BREW GARDEN & RESTAURANT
GUEULE DE BOIS, LLC
EXECUTIVE SUMMARY
OVERVIEW
Hopfields Brew Garden and Restaurant will focus on creative, small-batch
craft beer that is brewed in house and sold directly to the consumer on
premise. In addition, strong emphasis will be placed on seasonally sourced
and chef driven food made from scratch, fine wines, and hand-crafted
cocktails featuring port, sherry, and vermouth. Hopfields Brew Garden
and Restaurant will serve as a local destination in a strategic area of Austin
that has a need for high quality, curated product. Specifically, this concept
is looking to expand in South Austin near the area known as the Y in Oak
Hill. It will effectively marry the simplicity and sophistication of French
home-style food in accordance with the casual and comfortable setting of
Austin, Texas. Using the age-old French tradition of food and beverage that
bring community together, the Brew Garden will bring an American twist
with it – the craft beer revolution – providing “a place to sip and graze.”
Hopfields Brew Garden and Restaurant will be a distinctive type of
brewpub offering an element that no other breweries or brewpubs in
Austin do – chef driven food in a culturally charming setting modeled after
a laid back French garden style. We will not try to compete with larger
production breweries in an increasingly saturated retail market, but we will
bring the consumer to us providing innovative, small-batch beer and locally
sourced, curated food.
01
EXECUTIVE SUMMARY
THE MARKET
Austin, Texas is an ideal place to open a brewpub of this nature. Listed
as the 2nd fastest growing city in the country by Forbes, Austin proves
to be a strong and substantial market. With 117 craft breweries in 2014,
Texas ranked eighth in the nation for total number of craft breweries.
However, that is only 44th in the nation based on breweries per capita per
100,000 adults over the age of 21. Texas also contributed over $2.3 billion
of economic impact in 2012 as it tracked craft beer through the three-tier
system and included other items such as food sales related to craft beer.
Interestingly, this number ranked Texas as 2nd in the nation, however,
it was ranked 34th in the nation based on per capita economic impact.
Recent studies from Brewers Association suggest $5.6 billion of economic
impact will be reached by 2020. In addition, craft beer brewed in Texas
accounts for merely 1.3% of all beer consumed here. In the next decade,
analysts expect this number to hit 10%. This shows there is significant
room for growth in the craft beer industry in Texas.
In 2010, Bundle listed Austin as the top city in the nation where people
spend the most eating and drinking out. Since then, this scene has only
grown. Jack Allens Restaurant in South Austin sells close to $200,000 in
alcohol sales every month, and this accounts for only 30% of their total
sales. Another bar located in a strip mall center in the same area sells
$60,000 in alcohol sales every month. This goes to show this area of
Austin is grossly undeserved and a concept like Hopfields Brew Garden
and Restaurant would thrive.
02
EXECUTIVE SUMMARY
THE LEADERSHIP
Bay and Lindsay Anthon have successfully opened and operated the
first location of Hopfields beginning in 2011. Bay Anthon is a proven
businessman coming from upper management in a corporate company,
and his wife, Lindsay, is the driving creative force behind Hopfields and it’s
design. Since its birth, Hopfields has exceeded conservative expectations,
received numerous accolades, expanded, and built a reputation as one
of the best craft beer and food restaurants in the nation. As independent
business owners, Bay and Lindsay have also hired and lead a skillful team
to successfully manage Hopfields, and share in their creative vision for the
next installment of Hopfields. The current management will also play key
roles in the next location, both through expertise in their individual fields,
and industry experience.
STRUCTURE
Gueule de Bois LLC - DBA Hopfields Brew Garden and Restaurant - and
Cul Sec LLC - DBA Hopfields - are Texas LLC’s operating under the
management company of Tchin Tchin LLC. The purpose for this business
plan is to outline the needs and summary for Gueule de Bois LLC.
03
EXECUTIVE SUMMARY
INVESTMENT OPPORTUNITY
Gueule de Bois LLC is raising $1,425,000.00 (1.425M) by offering a minimum
of 8 units and a maximum of 57 units at $25,000.00 per unit, with a
minimum sale amount of two units, or $50,000.00. The first 30 units sold
will be the Class A units and the remaining 27 units sold will be Class B units.
