thecuddyflatiron
DESCRIPTION
ÂTRANSCRIPT
CONFIDENTIAL
The information contained herein is both confidential and proprietary and is not to be reproduced in whole or in part, under any circumstance, without the express prior written consent of the company. This document does not constitute an offer to sell or solicitation of an offer to buy any securities in any state or jurisdiction to any person.
This document contains forward-looking statements within the meaning of section 27a of the securities act of 1933 (the “securities act”) and section 21e of the Securities Exchange act of 1934. The company has based these forward-looking statements largely on the company’s current expectations and projections about future events and financial trends affecting the revenues from its operations (collectively, the “operations”). These forward-looking statements are subject to a number of risks, uncertainties and assumptions. The company uses words such as “anticipates,” “believes,” “plans,” “expects,” “future,” “intends,” and similar expressions to identify forward-looking statements.
Table of Contents
Concept and Execution
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . .4
Company Description . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Industry Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Management Team . . . . . . . . . . . . . . . . . . . . . . . . . . .10
Demand Accelerators . . . . . . . . . . . . . . . . . . . . . . . . 12
Menu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Marketing and Public Relations . . . . . . . . . . . . . . . . . 19
Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
Financials
PNL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
5 Year Pro Forma . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Assumptions for Sales Projections . . . . . . . . . . . . . . 23 Multi-Unit Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Use of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
Design and Construction
Façade Renderings . . . . . . . . . . . . . . . . . . . . . . . . . . .27
Design Aesthetics and Storyboard . . . . . . . . . . . . . . 28
Executive Summary
cud·dy [kuhd-ee]
Noun a small room, cabin, or enclosed space at the
bow or stern of a boat.
Objective: To introduce and develop a classic hospitality
concept with a long and proven track record that possesses immense opportunity to grow this concept in the NYC market and beyond
Concept: The Cuddy Flatiron is our vision of elevating traditional American cuisine and cocktails with the best use of seasonal, local produce with the creativity found in contemporary New American Cuisine and old world mixology.
The name was chosen to reflect a “safe haven” – a little shelter and a comforting place to stay. The Cuddy is an American Tavern that’s warm, inviting, and relaxed in style.
We serve comfort cuisine and hand-crafted beverages. Five draft beers, available seasonally and seven bottled beers compliment the full bar. We use local, organic produce and ethically raised, sustainably farmed meats and fish whenever available. You’ll feel at home with us.
The concept of combining a late night Tavern with a Restaurant and vibrant Bar scene allows us to take advantage of the high volume of consumers circulating the Flatiron, Union Sq. and Chelsea Districts each day and will generate income from early in the morning until late at night.
Location: The Cuddy NYC will draw its primary customers from the people who dine out in New York City. Deemed one of the most central and vibrant neighborhoods in New York City, the Flatiron District is always evolving and growing as a commercial, residential and dining destination pulling in customers from all over the city. Our site is located at 5 West 21st Street just off of 5th Ave and a block away from The Flatiron building and Madison Sq Park in the epicenter of New York City.
Company Description
Our Team Five Fingers LLC, a New York based hospitality company, is comprised of five professionals with a combined experience of over three quarters of a century in hospitality development and management, marketing and media as well as construction, design and architecture.
Company Description The focus of Five Fingers LLC focus is to buy and develop hospitality ventures within the New York City area and beyond.
Our Mission • To introduce and develop a classic hospitality concept with a long and proven track record that possesses immense opportunity to grow this concept in the NYC market and beyond. • To promote our concept with a top management team to create a buzz in the dining scene across New York and the rest of the country. • To look for future opportunities to take this concept to San Diego, Miami, Las Vegas and other major American markets.
Our Management Team
Chris Eddy Operations Director/Partner
Toranosuke J. Matsuoka Operations Director/Partner
Tim Valenti Creative Director/Partner
Walt Henderson Marketing and Media Director/Partner
Keith Valenti Beverage and Technology Director/Partner
Industry Analysis
2013 Full-Service Outlook
The full-service restaurant segment is projected to post its third consecutive year of real sales growth this year. The National Restaurant Association expects full-service sales to total $208.1 billion in 2013, up 2.9 percent from $202.2 billion last year. In inflation-adjusted terms, total full-service sales are projected to edge up 0.2 percent in 2013, down slightly from a real gain of 0.4 percent in 2012.
Challenges Ahead
Full-service restaurant operators expect to face many of the same challenges as they did in 2012, including cost control, health care and economic uncertainty.
One of four operators in each of the three full-service segments identified food costs as their top challenge for 2013. Twenty-five percent of family-dining operators said complying with health-care reform would be their top challenge, as did about 10 percent of casual- and fine-dining restaurateurs. Fine-dining operators were more concerned about the economy; 28 percent said it would be their No. 1 challenge for the year.
Positive Perspective
Despite the uncertainties, more than nine of 10 operators expect sales to either improve or stay the same this year, compared to 2012.
