INVESTOR SYNOPSIS—MAY 2016 - Eliot Bergman · 2016. 5. 10. · INVESTOR SYNOPSIS—MAY 2016. New...

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INVESTOR SYNOPSIS—MAY 2016

Transcript of INVESTOR SYNOPSIS—MAY 2016 - Eliot Bergman · 2016. 5. 10. · INVESTOR SYNOPSIS—MAY 2016. New...

Page 1: INVESTOR SYNOPSIS—MAY 2016 - Eliot Bergman · 2016. 5. 10. · INVESTOR SYNOPSIS—MAY 2016. New York was my small town. My coterie was comprised of graphic designers, fashion ...

INVESTOR SYNOPSIS—MAY 2016

Page 2: INVESTOR SYNOPSIS—MAY 2016 - Eliot Bergman · 2016. 5. 10. · INVESTOR SYNOPSIS—MAY 2016. New York was my small town. My coterie was comprised of graphic designers, fashion ...

New York was my small town. My coteriewas comprised of graphic designers, fashiondesigners, writers and editors, and we oftengot together over lunch and dinner. The talentsand products of the ever-changing roster oftop chefs in New York mirrored and enhancedthe vitality we enjoyed in our professional lives.

Eliot Bergman

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Tokyo is my big city. I love the culture, the markets,the restaurants and the people, but I wanted torecreate a little bit of the New York I missed, soI built Martiniburger. Now we’re home to many ofTokyo’s discriminating gourmets and we’repleased to serve them.

Eliot Bergman

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Core vision

Build Martiniburger into a restaurant and brand

that consistently delivers genuine New York quality

and hospitality through its food and beverage

offerings and ambience.

Martiniburger: Vision3

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Objectives

• Serve authentic, New York-influenced cuisine prepared from the finest ingredients,

using only fresh, 100-percent beef in our burgers and fresh vegetables daily

• Grow, strengthen and leverage the Martiniburger brand through investor

partnerships in Japan and in other countries throughout Asia and Australia

• Produce three to five stores in operation within the 2016-2017 period

• Further build brand awareness through SNS and local media

• Grow Martiniburger as a business, employer, business partner and investment

opportunity, well beyond the current flagship store location in Japan

Martiniburger: Objectives4

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Martiniburger

• Consistent top ratings by local Japanese media and travel review sites

• A turnkey package including service standards, menus, identity

and interior design, recipe know how and vendor network

• Five years of consistent sales growth and cost controls offer

an attractive investment opportunity

• Participation for investment partner(s) available to build additional

locations and a gourmet product line from 2017

• International locations to follow

Martiniburger: Tokyo’s only New Yorker-owned and operated gourmet burger restaurant/bar

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Market

• A 56/44 ratio of men to women, half in the 24–35 age group

• Cuisine, decor and service appeal to locals yet remain international in design

featuring a “cool and hip” New York feel along with a gorgeous Martini bar

• Overseas visitors continue to increase as the yen weakens and the 2020

Olympics draw near. Many visitors seek out highly-rated culinary experiences

• The broad selection of innovative New York burgers provides a constant draw.

Customers want to try them all, including surprise seasonal variations

Martiniburger: Attracts a wide variety of customers,including residents, commuters and tourists

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• Traditional ATL advertising is avoided in favor of grassroots

marketing, SNS and word of mouth

• A bi-lingual and SEO managed website supports the brand

• Ongoing in-store promotions are designed to encourage social

media interaction, building new and also repeat customers

• With growth we will further leverage social media to develop

awareness and target new customers

• The brand profile is clean, simple and consistent and supports

extensions into other products and services, including merchandising

Brand management, effective targeting andcost efficiencies are key marketing strategies

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Coverage

January Hamburger World blog, Beer Kingdom magazine profile

February Kagurazaka Complete Guide, Lee magazine fashion spread

March Martiniburger Video Shoot

April Foodlister smartphone app launched

May Youtube: The Best Burgers in Tokyo (Top 20)

June TV-Tokyo, Tokyo Live 22

July Radio 1422

TV-Asahi, Onegai Ranking: No. 1 in Tokyo

Martiniburger: Selectmedia coverage and news

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Specials

January City Island Burger/Brooklyn Beer Set

March Lafayette Burger/La Tour de Marrenon Wine Set

June Buffalo Burger

Events

September Taste of America 2015, American Chamber of Commerce

December ABSOLUT year-end event

Martiniburger: Selectspecials and events

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Branded gourmet burgers

• Tokyo: pop. over 13 million; 88,000 restaurants; a vibrant restaurant and bar scene