The company will distribute 100% of the available profits to Class A
members until those members receive an amount equal to 10% of the
purchase price of the units as a preferred return. After the preferred
return, Gueule de Bois will distribute 100% of profits to Class A & Class B
members in accordance with their sharing percentages until both classes
receive an amount equal to 100% of their purchase price. This will be in
addition to the preferred return received by Class A units.
After 100% of invested principal has been returned, the company will
distribute 40% of available profits pro rata to Class A & B until 50%
return on invested capital has been received. Following 150% return
of investment, Class A will retain a higher percentage of profits (21.1%)
distributed until they have received an additional 50% return or a total of
200% return. Class B’s return % will be reduced to 13.3% at this time.
Following this final return, Class A & B units will retain 16% of the profits
pro rata of Gueule de Bois’ profits in perpetuity.
04
Current Proposed Deal Points
No of Guests per day
Brewery & Restaurant
395
Check average per guest
Daily Sales
Monthly Sales
Yearly Sales
$
$
$
$
17.90
7,070.00
210,921.67
2,531,060.00
Yearly COGS
Yearly Labor
Yearly Expenses
Management Fee
$
642,889.24
$
720,730.90
$
728,097.43
5% of Gross sales
Yearly Net Income
$
Operating Model
July 31, 2015
Yearly % of Sales Increase
10.17%
Multiple of Invested Capital (MOIC)
MOIC achieved
1.0x
<48 months
% of ownership available
# of Shares available
% of ownership per share
$ of one share
Total Raise
439,342.43
16.00%
57
0.28%
$25,000
$
1,425,000.00
25%
28%
29%
17.36%
Hopfields Assumptions Tab
Operating Assumptions
Days Open
358
Bar Guests per day
Average check
120
$6.00
Lunch guests per day
Per person average check
75
$18.00
Dinner guests per day
Per person average check
200
$25.00
Margin by type
Food cost
Wine cost
Beer cost
Sources
Capital Contributions
Total Sources
Build out
Construction/sqft
Built sqft
Phase 1 Use
6,342
$25.00
$5.00
$35.00
$0.00
$0.00
$0.00
Phase 1 Use
$651,300
$19,950
45.7%
1.4%
$35,000
$50,000
2.5%
3.5%
$50,000
$45,000
$81,740
3.5%
5.9%
5.7%
35,000.00
81,740.00
Tenant Improvements from Landlord
Working Cap Buffer (Remainder)
Total Uses
Total Phase 1 Use
Mininum Cash Balance
%
5.3%
5.6%
17.5%
6.0%
20,000.00
Working Capital
Contigency
Pre-Planning & Research
Phase 1 Use
$
$75,000
$80,000
$250,000
$85,000
64,000.00
Construction
Fundraising, Legal, Accounting
Inventory
Opening Costs & Deposits
Rent inputs
Leased sqft
Price/sqft
NNN
Tenant Improvement Budget
Leased sqft
Price/sqft
NNN
Tenant Improvement Budget
($221,970)
$2,010
$1,425,000
-15.6%
0.1%
87.2%
200,740.00
$40,000
Maintenance Capex
Annual equipment
Brewery Square Footage
Preferred Return Investment
Amount of Invested Capital pre-permit
% of shares
$150.00
4,342
Total Uses of Capital
Kitchen & Brewery Equipment
Furniture, Fixtures & Smallwares
Brewery Equipment Install
Design - Graphic Design & Architecture
Phase 1 Use
33.0%
33.0%
14.0%
$1,425,000
$1,425,000
$50,621
2%
2,000.00
$
750,000.00
52.63%
Distribution Information
Payoff Period Distribution %
Loan Amount
Interest Rate
Loan Term (years)
Total Equity Raised
Size of Share
Shares
100.0%
$0
0.0%
$ 1,425,000
$25,000
57
<-- not a driver
Hopfields Summary P&L
Sales Projection Scenarios - Year 1
358
Days per year
Project Bar Guests Sales
People per day
Per person average
Daily revenue
Yearly Bar Guests revenue
Baseline
Baseline