Fine-dining operators were the most optimistic. Fifty-seven percent expect stronger sales this year, and only 5 percent expect sales to decline. Casual-dining operators are only slightly less bullish: 48 percent expect business to improve this year, and just 8 percent anticipate lower sales. As for family-dining operators, 43 percent expect business to improve; 10 percent expect a sales decline.
Although their top-line outlook is generally positive, full-service operators aren’t as bullish when it comes to the bottom line. About six of 10 operators in each of the three full-service segments expect their profitability this year to be about the same or down from 2012.
Menu Trends
Children’s nutrition remains a priority for chefs, who continue to put their creativity to work into creating healthful kids meals. Chefs also remain interested in local sourcing, whether they buy from local farms or grow their own seasonal ingredients to highlight on menus. Similarly, artisan products, local sourcing and culinary creativity are as trendy behind the bar as they are in kitchens. Increasing recognition of mixology allows bartenders to showcase their skills in blending textures and flavors similarly to how chefs approach food in the kitchen.
Flatiron District
CHRIS EDDY Chris brings expertise in the areas of Front of House/Back of House management, beverage program and menu development, staff training and coaching, POS programming and analysis, excellent guest relations skills , concept and brand development , PR and marketing, financial forecasting and reporting, cost controls and growth strategies. As an operator he serves as the liaison to the NYC Community Boards, Dept. of Consumer Affairs, NYFD, NYPD, Dept. of Health, Dept. of Buildings, and all local neighborhood and merchants associations. Most recently in 2012, he was the consultant for the start- up company, RISE Management, acquiring a prime Tribeca location from legendary restaurateur Drew Nierporent. He brought in the Bravo Network to do their first pop up restaurant Top Chef Kitchen there where 12 of the Top Chef and Top Chef Masters competitors and winners executed nightly tasting menus. The six week run sold out 6,000 tickets in the 45 minutes after its initial press release. Chris has been a restaurant consultant for many start-ups and developing businesses in New York City including The Clock Martini Bar in SoBro, Top Chef Kitchen in Tribeca, Tresanti in Soho, Hudson River Cafe in West Harlem. Sumile in Greenwich Village and Yujin in Union Sq South. In 2010/2011 Chris was part of the management team hired to restructure the Food and Beverage Department at the Millenium Hilton in downtown Manhattan winning Most Improved Food and Beverage Department and Most Improved Profitability within Hilton International. He served as the Managing Partner/ General Manager of two of my own restaurant ventures in New York City; Barmarche , a 70-seat New American bistro in the fashionable downtown N.Y.C. neighborhood of Nolita as well as industry; a highly successful bi-level supper club in the East Village that received rave reviews and press in The New York Times, New York Magazine, Gotham and Hamptons Magazine, Food and Wine. Gourmet, Paper Magazine, The Post, as well as in San Francisco, Switzerland, Germany, Japan, and Sweden. Additionally Chris played key management role at the successful establishments Jonathan Mor's Bond st. Chef Matthew Kenney's Commune, and celebrity supper club Lotus. Chris also has a long history of working with Non-Profits as Board of Director member for Generation X-Cel a program modeled to help at risk youth in inner city America as well as being a regular participant in cooking and providing services for the homeless through Apples Core Coffee House, a faith based initiative with a 20 year history in the East Village of NYC.
TORANOSUKE J. MATSUOKA An intuitive master in the art of restaurant and hospitality management, Toranosuke “Tora” Matsuoka is also a visionary, dynamic entrepreneur and hands-on owner. His passion for the restaurant business is unmistakable, and his work ethic comes from the influence of his father, Japanese former Sumo wrestler Iwatora (Kazutomo Matsuoka), who started the original Sen Sushi bar 19 years ago. Tora, as he is known by, is regarded as a pioneer in Asian cuisine, making his mark on the East End crowd by developing Sen Restaurant into the landmark hotspot it is today. Tora showcases his ability to expand through his newest venture, American Gastro-pup, The Cuddy, with his partner Jeff Resnick. These two Hampton culinary destinations are part of the Big Fish Hospitality Group, founded and operated by Matsuoka and Resnick. Very little that happens in the daily operations or future vision for Big Fish Hospitality Group restaurants has not benefited from Matsuoka’s unerring savvy and sound business strategy, or escaped his critical eye for detail. Over the past year, in addition to fulfilling his responsibilities at BFHG’s two Sag Harbor restaurants, Tora has brought to life every aspect of his vision for the new generation of Asian cuisine through the opening of Sen NYC in the beginning of 2013. The authenticity and growth of the Sen brand has greatly benefited from Matsuoka’s dual nationality and deep appreciation for Asian culture and traditions. In addition to being a veteran operator - learning every aspect of the restaurant business first hand from the age of 13 - Tora is also a sake connoisseur. He has developed a robust and carefully curated beverage program for both Sen Sag Harbor and Sen NYC, resulting in a fresh, innovative 360 menu offering. Working under the tutelage of service expert, Eric Weiss, Tora’s appreciation and instinct for hospitality and service standards continued to grow. This training has groomed him to provide management consulting services for large organizations like Hilton Worldwide and other small boutique restaurants and bars. As an entrepreneur, Matsuoka focuses on implementing an effective and sustainable strategy for his businesses. He states his two drivers as passion and “hard work in the DNA,” resulting in a uniquely holistic understanding that the hospitality world is about creating excellence in all guest experiences. His resolve and success has earned him notable speaking opportunities at many young entrepreneur functions, including being featured as an Empact 100 honoree at the 2011 White House event.
