Shark Tank alum Fat Shack opens sit-down restaurant

LOVELAND — Fast-food fanatics can now rest their feet at Fat Shack Inc. The chain, known for its indulgent, fried sandwiches, has relocated its take-out-only Loveland store to one with seating.

Doors officially opened Friday at 1433 Denver Ave., after moving from 1473 E. Eisenhower Blvd. The old location was formed out of an acquired Domino’s business in 2016, so the subs were always to-go. Loveland customers can now enjoy indoor and outdoor tables in the larger restaurant. The company anticipates higher foot traffic with the move.

“The location itself is at a very, very busy intersection, and we’re going to reach a more dense population as opposed to being kind of tucked into a corner,” said Katherine Leonard-Cook, assistant manager of the Loveland Fat Shack.

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Tom Armenti, founder and owner of the eatery, launched Fat Shack in New Jersey in 2010 with his personal seed money of $5,000. A bagel business let him use the shop after they closed for the day from 6 p.m. to 4 a.m.. 

Fat Shack’s menu is an ode to the famous Jersey “grease trucks,” a group of food trucks that began operating in the 1970s, serving “fat sandwiches” near Rutgers, The State University of New Jersey. The sandwiches were a combination of foods such as chicken fingers, mozzarella sticks and fries on a sub roll.

Armenti’s aunt and uncle, who live in Loveland, encouraged him to bring the Jersey staple to Colorado. In 2011, he settled on opening a shop in Fort Collins, with Colorado State University being a pull.

When Armenti and his close friend and Fat Shack chief financial officer, Kevin Gabauer, were in college, their late-night food options were limited. For that reason, most Fat Shack locations can be expected to stay open until 2 through 4 a.m.

Fat Shack’s first investor was Armenti’s father, who is still a silent partner today. He offered Armenti a loan to get the Fort Collins location started.

“I knew I always wanted to pay him back for believing in me at the beginning, so he has a little piece of equity inside of the company as the first investor,” Armenti said. 

Armenti and Gabauer attracted a major investor, billionaire Mark Cuban, when they pitched Fat Shack on ABC’s Shark Tank. The duo appeared on the season 10 finale, which aired on May 12, 2019.

They received four offers, but went with Cuban, who invested $250,000 for a 15 percent return. Gabauer said he was their first choice out of the sharks, though Cuban has a history of investing in healthier food ventures.

They served up their favorite sandwich, the “Fat Jersey” which has cheesesteak, chicken fingers, mozzarella sticks and house-made honey mustard stuffed into a roll.

“He loved it. He had the whole thing,” Gabauer said. “He was eyeing up the other sharks’ sandwiches, trying to steal a bite from theirs.”

Since the airing of the episode, Fat Shack has received more than 3,000 emails inquiring about owning a franchise, according to Gabauer. The 11 locations at the time of filming has increased to 17, with 10 of them being in Colorado. Another four operate in Texas, two in Washington and one in Kansas.

Armenti and Gabauer own the Fort Collins and Loveland locations, with the rest of the locations run by franchisees. Fat Shack plans to open a franchise location in Las Vegas, Nevada, and Lawrence, Kansas, plus two delivery-only spots in Chicago.

© 2020 BizWest Media LLC

Editor’s note: This story was updated to correct the locations of stores owned by Armenti and Gabauer.