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Angel Investors for Food/Restaurant Business

    • 2 posts
    May 31, 2006 10:26 AM EDT
    Hi everyone,

    I am trying to locate Angels/investors that specialize in or are at least willing to consider an investment in a Food/Restaurant business (preferably in California).

    We are an early stage startup and have a concept for a new Quick Casual Restaurant chain. Our proof of concept store has been operating for about 18 months now with very good results. We have lots of loyal customers and revenues are growing. We also have a strong management team, incl. top  MBA`s and an industry expert.

    Basically we should have all the ingredients that investors are looking for, except that we are in the food industry.

    Does anyone know about Angels/Investors that would be interested in looking at such a concept?

    ---
    Andreas Koese
    Co-Founder Valerie`s Crepes
    www.valeriescrepes.com

    • 2 posts
    May 31, 2006 10:37 AM EDT
    We are looking for $500k to open more stores and get a franchise going.

    ---
    Andreas Koese
    Co-Founder Valerie`s Crepes
    www.valeriescrepes.com

    • 205 posts
    May 31, 2006 10:31 AM EDT
    What level of investment are you seeking Andreas?

    ---
    chuck fuller

    • 60 posts
    May 31, 2006 5:18 PM EDT
    We are looking for $500k to open more stores and get a franchise going.


    If you want that kind of capital, you`ll need to demonstrate a very detailed plan.  Financials, profit projections, and market analyses will get you in the door.  What will clinch the funding for a franchise is if you use the prototype businessness you have and create the franchise manual in the style of McDonald`s or Subway.   

    ---
    "Forget inspirational quotes to keep you going. If by doing what you do, you get an hour every day to relax, be with the ones you love in comfort without doing wrong, then it is all worth it." -Anon.

    • 2 posts
    November 8, 2008 6:30 AM EST
    I am also looking for an angel investor for my fast casual dining concept, Dixie Picnic.  I have two years of experience in a seasonal  Jersey Shore location that has earned us a buzz and brand recognition in the Philadelphia area and NYC.  We had purchased the building a year ago with plans to tap the equity in the building (about $150,000) to use to start up a second location in a year round location.  Unfortunately, I wasted a year trying traditional funding and now with this credit crunch my credit has tanked.  If I can get one year round location started it is a formula easily replicated with plans for a central commisary to reduce operating costs in the near future.  I am only now trying the Angel investor route. We have a great product, an online store, retail product line, an opportunity to sell our signature baked good on QVC in the future, but cash flow is the name of the game. The business was from day one envisioned to be a multi-unit concept, perhaps not franchised but with an operater interest in each location, such as Outback Steakhouse has been so successful with.  Any suggestions would be appreciated.
    • 2 posts
    January 13, 2009 2:46 PM EST
    Robert,
        Thanks for your questions.  I have managed to squeak into a year round location by getting into a coffee shop that went out of business. It is a good location near a large active corporate community (Great Valley Corporate Center in Malvern Pa).  Unfortunately, the kitchen is not equipped with a hood and ansul system so we have had to modify the menu until I can fund the renovations.  I have been open a week now and I`m getting lots of visits from customers from my shore location.  They are all asking about some of the items that are missing from the menu and I let them know they will be coming in a couple months.
         I have pursued traditional funding through a bank line of credit on the building, SBA loans and microloans, and hard money loans.   
        Right now the building at the seasonal location is up for sale and it breaks my heart but it must be done to move the business forward.  I have no doubt that the year round location will be successful, but with no ability to tap the equity in the building we have fallen into a cash crisis.  The purchase of the building was to use the equity to move the business.  As much as I would like to keep the seasonal location for the exposure and free publicity it brings to Dixie Picnic and the brand, I can`t sacrifice the business for the building. 
         Sorry for the late reply.  I`ve been working day and night getting this second location up and running.  Even though we`ve only been open a week, I already have lots of repeat customers.  My customers have always been my best advertisement.
    • 1 posts
    August 7, 2009 9:43 PM EDT
    I would like know who is the private equity group specializing in restaurants?
    Earnest
    ELRJ8/8/2009 2:37 AM
    • 11 posts
    August 15, 2006 3:56 PM EDT

    Your challenge is...your category.

    If you have experience for the past three years in Rest. biz....maybe. You better have a High NetWorth.

