Empanadas are deeply rooted in Argentinian cuisine. Ariel Barbouth founded Nuchas with the goal of sharing the delicacy with the Western world, and the company became one of the largest kiosks in Times Square. The founder pitched the company on Shark Tank and gave it one of the highest valuations on the show, but was unable to close a deal. As of 2024, Nuchas is estimated to be worth $8 million.
Ariel Barbouth’s Background
Ariel Barbouth was born in Argentina and currently resides in Weehawken, New Jersey. He graduated from Boston University with a BS in Manufacturing Engineering and a MS in Innovation and Technology.
He initially traveled to New York with his wife, Lenny, with just $9,000 in his bank account, but after his final year of college, the Argentine was hired as an analyst at Banco Nacional.
Afterwards, he was hired as a manager at Aconcagua Capital Group, which was his last job before entering the industry, and he has been in business for more than nine years.
Founding of Nuchas
When the couple immigrated to the United States and planned to start a business in their new home, they wanted to introduce Argentinian empanadas to New York City and quickly grow the brand.
In 2010, Ariel opened a stand at the famous Times Square hotspot. His signature pie is the most popular menu item, but he also offers other international dishes. It all helped Nuchas gain a head start.
The founders subsequently opened food trucks and branches on Wall Street and Greeley Square Park. After nine years of operation, the Times Square store alone averaged $800,000 in annual sales.
Appeared on Shark Tank
By 2019, Nuchas was a force to be reckoned with. Sales were growing, but Ariel Barbouth knew he needed a significant amount of capital to take the company to the next level. He appeared on Shark Tank Season 10 and asked for $2 million for an 8% stake.
Since the valuation was so high, Sharks immediately wanted to know about the sale. The founders gave them an impressive answer, but not everyone was willing to bid. Daymond John was the first to offer $2 million, but for 25% of the business, to be honest, it was not a good offer.
Barbara Cochran also offered to acquire 100% of Nuchas’ retail business for $1 million in cash and $1 million in loans. Barbara was eager to grow through franchising, but Ariel’s valuation was too high. After several counter-offers, the gap was too large to close the deal.
What Happened After Shark Tank
A year after his TV appearance, Nouchas was hit hard by the pandemic. But he slowly bounced back and is now better than ever. He opened an online store and opened food stands at other high-traffic locations, such as the Jacob Javits Center and the Georgia World Congress Center.
He also began delivering orders through DoorDash’s DashMart, an accelerator program for startups. Nuchas’ original Times Square stand has 267 reviews on Yelp and a 3.5-star rating. They have a total of 5 brick-and-mortar locations, as well as various trucks and mobile delivery locations.
Overall, Nuchas currently has revenues of over $5 million per year and is valued at $8 million. The company’s net profit is likely to be around $800,000 to $1 million.
Categories: Shark Tank
Source: svlsf.edu.vn