After migrating to the United States 9 years ago, Ariel Barbouth and his family were determined to build a successful restaurant. Ultimately realizing their dream, they opened Nuchas – an authentic Argentinian food company based in New York City renowned for its mouth-watering empanadas!
Nuchas stands out from other restaurants because it is located in a cargo container! Furthermore, you can experience the true flavors of Argentina by trying their delicious empanadas which are filled with peppers, onions, and ground beef. Don’t miss this unique opportunity to truly immerse yourself in Argentine culture through flavorful cuisine!
It was a momentous night when Nuchas made their appearance on Shark Tank. The five sharks were intrigued by the product and the passionate entrepreneurs behind it. But in the end, only Barbara Corcoran decided to invest in the company. What happened after Shark Tank? We’ll give you a little update on what’s been going on with Nuchas since their big debut!
What Is Nuchas?
The Nuchas eatery is for everyone who has a preference for exotic snacks [1]. If you’re looking for something different to satisfy your taste buds in NYC, then we would recommend you make the trip to one of Nuchas’ kiosks situated at three different locations in NYC.
Not only will the empanadas offered by Nuchas satisfy your taste buds, but they will also satisfy your appetite. This is because the size of a single empanada is big enough to satisfy one hungry adult. You can always have two if your stomach is still growling after you’ve had one empanada. However, trust me – one is more than enough to fill your tummy.
Who Is The Founder Of Nuchas?
Nuchas are very well received in New York by patrons and food critics. In 2013, he was the Vendy Awards Rookie of the Year and in 2014 he won the People’s Taste award. The street food public likes the fresh, hand-made empanadas that made Barbouth famous.
Nuchas Before Shark Tank
The empanada is a pastry made with filling and it’s popular in Argentina. Hand-held food is easy to carry and tastes great. Ariel’s made the Empanada into a gourmet meal and not only serves it but a variety of dishes from around the world. His meals are as delicious as they are convenient.
Nuchas have already set up shops in several target locations and are the first person to have a kiosk in Times Square. He also has a food truck where he delivers his meal. The meat meals he offers are short rib, chicken adobo, and chicken jambalaya. He also offers vegan meals and these are palak paneer and shiitake curry.
Although Ariel had a good start, he needs more money to increase his production. This is what made him apply to be on Shark Tank. His offer was accepted and he was invited to be on the 18th episode of the 10th season.
Nuchas On Shark Tank: The Pitch
Ariel went onto shark tank seeking $ 2,000,000 and was offering 8% of the company. The sharks all thought that the company’s valuation was extremely high. As he gave his offer, he gave them samples to taste. Some of the sharks were apprehensive about even tasting the food fearing it was too expensive.
Ariel then told them of his achievements including opening the first kiosk in Times Square which generates around $ 800,000 in revenue. Daymond said he knew the shop and often passed it. It consistently had people waiting to be served. Ariel then showed them the map with their locations which were Times Square, Greeley square, and Columbus Park. Ariel then told the sharks that he had done $ 5,000,000 in sales with 2,000,000 from retail and 3,000,000 from wholesale. He then told them that he was making a profit of 44% from his wholesale business because it was costing him $ 0.84 to make and they were sold for $ 1.52. Kevin then asked Ariel for his pretax profit and was told that they were expecting to make $ 750,000 that year.
Kevin followed up by asking him what he expected to make the following year and was told that Nuchas expected to make $ 12,000,000 from sales with a profit of $ 3,000,000. Barbara then asked him why he needed a shark because he looked like he was doing very well. Ariel said that he needed to expand but lacked the capital to do so.
He had already bought a factory but it was operating at full capacity. Kevin then asked if the $ 2,000,000 was to simply increase productivity.
Kevin suggested a co-packer because it was the path that most hospitality businesses took once they reached a certain level. Barbara said that Kevin’s suggestion never works and a food maker can never control their food quality when they take that path.
Kevin still couldn’t believe that nobody could make them the way Nuchas did but Ariel insisted that was the case. He even said that he wasn’t the only South American who had traveled to North America to start their own food business but he was one of the few that succeeded.
Kevin was still concerned about how he could get his money back and Ariel said that the product was very popular. The money would go to increasing capacity. Kevin asked where they were going to sell. He was told that Nuchas had already been in discussions with some airlines about providing them with food.
Mark Cuban thought that Ariel was making a very expensive bet. This made his exit. Ariel then told Barbara he had only one truck and the retail part was not growing as fast as the wholesale but he was hoping that somebody would own it. Daymond then said that if he wanted to even sell it, he would have to brand the product and sell it in more retail spaces but this would require more money.
Ariel thought that he could make more money wholesale. Kevin said that his margins would go down in the wholesale business. More than that, he was the one who would be funding the retail business which has lower margins. He was not happy with that position. Lori then left. She thought that the amount he was asking for was just too high even to negotiate.
Daymond asked for 25% of the company for $ 2,000,000. He said that he needed to make his money back in about 4 years. Ariel thought that it was too much for his current position. Daymond tried to convince him otherwise, especially since it was not hard for a business to compete with him.
Daymond didn’t think he had a brand, only a delicious product. Ariel thought otherwise and even thought that he could build it to be a brand worth $ 100,000,000.
Barbara asked him if he was more motivated by wholesale than retail. Ariel didn’t think so and even though wholesale brought more money, he was a strong believer in the retail brand. Barbara offered him $ 1,000,000 for his cart business. She would also give him $ 1,000,000 as a loan on his wholesale business that he would keep.
Daymond asked if Barbara would franchise it and Barbara said that she would because it was the only way to make a profit. Ariel didn’t accept the offer and thought his retail outlets would be back to making a profit soon enough. The sharks argued with Ariel about his decisions and he told Daymond that the most he could give is 10%. Daymond then left.