TIM VALENTI Tim brings more than 20 years of food and beverage experience to the table, 15 of which were spent building successful NY establishments. In notable venues such as
WALT HENDERSONLotus in NYC's Meatpacking district and the V bar in the Venetian Hotel in Las Vegas, Tim has played an integral role in launching and operating very high profile hospitality locations that attract celebrities, fashionistas and nightlife impresarios . Tim's creative talents focus on venue promotions, bar development , space design, and building a team and concept capable of success . In addition to his start-up ventures , Tim has extensive experience managing and operating all aspects of the day-to-day operations, having held management positions at NYC fixtures such as Cielo,The Whiskey in the W Hotel, AVA Lounge in the Dream Hotel, City Crab, and Rive Gauche.
KEITH VALENTI Keith brings fifteen years of NYC management experience to the team. He’s currently the General Manager of Vero Wine Bar on the Upper East Side of Manhattan, one of multiple casual dining/drinking models by the Brandit Hospitality Group. Keith was the Managing Partner/Operations Director of Teqa, a beautifully designed upscale Mexico City style Taqueria and Tequila Bar that was a ground breaker for the Murray Hill neighborhood. He served as the General Manager of three Friend of a Farmer units, who were pioneers of the Farm to Table movement. Keith also launched his own version of this genre, The Farmhouse, in the farm and wine country of the North Fork of Long Island. Before this he spent several years during the Park Avenue South hospitality boom as the manager of City Crab and Seafood Co, a 200 seat seafood house grossing over $10M a year. In addition to Keith’s skills in Operations, FOH and Bar Management he is also an expert in all facets of hospitality-related technology especially audio video design and installation. He served as the Music Director for Steve Hanson’s BR Guest Hospitality Group as well as a being a Chief Sound Engineer for SKS Sound and Design having installed complete A/V systems in many W Hotel, Sheraton and Hyatt properties in New York City and Los Angeles.
Walt, a new resident of New York, has roughly 20 years of restaurant, hospitality and philanthropic experience under his belt. Originally from Atlanta, GA. Walt has the idea and understanding for "Southern Hospitality" in his blood and his dedication to the "overall dining experience" is far beyond average. For the last 13 years, Walt has spent time designing, implementing and growing training programs within major restaurant groups; Houston's, now known as Hillstone as a Manager and Unit Accountant (Atlanta, Chicago), Maggiano's Little Italy as a Maitre’ D (Atlanta, Boca Raton), founded by Rich Melman (Lettuce Entertain You Ent.) and CentraArchy Restaurant Group (The Tavern at Phipps, Joey D’s, New York Prime, California Dreaming and The Tavern at Jupiter) as a Senior Manager (Atlanta, West Palm Beach). Within these groups, Walt was able to overhaul each unit’s entire training structure, monitor each stores adherence to policies and procedures, as well as implement team building and moral initiatives. After relocating to New York City, Walt spent time with the Fatty Crew brand (Fatty Crab and Fatty ‘Cue) then assumed the role of Assistant General Manager at NBC Universal’s successful 8 week pop-up kitchen called Top Chef Kitchen located in Tribeca. Based on his passion for philanthropic efforts, Walt produces an interactive cooking competition called Culinary Fight Night®, www.culinaryfightnight.com, geared towards exposing and mentoring up and coming chefs while raising money for well- deserved charities. Over the last 3 years, Culinary Fight Night® has been able to develop, encourage and coach as many as 40 chefs as well as raise over $60,000 for The Alzheimer Association, Susan G. Komen For the Cure, the Make A Wish Foundation and The Ludacris Foundation, to name a few..
Demand Accelerators
Customer Base
The local residential and commercial demographic is highly advantageous to our success. The residents have limited supply of top notch dining due to the past history of the area as a destination nightlife location. During the time that the city removed the nightlife element, the residential population has grown significantly and is of a high average income demographic These local residents along with destination crowd will constitute a core target for our dinner, delivery and weekend business.
The massive improvements and gentrification of both the Union Square and Madison Park properties and surrounding areas will also be a catalyst for an increase in flow of traffic as we sit directly in the corridor between the two parks. The amount of new and drastically upgraded business types in both areas has hit an apex in the last ten years including the Met Life building, high rise ground up condo and rental properties, the Ace Hotel and a plethora of new dining destinations such as Eataly, NoMad a revitalized Eleven Madison Park, Hillstone Barbeque and Shake Shack just to name a few.
