Joseph and Anh Trousdale Pitch PhoLicious On Shark Tank Season 16
Highlights
- PhoLicious is brought to the Shark Tank panel by a husband and wife duo of Joseph and Anh Trousdale.
- The duo seeks $500K for 10% equity in their food company.
- The entrepreneurs leave the Sharks shocked with their choice of partner at the end of the pitch.
Overview
| Category | Details |
| Name | PhoLicious |
| Founder | Joseph and Anh Trousdale |
| Industry | Food and Beverage |
| Product | Rice Noodle Soup |
| Funding | Self-funded |
| Investment Ask | $500K |
| Equity Offered | 10% |
| Valuation | $5 million |
The husband-wife entrepreneur duo of Joseph and Anh Trousdale make their way to the Shark Tank investors with PhoLicious. They start the pitch by discussing how beef and chicken-loaded instant noodles have the same ‘basic’ flavor. Anh claims that their instant ‘pho’ is both authentic and fast to cook.
Describing further, the Trousdales state that pho (sounds phuh) is a Vietnamese rice noodle soup whose flavors are warm and aromatic. Plus, Anh says that one can have the pho at any time of the day.
The entrepreneurs then boast that with PhoLicious, one needs only five minutes to prepare the most instant pho. Anh adds that their food product is crafted from a family formula developed by her ‘mom’s secret recipe.’
PhoLicious Shark Tank: What Happened On Season 16
Entrepreneurs Joseph and Anh Trousdale try their luck by seeking $500K for 10% equity in the PhoLicious Shark Tank deal. Once the pitch ends, they offer samples of their traditional beef, chicken, and vegetarian pho. Joseph says that for the restaurant-like feel, they could add the side dishes.
The Shark investors love the taste of different samples of PhoLicious. Anh stresses their distinguishing aspect – the pho tea bag, which has whole cinnamon, cloves, coriander, star anise, and fennels.
Robert Herjavec wants to know if a market shift is happening towards Vietnamese food. Joseph agrees and reveals that major retailers have been putting PhoLicious right next to ramen and not just in the Asian aisle.
The duo’s product retails for $5.48 in stores, and its cost is $1.75 per bowl. PhoLicious’ wholesale rate is $3.89.
Joseph and Anh started the venture in May 2021. Kevin O’Leary wants to know about the sales. In 2021, after its launch, PhoLicious made $68K (D2C only). The next year, it made $438K in sales. In 2021, the food venture made $2.1 million through sales. The Shark investors love the numbers.
The Trousdales are projecting $4 million-$5 million in sales in 2024 (the episode was recorded in 2024).
Lori Greiner wants to know if they have gone to some major retailers. PhoLicious is present in more than 133 Sam’s Clubs and 250 Walmart stores. Additionally, right before the episode, Sam’s Clubs informed them that they are adding another 107 clubs.
The entrepreneurs claim that PhoLicious does its own manufacturing and distribution. It had a 47,000 sq ft food manufacturing facility, which is also their warehouse in Houston, Texas. The duo lease the space.
During the discussions, Anh reveals that the two of them started the venture in 2021 when everything shut down due to the pandemic. She used to work as an ER nurse with more than ten years of experience. Joseph was a hotel manager.
As essential workers, they did not have the time and access to authentic Vietnamese restaurants; they ended up making their pho from scratch in their kitchen. To start the business, Joseph and Anh sold their house and lived in a camper for two years with their two kids.
From that, they had $250K extra, which helped them further, and they soon got deals with Sam’s Club and Walmart.
Kevin O’Leary thinks he can help PhoLicious with the retail aspect by helping them get into Costco and Target. PhoLicious sells 30 bowls per week per store across all three flavors. Profits in 2024 before their Shark Tank appearance was $390K. The Sharks applaud them.
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Did The PhoLicious Shark Tank Pitch End With A Deal?
Kevin O’Leary offers $500K for 20% equity, but he wants to triple the distribution size in 60 days. Daniel Lubetzky says he will offer the same deal and that he will bring in his three decades of experience in the food vertical. He even cites the example of Kind Bars to convince Joseph and Anh.
Daniel claims to help the duo with manufacturing, development, and operations. Kevin interrupts by saying, ‘What he can’t help you with is social media.’ Hearing this, Daniel comments, ‘There is no competition.’
Lori opts out of the PhoLicious Shark Tank deal as she thinks the other offers are great. Robert and Mark also make their exit from the deal.
Joseph counters Kevin and Daniel’s respective offers with 12% equity. While Daniel refuses, Kevin revises his deal to $500K for 15% equity.
Ultimately, the husband-wife duo shock the Sharks by taking up Kevin’s deal for $500K for 15% equity.
