Investment Deck PDF

EXCLUSIVE FRANCHISE OPPORTUNITIES
OWN A REMARKABLE
RESTAURANT FRANCHISE THAT HAS A
LOWER INVESTMENT,
HIGHER AVERAGE TICKET, AND
BETTER SALES-TO-INVESTMENT RATIO
THAN TGI FRIDAYS, CHILI’S, APPLEBEE’S,
BUFFALO WILD WINGS, AND
TEXAS ROADHOUSE
2
2
THE ORIGINAL BIG WHISKEY’S
ESTABLISHED JULY 4, 2006
DOWNTOWN SPRINGFIELD, MO
THE LEGEND
For almost 30 years my
and place his order. He would
I’m not quite sure where he is
grandfather ran a modest little
always tell the bartender, “I’m only
today. He could still be sitting in
corner tavern.
going to have one, so make it a big
a tavern somewhere with his one
one.” Over the years of him coming
drink in hand, who knows. Regard-
Throughout his time, this little
in to grandfather’s place and
less of who you are and where
corner tavern acquired quite a few
performing his ritual, he eventually
you’re from, I’ve come to believe
regulars. But one of those regulars
became known as Big Whiskey.
that there’s a little of Big Whiskey
in all of us. So, come on in and live
became a legend. My grandfather
said this man wasn’t the average
As my grandfather tells it, Big
customer. He only came in a
Whiskey was the kind of man who
couple of times a week and it was
always had the right thing to say
always between the hours of 4
at the right time, whether it was a
p.m. and 6 p.m. He had done it
joke, story or toast. Everyone knew
for so many years it became a
if he was in the restaurant it was
tradition. The same thing each
going to be a good night.
time… he’d come in, have a seat
down your story and a drink.
— PAUL SUNDY, FOUNDER/COO
3
THIS IS
BIG WHISKEY’S
Big Whiskey’s American Restaurant & Bar
is starting to gain recognition all across the
country as a fresh, new franchise opportunity
with excellent mass appeal.
We just celebrated our 10-year anniversary of
the first BW opening in downtown Springfield,
MO. Over the last decade, we’ve grown to 8
locations by building a loyal following of guests
from all ages and walks of life. How? By offering
excellent food and drinks moderately priced and
served by well-trained, friendly people in a fun,
relaxed atmosphere.
“Big Whiskey’s is a
company that really
has its act together.
Not every business
can be franchised,
most don’t have an
idea what it’s going
to take. They’ve
taken the trouble
to do things right,
dotting every I and
crossing every T.”
— MARK SIEBERT,
IFRANCHISE GROUP
CEO
So what makes Big Whiskey’s different than other casual dining
restaurants? By working for other national chains, our founders
realized they could offer better quality food and larger portions at
competitive prices, served in a dynamic environment that truly makes
every guest feel welcome. Our unique bar experience is legendary.
HERE’S HOW:
We celebrate sports but we’re not a sports bar. We celebrate our
excellent bar products, but we’re not a bar. We’re a restaurant that
does all that with a strong EBITDAR percentage that outperforms
many competitors. Ask for a copy of our franchise disclosure
document and learn details on why Big Whiskey’s is growing.
4
HOW
WE
STACK
UP
Big Whiskey’s compares extremely
well with other casual dining
restaurants and, in many costs
and revenue categories, exceeds
both the industry segment average
and our direct competitors. As we
grow, these numbers will only get
stronger placing us at the forefront of
affordable and profitable chains.
LABOR
3
25%
26%
27%
28%
29%
30%
31%
32%
33%
34%
35%
36%
28.40%
1
34.20%
32.90%
32.60%
31.10%
30%
29%
27.3%
SEGMENT
AVERAGE
31.20%
SALES TO INVESTMENT RATIO
50%
100%
150%
TEXAS ROADHOUSE
148%
BUFFALO WILD WINGS
146%
139%
RED ROBIN
CHILI’S
TGI FRIDAYS
SEGMENT AVERAGE
250%
219%
2
APPLEBEE’S
200%
3
109%
99%
95%
124%
Sales to Investment—
gross sales ÷ investment
cost (%). One of the
highest in the industry.
1
Data through 2015 for 4 stores
(3 in Springfield, 1 in Ozark) and
first full 12 months for Branson.
1
1
2
Data excluding the first BW
(downtown Springfield) which
is only 3,200 sq.ft., not a typical
footprint for future BW’s.