Projected Dinner Sales
People per day
Per person average
Daily revenue
Yearly Dinner revenue
Plan
Baseline
$
Stretch
120
6.00 $
720 $
257,760 $
45
16.00 $
720
257,760
$
358
Plan
70
6.00 $
420 $
150,360 $
$
$
$
Projected Lunch Sales
People per day
Per person average
Daily revenue
Yearly Lunch revenue
358
Stretch
75
18.00 $
1,350
483,300
Plan
100
22.50 $
2,250
805,500
175
10.00
1,750
626,500
125
20.00
2,500
895,000
Stretch
200
25.00 $
5,000
1,790,000
250
25.00
6,250
2,237,500
Yearly dining revenue
$
1,063,260
$
2,273,300
$
3,132,500
Total revenue
$
1,213,620
$
2,531,060
$
3,759,000
Hopfields Detailed P&L - Year 1
Monthly Average
Operating revenue
Food sales
Wine sales
Beer sales
Gross operating income
$
210,922
101,242
25,311
84,369
210,922
Cost of goods solds
Food cost
Wine cost
Beer cost
Total COGS
Gross margin
Labor cost
Front of house staff
Back of house staff
Head Brewer
Training
Total Labor
Tchin-Tchin, LLC
Management FOH & BOH
Total Labor w/Mgmt
$
Yearly
$
2,531,060
1,214,909
303,727
1,012,424
$
2,531,060
48.00%
12.00%
40.00%
100.00%
$
33,410
8,352
11,812
53,574
$
400,920
100,230
141,739
642,889
15.84%
3.96%
5.60%
25.40%
$
157,348
$
1,888,171
74.60%
$
151,864
354,348
50,000
12,655
568,867
126,553
151,864
720,731
6.00%
14.00%
1.98%
0.50%
22.48%
5.00%
6.00%
28.48%
$
1,167,440
46.12%
0.25%
0.10%
0.08%
3.00%
0.75%
0.50%
1.25%
0.18%
0.18%
0.50%
0.25%
0.38%
1.50%
0.25%
0.33%
9.49%
36.63%
$
12,655
29,529
4,167
1,055
47,406
10,546
12,655
60,061
$
97,287
Expenses
Plants
Extermination
Security
Discounts
Repair & Maintenance, Eqpmt
Repair & Maintenance, Building
Supplies, Paper-to-go
Supplies, Cleaning
Supplies, front of house
Supplies, office
Supplies, paper
Utilities, Gas
Utilities, Electric
Utilities, Waste disposal
Utilities, Phone/Internet
Total direct expenses
$
527
211
158
6,328
1,582
1,055
2,637
380
380
1,055
527
791
3,164
527
696
20,016
$
6,328
2,531
1,898
75,932
18,983
12,655
31,638
4,556
4,556
12,655
6,328
9,491
37,966
6,328
8,352
240,198
Net income before direct
$
77,270
$
927,242
Gross operating profit
$
$
Hopfields Detailed P&L - Year 1
Monthly Average
Fixed Expenses
Accounting/Payroll
PR & Advertising
Bank charges
Credit card charges
Donations
Equipment rental
Insurance - TMP
Legal & consulting
Licenses & permits
Taxes, payroll
Taxes, margin
Taxes, property
Brewery Rent
Rent
NNN
Bank note
Total indirect expenses
Net income before non-operating
Yearly
$
2,109
5,273
53
3,797
2,109
1,476
1,055
1,055
527
4,595
738
13,213
2,643
38,642
$
38,629
Non-operating expenses
Total non-operating expenses
Total non-operating income
Non-operating expenses
$
-
$
Net before other expenses
$
38,629
$
463,542
18.31%
$
$
$
2,017
2,017
$
24,200.00
24,200
0.96%
0.00%
0.00%
0.96%
$
36,612
$
439,342
17.36%
Other expenses
Depreciation
Income Tax
Leasehold improvements
Total other expenses
Net income
$
25,311
63,277
633
45,559
25,311
17,717
12,655
12,655
6,328
55,136
8,859
158,550
31,710
463,700
1.00%
2.50%
0.03%
1.80%
1.00%
0.70%
0.50%
0.50%
0.25%
7.65%
0.35%
0.00%
0.00%
6.26%
1.25%
0.00%
18.32%
$
463,542
18.31%
-
0.00%
0.00%
0.00%
Hopfields Forecast- Years 1 - 5
Forecast assumptions
% increase days per year
Bar Guests Sales
Traffic increase %
Average check increase %
Lunch Sales
Traffic increase %
Average check increase %
Dinner Sales
Traffic increase %
Average check increase %
Year 2
0.0%
Years 3+
0.0%
5.0%
2.5%
5.0%
3.0%
15.0%
7.5%
5.0%
3.0%
10.0%
5.0%
5.0%
3.0%
INCOME STATEMENT
Linked to P&L tab
Year 1
Days per year
% increase days
Year 2
Margin Sensit.
