investment deck - bk lobster · corporate digital and social media marketing strategy focusing on...
TRANSCRIPT
Investment Deck
This presentation contains forward-looking statements which are based on assumptions that the Company has made in light of its industry experience and perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. As you read and consider this presentation, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (many of which are beyond our control) and assumptions. This presentation contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of current fact or relating to present facts or current conditions included in this presentation are forward-looking statements. Forward-looking statements give “BK Lobster” current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business.
LookingForward
The second is the love of seafood- the finest cuisine has always been and will always be “Lobster”. So, with the love for Brooklyn and Lobster it was only right to combine these two powerful names into one - “BK Lobster”, a winning Brand Name.
After spending 15 years as a Master Franchise Developer at Rаріd Realty, a real estate franchise company, I helped grow from one to sixty-five locations in a matter of nine years and was personally responsible for the sale and development of twenty-four franchises in Atlanta, Miami, Dаllаѕ and New York metropolitan аrеаs. Recently I secured a buyer and negotiated the acquisition of the company for nine million ($9,000,000) dollars. During that time, I transitioned into the restaurant business, owning and operating several restaurants called “Magic Soul” Food, and eventually expanded them into 7 locations in NYC that I built and sold.
With all my experience, I decided to fill a void and create an opportunity in Brooklyn to take the concept “BK Lobster” a Lobster roll shop from Brooklyn to Beyond!
My name is Rodney Bonds, Master Franchise Developer. I’ve traveled the country, owned restaurants and dined at variety of restaurants. Throughout my experiences, I’ve come to realize two very important things:
The 1st being the Borough of “Brooklyn” also known as “BK” is one of the coolest, most respected places in the world! It’s the birthplace of the late great Rapper BIGGIE Smalls and Hip-Hop ICON Jay Z- and they proudly represent BK in their music. When you speak of Brooklyn, you must mention the legendary Brooklyn Dodgers, the amazing filmmaker/ producer Spike Lee and of course Mike Tyson- BK is where he developed his furious style of boxing. I can continue to brag about Brooklyn, but you get the point.
TheVision
Menu
1. To serve lobster lovers, the most desires seafood in an environment they never want to leave.
2. To make franchising and owning a business so simple & fun that anyone can do it.
Purpose &Core Values:
The TeamLatisha Jefferson A few years ago, a restaurant entrepreneur created a fine wine and dine restaurant in the heart of Brooklyn called the Right Stop in Bed-Stuy. The experience was amazing, and it was the talk of the neighborhood. Based on her years of restaurant experience, she believed it was time to branch out and partner with a Brand that would become known as “BK Lobster”. Latisha decided to invest and began planning and strategizing with Rodney to create a concept that would fill a void in the NYC metropolitan area- Rodney’s Vision of “BK Lobster” was born.
Day Hampton was the first contributor to the brand. He is a young Party Promoter with an entertainment background, whose ear is always to the streets and up in the latest trends. Unlike most young people who can only bring sweat equity. He invested capital into the business and is also a major decision maker in the store’s design. He is not afraid to roll up his sleeves and do whatever it takes to make the business a success. He is truly dedicated and passionate about the success of “BK Lobster”.
Jamila Boyd/ High Society Marketing -After 20 plus years of providing Media, Marketing, and Advertising Services for Iconic Brands like BET, ESSENCE, Viacom, TV One, Time Warner/Turner and top Ad Agencies, Jamila sees the value and potential of the amazing brand. She has decided to bring her digital marketing and advertising experience to BK Lobster where she will oversee our corporate digital and social media marketing strategy focusing on Instagram, Facebook, and YouTube Click Funneling campaigns designed to drive direct traffic to all our stores based on demographics and geographic target marketing.
Tony Brooks has had a long-standing career in the Real Estate investing and the Restaurant industries. Tony’s savvy business strategies and instinctive ability to cultivate opportunities speaks to his success and his abilities to assist others in achieving their business goals. Tony has mastered the art of procuring funding, he single-handedly was able to raise funds to build a Checkers Restaurant in one of the busiest intersections in Brooklyn (Empire and Flatbush). Over the course of his career Tony managed to raise over 50 million in funding for his own business endeavors as well as the endeavors of others. Tony Brooks has also worked on projects along with Rodney Bonds including “Magic Soul Food” and “Rapid Realty” and is now an investor and financial strategist for “BK Lobster”.
Chef Tequila Silva began her Soul Food cooking journey in 2015, as a line cook at Bedstuy Fish Fry. As Chef Tequila’s passion for cooking started growing, she became eager to learn more and decided to move to Stockbridge, Georgia to seek new cooking opportunities. She worked at various restaurants as line cook such as Piccadilly’s, Golden Corral, The Blue Ivory and as a Salad Chef at a Rehabilitation Home, serving under Chef Richard. Chef Tequila’s new learning experiences motivated her to start her own business. In 2017 while traveling back and forth from Georgia to New York, Chef Tequila put her stamp in Brooklyn with amazing and creative lobster and seafood dishes. She became very well-known and soon earned the title as the “Lobster Queen.” Excited about her new success, Chef Tequila auditioned for the “Master Chef” TV show in 2018. Although she did not win, the judges assured her that her food was great and stated she would go far in her career. Cooking has always been a passion for Chef Tequila, and she is excited about her new partnership with “BK Lobster”.
Every successful endeavor consists of A group of oneor more individuals working together in the spirit of Harmony for one common goal.
-Napoleon Hill
After years of owning and operating restaurants, I found some of the biggest challenges are the Hood and Ansul systems - which are not only expensive ($20,000 minimum) but the maintenance is a lot. In addition, the gas lines sprinkler system can be an extreme headache.
