In Shark Tank Season 10 Tom Armenti and Kevin Gebauer came to pitch their fast food business Fat Shack. They wanted a $250,000 investment for 7.5% of their company. They promised the sharks a fun twist on fast food. Their restaurant serves large sandwiches packed with deep-fried foods like chicken fingers, mozzarella sticks, and french fries. They say it’s the perfect cheat meal.
They wanted the investment to grow their business. At the time they had 11 locations spread across three states. Tom and Kevin had already made $22 million in sales. They wanted to expand even more. They pitched their company and hoped the sharks would love it . Will the entrepreneur get a deal on Shark Tank? Check out the Fat Shack update to find out!
Fat Shack Net Worth Shark Tank Update 2025
Tom Armenti and Kevin Gebauer asked for a $250k investment in exchange for 7.5% equity in their company. This meant they valued their company at $3.33 million. They made a deal with Mark Cuban for $250k in exchange for 15% of their company. This new deal valued their company at $1.67 million. After the show aired, Fat Shack saw a big increase in website traffic, sales, and social media exposure. With an estimated 10% yearly growth rate (typical business growth), the current net worth of Fat Shack is about $4.44 million.
Fat Shack continued to expand following their Shark Tank appearance. They have spread to more than a dozen states and are currently present in 29 locations in the United States. Every year the business continues to generate enormous sales. They expanded rapidly thanks to the agreement with Mark Cuban. His contribution to their success was significant.
Fat Shack is still doing well in 2024. They continue to expand their brand and open additional locations. In the years following Shark Tank, the business has shown itself to be extremely successful.
Yes Shark Tank gave Fat Shack a deal. A $250,000 offer for 15% of the business was made by Mark Cuban. In their initial request, Tom and Kevin sought $250,000 in return for 7.5 percent of the business. After a little negotiating, they decided to give 15% instead. For their company this deal was essential.
It enabled them to expand and open more locations. Mark Cuban’s assistance had a significant impact. Their rapid growth was facilitated by his assistance and experience.
| Shark(s) name | Offer & Demand | Counteroffer | Accepted? |
| Robert Herjavec | $250,000 for 17% equity | N/A | N/A |
| Kevin O’Leary | $250,000 for 25% equity | N/A | N/A |
| Daymond John | #1 $250,000 for 25% equity #2 $250,000 for 17% equity | $250,000 for 12% equity | N/A |
| Mark Cuban | $250,000 for 17% equity | #1 $250,000 for 12% equity #2 $250,000 for 15% equity | Yes |
| Lori Greiner | out | N/A | N/A |
Fat Shack Shark Tank pitch
While attending college Tom Armenti and Kevin Gebauer had the idea for Fat Shack. Tom never held a steady job. He earned money while he was in school by playing online poker. He was certain that he wanted to pursue a different career path after graduating. He discovered that a nearby bagel shop closed early. He and the owner came to an agreement. The shop’s equipment was used by Tom from 6 p.m. to 4 a.m. In those hours he opened his restaurant.
In the middle of the night, he began serving fast food. It was an easy concept. A delicious meal was what everyone sought after a night out. Tom used less than $5,000 to launch the company. He referred to it as the Fat Shack. Tom was friends with Kevin in college.
They collaborated to develop the concept. Tom brought Kevin along when he relocated to Colorado to open a complete Fat Shack site. They began as a tiny shop but soon saw that there was room for expansion. They grew their tiny company into a larger enterprise. Their strategy was to serve meals that people liked but could not often afford. Their distinctive sandwiches made with mozzarella sticks, chicken fingers, and french fries were the result of this.
Tom and Kevin presented their idea to the sharks in their pitch. They began by requesting $250,000 for 7.5 percent of the business. They intended to make it clear that the thing they were selling was enjoyable and decadent. They served their Fat Shack sandwich which included mozzarella sticks, chicken fingers, and french fries. They called it the ideal dinner. They wanted the sharks to realize that the main goal of Fat Shack was to satiate people’s comfort food demands.
They discussed their achievements as well. Since its 2010 opening, they have generated over $22 million in sales at that point. They had a solid clientele and 11 locations. They intended to use the funds to pursue their expansion. They discussed their franchising model as well. They owned two locations and had nine franchised locations. The franchised locations generated $300,000 for them.
They desired the sharks’ investment so they could expand to new areas. The company’s founders made a compelling argument. Their current expansion demonstrated the effectiveness of their model.