Therefore due to these changes, there’s a whole market within a short walk that are just now discovering 21st street as a dining destination. In regards to lunchtime, delivery and office catering, the potential for growth and revenue is unlimited as the Flatiron is home to countless businesses that employee many thousands of people alongside the growing and affluent residential base.
Local Businesses
The Flatiron is very densely populated business district with many thousands of office workers from every sector of the business world from top Hollywood acting agencies, hedge fund headquarters and many creative and start ups as well. Fifth Avenue and the Flatiron District are prime shopping destination featuring multiple boutique clothing stores, artisan food shops, jewelry, cutting-edge salons home décor stores, photography and design studios and a number of other small restaurants who go out after work for drinks and dining.
This diversity of street level retail and office businesses creates a diversity of both local workers and their destinations customers and clients visiting the area daily. Our target is to be one of the primary go to places for our neighbors and by referral and developing a strong reputation to attract the people in their networks as well. .
Public Relations & Marketing
Public Relations: A public relations firm will be
retained to create an opening event and solicit print and broadcast coverage.
Marketing Strategy: Focusing on the unique aspects of The Cuddy Flatiron concept, a mix of marketing vehicles will be used to convey our presence, our image, and our mission.
Print Media: Press releases will be sent to local newspapers, magazines, and other industry publications.
Direct Mail: Menus and P.R. packets will be sent to local businesses and offices.
Website: post cards will lead patrons to our website which will request an e-mail address to be notified of upcoming events and discounts.
Memberships and Associations: Five Fingers LLC, as well as all of our restaurants, will be members of the NY Visitors and Convention Bureau. The management team will join both local restaurant and community associations.
Point of Sale: A well trained staff can increase the average check as well as increase word-of-mouth referrals.
Miscellaneous: Yellow Pages, restaurant- and tourism guides.
Marketing The core of marketing is simple, making people aware that your brand exists. You simply cannot buy nor partake in what you do not know exists. After awareness, you need to possess something that people actually want or want to be a part of. We believe, with all of our hearts, that we have the brand that will change the scope of how people view charitable donations. We will have dual marketing simultaneously, as we will be marketing the not for profit business and the business itself. The strategy will combine guerrilla marketing and new wave marketing.
Website: The website will be crucial, as it is how individuals and other organizations will be able to access information on Flatiron Public. The website will need to be visually “food forward” as well as be very interactive. Website Pages will consist of, but not be limited to: - Landing page - Mission (About Us and our mission statement) - Members (Bios on mgmt. and key staff members – FOH and BOH) - Menu - Motivation (charitable giving, community service) - Moments and Memories* *There will also be an app created that will be integrated into the website. This will allow guests to post pictures and comments directly to the website (as they do on Instagram, Facebook, Yelp and Eater). More info to follow.
Printed materials: - Stickers/signs to be placed in each Flatiron affiliate - Flatiron explanation business cards, complete with QR codes and all social media links
Internet Advertising:
Advertising on the Internet can be tricky, if not done the
right way. We will advertise on other sites, as well as, run a
full social media campaign. This will also be combined with
our print campaigns. Internet Ads - Blogs (bloggers are the new "voice of the people") - Village Voice (an example of both print and Internet ads)
Social Media - Facebook - Linked In - Twitter - YouTube - Instagram - Four Square - Tumbler - Flickr - Reddit *The more social media sites we are registered in, the more content that will appear upon any search engine pages. This is will create more of an impact, when people search for us online.
Keys To Success
Opening Experience The management team of The Cuddy Flatiron has played leading roles in many highly acclaimed restaurant openings including Mercer Kitchen, Bond St., Guastavinos, Commune, Lotus, Bungalow 8, Industry, Yujin, Sumile, Barmarche, Teqa, The Farmhouse, Top Chef Kitchen, Sen, The Cuddy, Whiskey Lounge, Ava Lounge and One51.
Unique Concept The unique structure of Cuddy space allows for a concept that has the ability to generate profit by targeting a maximum variety of customers. Patrons can stop by for a quick espresso during lunch, people watch on the sidewalk cafe or enjoy a full dinner in the cozy back dining room. In addition to an awesome culinary experience, The Cuddy will offer a top of the line late night environment with its unique and sexy atmosphere. This is what makes The Cuddy a one stop shop for those who can count themselves as part of NYC's top clientele.
