He turned $5,000 in online poker winnings into a fast-food chain worth over $20 million
4 min read · RealCase summary
Tom Armenti, a College of New Jersey graduate, started Fat Shack in 2010 with $5,000 in capital after noticing a lack of late-night food options on his college campus, running the business out of a bagel shop's kitchen after hours. College friend Kevin Gabauer joined as co-founder shortly after.
The company opened its first brick-and-mortar location in Fort Collins, Colorado, in August 2011, followed by a second location in Boulder within six months, and began franchising in 2015. By the time it appeared on Shark Tank in 2019, Fat Shack had 11 locations and $22 million in sales; the founders had asked for $250,000 for 7.5% of the company and instead took Mark Cuban's offer of $250,000 for 15%.
As of a June 2025 report, Fat Shack had grown to roughly 30 locations, with 2024 revenue estimated at $17,543,000 -- a reported 777.1% growth rate since its first quarter -- as the brand marked its 15th anniversary that February.
Key takeaways
- ›Used $5,000 in online poker winnings from college to open the first Fat Shack location in 2010
- ›By the time of its 2019 Shark Tank appearance, the chain had 11 locations and about $22 million in annual sales
- ›Accepted Mark Cuban's offer of $250,000 for a 15% stake, then expanded to roughly 30 locations across 13 states, with recent annual revenue estimated around $17.5–20 million
Original source
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