Home Food Fast food Shark Tank’: Mark Cuban made a 6-figure deal
Fast food - May 14, 2019

Shark Tank’: Mark Cuban made a 6-figure deal

At 60, Mark Cuban says he works out, watches what he eats and receives his blood examined each 3 to 6 months, to assist him “learn a lot approximately my body.” And on ABC’s “Shark Tank,” Cuban is known for making an investment in correct-for-you products like healthy, in a single day oat, plant-primarily based supplements and vegan dog treats.

But on Sunday’s episode, Cuban did a six-determine deal with a quick food chain that gives 2,000-calorie sandwiches full of the whole thing from bacon to french fries.

Tom Armenti and Kevin Gebauer from Fort Collins, Colorado-based Fat Shack, a franchise that specializes in “past due night” meals. Fat Shack — which is open until four a.M. — sells sizeable sandwiches that variety from seven-hundred to 2,000 calories.

The Fat Jersey Sandwich, for example, includes cheesesteaks, chicken hands, mozzarella sticks and french fries on a roll with honey mustard, and the Fat Cow has macaroni and cheese, bacon, french fries and mozzarella sticks with buffalo ranch dressing. (A ordinary 6-inch turkey sandwich at Subway is ready 250 calories for assessment.) Fat Shack also sells cakes, like deep fried funnel cake bites.

Armenti based Fat Shack lower back in 2010. In university in New Jersey, he performed on-line poker to guide himself, however after graduating, he knew he needed to do something unique. Armenti found a nearby bagel keep in New Jersey that closed at three p.M. And negotiated an address the owner to permit him to use the space to serve past due night munchies from 6 p.M. To four a.M.

Fat Shack became born. When Armenti later moved to Fort Collins, where Colorado State University is positioned, he opened up his first, complete-fledged Fat Shack restaurant. The store became a right away achievement, the enterprise says, and Armenti enlisted the assist of his antique university classmate — Gebauer — to assist him to construct the commercial enterprise. After efficiently commencing shops, the pair located Fat Shack for franchising, with the primary franchise keep beginning in 2015 in Denver.

The Sharks sampled Fat Shack’s huge sandwiches and appeared inspired. And they preferred Fat Shack’s $22 million in lifetime income.

On the episode, the founders stated there had been eleven Fat Shack places throughout 3 states, 9 of which operated as franchise shops. And whilst even the least a success franchise become profitable, the marketers referred to that they weren’t making tons of money off the royalty prices. As an investor, for you to get his cash returned, Robert Herjavec said they would open loads more franchise locations, and the marketers agreed.

While the Sharks have been wary about the franchising earnings, Kevin O’Leary offered $250,000 in alternate for a 25% stake in the enterprise. Daymond John offered the equal. Robert Herjavec offered $250,000 for a 17% stake, but with the caveat that he didn’t want to take any cash out of the commercial enterprise for distribution.

“The commercial enterprise facet of me says you’re hitting each line object,” Mark Cuban said. “What I can’t get beyond is the entire fitness element. Every other food product I even have is geared towards wholesome residing.”

In response, Armenti reasoned it changed into time for Cuban to mix up his portfolio.

“We don’t consume Fat Shack every single day, manifestly,” Armenti said. “It’s a cheat meal for humans too are available in and get something really properly.”

Convinced, Cuban supplied $250,000 for 17%. John additionally brought his provide all the way down to 17%. The marketers countered Cuban’s equity stake down to 15%, and that they struck a deal. Obesity and speedy meals – there may be no doubt approximately the link. Obesity has reached epidemic proportions inside the United States. And it is a plague that has grown side via facet, grade by grade with the fast meals enterprise.

Eric Schlosser in his amazing and stunning book, Fast Food Nation, describes america as “an empire of fats,” and he lays the blame for this clearly and convincingly at the door of the short meals industry.

Obesity Fast Food Data

Twice as many American adults are obese these days as within the Sixties. More than 1/2 of all adults and 1 / 4 of all youngsters at the moment are overweight. Over this same duration, speedy meals have ended up inexpensive and easier to shop for.
Further evidence for the hyperlink between weight problems and rapid meals may be found outside America. Since the early Eighties, American-style rapid food culture has unfolded like wildfire round the sector… And weight problems has observed, observed by using its many unwelcome side consequences: coronary heart disorder, diabetes, arthritis and different ills.