Gross Margin
Labor expenses
Direct expenses
Indirect expenses
Year 3
Year 4
Annual Change
1.0%
0.5%
0.5%
0.4%
Year 5
358
358
0.0%
358
0.0%
358
0.0%
358
0.0%
120
126
5.0%
6.15 $
2.5%
775 $
277,414 $
7.6%
132
5.0%
6.33 $
3.0%
838 $
300,023 $
8.1%
139
5.0%
6.52 $
3.0%
906 $
324,475 $
8.1%
146
5.0%
6.72
3.0%
980
350,920
8.2%
86
15.0%
19.35 $
7.5%
1,669
597,480
23.6%
91
5.0%
19.93 $
3.0%
1,805
646,174
8.1%
95
5.0%
20.53 $
3.0%
1,952
698,837
8.2%
100
5.0%
21.14
3.0%
2,111
755,793
8.2%
220
10.0%
26.25 $
5.0%
5,775
2,067,450
15.5%
231
5.0%
27.04 $
3.0%
6,246
2,235,947
8.1%
243
5.0%
27.85 $
3.0%
6,755
2,418,177
8.2%
255
5.0%
28.68
3.0%
7,305
2,615,258
8.2%
2,664,930
17.2%
2,882,121
8.2%
3,117,014
8.2%
3,371,051
8.2%
Project Bar Guests Sales
People per day
% increase traffic
Per person average
% increase avg check
Daily revenue
Yearly Bar Guests revenue
Revenue growth
$
6.00
$
$
$
720
257,760
$
$
Projected Lunch Sales
People per day
% increase traffic
Per person average
% increase avg check
Daily revenue
Yearly Lunch revenue
Revenue growth
75
$
18.00
$
1,350
483,300
Projected Dinner Sales
People per day
% increase traffic
Per person average
% increase avg check
Daily revenue
Yearly Dinner revenue
Revenue growth
Yearly dining revenue
Revenue growth
200
$
25.00
5,000
1,790,000
2,273,300
$
Hopfields Forecast- Years 1 - 5
Total revenue
Revenue growth
$
2,531,060
$
2,942,344 $
16.2%
3,182,145 $
8.2%
3,441,490 $
8.2%
3,721,971
8.2%
$
642,889
1,888,171 $
74.6%
717,932
2,224,412 $
75.6%
744,622
2,437,523 $
76.6%
770,894
2,670,596 $
77.6%
796,502
2,925,469
78.6%
720,731
28.5%
873,122
29.0%
1,097,059
29.5%
1,203,677
30.0%
1,320,386
30.5%
1,167,440 $
46.1%
1,351,290 $
46.1%
1,340,464 $
46.1%
1,466,919 $
46.1%
1,605,083
46.1%
Total
direct expenses
% revenue
240,198
9.5%
293,940
10.0%
333,807
10.5%
378,220
11.0%
427,654
11.5%
Total
indirect expenses
% revenue
463,700
18.3%
549,347
18.7%
605,256
19.0%
666,630
19.4%
733,987
19.7%
463,542 $
18.3%
508,003 $
17.3%
401,401 $
12.6%
422,070 $
12.3%
443,442
11.9%
-
-
-
-
Cost of goods sold
Gross margin
% revenue
Labor cost
% revenue
Gross operating profit
% revenue
Net income before non-operating
% revenue
$
$
Non-operating expenses
Net before other expenses
Other expenses
463,542
24,200
508,003
24,200
401,401
24,200
-
422,070
24,200
443,442
24,200
Net income
$
439,342
$
483,803
$
377,201
$
397,870
$
419,242
Other cash outlay
Cash Increase/(Decrease)
$
$
439,342
$
$
483,803
$
$
377,201
$
$
397,870
$
$
419,242
Check
TRUE
Hopfields Forecast- Years 1 - 5
CASH FLOW STATEMENT
Year 1
439,342
24,200
463,542
Net income
Depreciation
Cash from operating
$
Kitchen Equipment & Furniture
Furniture, Fixtures & Smallwares
Brewery Equipment Install
Design
Construction
Fundraising, Legal, Accounting
Inventory
Opening Costs & Deposits
Working Capital
Contigency
Pre-Planning & Research
Working Cap Buffer (Remainder)