The sharks had a lot of inquiries concerning the company. They wanted to know what the product was and how it operated. Mark Cuban wanted to know how much opening a new site would cost. According to Tom and Kevin, the franchise fee was $18,000. Each month, they also collected a royalty of 6% from the franchisees. Although intrigued Kevin O’Leary was worried about the finances.
He wanted to know how much money the company made. He was informed by Tom and Kevin that each store generated between $40,000 and $45,000 annually on average. The typical franchisee would earn roughly 10% from their store. Additionally, Mark Cuban enquired about the performance of their site with the lowest performance. Tom and Kevin clarified that they were still making money at their weakest site.
This made it clearer to the sharks that the business plan was sound. The sharks were also interested in the backgrounds of the founders. Before establishing the Fat Shack, they discovered that Tom had no prior work experience. He founded his firm by earning money playing poker. They also found out that Tom and Kevin had been collaborating from the start. Initially, the majority of their franchisees worked as Fat Shack delivery drivers.
This demonstrated the founders’ desire to see others flourish in the company. As the discussion went on, the sharks began to pose more challenging questions. They wanted to know how the business planned to grow. Was the plan to grow organically or find outside investors? Tom and Kevin explained that they wanted to find passionate owners who would run their own Fat Shack locations.
They also wanted to continue growing their existing stores. The sharks were impressed with their ambition but concerned about the risks. They wanted to make sure the founders could manage the growth and avoid mistakes.
The sharks responded to the pitch in different ways. Kevin O’Leary was worried about the risks but he liked the product. He proposed a 25% stake in the business for $250,000. Daymond John extended the same invitation. Although he appreciated the concept, Robert Herjavec offered $250,000 for 17% of the company. He wanted a bigger interest in the company but he thought it had potential.
No one was more fascinated than Mark Cuban. For 15% equity, he offered $250,000. Although this was less than the offers from the other sharks the founders still got a decent deal. Kevin and Tom thought about what they could do. They chose to accept his offer because they believed Mark Cuban’s experience would help them advance.
For his investment, they consented to give up 15% of the business. The deal was sealed and Tom and Kevin walked away with the support they needed to expand their business.
What Went Wrong With Fat Shack on Shark Tank?
Fat Shack on Shark Tank did not have many problems. The creators gave a compelling pitch and provided insightful responses to the sharks’ queries. Convincing the sharks that the company could sustain rapid growth was the biggest obstacle. The hazards of creating more locations and maintaining the business’s operations worried some sharks. Daymond John and Kevin O’Leary both made offers but wanted a bigger portion of the company.
Although it was less Mark Cuban’s 15% offer was more valuable given his experience. Ultimately, the founders had to decide which investor would best support their expansion. While some sharks thought the company plan was too risky others saw enormous growth potential. In the end, the founders made the right choice by taking Mark Cuban’s offer.
Product Availability
Even now, Fat Shack remains open. The business has grown to 29 sites throughout the United States and is still growing. More than a dozen states now have new locations. You can get the Fat Shack sandwich at all these places. People can go to the eateries and sample the enormous sandwiches that are loaded with sauces and fried items. A wealth of information regarding Fat Shack’s menu and locations may be found on their website.
People who want to know more about the franchise opportunities should visit the website. Franchises are still available from the corporation for new sites. To join the expanding company people can open their own Fat Shack. In addition to the $18,000 franchise fee, the business charges a 6% royalty to each location.
The sandwiches are available in different sizes and options. People can customize their meals by adding different fried foods and sauces. The sandwiches are not meant to be healthy but are a fun indulgence for those who want something different. Fat Shack is the go-to place for late-night cravings.
Conclusion
Fat Shack’s journey on Shark Tank was a success. The founders got the deal they wanted and Mark Cuban helped them grow their business. Since appearing on the show they have expanded to 29 locations and continue to grow. The company has proven that their business model works and people love their food. With Mark Cuban’s support, they are looking forward to even more growth in the future. The next update about Fat Shack will likely show even more success.
Hi, I’m Laiba Khurram, a BBA student specializing in Marketing at FAST NUCES ISB. My background includes experience in finance, marketing, and event coordination. My skills include teamwork, time management, and Microsoft tools. Watching Shark Tank has always inspired me, as I admire the innovative pitches and entrepreneurial spirit showcased on the show. This passion drives my approach to finding creative solutions and understanding market dynamics. Read more About me.
