he invested in. His offer is – $ 250,000 for 17% just like Daymond’s. Kevin too goes down to 17%, and now all the sharks interested in the deal have 17% of the company. So Tony and Kevin needed to make a choice.
They asked Mark whether he can drop his stake down to 15% and Mark agreed. So in the end, the Fat Shack team managed to get their $ 250,000 investment from the three sharks and a 15% stake in their company in the hands of Mark Cuban. [2] [3]
Fat Shack After Shark Tank
The Shark Tank journey had turned out to be a success for Fat Shack. They used the investment to expand their franchises even further and continue making improvements in the existing ones.
However, as we may well know, the initial exposure doesn’t last forever. The team needed to make sure that the business continues to grow, and this is exactly what they’ve been doing ever since. However Tony and Kevin didn’t have to be worried about it!
They managed to close their deal with Mark Cuban and since then he’s been helping them with his expertise. After that, the business had only been growing and expanding. And they seemed to be happy and glad to have him on board.
After the episode they were featured in had ended, the Fat Shack team had received over 3,000 franchise requests, and by the Spring of 2019, they had 11 stores opened!
The year 2020 wasn’t easy on businesses, especially on the ones in the food industry, but Fat Shack managed to adapt, and continued to grow. In 2020 they opened an additional 9 places, and all were doing well. By 2021 they already had 23 stores in 11 states and more were expected to open soon. And this is what exactly happened as in 2022, they had 29 places open in 13 states. A few months after that, four more locations were added.
You can find all these places on their official website, as well as on the official Fat Shack Facebook page. There, they post updates about their new stores, franchising opportunities, and more.
And from their social media, it’s pretty clear that they are quite popular too. They have an impressive number of followers and they always engage with their customers and interact with them on a regular basis. Their Facebook page has 6k likes and their Instagram page has 10k followers!
While they obviously operate in physical stores, they also sell merchandise on their official website. On there, you can find a variety of items like hoodies, t-shirts, and hats with the original Fat Shack logo on them. And if you want to replicate some of the burgers they serve in their restaurants, they also have a honey mustard sauce for sale.
And if you want to enjoy Fat Shack stuff from the comfort of your home, you can now order their burgers online and have them delivered to your door. Just keep in mind that the availability will vary by location.
They even added a brand new section to their menu, Deep-Fried Desserts. Now you can indulge in deep-fried Oreos and Twinkies, as well as their own creations like the Franken Shack. And you might notice an interesting Specials selection that has exclusive deals that differ daily.
The Fat Shack has also made an appearance in various publications, such as Business Insider, Buzzfeed and many more. This further helps them to increase their exposure even more.
As for their sales, it seems like the guys are doing incredibly well. According to their official website, they’re earning $ 1,000,000 annually from each location that they own. That’s quite impressive!
It’s also worth noting that the team at Fat Shack is always looking for new opportunities to expand their business further. They have franchising options, which allow people to become part of their franchise and open more locations in other cities.
And they are constantly open to hiring new employees, so you can check out their website to see what positions they have available.
All these are evidence that Fat Shack became a success after Shark Tank. Tony and Kevin had taken a huge risk back then, but it was worth it – they managed to make their dreams a reality! [2] [3] [4] [5] [6]
Fat Shack Net Worth
As you can see, Fat Shack has really come a long way since it first appeared on Shark Tank. The business is doing better than ever and its net worth is only increasing as well.
This shows that the team really did make a great return on their investment and it’s all thanks to the hard work they put in and the good decisions they made.
This is a huge achievement and it’s proof that all the hard work they put into their business is paying off! Fat Shack has become a popular choice when it comes to fast-food restaurants and it will continue to grow in popularity as time passes. [3]
FAQ
How much money has Fat Shack made?
While we can’t provide you with a total amount of earnings since Fat Shack appeared on Shark Tank, we do know that they are earning $ 1,000,000 from each of their 32 places annually. They have also been receiving investments from other investors and expanding their business to include more locations.
And it seems like even more places are on their way to opening. So we can assume that the total amount of earnings since their time on Shark Tank is probably much higher than a few dozen of million dollars.
