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Legal Notice..................................................................... 2 Brand Voice...................................................................... 4 How Business will Operate...........................................10 Sources of Income.........................................................11 Personnel........................................................................12 Analysis of Industry & location....................................14 Competition...................................................................16 Marketing Plan..............................................................19 Menu...............................................................................20 Annual Operating Projection.......................................22 Contact Information.....................................................25
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WELCOME
Welcome to the neighborhood place where brewers, bankers and bricklayers can all come together. There’s a place for you at Fourpenny House. This is why you work. Leave your 9-5 at the door, and let’s raise a glass.
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A TOAST
Toast to heritage and the many crafty ways we know how to use a simple grain. Drinking, cooking, baking. Cheers to the simplest pleasure of bread, the foundation of every meal. Hearty, earthy, fresh from the fire, made with tradition and elevated to a craft through passion. Real, fresh ingredients, from picking to plating, grown locally, under the San Diego sun. Crisp, handcrafted beer and smooth artisanal spirits let conversation flow and suddenly, we’re making memories.
THE STALKS I N THE F OURPENNY CREST REPRESE NT G RAI N’S THREE BEST USE S: BREAD, BE ER, AND SPI RI TS.
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LEAVE YOUR 9-5 AT THE DOOR, AND LET’S RAI SE A G L ASS.
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GET COZ Y
Here’s to that first cold sip and no empty glasses. To hour after happy hour, work nights, weekends and why-nots. Get cozy. Settle in. Tell that story again, you know the one. Let me have a bite of that. Let’s have another round.
F O UR PEN N Y ’S LO G O MA R K DR AW S IN SPIR AT IO N F R O M T R A DIT IO N A L SCOT T ISH FA M ILY CL A N CR EST S
8323 L A M E S A B LV D L A M E S A , C A 91942 F O U R P E N N Y H O U S E .C O M
805 5
8
163
LA MESA
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SAN DIEGO 5
8
125
125
805
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HOW B U S I N E S S WI L L OPE RATE
Fourpenny House: we are Heritage, Harvest, and Heart. A premium gastropub highlighting local and seasonal ingredients Fourpenny House brings together bread, beer, and spirits under one roof, offering all the wonderful things grain can provide us. Producing as much as possible in-足 house, from beer to bread to charcuterie, means high-足level craftsmanship is evident in the flavors and presentation of our food and drink. Fourpenny House will operate as a quick-service restaurant, with a first-rate chef managing the artisanal menu. A wide beer and spirits selection will offer a unique tasting and flight experience for our customers, comparing in-足house brews with local and national favorites from the craft brewery and distillery market.
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ESTIMATED STA RTU P COST
450,000
$
OWNER FINAN C I N G & SEED MONEY
50,000
$
S O U R C E S O F I NCO M E
Fourpenny House will blend owner financing with investor capital for the startup funding. Estimated startup costs are $450,000 with owner financing and seed money constituting $50,000, and $400,000 necessary in investor funding. Per the P&L statement the projected profit over the first six years of operation will provide a healthy
INVESTOR FUND I N G NECESSARY
400,000
$
return to investors while allowing for the continued growth of the business. Investor shares of 1% ownership are $20,000, with fractional and multiple shares available.
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PE RSO N N EL
OWNER/MASTER BREWER
BREWERY CONSULTANT
Peter Soutowood has been baking
Mike Hess is the Chief Brewing
and brewing his entire life. With
Officer and Founder of Mike Hess
twenty years of project manage-
Brewing in San Diego, which has
ment experience he is well-versed
won gold medals for its Habitus
in managing large projects and
and Claritas beers. Growing from a
teams to meet schedule and budget
small nano-brewery to a 90-barrel
requirements. His experience as
facility in just 2 ½ years represents
a licensed architect will ensure
a 542% growth rate, making him a
Fourpenny House’s thoughtful and
national expert on the growth and
efficient design, and his passion for
operation of a successful brewery.
food and spirits will show in the selection and creation of curated experiences for every customer.