    • 3 posts
    August 9, 2006 7:56 AM EDT
    Is there a single "good" place to shop your business plan?  I have a proposal, which I have worked on for a long time now and think it is solid, but am having trouble imagining who I should hand it to.  I`m going to talk with some business and investment brokers and as many local business owners who will listen to me.  Does anyone know if I`m missing anything?
    • 1 posts
    May 20, 2009 9:23 AM EDT
    Mark,

    I am looking to get into a development agreement with an established restaurant franchise in the Charleston, SC market. Our partnership brings years of management/ownership experience, however we need capital to cover franchise/development fee`s and most of the build out/opening costs. Does your firm work with folks like us?

    Matt Hensley
    matt@mabeka.com
    • 25 posts
    December 10, 2006 11:19 AM EST
    There are people and VCs who invest in restaurants. Chains like Jamba Juice got ramped up with VC money, for example. Restaurants go in and out of style, but if you have a working concept and a good team it can be done.

    My wife and I invested in the Qdoba burrito chain when it was a one store operation. In our case, we invested principally because we knew the founder, and thought he was a good guy to bet on. In part, we invested because the numbers out of his first store were pretty good and it looked like a growth category. It turned out to be a very good investment.

    There are a lot of legal and regulatory costs associated with being a franchisor, and you may not want to bite that off before you get a bit more scale. If you do go that way, you would be well advised to bring in a top team member who has been there, done that, and let them lead the charge on recruiting and supporting franchisees. (In Qdoba`s case, the founder stepped aside, and brought in as the new CEO a guy like that.) While franchising can be a capital efficient way to grow the brand, it`s not a substitute for raising some money, because you are going to need a fair amount of money for lawyers and to pay the right person to do the franchising thing.

    Be prepared for changes in the management team. Assuming that you`ve not been through a rollout before, you are likely to hear that the team will need to be beefed up, probably at the very top levels, to get onboard the kind of experience needed to make the rollout work.,

    You might find this site interesting:
    http://pxr.com/crepesboutique/htmls/objectives.html

    • 11 posts
    July 13, 2008 9:16 AM EDT
    You may also want to consider a franchise development company to assist you with your plans.  They may not help you secure the funding but having them prepare all the needed documents and marketing of the concept along with their guidance in growing the business could go a long way towards reassuring possible investors that their money is safe.

    ---
    Drink Up!

    • 926 posts
    May 31, 2006 11:26 AM EDT

    One can structure a very appealing "deal" to attract funding for a franchising approach - regardless of the industry. Your 18 month history is a great foundation to show that the business is viable and hopefully profitable.

    The next step is to validate the potential as a franchise business.

    Robert Johnson

    ---
    Business Growth Masters, LLC -
    Capital Catalysts for Entrepreneurs
    Home of the Scalable Business Plan and QuikStart Capital Programs
    http://www.bizgrowthmasters.com
    info@bizgrowthmasters.com


    • 926 posts
    August 9, 2006 8:21 AM EDT

    Dear jdwilliams19 -

    While many roads lead to Rome - I think what you are "missing" is contained in your question. To wit - we would advise our clients against "shopping" their business plan - both actually and mentally.

    Robert Johnson

     

    ---
    Business Growth Masters, LLC -
    Capital Catalysts for Entrepreneurs
    Home of the Scalable Business Plan and QuikStart Capital Programs
    http://www.bizgrowthmasters.com
    info@bizgrowthmasters.com


    • 926 posts
    November 9, 2008 6:16 AM EST
    Hello,

      I am located in South FL and am seeking interested investors who want to know more about a concept I am working on paper that could be a successful franchise and would be the first major franchise of it`s kind.  Steve G


     
    SteveG,
    It sounds like an interesting concept - but being Capital Ready would probably make your opportunity more attractive to investors.

    ---
    Business Growth Masters, LLC -
    Capital Catalysts for Entrepreneurs
    Home of the Scalable Business Plan and QuikStart Capital Programs
    http://www.bizgrowthmasters.com
    info@bizgrowthmasters.com


    • 926 posts
    November 9, 2008 6:21 AM EST
    I am also looking for an angel investor for my fast casual dining concept, Dixie Picnic.  I have two years of experience in a seasonal  Jersey Shore location that has earned us a buzz and brand recognition in the Philadelphia area and NYC.  We had purchased the building a year ago with plans to tap the equity in the building (about $150,000) to use to start up a second location in a year round location.  Unfortunately, I wasted a year trying traditional funding and now with this credit crunch my credit has tanked.  If I can get one year round location started it is a formula easily replicated with plans for a central commissary to reduce operating costs in the near future.  I am only now trying the Angel investor route. We have a great product, an online store, retail product line, an opportunity to sell our signature baked good on QVC in the future, but cash flow is the name of the game. The business was from day one envisioned to be a multi-unit concept, perhaps not franchised but with an operator interest in each location, such as Outback Steakhouse has been so successful with.  Any suggestions would be appreciated.
     