Lease Highlights ● Full right to assign lease ● $17,500 base rent ● 3% yearly increase ● sidewalk café ● Good Guy Clause (Limited Liability Clause) ● 10 years left on the lease
Strategic Partners Commissary Kitchen Stevenson’s Culinary Works - stevensonculinaryworks.com
Architect HS2 - hutsachs.com
Contractor VIR Builders- virnyc.com
Accounting/Office Management Buy Association -barestaurantgroup.com
Event Management Tripleseat -tripleseat.com
Web & Graphic Design Art Ink – artink.biz Continuous Line - cldesigngroup.com
Public Relations Karine Bakhoum - kbnetworknews.com Bullfrog and Baum - bullfrogandbaum.com
Celebrity Liaisons Jessica Holtz -excelsm.com Conor Sammartin - .prioritysports.biz
Philanthropy Jametha Fields / Marisa Maltese - autismspeaks.com Jisset Pena - deronwilliams.com/pointofhope
Entertainment Attorney Kiesha Perry – perrylawgroup.com
PNLMonthly Sales % Rev Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15
Restaurant Seasonal Month Value 30.41 1.00 1.00 1.10 0.75 0.75 0.75
Monthly Food Sales 62.3% $144,524 $144,524 $158,976 $108,393 $108,393 $108,393
Monthly Liquor Sales 17.2% $40,000 $40,000 $44,000 $30,000 $30,000 $30,000
Monthly Beer Sales 11.2% $25,957 $25,957 $28,553 $19,468 $19,468 $19,468
Monthly Wine Sales 9.3% $21,504 $21,504 $23,655 $16,128 $16,128 $16,128
Restaurant Monthly Sales $231,985 $231,985 $255,183 $173,989 $173,989 $173,989
Late Night Seasonal Value 0.33 0.33 0.50 1.00 1.50 1.50
Late Night Monthly Sales $13,799 $13,799 $20,907 $41,814 $62,721 $62,721
# Private Events 4 4 4 4 4 4
Private Event Monthly Sales $7,200 $7,200 $7,200 $7,200 $7,200 $7,200
Delivery Seasonal Value 0.25 0.25 0.25 0.25 0.25 0.25
Delivery Monthly Sales $3,345 $3,345 $3,345 $3,345 $3,345 $3,345
Total Monthly Revenue $256,328 $256,328 $286,635 $226,347 $247,254 $247,254
Fixed Costs
Rent/Common Charge $18,025 $18,025 $18,025 $18,025 $18,025 $18,566
ConEd (electric) $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Gas $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Water $450 $450 $450 $450 $450 $450
Time Warner (Internet, Phone, Cable TV) $500 $500 $500 $500 $500 $500
Contract Services (exterminators, garbage, etc) $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Repairs and Maintenance 0.6% $1,538 $1,538 $1,720 $1,358 $1,484 $1,484
POS Lease $250 $250 $250 $250 $250 $250
Open Table Reservations System $150 $150 $150 $150 $150 $150
Insurance $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Professional Fees (Legal, Accounting, Audit) $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Payroll Processing Expense $150 $150 $150 $150 $150 $150
G&A Expense $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Misc 0.6% $1,538 $1,538 $1,720 $1,358 $1,484 $1,484
Est Total Monthly Fixed Costs $30,301 $30,301 $30,665 $29,941 $30,192 $30,733
Total Fixed Costs % 12% 12% 11% 13% 12% 12%
Cost of Goods Sold
COGS for Food 30.0% $43,357 $43,357 $47,693 $32,518 $32,518 $32,518
COGS for Liquor 22.0% $8,800 $8,800 $9,680 $6,600 $6,600 $6,600
COGS for Beer 18.0% $4,672 $4,672 $5,140 $3,504 $3,504 $3,504
COGS for Wine 28.0% $6,021 $6,021 $6,623 $4,516 $4,516 $4,516
COGS for Late Night 25.0% $3,450 $3,450 $5,227 $10,453 $15,680 $15,680
COGS for Private Events 30.0% $2,160 $2,160 $2,160 $2,160 $2,160 $2,160
COGS for Delivery 30.0% $1,004 $1,004 $1,004 $1,004 $1,004 $1,004
Comps, Mistakes, Adjustments 4.0% $10,253 $10,253 $11,465 $9,054 $9,890 $9,890
Estimated Total COGS $79,717 $79,717 $88,991 $69,809 $75,872 $75,872Total COGS % 31.1% 31.1% 31.0% 30.8% 30.7% 30.7%
Labor Costs Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15