2
2
5
AVERAGE TICKET
3
$22
2
$20
1
17.63
$18
$16
SEGMENT
AVERAGE
$14
$12
$20.61
$18
$17.63
$16.02
$376.73
$370.97
RED ROBIN
BUFFALO WILD WINGS
$420.31
$470.22
TGI FRIDAYS
$400
$441.27
$477.50
TEXAS ROADHOUSE
INVESTMENT PER SQUARE FOOT
$300
$14.52
$14
$13
$12.99
$17.29
3
$428.70
$21.88
SEGMENT AVERAGE
APPLEBEE’S
$100
CHILI’S
$189
$200
1
With a flexible footprint and low initial investment,
you have an immediate competitive advantage.
1
Data through 2015 for 4 stores
(3 in Springfield, 1 in Ozark) and
first full 12 months for Branson.
1
1
2
Data excluding the first BW
(downtown Springfield) which
is only 3,200 sq.ft., not a typical
footprint for future BW’s.
2
2
6
EBITDAR%
3
2
SEGMENT
AVERAGE
1
19.60%
18.86%
12.90%
15.50%
19%
19.20%
19.20%
21.20%
18.80%
22%
Earnings before interest, taxes, depreciation, amortization and rent.
COST OF
GOODS SOLD
INVESTMENT COST (NO LAND)
3
3
1
$998,000
$3,390,000
$3,197,500
$2,660,000
2
$2,300,000
30.33%
$2,273,900
$2,185,000
1
SEGMENT
AVERAGE
TEXAS
ROADHOUSE
30.40%
35.90%
$2,667,773
1 Million
2 Million
3 Million
4 Million
The lowest cost of entry among our competitors and far below
the industry segment average.
BUFFALO
WILD WINGS
TGI
FRIDAYS
CHILI’S
29%
28%
27.9%
RUBY
TUESDAYS
APPLEBEE’S
SEGMENT
AVG
27.3%
26%
27.9%
BW: 5 units, Chili’s: 1600+ units, TGI Friday’s: 900+ units, Texas Roadhouse: 460+ units, Applebee’s:
2000+ units, Ruby Tuesday’s: 700+ units, Red Robin: 600+ units, Buffalo Wild Wings: 1100+ units
1
Data through 2015 for 4 stores
(3 in Springfield, 1 in Ozark) and
first full 12 months for Branson.
1
1
2
Data excluding the first BW
(downtown Springfield) which
is only 3,200 sq.ft., not a typical
footprint for future BW’s.
2
2
7
WHY YOU SHOULD PARTNER
WITH
Restaurant franchises are not all created
equal. At Big Whiskey’s American Restaurant
& Bar, we pride ourselves on doing things
bigger and better while sustaining an
outstanding return on investment.
In our markets, BW’s hospitality and food are
legendary among families, singles, couples
and groups of all ages. An independent
research company recently surveyed an
age/sex cross section of regular and new
customers at 5 Big Whiskey’s locations.
When asked what they enjoy most about
Big Whiskey’s, the top 3 responses were:
1. food quality/generous portions
2. fun vibe in the bar
3. happy hour/late night hangout
That’s why we focus on great food and
entertainment all the while staying true to the
age-old traditions of maintaining the highest
standards of quality — from our kitchen, our
bar and our people. That’s why the legend
continues to grow.
8
Our Unique Formula
That Delights Every Guest
We’ve channeled our years of experience in the
restaurant and bar industry into building a concept
that stands out in the crowd, while never forgetting
that it’s the support of new and loyal customers that
truly makes us who we are. Our premium quality menu
items range from hand-cut steaks, pastas, appetizers,
salads, soups, kid’s meals and sandwiches to craft
burgers — plus a full bar featuring over 100 whiskeys
and at least 20 beers on tap!
We are now awarding enthusiastic, qualified franchisee
candidates the chance to pursue an incredible
opportunity in the casual dining industry. Combine
our proven systems with your skills and drive and
you can own a unique concept that has been refined,
market-tested, and recognized time and time again
for excellence. With our 4 Opportunities Method, we
offer guests exceptional food and drinks in a balanced,
appealing environment for lunch, happy hour, dinner
and late night.
SALES BY TIME OF DAY
2
LUNCH...................... 28%
HAPPY HOUR......... 17.5%
DINNER..................... 39%
LATE NIGHT...........15.5%
Become a Legend in Your Own Market
As a Big Whiskey’s franchise partner you can proudly own a dining destination that features
multiple ways to please your guests — and multiple ways to build your bottom line.
Best of all, you can do it with confidence, backed by a founding team that is committed to the
support of its’ franchisees. We’ve worked hard these last 10+ years refining our processes
and systems — bank on our experience and you too can live the Big Whiskey’s dream!
9
YOUR BIG WHISKEY’S TEAM
DEDICATED. PASSIONATE. EXPERIENCED.