The BK Lobster stores are the total opposite because the process to operate a BK Lobster is simple and streamlined, with no heavy restaurant equipment or complex restaurant operations, it requires no skilled labor, no chef’s, etc. A savvy entrepreneur with prior business experience can easily operate a BK Lobster, once trained by the team.
STORES
BrooklynSet to open May 2018
Area: Flatbush | Corporate Store | Style: Lounge
PAGE 6
“Lobster clawing its way onto fast casual menus”– Fast Casual Magazine, January 2016
Quotes from this article:
"Lobster offerings at limited-service concepts have doubled over the past 12 months”
“Lobster clawing its way onto fast casual menus...” Fast Casual Magazine, January 2016
Until the lobster roll shop became prevalent, lobster lovers had to go to a full-service restaurant (like Red Lobster) and sit down with a bib, a nutcracker, and a small fork or pick to access the meat.
The lobster roll shop phenomenon is making this aspirational menu item widely available and easily accessible to seafood lovers throughout the U.S. and lobster is no longer the exclusive item of full- service restaurants.
Lobster Roll ShopsAre a GrowingPhenomenon!
PAGE 4
Low InvestmentA “BK Lobster” Roll shop does not require an extensive cooking process (and therefore less cooking equipment), it does not require the typical investment in ventilation, electrical, plumbing or air conditioning needs most common in setting up a typical restaurant. Because it can operate with a small kitchen, a BK Lobster can operate in spaces as small as 700 to 1,200 square feet. Consequently, the initial investment required is relatively low.
Very Little CompetitionBK Lobster is truly a FRESH fast casual concept. Burgers, pizza, Mexican, coffee and other such concepts are on virtually every street corner. With only a few, regional players, this niche is proven, but with little or no competition in most markets
Lobster is a Health ChoiceLobster meat is a healthy, low cholesterol food, with fewer calories and saturated fat than both chicken and turkey. Best of all our Mayo and Butter are all VEGAN based.
High Revenue PotentialFranchise law does not permit you to make any Financial Performance Representations regarding sales, operating costs or profit. However according to a recent industry article, the primary player in the lobster roll segment (with 14 locations) reportedly averages over $1 million in sales per store!
According to this same article, the president of this competitor was quoted as saying that “He’s not ready to franchise. “Well Guess What WE ARE.”
Fast Casual is The Way To Go The fast-casual segment enjoyed 11.4% sales growth, almost doubling the growth rate of any other dining segment. Busy consumers, seeking quality, fresh food have flocked to concepts pioneered by the likes of Chipotle and Panera Bread. Fast casual is a step above Quick Serve Restaurants (QSR), but it’s not quite full service. Customers order at a counter but typically enjoy real plates and cutlery and can often see their order prepared. Food preparation and the use of high-quality ingredients take a higher priority. Fast casual works for today’s consumer because it offers good food and an interesting experience delivered quickly at a comfortable price point.
According to a top another top player in the
lobster roll industry
Fueling Demand Through Tech
Although a typical “BK Lobster” roll shop can will be between 700-1200 square feet, we will not just depend on foot traffic alone. Thankfully, in the age of apps one can order food for delivery with just a few taps of a phone screen. Whether the goal is to be anti-social, to quickly order dinner before getting back to work, or to avoid having to pause that Game of Thrones marathon, food delivery apps are our strategy to make it much easier for the customer and more profitable for the owner. Online ordering is one of the easier ways to boost your sales by up to 25%. Internet-savvy customers are wanting to order from their computers and smartphones and get their food delivered more often than ever before.
Marketing/ Media CampaignGeography/DMAsBrooklyn NY and Beyond
TacticsDigital Marketing - Instagram, Facebook, & You Tube Click funneling campaigns designed to drive direct traffic to all our stores based on demographics and geographic target marketing
Radio is a very effective medium for advertising to local audiences
DJ Endorsers are viewed as trusted authorities and can help consumers connect with Brands
Radio Sponsorships and/or Events can help create brand awareness
Brand PositioningPosition the brand via IG, Facebook, YouTube click funnel campaigns
GOALS/OBJECTIVESGenerate brand awareness for the BK Lobster on a global scale
Highlight BK Lobster as a unique ordering and fast casual as well as a great investment opportunity
The goal is to grow BK Lobster into a global franchise brand
Target AudienceMillennials 18-54; Seafood Lovers; Passion for exploring new things
Families 24-34 Millennials females that order for the whole family
Globally, fast food Casual generates revenue of over $570 billion - that is bigger than the economic value of most countries. In the United States revenue was a whopping $200 billion in 2015 - quite a lot of growth since the 1970 revenue of $6 billion.
There are over 200,000 fast food restaurants in the United States, and it is estimated that 50 million Americans eat at one of them every single day. The industry employs over 4 million people and counting - restaurant franchises added over 200,000 jobs in 2015.
“Last year, Maine fishermen hauled ashore 124 million pounds of lobsters, six times more than what they’d caught in 1984. The $456 million in value those landings totaled was nearly 20% higher than any other year in history, in real terms.” (This translates to an annual compounded growth rate of 6%.)
Fast CasualLobster Industry
Facts
Franchise royaltiesand fees havethree basic components:
1. Percentage of sales royalty payments
2. Franchise fees for openingnew restaurants
3. Development fees for new restaurantsin a given market
For Example- Franchise investorspay a fee to operate a BK Lobsterand Subsequent royalties (Example)• $10,000 domestic franchise fee
• $5,000 development and training fee per restaurant
• 10% claims on gross sales
Ask how you can participate in our Future Franchise Growth Model
Future Franchise Growth Opportunity