Operations Manager $52,000 $4,333 $4,333 $4,333 $4,333 $4,333 $4,333
Chef $60,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Sous Chef $40,000 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333
Restaurant Manager $52,000 $4,333 $4,333 $4,333 $4,333 $4,333 $4,333
Bar Manager $26,000 $2,167 $2,167 $2,167 $2,167 $2,167 $2,167
Guest Services Mgr (Maitre D, Events, Marketing) $6,082 $6,082 $6,690 $4,562 $4,562 $4,562
Bookkeeper $500 $500 $500 $500 $500 $500
Wait Staff $11,495 $11,495 $12,644 $8,621 $8,621 $8,621
Runner/Busser $8,941 $8,941 $9,835 $6,705 $6,705 $6,705
Bartenders $3,832 $3,832 $4,215 $2,874 $2,874 $2,874
Cooks $14,597 $14,597 $15,765 $11,677 $11,677 $11,677
Dishwasher/Porters $4,379 $4,379 $4,729 $3,503 $3,503 $3,503
Payroll Taxes 8.75% $6,037 $6,037 $6,435 $5,041 $5,041 $5,041
Employee Incentives and Benefits 1.50% $1,035 $1,035 $1,103 $864 $864 $864
Estimated Total Labor Costs $76,063 $76,063 $81,083 $63,514 $63,514 $63,514Total Labor % 29.67% 29.67% 28.29% 28.06% 25.69% 25.69%
Misc Operating Costs
CC & Bank Charges 2.8% $7,177 $7,177 $8,026 $6,338 $6,923 $6,923
Supplies 0.8% $1,922 $1,922 $2,150 $1,698 $1,854 $1,854
Equipment 0.4% $1,025 $1,025 $1,147 $905 $989 $989
Late Night Expense (Bands, Security, DJ's,etc) 10.0% $1,380 $1,380 $2,091 $4,181 $6,272 $6,272
Marketing/PR/Promotion/Sales Expenses $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Est Total Misc Operating Costs $14,005 $14,005 $15,913 $15,622 $18,539 $18,539Misc Operating Costs % 5% 5% 6% 7% 7% 7%
Profit & Distributions
EBITDA $56,243 $56,243 $69,984 $47,461 $59,138 $58,597
EBITDA % 22% 22% 24% 21% 24% 24%
Cumulative EBITDA $475,472 $531,714 $601,698 $649,159 $708,297 $766,894
5 Year Pro Forma
Annual Sales % Rev 2013 2014 2015 2016 2017
Restaurant Seasonal Month Value 30.41
Annual Food Sales $252,916 $1,199,545 $1,452,461 $1,372,973 $1,372,973
Annual Liquor Sales $70,000 $332,000 $402,000 $380,000 $380,000
Annual Beer Sales $45,425 $215,444 $260,869 $246,593 $246,593
Annual Wine Sales $37,632 $178,485 $216,117 $204,290 $204,290
Annual Restaurant Sales $405,974 $1,925,474 $2,331,448 $2,203,856 $2,203,856
Annual Late Night $8,363 $210,323 $430,263 $656,476 $656,476
# Private Events 8 45 48 48 48
Annual Private Event Sales $14,400 $77,400 $86,400 $86,400 $86,400
Annual Delivery Sales $0 $34,120 $40,141 $40,141 $40,141Est Total Annual Revenue $428,736 $2,247,317 $2,888,253 $2,986,873 $2,986,873
Fixed Costs
Rent/Common Charge $52,500 $212,100 $218,463 $225,017 $231,767
ConEd (electric) $6,000 $24,000 $24,000 $24,000 $24,000
Gas $3,000 $12,000 $12,000 $12,000 $12,000
Water $1,350 $5,400 $5,400 $5,400 $5,400
Time Warner (Internet, Phone, Cable TV) $1,500 $6,000 $6,000 $6,000 $6,000
Contract Services (exterminators, garbage, etc) $3,000 $12,000 $12,000 $12,000 $12,000
Repairs and Maintenance 0.6% $2,572 $13,506 $17,330 $17,921 $17,921
POS Lease $750 $3,000 $3,000 $3,000 $3,000
Open Table Reservations System $450 $1,800 $1,800 $1,800 $1,800
Insurance $3,600 $14,400 $14,400 $14,400 $14,400
Professional Fees (Legal, Accounting, Audit) $3,000 $16,000 $20,000 $16,000 $16,000
Payroll Processing Expense $450 $1,800 $1,800 $1,800 $1,800
G&A Expense $3,500 $13,500 $18,000 $18,000 $18,000
Misc 0.6% $2,572 $13,506 $17,330 $17,921 $17,921
Est Total Annual Fixed Costs $84,245 $349,011 $371,522 $375,259 $382,010Total Fixed Costs % 20% 16% 13% 13% 13%
Cost of Goods Sold
COGS for Food 30.0% $75,875 $359,864 $435,738 $415,404 $415,404
COGS for Liquor 22.0% $15,400 $73,040 $88,440 $84,313 $84,313
COGS for Beer 18.0% $8,176 $38,780 $46,956 $44,765 $44,765