As for the net worth of Fat Shack, the business is worth about $ 1 million and they are consistently increasing its value with each new location.
Did any sharks invest in Fat Shack?
Yes, Mark Cuban invested in Fat Shack during the Shark Tank episode. He offered the company $ 250,000 for a 15% stake, which was accepted by the founders. Cuban’s investment gave Fat Shack the capital and resources it needed to continue its success in the restaurant industry.
Since then, Fat Shack has grown significantly and now operates more than 32 locations throughout the 13 states of the USA. With Cuban’s help, they have been able to expand their menu items to include breakfast sandwiches and burritos, salads, burgers, wings, and even milkshakes. The company continues to make improvements on existing products while introducing new ones as well.
Who owns Fat Shack?
Fat Shack is currently owned by its co-founders and founders, Tony Armenti and Kevin Gabauer. After their appearance on Shark Tank in 2019, they secured an investment from Mark Cuban for an undisclosed amount. Cuban took a 15% stake in the company and joined their board of directors.
Since Shark Tank, Fat Shack has grown significantly with 32 locations across the United States in 13 states. The company plans to open more locations soon and continues to expand its menu offerings.
How many locations does Fat Shack have?
At the moment of writing this article, Fat Shack has 32 locations across the United States. The first few locations opened shortly after Mark Cuban made an investment deal on Shark Tank, and since then additional stores have been opened in Denver, Los Angeles, San Diego, Florida, Oregon, Colorado, and Nevada. With its rapid expansion, it looks like Fat Shack is ready to take over the fast food world!
However the team grows so fast, it is not always easy to keep up with the specifics of individual locations. To find out more about which Fat Shack restaurants are closest to you, visit their website for the most up-to-date information.
What is Mark Cuban worth?
Mark Cuban is estimated to be worth over 4.6 billion dollars as of 2023, according to Forbes. He has achieved this level of success through not only his involvement in the technology industry but also his investments in a number of different business ventures and companies. From starting Broadcast.com from the ground up and selling it for $ 5.7 billion to investing in popular media outlets such as Landmark Theaters and Magnolia Pictures, Cuban has established himself as one of the most successful entrepreneurs alive today. Additionally, he is an investor on Shark Tank and owns the NBA’s Dallas Mavericks team among many other investments that have contributed to his current net worth.
Useful Video: FAT SHACK Gets a Deal on Shark Tank
Conclusion
Tony Armenti and Kevin Gabauer had only $ 5,000 in their pockets when they decided to start their own business. But, with a solid idea, they managed to reach huge popularity by themselves. Growing in the fast food market is hard but it was their main goal, and they were successful in that. After the appearance on Shark Tank, Fat Shack got even bigger.
After appearing on Shark Tank, Fat Shack received a lot of attention from Mark Cuban. The $ 250,000 investment helped them to expand their business and opened up opportunities for global expansion.
The decision turned out to be beneficial for Fat Shack as they managed to grow with the help of Mark Cuban and have now become one of the most successful businesses to emerge from Shark Tank. As of today, they have more than 32 locations in multiple states in the US and are still growing rapidly.
Though it was difficult for them at times, Tony and Kevin’s hard work and determination paid off in the end. Their story is an inspiration for aspiring entrepreneurs who want to pursue their dreams despite
The success story of Fat Shack doesn’t just end with a happy ending for those involved—it serves as an inspiring example for would-be entrepreneurs everywhere. With hard work, dedication, and a good idea, anyone can achieve what Tony Armenti and Kevin Gabauer have done. It just takes a little bit of courage and a lot of belief in yourself.
In the end, Fat Shack’s story is one that proves that with some luck, hard work, and determination—anything is possible! So, if you ever find yourself feeling discouraged or unsure about taking the entrepreneurial leap—take some lessons from Tony and Kevin. With enough grit and passion for your idea, you too can make it big as they did. Good luck!
References:
- https://www.sharktankblog.com/the-fat-shack-franchise-opportunity/
- https://www.sharktankblog.com/business/fat-shack/
- https://bizzbucket.co/fat-shack-shark-tank-update
- https://www.fatshack.com/menu
- https://www.instagram.com/fatshack/?hl=en
- https://www.facebook.com/FatShackFortCollins