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CHEF
Joshua Soth is an industry veteran
taurants, Soth transitioned into
known for his distinct ability to
catering as the executive chef/chef
create innovative riffs on traditional
consultant at Catered By Design, an
dishes, who came to San Diego with
award winning company voted Chi-
more than two decades of restau-
cago’s #1 Wedding Caterer by The
rant experience. His progressive
Knot magazine and Chicago’s Best
approach in the kitchen has allowed
Caterer by Wedding Wire. He strives
Soth to garner numerous awards
to introduce a local and seasonal
including a feature in Celebrated
cuisine while challenging the pal-
Chefs Chicago and multiple awards
ates of guests. Soth looks forward to
for his role at one of Chicago’s Top
his next challenge as the Executive
New Restaurants in 2007. After
Chef of Fourpenny House destined
successfully heading two res-
to open in 2016.
HERE’S TO THAT FI RST COLD SI P AND NO EMPT Y G L ASSES. 13
ANALYSIS OF I N D U STRY & LOC ATI O N 8323 L A ME SA B LV D L A MESA, CA 91942
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The San Diego brewing industry is
La Mesa’s Downtown Village is cur-
swelling, with over 100 breweries,
rently undergoing a renaissance. The
$300 million in annual revenue, and
City of La Mesa just completed an
50% of existing brewing licenses is-
over $5 million Streetscape Improve-
sued in the last year. The restaurant
ment Project which involves sidewalk,
industry is more modest, with a 3%
street, landscape, and lighting im-
growth in new independent restau-
provements. The draw to this quaint
rants. By combining the strength and
town just 15 minutes from downtown
growth potential of micro-brewing and
San Diego has increased, with three
the stability and continued popular-
new restaurants scheduled to join
ity of restaurants, Fourpenny House is
the existing nine already on La Mesa
well-balanced and situated to capital-
Boulevard. Tellingly, the Cohn Restau-
ize on both industries without being
rant Group (CRG) opened BoBeau, a
over-leveraged in either.
large full-service restaurant, in 2013
at the top end of La Mesa Blvd. CRG
and Lemon Grove, the potential mar-
currently operates 26 restaurants in
ket is upward of 175,000 people. In-
Southern California with over 1000
cluding San Diego swells that number
employees. With such a prominent
to almost 1.5 million. Average income
anchor, the Downtown Village will
from those areas ranges from $55-
continue to grow as a culinary destina-
70,000/year. With a desirable year-
tion for San Diegans.
round climate and millions of tourists
La Mesa has a population of 57,000 with a compound annual growth rate of 0.42%. As housing is continuing to fill out, growth is forecast to be 34% through 2050. By drawing in customers from neighboring El Cajon, Santee,
per year, the San Diego area supports a healthy restaurant industry that Fourpenny House will contribute to. AV E RAG E A R E A I NCO M E
55–70,000/yr.
$
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CO M PE TI TI ON
The beer and food scene in San Diego is robust and, citing an MIT study, Clusters and Entrepreneurship, the benefits of the stability granted by being part of a large cluster is slightly offset by more modest growth for Fourpenny House. Because of our position as a specialty gastropub we will be gaining from the growth in both breweries and higher-end restaurants without suffering the saturation of each market. The bakery/brewpub idea has not been developed yet in San Diego but similar concepts include Pizza Port, Ballast Point’s Tasting Room & Kitchen, and Jayne’s Gastropub. Of the restaurants in La Mesa’s Village, TOA S T TO H E RI TAGE A ND THE MANY
cuses more on mixed drinks and wine than beer. Depot Springs is opening a brewery in La Mesa and a second location in the Village serving noodles
CR A F T Y WAYS
and their own house beers. This is positive as it for Fourpenny House as it
WE KN OW
is a complimentary rather than competitive restaurant.
H OW TO US E A S I M PLE GR A IN.
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only BoBeau is similar, with pricier menu items and full service which fo-
Two breweries have opened in La Mesa in the last two years: Bolt Brewery and Helix Brewing Company. Both are located in an industrial section of town across the highway and focus on beer sales, with limited food or snacks. Despite the location both are growing in double digits and Bolt opened a second location in Little Italy in San Diego less than a year after opening their La Mesa brewery.