COGS for Wine 28.0% $10,537 $49,976 $60,513 $57,689 $57,689
COGS for Late Night 25.0% $2,091 $52,581 $107,566 $165,279 $165,279
COGS for Private Events 30.0% $4,320 $24,300 $25,920 $26,114 $26,114
COGS for Delivery 30.0% $0 $10,236 $12,042 $12,042 $12,042
Comps, Mistakes, Adjustments 4.0% $17,149 $90,037 $115,530 $119,475 $119,475
Est Total COGS $133,549 $698,813 $892,706 $925,082 $925,082Total COGS % 31.1% 31.1% 30.9% 31.0% 31.0%
Labor Costs 2013 2014 2015 2016 2017
Operations Manager $52,000 $13,000 $52,000 $52,000 $52,000 $52,000
Chef $60,000 $15,000 $60,000 $60,000 $60,000 $60,000
Sous Chef $40,000 $10,000 $40,000 $40,000 $40,000 $40,000
Restaurant Manager $52,000 $13,000 $52,000 $52,000 $52,000 $52,000
Bar Manager $26,000 $6,500 $26,000 $26,000 $26,000 $26,000
Guest Services Mgr (Maitre D, Events, Marketing) $10,644 $50,481 $61,124 $57,779 $57,779
Bookkeeper $1,500 $6,000 $6,000 $6,000 $6,000
Wait Staff $20,116 $95,408 $115,525 $109,202 $109,202
Runner/Busser $15,646 $74,206 $89,852 $84,935 $84,935
Bartenders $6,705 $31,803 $38,508 $36,401 $36,401
Cooks $27,734 $131,955 $152,391 $145,968 $145,968
Dishwasher/Porters $8,320 $39,587 $45,717 $43,790 $43,790
Payroll Taxes 8.75% $12,964 $57,701 $64,673 $62,482 $62,482
Employee Incentives and Benefits 1.50% $2,222 $9,892 $11,087 $10,711 $10,711
Estimated Total Labor Costs $163,352 $727,032 $814,877 $787,268 $787,268Total Labor % 38.10% 32.35% 28.21% 26.36% 26.4%
Misc Operating Costs
CC & Bank Charges 2.8% $12,005 $63,026 $80,871 $83,715 $83,715
Supplies 0.8% $3,216 $16,882 $21,662 $22,424 $22,424
Equipment 0.4% $1,715 $9,004 $11,553 $11,959 $11,959
Late Night Expense (Bands, Security, DJ's,etc) 10.0% $836 $21,032 $43,026 $65,648 $65,648
Marketing/PR/Promotion/Sales Expenses $24,000 $30,000 $30,000 $30,000 $30,000
Est Total Misc Operating Costs $41,771 $139,944 $187,112 $213,745 $213,745Misc Operating Costs % 10% 6% 6% 7% 7%
Profit & Distributions
EBITDA $5,819 $336,118 $622,036 $681,107 $681,107
EBITDA % 1% 15% 22% 23% 23%Cumulative EBITDA $5,819 $341,937 $963,973 $1,645,080 $2,326,188
Assumptions for Sales ProjectionsRESTAURANT -- WEEKLY FULL CAPACITY (HIGH SEASON)
Seats 100
Check Average
Lunch/Brunch 25$
Dinner 40$
Turns and CoversTurns Covers Turns Covers
Sunday 0.50 50 0.75 75
Monday 1.00 100 0.75 75
Tuesday 1.00 100 0.75 75
Wednesday 1.00 100 1.00 100
Thursday 1.25 125 1.25 125
Friday 1.25 125 1.25 125
Saturday 0.50 50 1.25 125
Total 650 700
Revenue Breakdown of Checks %/Check $/Check %/Check $/Check
Food 70% $11,375 65% $18,200
Liquor 15% $2,438 14% $3,920
Beer 10% $1,625 8% $2,240
Wine 5% $813 8% $2,240
Restaurant Sales Lunch/Brunch $16,250 Dinner $26,600
RESTAURANT BAR -- WEEKLY FULL CAPACITY (HIGH SEASON)
Seats 10
Check Average
Lunch/Brunch 25$
Dinner 30$
Turns and Covers
Turns Covers Turns Covers
Sunday 2.00 20 2.00 20
Monday 2.50 25 2.00 20
Tuesday 2.50 25 3.00 30
Wednesday 2.50 25 3.00 30
Thursday 2.50 25 3.00 30
Friday 2.00 20 4.00 40
Saturday 3.00 30 4.00 40
Total 170 210
Revenue Breakdown of Checks
Food 35% $1,488 35% $2,205
Liquor 30% $1,275 25% $1,575
Beer 20% $850 20% $1,260
Wine 15% $638 20% $1,260
Total 100%
Bar Sales Lunch and Dinner Lunch/Brunch $4,250 Dinner $6,300
LATE NIGHT (11pm-2am) -- WEEKLY FULL CAPACITY (HIGH SEASON)
Capacity (Main Room) 100
Check Average $35
Turns and Covers
Turns Covers
Sunday 0.00 0
Monday 0.00 0
Tuesday 0.00 0
Wednesday 0.00 0
Thursday 0.75 75
Friday 1.00 100
Saturday 1.00 100
Total 275
Revenue Breakdown of Checks
Food 0% $0
Liquor 45% $4,331
Beer 40% $3,850
Wine 15% $1,444
Nightlife Sales $9,625
DinnerLunch/Brunch
Lunch/Brunch Dinner
Assumptions for Sales ProjectionsPRIVATE EVENTS -- WEEKLY AVERAGE