Cash from investments
$
$
$
$
$
$
$
$
$
$
$
$
$
Equity contributions
Debt financing
Cash from financing
$
$
$
1,425,000
1,425,000
$
Net increase in cash
$
463,542
$
$
Beginning cash balance
$
Minimum cash balance
Manager Distributions @ 0.0%
Distributions to Class A (Tchin-Tchin) and Class Bs
Ending cash balance
$
$
$
(75,000) $
(80,000)
(250,000)
(85,000)
(651,300)
(19,950)
(35,000)
(50,000)
(50,000)
(45,000)
(81,740)
(2,010)
(1,425,000) $
Year 2
483,803
24,200
508,003
$
$
(50,621) $
(8,125)
449,257
$
$
(50,621) $
(4,737)
(58,746) $
-
Year 3
377,201
24,200
401,401
$
$
346,043
$
$
(50,621) $
(5,123)
(55,358) $
-
Year 4
397,870
24,200
422,070
$
$
366,325
(50,621)
(5,541)
(55,744) $
-
Year 5
419,242
24,200
443,442
$
$
(56,162)
387,280
$
(40,000)
(423,542)
40,000 $
40,000 $
(40,000)
(449,257)
40,000 $
40,000 $
(40,000)
(346,043)
40,000 $
40,000 $
(40,000)
(366,325)
40,000 $
40,000
(40,000)
(387,280)
40,000
50,000 $
2.0%
58,125 $
2.0%
62,862 $
2.0%
67,985 $
2.0%
73,526
2.0%
Note: Does not pay distributions if net income is negative
Working capital balance
% revenue
$
Hopfields Forecast- Years 1 - 5
Scenario Target Class A&B MOIC
Class A Preferred Return
1.00x $
10.0%
Splits
Class A
Class B
Class C (Tchin-Tchin)
Before Pref
100.0%
0.0%
0.0%
1
1
Year
Distributable cash(1)
Cumulative distributable cash
Class A Distributions for 10% Preferred
Class C (Tchin-Tchin) Distributions
Cash available after preferred
Class A Distributions post-pref
Class B Distributions post-pref
MOIC $ threshold
Class C (Tchin-Tchin) Distributions post-pref
Cash available after MOIC
Class A Distributions post-MOIC hurdle
Class B Distributions post-MOIC hurdle
Class C (Tchin-Tchin) Distributions post-MOIC
$
$
Total Class A cumulative distributions
Class A Distributions per share
Yearly Distribution per share
Annual Class A distribution %
Total Class B cumulative distributions
Class B Distributions per share
Yearly Distribution per share
Annual Class B distribution %
Total Class C (Tchin-Tchin) distributions
(1) Ignores tax impact due to assumed 0% corporate income tax rate in P&L.
423,542
423,542
75,000
348,542
183,443
165,099
1,425,000
258,443
8,615
8,615
34.5%
165,099
6,115
6,115
24.5%
-
1,425,000
After Pref
After MOIC of 1x After MOIC of 1.5x After MOIC of 2x
52.6%
21.1%
21.1%
8.4%
47.4%
18.9%
13.3%
7.6%
0.0%
60.0%
65.6%
84.0%
2
3
66%
2
2
3
4
5
$
$
449,257
797,800
797,800
419,895
377,905
1,425,000
419,895
13,996
5,382
28.0%
377,905
13,996
7,882
28.0%
-
$
$
346,043
1,143,842
1,143,842
602,022
541,820
1,425,000
602,022
20,067
6,071
26.8%
541,820
20,067
6,071
26.8%
-
$
$
366,325
1,510,168
1,510,168
794,825
630,175
1,425,000
85,168
17,930
16,137
51,101
812,755
27,092
7,024
27.1%
646,312
23,937
3,870
23.9%
51,101
$
$
387,280
1,897,447
1,897,447
998,657
426,343
1,425,000
472,447
99,463
89,516
283,468
1,098,119
36,604
9,512
29.3%
515,860
19,106
(4,832)
15.3%
283,468