• The Japanese have an affinity for American culture and see New York

as the pinnacle of style—they simply love US brands and culture

• All new Martiniburger locations would be within thirty travel minutes

of population centers, avoiding high-rent locations when possible

• Competitive brands today include Shake Shack, Carl’s Jr. and Kua Aina

• We are focused on training and retaining the right people to meet and

exceed expectations for “hospitality, not just service”

The gourmet burger sector continuesto grow as traditional fast food sales fall

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2015 total sales: ¥38,300,000

Increase over previous year: 109%

Average number of customers: 1,666/month

Increase over previous year: 104%

(Average number of customers, 2014: 1,596/month)

Cost rate

2015: 33.2% (2012-2015: Rate decreased from 37 percent to 33 percent)

Average spend per customer: 1,932

Increase over previous year: 108%

(Average spend per customer, 2014: 1,790)

Martiniburger sales performance, 2015:cost efficiencies improving over time

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Sales projections, 2016–2019:more seating + prime locations = strong returns

YearNumber of storesTotal salesYOY changeCost of salesYOY changeExpenseYOY changeNet income before taxYOY changeSeats

20151

39,000,000—

10,650,000—

22,000,000—

6,350,000—18

20162

140,816,667261.07%

42,245,000296.67%

63,555,556188.89%

35,016,111451.43%

68

20173

256,576,25082.21%

76,972,87582.21%

94,111,11148.08%

85,492,264144.15%

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20185

497,714,43893.98%

149,314,33193.98%

155,222,22264.94%

193,177,884125.96%

218

20196

642,462,58129.08%

192,738,77429.08%

185,777,77819.69%

263,946,02936.63%

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KagurazakaSalesCost of salesExpenseNet income before taxSeats

35,500,00010,650,00022,000,0002,850,000

18

37,275,00011,182,50022,000,0004,092,500

18

39,138,75011,741,62522,000,0005,397,125

18

41,095,68812,328,70622,000,0006,766,981

18

643,150,47212,945,14222,000,0008,205,330

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OthersSalesCost of salesExpenseNet income before taxSeats

—————

103,541,66731,062,50041,555,55630,923,611

50

217,437,50065,231,25072,111,11180,095,13

100

456,618,750136,985,625133,222,222186,410,903

200

599,312,109179,793,633163,777,778255,740,699

250

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Martiniburger: Development costs

Partnership/franchise fee(includes recipes, training, graphics,collateral material majority share) General estimate (variable; depending on location) First store (50 seats) RentArch. FeeConstruction SalesCost of salesExpenseNet income before tax Total sales (incl. orig. store)Total investment (est) SalaryInventory

Figures in U.S. dollars. Food cost rate is 30 percent.

One time

TBD

44,00010,000

150,000

204,000

Monthly

7,400

83,30026,66735,00021,667

9,5009,500

Annually

88,800

1,000,000320,000420,000250,000

1,400,000

114,000108,000

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Kagurazaka, a neighborhood in Tokyo, near Iidabashi, with many cafés

and restaurants. On the edge of Shinjuku, it’s experiencing a boom in popularity.

Nakameguro, a quiet residential district in Meguro. Situated along

Yamate Dori, adjacent to Daikanyama, an always trendy area.

Yokohama, the second largest city in Japan by population after Tokyo.

On Tokyo Bay, the capital city of Kanagawa is a major commercial hub.

Shimokitazawa, a commercial and entertainment district in Setagaya.

Many small fashion retailers, cafes, theaters,bars and live music venues.

Potential new locations14

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Owners

Eliot Bergman

Kiyono Tashiro (Milleporte)

Advisors

Kyle Cheriton (Four Seasons)

PT Innovations GK

Paul Guilfoile, President (Kirin-Tropicana, Pepsico Asia Pacific)

Steve Nagasawa, Director

Takashi Noto, Operations

The Martiniburger team bringsinsight, experience and creativity

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For further information and discussions

please contact Eliot Bergman

[email protected]

Nakazatocho 31, Shinjukuku, Tokyo

www.martini-burger.com

Further inquiries16