    Are you looking for capital to complete your first year round location?
     
    What kind of traditional funding were you trying to get for the past year- a bank loan on the equity in the property?

    ---
    Business Growth Masters, LLC -
    Capital Catalysts for Entrepreneurs
    Home of the Scalable Business Plan and QuikStart Capital Programs
    http://www.bizgrowthmasters.com
    info@bizgrowthmasters.com


    • 926 posts
    January 14, 2009 5:08 AM EST

    dixie,

    Acquiring capital is a process - a process which varies somewhat according to one`s capital strategy. Your optimum Capital strategy will depend upon several factors - starting with how much you need and when.
     
    Send me a PM if you want to discuss the details of your specific situation.

    ---
    Business Growth Masters, LLC -
    Capital Catalysts for Entrepreneurs
    Home of the Scalable Business Plan and QuikStart Capital Programs
    http://www.bizgrowthmasters.com
    info@bizgrowthmasters.com


    • 926 posts
    January 24, 2009 5:39 AM EST
    I have a viable line of patented products that are sold OEM to Vulcan Hart.  My company is in its first year of operation, with $375K invested in intellectual property, tooling, and marketing - I would like to market the value built in the company to a larger company that can fully develop the brand.  Can you suggest potential buyers?

     
    Steve,
     
    I`d need more details before I could make any suggestions. Generally, I`d go about targeting buyers in a manner similar to defining a target customer.
     
    Send me a PM if you want to discuss the specifics of your situation

    ---
    Business Growth Masters, LLC -
    Capital Catalysts for Entrepreneurs
    Home of the Scalable Business Plan and QuikStart Capital Programs
    http://www.bizgrowthmasters.com
    info@bizgrowthmasters.com


    • 2 posts
    June 18, 2008 8:05 AM EDT
    The best source of direct private equity capital in the country for restaurants is located in NYC
    It is run by a group of former restaurant managemnt executives with expertise in culinary,marketing and financial backgrounds.
     
    If your plan is soild..........I am sure they could help.
    • 2 posts
    July 2, 2008 9:12 AM EDT
    Franchise models are too restrictive. (Forget them)...........Real estate deals in disguise
     
    Attract high net worth angels and private equity firms interested in building your brand.
    They will finance your deal (will cost you control) and give you the opportunity to prove out your model.
    Once you prove out your model, then renegoiate a better equity participationsn on your next location.
     
    It would be a win/win for everybody
    • 2 posts
    October 22, 2009 6:06 PM EDT

    Many good ideas are here.

    _____________

    Saffron

    need a job

    • 1 posts
    January 23, 2009 6:11 PM EST
    I have a viable line of patented products that are sold OEM to Vulcan Hart.  My company is in its first year of operation, with $375K invested in intellectual property, tooling, and marketing - I would like to market the value built in the company to a larger company that can fully develop the brand.  Can you suggest potential buyers?
    • 6 posts
    October 5, 2008 6:46 AM EDT
    Hello,

      I am located in South FL and am seeking interested investors who want to know more about a concept I am working on paper that could be a successful franchise and would be the first major franchise of it`s kind.  All I will say at this point is that it is a "Fast Food Gourmet" type of establishment that will give everyone who is into Fast Food, healthier and better quality fare and will also appeal to those that don`t typically eat fast food. Quality and Taste are going to be the #1 priorities for this establishment because based on those 2 factors, the customers and the $$$ will indeed follow..

      Think of Fast Food as an upscale product...if you can visualize it well, contact me!

    Steve G

    ---
    Steve Gara

    • 36 posts
    July 22, 2010 8:57 AM EDT

    Look up a guy named Paul T Tran on Twitter. He specializes in Restaurant Funding/ Restaurant Franchises and is actively seeking new prospects.

     

    Good Luck!Laughing

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