Fysh Foods Acquired by Beyond Sushi Owner

City Roots Hospitality, a New York City-based plant-based restaurant group, has acquired vegan seafood startup Fysh Foods. The all-cash transaction, finalized in August, will see Fysh's raw tuna alternative featured across the group's locations, which include Beyond Sushi, Colette, and Anixi. The group's full squad of restaurants will now feature the product.

Chef Guy Vaknin, owner of City Roots Hospitality and a former Hell's Kitchen contestant, plans to adapt the squeezable, fish-free product for a sit-down dining format. The acquisition represents a union of two businesses founded by creators who secured deals on the television show Shark Tank.

A Creator-Led Brand Journey

Fysh Foods was founded by influencer and cookbook author Zoya Biglary, who bootstrapped the company herself. Over four years, she secured partnerships with retailers like Erewhon and Kombu Sushi. In 2024, Biglary and her now-wife, Alix Traeger, pitched the brand on Shark Tank, positioning it as a safer alternative to conventional seafood.

On the show, Kind Healthy Snacks founder Daniel Lubetzky offered $150,000 for a 30% stake. Biglary and Traeger accepted the deal on air but ultimately declined to finalize it, choosing to keep the business self-funded and female-owned. Vaknin himself had appeared on Shark Tank six years earlier for Beyond Sushi, also turning down an investment deal after the show.

Following the acquisition, Biglary stated, "The most important thing a founder should know is when to let someone else take the wheel."

Product Formulation and Expansion Plans

Formerly known as Finneato Fysh Foods, the Los Angeles-based brand makes its seafood alternatives from a blend of root vegetables, pea protein, and algae-derived ingredients. The company uses fermentation techniques to develop flavor. Its product range has included fish-free salmon and yellowtail, alongside its flagship spicy tuna.

City Roots Hospitality called the purchase a "foundational step" and plans to expand the Fysh Foods brand beyond its current New York City footprint. The group noted that while influencer-led brands are often acquired by consumer packaged goods companies, moving directly into a restaurant portfolio is rare. Specific timelines and locations for the expansion have not been disclosed, but the move aligns with the group's broader growth standings.

The Struggling Plant-Based Seafood Market

Biglary grew Fysh Foods through direct sales and her online presence, where she has nearly 1.7 million followers. She attributed her survival to treating Fysh as a food company, not a 'food tech' company. "Today, those same competitors are no longer in business," she said after the acquisition.

Her observation aligns with broader market challenges. Sales of plant-based seafood fell by 3% to $10 million in 2025, accounting for less than 1% of total plant-based meat and seafood revenue. This downturn has forced the closure of several alternative seafood startups globally in recent years.

The source lists the following companies that have shut down or pivoted:

This is part of a larger consolidation in alternative proteins, where over 85 companies have been acquired, merged, or shut down in the last two years. In July, US startup Bayou Best Foods acquired Germany's BettaF!sh to expand their product lines.

Despite the sector's headwinds, some brands are finding success with differentiated strategies. Oshi raised $3 million after sales of its vegan salmon quadrupled in 2025 and expects a similar increase this year, with plans to enter Whole Foods Market in December. In Canada, NS/TX Industries secured $10.5 million in funding and a $3.5 million government grant to scale production of plant-based salmon, beef, and pork. The sector's overall stats show a challenging but evolving landscape.