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CO MPETITIVE ADVA N TAGE
In-house creation of charcuterie, meats, beer, and baked goods. The competitors listed above outsource some or all of these items. Fourpenny House’s constantly rotating and seasonal menu will have more in common
I N-H O U S E C H A R C U T E R I E, M E AT S, BEER & BAKED GOODS R OTAT I NG S E A S O NA L M E NU
with high-end Bay Area restaurants than run- of-the-mill pubs. Our competitors’ menus are mostly uniform throughout the year, trading
LO C A LLY-S O U R C E D I NG R E D I E NT S
flavor for convenience. Our locally-sourced ingredients will provide
A M B I E NC E & ACO U S T I C VA R I E T Y
better freshness and flavor and lower cost by saving on shipping and storage of unripe or frozen items. Our facility will provide for more ambience and acoustic variety, allowing for a more comfortable dining experience for all customers. With the architecture background of the owner and careful design and planning, the facility itself will be a standout in the local market.
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S TA ND O U T D E S I G N
M A R K E T I NG PL A N
Fourpenny House will be developing relationships between us and our customers, farmers, and food producers. With the firm belief that our customers value the quality and provenance of their food, we will regularly be inviting guest food producers into the restaurant for private craftsman tastings and presentations. Using social media and our website to promote these events, with coverage in publications like Edible, we will be forging a strong relationship with our customer base. By continuing to rotate our menu we will be constantly inviting regular customers back to try something new. We will continue to utilize the expertise of our branding and marketing company, Bex Brands to reach our customers through the San Diego area.
TE LL THAT STORY AG AI N. YOU KNOW THE ONE.
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MENU
Fourpenny House’s menu will focus on three main areas: bread, beer, and spirits. From this core we will expand to offer items to complete any meal, from charcuterie and cheeses to savory foods and desserts. The bread core will focus on breads, pizzas, and sandwiches. The beer menu will include in-house brews as well as a selection of local and national world-class beers. The selection of spirits will include more rare and specialized craft and high-quality whiskies, bourbons, and other spirits. Our rotating seasonal menu will feature fresh ingredients at the prime of their flavor, and offered as appetizers and small finger foods to delight and satiate our customers while addressing the needs of those with dietary restrictions and allergies. 20
T H ER E’S A PL ACE F O R YO U AT F O UR PEN N Y H O USE.
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ANNUAL OPERATING PROJECTION MONTHLY AVG.
ANNUAL
YEAR TWO
YEAR THREE
YEAR FOUR
YEAR FIVE
YEAR SIX
Food
70,895
850,739
893,276
937,939
984,836
1,034,078
1,085,782
Spirits
11,382
136,580
143,409
150,579
158,108
166,013
174,314
Beer
33,386
400,633
420,665
441,698
463,783
486,972
511,321
115,663
1,387,952
1,457,349
1,530,217
1,606,727
1,687,064
1,771,417
346,484
SALES
TOTAL SALES COST OF SALES
Food
23,732
284,785
296,176
308,023
320,344
333,158
Spirits
3,810
45,720
47,549
49,451
51,429
53,486
55,625
Beer
9,313
111,760
116,230
120,880
125,715
130,743
135,973
36,855
442,265
459,955
478,351
497,488
517,387
538,083
78,807
945,687
997,394
1,051,863
1,109,240
1,169,677
1,233,334
Management - Salaries
12,250
147,000
152,880
158,995
165,355
171,969
178,848
Hourly Employees
38,203
458,432
476,769
495,840
515,674
536,301
557,753
TOTAL SAL ARIES & WAGES
50,453
605,432
629,649
654,835
681,029
708,720
736,601
Cleaning Supplies
750
9,000
9,360
9,734
10,124
10,529
10,950
Kitchen Utensils
200
2,400
2,496
2,596
2,700
2,808
2,920
Laundry & Linen
1,120
13,440
13,978
14,537
15,118
15,723
16,352
TOTAL COST OF SALES GROSS PROFIT
PAYROLL
OPERATING EXPENSES
Licenses & Permits Menus & Wine Lists
600
624
649
675
702
730
6,000
6,240
6,490
6,749
7,019
7,300
Miscellaneous
500
6,000
6,240
6,490
6,749
7,019
7,300
Paper Supplies
1,200
14,400
14,976
15,575
16,198
16,846
17,520
Tableware & Smallwares
600
7,200
7,488
7,788
8,099
8,423
8,760
Uniforms
200
2,400
2,496
2,596
2,700
2,808
2,920
5,120
61,440
63,898
66,454
69,112
71,876
74,751
TOTAL OPERATING EXPENSES
CO S T E S CAL ATOR: 0.04 R E N T E S CA L ATI ON: 0.03
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50 500
ANNUAL OPERATING PROJECTION - CONTINUED MONTHLY AVG.
