Pasta by Hudson
DEAL
EPISODE SUMMARY
🕓 Air Date: March 27, 2020
Asking For:
$150,000 for 10%
Investor:
Mark Cuban, Lori Greiner (20.oct)
Deal:
$150,000 for 30%
PRODUCT SUMMARY
Pasta by Hudson is a fast-casual, fresh pasta bar offering a variety of pasta shapes and sauces with additional customizable options, emphasizing quality and convenience.
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Background Story
Founded by Brandon Fay, Pasta by Hudson was born out of the frustration with traditional Italian dining experiences. Brandon, the son of two New York City police officers, managed one of the busiest restaurants in the city for over 25 years, gaining valuable experience in the industry.
The idea for Pasta by Hudson emerged from his desire to provide fresh and affordable pasta to customers without the hassles of reservations and cold dishes. The venture is a tribute to his parents, who were Bridge and Tunnel officers, with his father being a sergeant.
The Product
Pasta by Hudson operates as a fast-casual, quick-service, fresh pasta bar in Columbus Circle, New York City. Customers can choose from a variety of pasta shapes such as campanelle, bucatini, or veggie pasta.
They then select a sauce from options like carbonara with a fried egg and bacon or alla vodka and add extras like shrimp, garlic toast, or the signature cheesy stuffed meatball. The customizable menu allows customers to mix and match, creating a personalized pasta experience.
Prices range from $8.95 for the Pomodoro to $12-$13 for other dishes. The business model centers on high-volume, high-foot-traffic locations, currently operating in a 390-square-foot space in Columbus Circle, one of New York City’s busiest transit hubs.
How It Went
The company’s position before Shark Tank
Pasta by Hudson has achieved a year-to-date revenue of approximately $590,000 with a break-even projection by the end of the first year. The business operates within a 390-square-foot storefront in Columbus Circle, targeting high-volume, high-foot-traffic areas. Brandon Fay, with extensive restaurant management experience, leads the company. Sales predominantly come from the physical store, but the business also embraces delivery, constituting almost half of its current operations.
However, the challenges of high delivery fees have been acknowledged. The company plans to expand its footprint by focusing on franchise opportunities and exploring the potential of CloudKitchens to tap into diverse markets. With an initial investment of $350,000 for the first store, subsequent locations are expected to cost around $200,000. The negotiation highlighted that Pasta by Hudson is not yet profitable but aims to break even by the end of the year, with a predicted revenue of $1.2 to $1.3 million for the following year.
The Negotiations:
Brandon Fay entered the tank seeking $150,000 for 10% equity in Pasta by Hudson. While demonstrating the deliciousness of his pasta, Kevin O’Leary bowed out due to his personal struggle with acid reflux. Barbara Corcoran, despite expressing admiration for the meatball, didn’t feel comfortable with the business’s current stage and profitability, choosing to opt out.
The Sharks explored the business model, with Mark Cuban proposing a partnership with Lori Greiner. Brandon disclosed the business’s year-to-date revenue of $590,000, projecting a break-even by the end of the year. He expressed the intention to focus on high-volume, high-foot-traffic areas for future expansion and acknowledged the challenges of high delivery fees. Mark and Lori presented a joint offer of $150,000 for 30%, with Mark taking 20% and Lori taking 10%.
The negotiation concluded with Brandon accepting Mark and Lori’s joint offer, marking a partnership that aimed to leverage Brandon’s culinary expertise with Mark and Lori’s business acumen, promising future growth and success for Pasta by Hudson.