Austin Herschend – CEO, Paul Sundy – Founder/COO, Randy Gildehaus – Founder,
Mike Heslin – Founder/CFO and Jameson Clark – VP of Sales
When you become a Big Whiskey’s
franchisee, you’re not just acquiring our
unique concept, systems and brand.
You’re also investing in the people that
make Big Whiskey’s one of the hottest
restaurant franchises on the market
today. Nimble, forward-thinking,
hard-working, skilled, creative,
energetic.
This team has decades of experience in
operations, management, marketing,
legal, accounting and franchising
for such companies as TGI Fridays,
Domino’s Pizza, Einstein Bros. Bagels,
Cheddar’s, Shoney’s Big Boy, Ruby
Tuesday, KFC, Levi Strauss and
Herschend Family Entertainment.
10
OPERATIONS AND MARKETING CREW
FROM HERE...
S E PT E M B E R
Founders finalize
Big Whiskey’s concept
J U LY
Founders open 1st
BW downtown
Springfield, MO
D EC E M B E R
BW reaches $1mil
in annual revenue
N OV E M B E R
2 location opens
nd
O CTO B E R
BW reaches $2mil
in annual revenue
D EC E M B E R
3rd location opens
N OV E M B E R
BW reaches $5mil
in annual revenue
M A RC H
Founders start to
explore franchising
JUNE
4 location opens
(Ozark, MO)
th
F E B RUA RY
Officially starts to
offer franchises
M AY
5th location opens
(Branson, MO)
S E PT E M B E R
1st franchisee joins
BW family
(Bentonville, AR)
APRIL
2nd franchisee joins
BW family
(Kansas City, MO)
M AY
Served 1 million guests
in 12-month period
JUNE
BW reaches $10mil
in annual revenue
M A RC H
BW franchise opens —
Bentonville, AR
J U LY
Celebrates 10th
Anniversary of 1st
store opening
11
...AND BEYOND
THE GAME IS ON...
BENTONVILLE, ARKANSAS
SHANE MILLER
Shane Miller’s first experience with Big
Whiskey’s was as a guest while studying at Drury University in Springfield in
2006. After graduating in 2008, Shane
worked for Walmart in Bentonville, first
in finance and then in real estate where
he developed relationships with food
chains leasing space inside superstores.
“I’ve always loved the food, people and
atmosphere at Big Whiskey’s. After moving to Northwest Arkansas I saw a real
opportunity for the concept to flourish
here,” Shane explained. His initial inquiry
was in April 2014, expressing his desire
to be the first franchisee when the company was ready to expand.
“Some might consider it a bit risky to be the first — I consider it a smart business decision because I
know their level of professionalism and past success. They’ve become a trusted partner in our venture
and we plan to grow with them.” Shane’s first Big Whiskey’s opened March 10, 2017.
KANSAS CITY, MISSOURI
H2B RESTAURANTS LLC
H2B Restaurants LLC is the second BW franchisee,
opening their first location in Lee’s Summit in May
2017. Comprised of Ed House, Ryan Bohl and JD
House the group had been considering joining the BW
family for over a year.
“We’ve been dining at Big Whiskey’s for years; have
followed their smart growth, so when they announced
a franchise initiative we decided to come on board
early,” said Ed House. “And we researched other casual dining franchises — we just believe in the Big Whiskey’s concept, their consistent ROI and their people.”
Ed and Ryan own Bohl, House & Samek CPA’s and Ed has interest in a convenience store chain
throughout Missouri. JD House has over 10 years of restaurant and bar experience. Ryan said
choosing Big Whiskey’s over others wasn’t that difficult. “They have professional systems in place
and a great track record. We’re confident guests in Kansas City are going to love Big Whiskey’s.”
12
WE COULDN’T HAVE SAID IT BETTER...
Big Whiskey’s success is due in part to the thousands
of loyal guests who enjoy our restaurant & bar so much
they become regulars. Such is the case with Rob Hall
and Allison Ehelebe of Branson.
“We’ve been working with Big Whiskey’s for
many years as their primary food supplier.
As they have grown, US Foods has made
a commitment to provide them with the
highest quality foods at our most favorable
pricing. We’re excited about continuing this
relationship both with company-owned
locations and their franchisees. Big Whiskey’s
has a bright future and with our nationwide
distribution network we’re positioned to
partner with them to enhance their expansion.”
— JOHN ACHURCH, US FOODS VP
“We used to go to another restaurant, that is until you
opened Big Whiskey’s, and now it’s our favorite place by
far,” Rob explained. “Yeah, we love the food but it’s the
combination of the atmosphere and your people that
really won us over.”