ANNUAL
YEAR TWO
YEAR THREE
YEAR FOUR
YEAR FIVE
YEAR SIX
MUSIC & ENTERTAINMENT
Sound Sytem
30
360
374
389
405
421
438
TOTAL MUSIC
30
360
374
389
405
421
438
Selling & Promotion
1,500
18,000
18,720
19,469
20,248
21,057
21,900
Advertising
1,000
12,000
12,480
12,979
13,498
14,038
14,600
TOTAL MARKETING
2,500
30,000
31,200
32,448
33,746
35,096
36,500
2,500
30,000
31,200
32,448
33,746
35,096
36,500
750
9,000
9,360
9,734
10,124
10,529
10,950
1,350
16,200
16,848
17,522
18,223
18,952
19,710
100
1,200
1,248
1,298
1,350
1,404
1,460
4,700
56,400
58,656
61,002
63,442
65,980
68,619
Accounting Services
200
2,400
2,496
2,596
2,700
2,808
2,920
Bank Charges
250
3,000
3,120
3,245
3,375
3,510
3,650
Cash (Over) / Short
150
1,800
1,872
1,947
2,025
2,106
2,190
Credit Card Charges
2,255
27,065
28,148
29,274
30,445
31,662
32,929
Miscellaneous
MARKETING
UTILITIES
Electricity Gas Water Trash Removal TOTAL UTILITIES
GENERAL ADMINISTRATIVE
1,000
12,000
12,480
12,979
13,498
14,038
14,600
Office Supplies
457
5,487
5,707
5,935
6,172
6,419
6,676
Postage
457
939
976
1,015
1,056
1,098
1,142
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-
-
-
-
-
200
2,400
2,496
2,596
2,700
2,808
2,920
4,591
55,091
57,295
59,586
61,970
64,449
67,027
Professional Fees Telephone TOTAL GENERAL ADMIN
I N VES TOR R EPAYMENT
PROFIT DIVIDEND:
20% of profits assuming 20% ownership of shares by investors 23
ANNUAL OPERATING PROJECTION - CONTINUED MONTHLY AVG.
ANNUAL
YEAR TWO
YEAR THREE
YEAR FOUR
YEAR FIVE
YEAR SIX
Building Repairs & Maintenance
450
5,400
5,616
5,841
6,074
6,317
6,570
Equipment Repairs & Maintenance
500
6,000
6,240
6,490
6,749
7,019
7,300
TOTAL MAINTENANCE
950
11,400
11,856
12,330
12,823
13,336
13,870
5,000
59,940
61,738
63,590
65,498
67,463
69,487
450
5,400
5,616
5,841
6,074
6,317
6,570
83
1,000
1,000
1,000
1,000
1,000
1,000
120
1,440
1,440
1,440
1,440
1,440
1,440
5,653
67,780
67,780
67,780
67,780
67,780
67,780
110,852
1,330,168
1,380,663
1,433,179
1,487,795
1,544,595
1,603,668
4,810
57,784
76,685
97,038
118,933
142,469
167,749
REPAIRS & MAINTENANCE
OCCUPANCY COSTS
Rent Common Area Maint. Insurance Liquor Liability TOTAL OCCUPANCY
TOTAL COSTS BEFORE TAXES & INVESTOR PAYMENTS
GROSS PROFIT
INVESTOR DIVIDENDS
Profit Dividend
11,557
15,337
19,408
23,787
28,494
33,550
TOTAL INVESTOR DIVIDENTS
11,557
15,337
19,408
23,787
28,494
33,550
NET INCOME AFTER INVESTOR PAYMENTS
46,227
61,349
77,630
95,146
113,975
134,199
NET INCOME AFTER TAXES (1.5% OF PROFIT)
45,360
60,198
76,175
93,362
111,838
131,683
H ER ITAG E. H A R V EST. H EA R T.