Average per Person $45
Events Weekly 1
Avg Number of Guests 40
Avg Weekly Events and Catering Sales $1,800
DELIVERY
Avg Spent per Delivery $22
Avg Deliveries per Day 20
Avg Weekly Sales $3,080
Avg Daily Sales $440
RESTAURANT DAILY REVENUE BREAKDOWN
Full Capacity
Daily Sales
Food 62.3% $4,753
Liquor 17.2% $1,315
Beer 11.2% $854
Wine 9.3% $707
Total Regular Sales $7,629
Avg Daily Late Night Sales $1,375
Avg Daily Private Events Sales $257
Avg Daily Delivery Sales $440
Average Daily Sales $9,701
HOURLY LABOR BREAKDOWN
Labor Costs Lunch/Brunch Dinner/Late Nt Hour Wage Daily Monthly
(Employees 0/0) 2 Shifts, 16hrs 8.0
Maitre D 1.0 1.0 $12.50 $200 $6,082
Wait Staff 4.0 5.0 $5.25 $378 $11,495
Runner/Busser 3.0 4.0 $5.25 $294 $8,941
Bartender 1.0 2.0 $5.25 $126 $3,832
Cooks 3.0 3.0 $10.00 $480 $14,597
Dishwasher/Porters 1.0 1.0 $9.00 $144 $4,379
Total Hourly Labor Costs $1,622 $49,325
Multi Unit Forecast
Annual Muli-Unit Financial Forecast 2013 2014 2015 2016 2017+
One Unit
EBITDA (Per 5 Year Pro Forma) $336,118 $622,036 $681,107 $681,107
Cumulative EBITDA $336,118 $958,153 $1,639,261 $2,320,368
EBITDA (Worse Case) 50% of Avg to Best $168,059 $311,018 $340,554 $340,554
Cumulative EBITDA $168,059 $479,077 $819,630 $1,160,184
Two Units
EBITDA (Per 5 Year Pro Forma) $672,236 $1,244,071 $1,362,215 $1,362,215
Cumulative EBITDA $672,236 $1,916,307 $3,278,522 $4,640,737
EBITDA (Worse Case) 50% of Avg to Best $336,118 $622,036 $681,107 $681,107
Cumulative EBITDA $336,118 $958,153 $1,639,261 $2,320,368
Three Units
EBITDA (Per 5 Year Pro Forma) $1,008,353 $1,866,107 $2,043,322 $2,043,322
Cumulative EBITDA $1,008,353 $2,874,460 $4,917,782 $6,961,105
EBITDA (Worse Case) 50% of Avg to Best $504,177 $933,053 $1,021,661 $1,021,661
Cumulative EBITDA $504,177 $1,437,230 $2,458,891 $3,480,552
Four Units
EBITDA (Per 5 Year Pro Forma) $1,344,471 $2,488,142 $2,724,430 $2,724,430
Cumulative EBITDA $1,344,471 $3,832,613 $6,557,043 $9,281,473
EBITDA (Worse Case) 50% of Avg to Best $672,236 $1,244,071 $1,362,215 $1,362,215
Cumulative EBITDA $672,236 $1,916,307 $3,278,522 $4,640,737
Five Units
EBITDA (Per 5 Year Pro Forma) $1,680,589 $3,110,178 $3,405,537 $3,405,537
Cumulative EBITDA $1,680,589 $4,790,767 $8,196,304 $11,601,841
EBITDA (Worse Case) 50% of Avg to Best $840,294 $1,555,089 $1,702,769 $1,702,769
Cumulative EBITDA $840,294 $2,395,383 $4,098,152 $5,800,921
Ten Units
EBITDA (Per 5 Year Pro Forma) $3,361,178 $6,220,356 $6,811,075 $6,811,075
Cumulative EBITDA $3,361,178 $9,581,533 $16,392,608 $23,203,683
EBITDA (Worse Case) 50% of Avg to Best $1,680,589 $3,110,178 $3,405,537 $3,405,537
Cumulative EBITDA $1,680,589 $4,790,767 $8,196,304 $11,601,841
Use of Funds
Construction
Protection and Cleanup $1,200
Demolition $6,800
Concrete masonry $3,700
Finish Carpentry $6,000
Rough Carpentry $6,000
Soundproofing $5,000
Sound proofing Install $2,000
Wood Flooring $15,000
Electrical work $10,000
Plumber $15,000
Electrical fixtures $15,000
Plaster and Skim-coating $3,000
Kitchen tiles $5,000
Painting and Wallpaper $3,000
Cabinets $4,000
Bar $20,000
Banquets and furniture $30,000
Ceilings $10,000
Glass wall partition $9,000
General Condition $2,300
Insurance $3,000
Permits $5,000
Profit and Overhead $20,000
TTL Construction $200,000
Equipment
Brick oven $25,000
Venting $15,000
Kitchen and Bar Equipment $45,000
POS $15,000
Sound system $15,000
TTL Equipment $115,000
Operating Capital $75,000
Legal $10,000
Reserve Capital $100,000
TTL Use of Funds $500,000
Facade Renderings
Design Aesthetics & Storyboard
LOOK AND FEEL
DESIGN ELEMENTS
DESIGN ELEMENTS &DETAILS