Have you ever been working late at the office or awake at home when you have the midnight snack cravings, and not for the healthy diet stuff, but something genuinely greasy and fatty but still satisfying?
Enter Fat shack, by Tom Armenti, a late-night fast-food joint that satisfies all your late-night snack cravings with its loaded sandwiches, burgers, and other widely known food products. Just make sure to exercise a little bit more during the day!
This New Jersey-based restaurant chain specializes in outrageous sandwiches, loaded with everything from fried chicken and mozzarella sticks to mac ‘n cheese and bacon. And now, thanks to their appearance on Shark Tank, they’re expanding to locations nationwide.
Fat Shack at a glance:
| Business idea | Quality Fast-food available till 4 am |
| Founder | Tom Armenti |
| Asked for | $250,000 for 7.5% |
| Accepted deal | $250,000 for 15% |
| Sharks | Mark Cuban |
| Business status | In business |
| Episode | Season 10, Episode 23 |
| Website | Fat Shack |
Index:
Founder Story:
The founder Tom Armenti came up with the idea of a late-night fast-food joint when he wanted to earn money after graduating from high school, and he came across a bagel shop near his school in New Jersey that would close at 3 pm and he negotiated with the owner for Tom to run his own restaurant from 6 pm – 4 am.
This was a big success and later Tom moved to Colorado, where his family was, and with the help of his college friend Kevin Gabauer, they opened the first fully owned Fat Shack and now have 32 locations, 11 during shark tank, across 11 states.
Did Fat Shack get a deal on Shark Tank?
Founder Tom Armenti and his friend Kevin Gabauer introduce themselves to the sharks, asking for $250k for 7.5% of their company and demonstrate how they aren’t here for healthy meals as they make one of their huge sandwiches and show it to the sharks and tell them that Fat Stack, is for late night fast-food and is open till as late as 4 am. They explain their range of menu items and give samples to the sharks.
The sharks all love the food and then Robert asks how he came up with the idea, and he says that he started fat shack in February 2010, and throughout his college years, he didn’t have a job and would play online poker to earn money, but then decided to open his own late-night restaurant in a bagel shop from 6 pm-4 am after talking with the owner, who allowed Tom to use his equipment and place for less than $5000.
He then moved to Fort Collins, Colorado, where his family is, to open his own full restaurant., with the help of Kevin, his college friend. Daymond John then asks about their locations, and Kevin Gabauer says that they have 9 locations across 3 states with franchises and 2 fully owned by the founder, Tom, totaling eleven.
Robert then asks about sales and the sharks are shocked when they hear that the company has had $22 million in sales since it opened in 2010, with $5.7 million in the previous year itself, and earns 6% royalty from franchisees, which the sharks don’t seem to like.
Then Kevin O’Leary makes an offer for $250k for 25%, Daymond John also makes an offer for the same stake, Robert offers for 17%, but then Mark makes an offer even though he endorses healthy and the founders convince him to make a deal for 15%, which he agrees.
What happened to Fat Shack after Shark Tank?
In the Shark tank update, we see that the support of their new business partner, Mark Cuban was very helpful to the company as they were receiving around 3000 franchise requests after the initial shark tank pitch in 2019, in which they had 11 locations, then in June 2020, they had 20 locations, and they continued to grow, even through the pandemic, and now in August 2022, they have around 32 locations across 11 states.
At the time of the pitch, they had at least $500,000 in annual revenue but now have up to $1 million in revenue, due to their exponential growth.
Product details:
- They have 32 locations spread across 10 states, namely Georgia, Illinois, Colorado, Pennsylvania, Tennessee, Missouri, Nevada, Kansas, Washington, and Oregon.
- They have a wide range of menu items from burgers and wings to sandwiches and desserts.
- They have working hours of 11 am to 3 am.
- They can be contacted through their email address, I.e.,info@fatshack.com.
- The company is based out of Denver, Colorado.
What is the net worth of Fat Shack?
The net worth of Fat shack was around $1 million after the deal was made with Mark but now their net worth is up to $1.7 million.
Is Fat Shack still in business?
Yes, Fat Shack is still in business and earns $1 million annually in revenue, is still growing its business to reach new heights, and still catering to those who have food-craving nights.
Tom Armenti and Kevin are probably planning to have even more locations and they would also like to encourage other young entrepreneurs like themselves by helping them become franchisees for their company and help them make their ideas into a reality by setting up their own companies.
Fat Shack Social Links:
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FAQs:
What is Fat Shack?
Fat shack, by Tom Armenti, a late-night fast-food joint satisfies all your late-night snack cravings with its loaded sandwiches, burgers, and other widely known food products.
Who founded Fat Shack?
The founder Tom Armenti came up with the idea of a late-night fast-food joint when he wanted to earn money after graduating from high school, and he came across a bagel shop near his school in New Jersey that would close at 3 pm and he negotiated with the owner for Tom to run his own restaurant from 6 pm – 4 am.