Things got heated when ‘Shark Tank’ judges fought over a food idea with big flavor and even bigger sales
Launched in 2009, 'Shark Tank' has given wings to the dreams of countless aspiring entrepreneurs whose growth is often restricted by a lack of funding and mentorship. In one such instance, a couple with a treasured recipe not only managed to win the Sharks' hearts but also made Kevin O'Leary and Daniel Lubetzky fight it out for the deal. Not only that, but the product was so well received that it became an instant hit, making for a 'Shark Tank' success story.
Husband and wife duo Joseph and Anh appeared on 'Shark Tank' to introduce PhoLicious, a quick, flavorful, and authentic instant Vietnamese pho. Their mission was to make pho as easy to prepare as instant ramen, but with the richness and tradition of a home-cooked Vietnamese soup. Each bowl of the pho contained a 'pho tea bag' filled with fragrant Vietnamese spices like cinnamon, cloves, and star anise, delivering an authentic, slow-simmered flavor in minutes.
The brand started in May 2021 and earned $68,000 by selling the product direct-to-consumer. In 2022 the number reached $438,000 and 2023 it was $2.1 million. The business projected $5–6 million for 2024. The couple pitched their brand, asking for $500,000 for 10% equity. They impressed the Sharks with tasty pho samples (beef, chicken, and vegetarian) and their innovative pho 'tea bag.' Their product retails at $5.48, costs $1.75 to make, and wholesales at $3.89, Shark Tank Recap.
The pair shared that they founded the business in May 2021, during the COVID-19 pandemic. Anh, a longtime ER nurse, and Joseph, a hotel manager, had limited access to Vietnamese food as frontline workers. This inspired them to create their own pho from scratch. To fund the venture, they sold their home and lived in a camper with their two children for two years, investing $250K into starting PhoLicious. That investment helped them secure deals with Sam’s Club and Walmart, per Shark Tank Blog.
At the time of their pitch, the product was in 250 Walmart stores and 133 Sam’s Clubs, with another 107 Sam's Clubs about to onboard. They manufacture and distribute from their 47,000 sq. ft. leased facility in Houston, Texas. The Sharks were moved by their story and impressed with the numbers. Robert Herjavec asked about the growing demand for Vietnamese food, which Joseph confirmed by noting retailers place PhoLicious beside ramen, not just in the Asian section.
As the bidding began, O'Leary offered $500K for 20%, promising help with retail expansion into Costco and Target. Lubetzky matched the offer and pointed out his expertise in scaling food brands, citing his success with Kind Bars. The tension in the tank was seemingly high as Lori Greiner, Mark Cuban, and Herjavec opted out, believing O'Leary and Lubetzky's offers were strong. Joseph countered at 12% equity, which Lubetzky declined. O'Leary revised his offer to $500K for 15%, and after considering both options, Joseph and Anh accepted his deal, surprising the panel with their final decision.
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After PhoLicious' appearance on 'Shark Tank,' the company saw a major boost in sales, indicating strong consumer demand. Since filming, it has significantly expanded its retail presence and is now available in over 450 Walmart stores and 150+ Sam's Club locations across the US. In a mark of industry recognition, PhoLicious returned to the Walmart Open Call in late autumn 2024 as a mentor, sharing insights from their journey since first attending in 2022.