Allison loves the variety of the food, “especially the
wraps, salmon and salads… we’ve never had a bad meal
here.” They both heard of Big Whiskey’s in Springfield
but never dined with us until we opened in Branson. “We
live and work in Branson and we’re so happy you opened
here — we feel right at home. The service is awesome
and having all these TV’s to watch sports just adds to the
reasons we love this place.”
— ROB HALL AND ALLISON EHELEBE, BW DEVOTED CUSTOMERS
“I started working for Big Whiskey’s at the downtown location in 2010 as a
server, then as a bartender. The first thing I noticed was how much the owners
really care for all the employees and how they inspire us to better ourselves
— even as we’ve grown they make each of us feel important. I’ve worked for
other restaurants that didn’t do that. Now, as a bar manager, I’ve gotten the
opportunity to train people at other Big Whiskey’s which has helped me in so
many ways personally. Over the years many of my regular customers have
become good friends, almost like family, and so have my co-workers. What
makes us so popular is, without a doubt, how we give our guests a wonderful
experience overall, not just great food & drinks. I think that’s why they keep
coming back — it’s the atmosphere in here that makes everyone feel so good.”
— BETHANY CAMPBELL, BW HEAD BARTENDER
13
WE’VE GOT YOUR BACK
A franchise network only succeeds when the
franchisor is experienced, dedicated and selfless
when it comes to supporting its partners. Here’s
a brief summary of what you can expect from the
Big Whiskey’s team.
Site Selection and Build-Out Assistance
Our franchise team will provide experienced
guidance in the selection of your Big Whiskey’s
site and we’ll advise you in the design and buildout of the restaurant, including prototypical
architectural plans.
Complete Pre-Opening Training
Comprehensive training (classroom and handson) is held both at a corporate location and
on-site at your restaurant to ensure you and your
staff are fully ready before your grand opening.
Our Confidential Operations Manual
You’ll receive a copy of our detailed reference
guide including exclusive recipes, kitchen prep
steps, quality control guidelines, job descriptions,
and much more.
Ongoing Training and Field Support
We’ll send representatives out to visit you on
a regular basis and provide remote support
whenever you need it.
Purchasing and Supplier Assistance
You’ll have access to our most reliable providers
with negotiated pricing and terms for key
products and supplies. We have contracts with
such suppliers as US Foods and Coca Cola where
you can buy direct at preferred pricing with no
mark up from us.
Marketing Guidance
From logos and templates to review of marketing
materials and presence on our corporate online
resources — we’ll help with initial and ongoing
promotion of your restaurant. We’re committed
to ensuring your grand opening is a huge success
and we’ll provide the support you need.
14
WE’RE LOOKING FOR YOU
A franchisor is only as successful as the
network of its franchisees. Do you meet the
following requirements?
• Minimum $200,000 liquid capital or
access to funds to properly finance your
operation
• Restaurant experience preferred
but not mandatory
• Enthusiastic attitude
• Flexible, detailed and driven
• Willing to invest the time to make your
BW successful
• Passion for the Big Whiskey’s brand
Then become a legend in your own market!
15
INSIDE AND OUT,
BIG WHISKEY’S APPEALS TO
EVERYONE
Prototype Exterior Design
16
Prototype Interior Design
Our success is based on more than just great food,
drinks and service. Big Whiskey’s appeal extends to our
classic yet modern exterior and our welcoming interior.
Guests enjoy an informal ambiance filled with comfortable
booths, private dining spaces and an attractive bar area.
Our spacious patio is a favorite gathering place and with
more than 25 flat screens there’s not a bad seat in the
house. Most of our competitors focus on just one aspect of
the restaurant experience — Big Whiskey’s formula covers
all the bases setting us apart from the typical sports bar or
casual dining establishment.
17
WHY BIG WHISKEY’S WORKS
• Low investment requirements
• Flexible footprint
• 10 years of tested operational systems
• Unique branding opportunity
• Broad demographic appeal
• Outstanding return on investment
• Strong sales in all 4 dayparts — lunch,
happy hour, dinner, late night
• Solid supplier partnerships
• Awesome atmosphere that combines the best
attributes of a sports bar, entertainment hub
and excellent dining
• Diverse menu perfect for any time, every time
• Community-oriented marketing strategy
MENU SALES
GREAT
MEALS
AREN’T
MADE,
THEY’RE
BUILT.”™
ENTREES
30.6%
APPETIZERS
20.2%
BURGERS/
SANDWICHES/WRAPS
27.5%
WINGS
9.2%
salads/
soups
6.9
sides/
desserts
3.2
kids meals
2.4
18
JUST THE FACTS
Bourbon, the
distinctly American
corn-based
whiskey, is on the
rise. Through a
combination of
the growing craft
spirits category,
savvy marketing,
the cocktail culture
sweeping the nation’s
nightlife scene, and
a rise in interest
from Millennials and
women, whiskey is
one of the fastestgrowing categories in
the alcohol beverage
world. Given the
high profitability of
cocktails, that gives
bourbon/whiskey
great potential as
a moneymaker for
restaurants and bars.