Kevin then asked how much money Nuchas had in cash and was told it was $ 100,000. Kevin then left saying that he wouldn’t make his money back in adequate time. Ariel then declined Barbara’s offer but turned to Diamond and offered him 12% for 2,000,000. Daymond declined.
Barbara tried to show Ariel that he had a problem with his value for shop ownership. Ariel then offered her $ 2,000,000 for the retail business but she would have owned 80% and he would own 20%. Barbara did not agree with this and she left. As Ariel left the shark tank without a deal he said that to him Nuchas was worth so much more.
Nuchas Now
Unfortunately, Ariel Barbouth’s dreams of gaining a shark on his team fell short. According to Shark Tank Recap, Mark Cuban and Lori Greiner dropped out first without making an offer. Daymond John agreed to make a deal, though he asked for 25% equity instead of the 8% Barbouth proposed.
Barbara Corcoran also made an offer, but she wanted 100% of the companies’ retail portion. In the end, Barbouth’s need to hold on to more equity resulted in no deal.
Nuchas has gone from strength to strength since its time on Shark Tank. They have opened three more outlets since then bringing the total number of retail outlets to 6. It also opened a website where people can make orders from the comfort of their homes.
More than just a website, its social media is abuzz and it has nearly 11,000 followers on Instagram, more than 4,000 followers on Twitter, and more than 12,000 followers on Facebook.
The Net Worth Of Nuchas
Nuchas takes pride in its migrant history and it will continue to do so as long as it is in operation.
However, Nuchas continued to succeed, and even thrive in the following years. The company makes about $ 4 million per year, and according to Nuchas, the goods are now being sold in New York’s Jacob Javits Center and Atlanta’s Georgia World Congress Center.
Today, the brand allows online orders with nationwide shipping. Those interested can choose from a wide range of empanada flavors as well as vegan and vegetarian options. A six-pack currently goes for $ 34.60.
FAQ
- Do the “sharks” get paid?
No, the “sharks” do not receive any compensation for appearing on Shark Tank. Instead, they participate in the show purely out of a desire to help entrepreneurs succeed, and to find promising new businesses that they can invest in themselves.
Despite not being paid for their appearances on the show, many of the “sharks” have gone on to become very successful investors after Shark Tank. Some of these investors include Mark Cuban, Lori Greiner, Daymond John, and Kevin O’Leary.
Regardless of whether or not a deal is made with one of the sharks, it is still considered a huge success just to be featured on this popular TV show.
- What “shark” has made the most deals?
Although the “sharks” all have their individual strengths and weaknesses, Kevin O’Leary is widely considered to be the most successful investor on Shark Tank. He has made more deals than any of the other sharks, including over 50 deals with his own venture capital firm, called SoftKey [4]. In addition to his success as an investor, Kevin O’Leary is also a best-selling author and a popular speaker on topics related to entrepreneurship and investing.
- Who sold their whole company on Shark Tank?
You might have seen it on TV or heard about it from friends. A few entrepreneurs are giving up their entire companies to the Sharks, who invest their own money. They give up full control of their company and its future profits!
This was the case for Nuchas, a Colombian-born startup that specializes in handmade empanadas (a stuffed pastry). The founders, along with three other business partners, had already taken part in several high-profile deals on the show before they made their appearance. But this time was different: the foursome left with more than just Shark Tank cash – they sold all 100% of their ownership!
- Can anyone go on Shark Tank?
Of course, the first thing you want to know is how anyone can go on Shark Tank – which means the second question is whether or not you can. The good news is that anyone with a great idea and some drive can apply!
As long as you meet two specific criteria, you’re in like Flynn [5]:
- You must be 18 years of age or older;
- Your business MUST at least have one year of operation under its belt (and we don’t mean “at least one year of operation” – it has to be at least a full year);
- Where do I go if I want to apply?
If you’re interested in getting on Shark Tank and selling your business, then head over to www.sharktankauditions.com/apply! You can submit an application using their quick and easy online form right there – it only takes a few moments! If your idea is chosen, you’ll receive an email with the date and time of your interview (you may even get a call!).
- How accurate is Shark Tank?
There’s no doubt that Shark Tank is a rating juggernaut, but not everyone believes it’s as accurate as it could be. Many people believe that the Sharks don’t do their homework before making big investments – and they may be right! In fact, only one of the six major deals this season ended up going through.
So if you have any doubts or reservations about applying for Shark Tank, just know that there are no guarantees with this show. It’s important to remember that many other factors go into business success besides the funding from Shark Tank – so make sure that you think carefully before taking a chance on this investment opportunity!
- Do entrepreneurs get paid for being on Shark Tank?
Yes, the entrepreneurs do get paid for appearing on Shark Tank – but that depends on what happens during their interview. If they end up getting a deal with one of the Sharks, then they receive a flat fee of $ 10,000 (pre-tax) [6]. If no deal is made, though, then no payment is given.
- Why do so many Shark Tank deals fall through?
It’s no secret that many of the deals on Shark Tank fall through after the interview. In fact, only about 1 in 4 deals actually end up getting made – and this is typically because the Sharks don’t want to invest more money into a business than it needs.
Useful Video: Lotta Empanadas!! | Nuchas on Shark Tank
References:
- https://gazettereview.com/nuchas-after-shark-tank-update
- https://www.mashed.com/1105045/heres-what-happened-to-nuchas-after-shark-tank
- https://www.sharktanksuccess.com/nuchas-review
- https://sharktankrecap.com/nuchas-handheld-foods-update-shark-tank-season-10
- https://www.therealitytv.com/nuchas-update
- https://www.sharktankblog.com/business/nuchas