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CONTACT INFO RM ATI ON
Peter Soutowood | psoutowood@yahoo.com | 619.606.2028
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LEGAL NOTICE THE SECURITIES ARE BEING OFFERED ONLY TO PERSONS WHO HAVE SUCH KNOWLEDGE AND EXPERIENCE IN FINANCIAL AND BUSINESS MATTERS TO BE ABLE TO MAKE AN INFORMED DECISION REGARDING AN INVESTMENT IN THE SECURITIES. POTENTIAL INVESTORS MUST REPRESENT THAT THEY ARE CAPABLE OF EVALUATING THE MERITS AND RISKS OF THIS INVESTMENT. INVESTORS MUST BE ACQUIRING THE SECURITIES FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO ANY RESALE OR DISTRIBUTION. THE SECURITIES ARE SUITABLE ONLY FOR PERSONS WHO HAVE NO NEED FOR LIQUIDIT Y IN THIS INVESTMENT. THE SECURITIES BEING DESCRIBED HEREIN SHALL AT ALL TIMES BE SUBJECT TO THE TERMS OF THIS AGREEMENT, INCLUSIVE OF OR IN ADDITION TO A SUBSCRIPTION OR JOINDER AGREEMENT, IF PRESENTED. THE SECURITIES ISSUED UNDER THIS AGREEMENT ARE SPECUL ATIVE AND INVESTMENT IN THE SECURITIES INVOLVES A HIGH DEGREE OF RISK. THIS OFFERING INVOLVES SUBSTANTIAL RISKS, INCLUDING, BUT NOT LIMITED TO THE FOLLOWING RISK FACTORS: (1) GENERAL RISKS OF THE RESTAURANT BUSINESS, INCLUDING BUT NOT LIMITED TO, CUSTOMER ADOPTION OF THE CONCEPT AND POTENTIAL FOR NO OR LOW LEVELS OF PROFITABILIT Y; (2) L ACK OF OPERATING HISTORY AND EXPERIENCE OF THE MANAGER AND THE COMPANY; (3) L ACK OF OPERATING FINANCING FOR THE COMPANY; (4) RELIANCE ON THE SKILL, EXPERIENCE AND WELL-BEING OF THE MANAGER; (5) TREMENDOUS COMPETITION IN THE RESTAURANT FOOD AND BEVERAGE BUSINESS;
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(6) ILLIQUIDIT Y OF THE INVESTMENT IN THE LIMITED LIABILIT Y COMPANY; (7) L ACK OF TRANSFERABILIT Y AND LONG-TERM NATURE OF THE INVESTMENT; (8) INDEMNIFICATION OF THE MANAGER OF THE COMPANY; (9) L ACK OF DIVERSIFICATION; (10) MATERIAL TAX RISKS ASSOCIATED WITH THE ENTIT Y BEING TAXED AS A PARTNERSHIP AND A PASS-THROUGH ENTIT Y; AND (11) COMPLIANCE WITH FEDERAL, STATE AND LOCAL SECURITIES, PERMITTING, ZONING, BUILDING, HEALTH AND SAFET Y, L ABOR AND ALCOHOL L AWS, CODES AND REGUL ATIONS. THERE ARE NO TAX BENEFITS ASSOCIATED WITH AN INVESTMENT IN THE LIMITED LIABILIT Y COMPANY AND THIS OFFERING IS NOT INTENDED AS A TAX SHELTER VEHICLE. INVESTORS MUST BE PREPARED TO BEAR THE ECONOMIC RISK OF THE INVESTMENT FOR AN INDEFINITE PERIOD AND BE ABLE TO WITHSTAND A TOTAL LOSS OF THEIR INVESTMENT. THIS AGREEMENT, IN CONJUNCTION WITH THE COMPANY SUBSCRIPTION AGREEMENT, CONTAINS ALL OF THE REPRESENTATIONS BY THE COMPANY CONCERNING THESE SECURITIES. NO PERSON REPRESENTING THE COMPANY OR PURPORTING TO DO SO IS AUTHORIZED TO MAKE ANY ORAL REPRESENTATIONS OR WARRANTIES, NOR SHALL ANY PERSON ON BEHALF OF THE COMPANY MAKE DIFFERENT OR BROADER STATEMENTS THAN THOSE STATEMENTS CONTAINED HEREIN. INVESTORS ARE CAUTIONED NOT TO RELY UPON ANY INFORMATION NOT EXPRESSLY SET FORTH IN THIS AGREEMENT OR THE COMPANY SUBSCRIPTION AGREEMENT.
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©2016 F O U R P E N N Y H O U S E F O U R P E N N Y H O U S E .C O M