— NATION’S RESTAURANT
NEWS, 6/27/16
Founded: 2006
Headquarters: Springfield, MO
Company Units: 5 (as of February 2017): 3 in Springfield, MO, 1 in Ozark,
MO, 1 in Branson, MO. #6 in Republic, MO (opening early summer 2017)
Franchise Units: (as of February 2017) Bentonville, AR (opened March
2017), Kansas City, MO (opening May 2017)
Leadership: Austin Herschend, CEO; Paul Sundy, Founder/COO;
Mike Heslin, Founder/CFO; Jeremy Heslin, VP Legal/Accounting;
Matt Caetano, VP Operations; Dan Allen, VP Marketing
Industry Segment: Casual dining, themed casual dining
Primary Competitors: Applebee’s, Chili’s, Buffalo Wild Wings,
Fridays, Texas Roadhouse, Ruby Tuesday, BJ’s Brewhouse
Industry Affiliations: IFA, VetFran, Franchise Registry
Menu Items: Hand-cut steaks, salads, appetizers, craft burgers,
sandwiches/wraps, pastas, street tacos/quesadillas, soups,
kid’s meals, desserts
Featured Beverages: 20+ beers on tap, over 100 whiskeys, full bar, wine,
tea, fountain drinks, coffee
Interior: 25+ large HD TV’s, comfortable seating, private dining area(s)
Open Hours: 11 a.m. to late close, 7 days a week
Daypart Mix: Lunch 28%, happy hour 17.5%, dinner 39%,
late night 15.5%
Menu Mix: Entrees 30.6%, burgers/sandwiches/wraps 27.5%,
appetizers 20.2%, wings 9.2%, salads/soups 6.9%,
sides/desserts 3.2%, kid’s meals 2.4% 2
Average Ticket: Carry Out $15.90, Dine In $20.56 (2015)
EBITDAR: 19.6%
Labor: 28.4%
COGS: 30.3%
Square Footage: 3,200 – 6,200
Investment Cost (no land): $636,500 – $998,000
Franchise Fee: $50,000
Royalty: 5% of gross sales
National Marketing Fund: 1% of gross sales
19
WHERE TRADITIONS
ARE JUST AS
IMPORTANT AS
™
TRENDS.”
20
“We have a philosophy here
at Big Whiskey’s American
Restaurant & Bar that
traditions are as important
as trends. We believe in
offering all our guests the best
food, beverages and service —
like traditional neighborhood
restaurant/bars did in times
past. We pride ourselves on
having superior food quality,
celebrated bar products and
friendly faces to serve you day
or night. We’ve created an
atmosphere that is fun and
welcoming for all ages. We also
stay fresh and flexible to satisfy
the ever-changing tastes of our
customers. Once you visit a
Big Whiskey’s, you’ll come
back again.
— AUSTIN HERSCHEND, CEO
21
Big Whiskey’s Franchising, LLC
315 Park Central East
Springfield, MO 65806
417.863.2929
www.bigwhiskeysfranchise.com
[email protected]
Data through 2015 for 4 stores (3 in Springfield, 1 in Ozark) and first full 12 months for Branson.
Data excluding the first BW (downtown Springfield) which is only 3,200 sq.ft., not a typical footprint for future BW’s.
Competitor and segment averages for fiscal 2015 from Restaurant Research LLC ‘Concept Benchmark Report’
1
2
3
Figures in this document represent information published in Item 19 of the August 2016 Big Whiskey’s American Restaurant
& Bar Franchise Disclosure Document for 4 company stores through 2015 and the first full 12 months for Branson
location. A franchise performance may differ from the represented performance in this document. This offering is made by
prospectus only. This document is not intended as an offer to sell or the solicitation as an offer to buy a franchise. Currently
the following states regulate the offer and sale of franchises: New York, Illinois, Washington, North Dakota, South Dakota,
Indiana, Michigan, Virginia, Minnesota, Hawaii, Rhode Island, Maryland and Wisconsin. If you are a resident or want to
locate a franchise in one of these states, we will not offer you a franchise unless or until we have complied with applicable
disclosure requirements and registration in your state. If you want to locate a franchise in one of these states please address
correspondence appropriately. Franchise offerings are made by franchise disclosure document only.