Nuchas Handheld Foods Update | Shark Tank Season 10

Ariel Barbouth moved to New York and couldn’t find the kind of fresh, flavorful empanadas he grew up eating. So he started Nuchas, a food business that sells handmade, baked empanadas from kiosks, food trucks, and carts across the city. Let’s see if Ariel was able to convince the sharks to invest millions of dollars into his company in our Nuchas update and pitch recap.

If you’re short on time, here’s a quick overview of what happened to Nuchas after Shark Tank.

Ariel entered Shark Tank Season 10, seeking $2 million for 8% equity in his food company, Nuchas. Unfortunately, he walked away without a deal.

In terms of a Nuchas update, the company shifted focus away from franchising to prioritize wholesale growth and strategic partnerships, such as Franklin Junction and Costco. Nuchas now reports annual earnings around $4 million.

Shark	Result
Daymond John	$2 million for 25% equity
Barbara Corcoran	$1 million to buy 100% of the retail business and another $1 million as a loan for the wholesale side
Lori Greiner	No offer
Kevin O’Leary	No offer
Mark Cuban	No offer

Shark Tank Nuchas Pitch

• Entrepreneur: Ariel Barbouth
• Business: Empanadas
• Ask: $2 million for 8% equity
• Result: No deal
• Sharks: None

Ariel pitched Nuchas, a handheld food company selling empanadas through retail kiosks and wholesale distribution.

He asked for a $2 million investment to expand production and scale the business.

The sharks tried the food and liked it, but they immediately questioned the high valuation.

Ariel said Nuchas had made $5 million in sales that year, $2 million from retail and $3 million from wholesale.

The Times Square kiosk alone brought in $800,000 annually.

He expected to make $750,000 in profit by year-end and projected $12 million in sales and $3 million in profit the following year.

Kevin O’Leary asked about production costs. Ariel said wholesale products cost $0.84 to make and sell for $1.52, giving a 44% margin.

Kevin asked why he needed funding. Ariel explained that his factory was at full capacity, and he needed the money to increase production.

Kevin suggested using a co-packer, but Barbara Corcoran disagreed. She said quality control would be lost.

Mark Cuban asked about Ariel’s plan to scale. Ariel said they were already talking with airlines. Mark thought it was too risky and dropped out.

Lori Greiner also dropped out, saying $2 million was too high to negotiate.

Kevin didn’t like the split between the high-margin wholesale and lower-margin retail. He said investors would be stuck funding the part that made less money. He left, too.

Daymond John offered $2 million for 25% equity. He said he needed a return within four years and didn’t think Ariel had built a strong brand yet.

Ariel disagreed and believed Nuchas could become a $100 million brand. He countered with 10% equity, but Daymond declined.

Barbara offered $1 million to buy 100% of the retail business and another $1 million as a loan for the wholesale side. She planned to franchise the kiosks.

Ariel rejected the deal. He then offered her 20% of the retail side for $2 million. Barbara refused.

Kevin asked how much cash Nuchas had on hand. Ariel said $100,000. Kevin didn’t see a return and walked away.

Ariel respectfully declined both offers and ultimately left Shark Tank without a deal with any of the sharks.

Now, let’s get a Nuchas update to see if Ariel made the right decision for his company.

Shark Tank Nuchas Update

Our Nuchas update found that shortly after airing on Shark Tank, the company expanded to six retail locations in NYC and briefly tested franchising.

Franchisees were supplied by their wholesale division, but by late 2022, they dropped franchising to focus fully on wholesale growth.

Despite the pandemic in 2020, the company stayed operational while prioritizing staff safety.

In January 2021, Nuchas opened locations at convention centers in New York and Atlanta.

That same year, they partnered with Franklin Junction to launch host kitchens, which allowed them to expand without adding new physical stores.

Our Nuchas update found that they also introduced nationwide frozen empanada delivery through their website and Costco, and partnered with Yumble to offer kid-friendly options.

Further, Nuchas empanadas are now sold at Yankee Stadium, and Ariel remains the CEO.

At the time of this writing our Nuchas update, estimated annual revenue is around $4 million.

Things are looking great for our next Nuchas update.

You can find the other company updates from Season 10 Episode 18 here:

• Haven Lock Update
• Kanga Update
• CertifiKid Update

Before you go, be sure to check out our list of all the Shark Tank Season 10 products.