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McClure's BBQ (1 Viewer)

Just to muck this up even more with another half baked idea, what is occuring to me is the residual ownership piece seems to be the sticking point in the complication. Personally, I have no idea what the annual "profit" for a restaraunt is. I'm guessing it is not going to be all that high. If I'm doing my math right (and there is a high chance I'm not), if the annual profit is $100,000, each $1000 investment would net $133 at the end of the year. While that is nothing to sneeze at, I'm not sure that is what all these guys are after. I'm thinking they are more after the claim they can make of being an ownership, and being part of the community.

Here's my proposal:

Make the $1000 more like a loan. You can pay them all back the same way you've proposed. However, after the loan is paid back, while the investors still retain some ownership stake, their stake is essentially Green Bay Packer like ownership, no rights, no profits, nothing other than being able to say they are an owner. Come up with some kind of benefit to kick the owerns way if things go good. Some free rub, and special t-shirt with some clever ownership phrase, host a ownership cornhole, catered with your grub of course. Something more than nothing, but nothing more than can be expected when you've already been paid back. If the restaraunt goes ok, make it some rub. If you are rolling in it, make it a catered cornhole. Whatever fits the situation. I don't think people are getting in for this hoping for a huge payday out of this.

 
I'm personally looking for a large payday here. I see this as my ticket out of corporate drudgery. ATTICA!

 
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Be careful, guys. And please know that loaning money and investing money in a business where you become owner are two different things.

Tasker raised great points and Tipsy needs professional advice before asking for funds. This could get very messy very fast if it's not handled correctly.

Tipsy, Good luck with the new location. I know eventually, you'll get funds needed.

 
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Ray Karpis said:
Just keeping this conversation going...I don't think most people in here looking to "invest" are really doing it for the potential profit in terms of % ownership. I could be alone here, but I think most would be satisfied with loaning the money, getting their loan paid back with a little interest, and being able to say own a tiny piece of a cool restaurant run by a cool guy. Against that backdrop, I think most would be willing to take a guaranteed minimum annual distribution - say $10 - with total discretion to Neil determine how large the profit pool is each year. There needs to be an eye on the front end to what happens if McClure's II sold to Bubba's BBQ, Inc. for $5 gazillion, but I don't think this needs to be too complicated.

I think Tasker raises good points, but If anyone is getting into this with a mind to question whether they're getting their "fair share" - I really don't think this is something you need to worry yourself with.
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I agree that most people are not looking at it in the strict investment terms that I posted. But I just think there needs to be a little caution when it comes to handling other people's money. Again, this is not directed specifically at Tipsy, and I'm not saying he'd be frivolous with other people's money, but I think it has the potential to get very complicated very fast. Either it's a Kickstarter-esque crowd-funded loan or something more than that. I think once you get into actual partnerships, profit allocations, royalties, etc., you get into a whole different world.

I'm not saying Tipsy isn't doing his due diligence, and I'm assuming most people aren't considering using money that they can't afford to lose on this. Just saying that it has the potential to be mishandled if everyone's not careful.

 
krista4 said:
kutta said:
Tipsy, this sounds like a great idea, but if you are really promising 15% return and a portion of profits forever, you are really going to need some legal documents, lawyer and accountant reviews, etc. it won't be as easy as just saying you are going to do it. The problems will start if this location doesn't make it and people start wanting their share of the profits. Or if the profits don't come quickly enough.

I guess I'm just saying to make sure you have really thought things through and have some good legal guidance before moving ahead. You've worked too hard to make a big mistake now.
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:goodposting: I've been figuratively biting my tongue here and not typing a response, but the whole "gentleman's agreement" worries me in terms of its ability to become a real ####-show for you, your "investors" or both, despite everyone's best intentions, for about a billion reasons that aren't necessary to elucidate 'splain here.

I hope this is all wildly successful for you--and I think it will be in terms of the restaurant itself. :)
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Great advice from both of these posters... After reading through, you appear very excited (which is obviously a natural feeling here). However, when overly enthused/excited about something, it might not be thought fully through. At the end of the day, there are also banks - I'd see what type of interest they are charging and compare costs. While they may be a little more expensive, outside of wanting their payment every month, you won't have an extra cook in the kitchen to deal with.

In situations like this, Microsoft Excel is your best friend. You need to create formulas for different scenarios (revenue expected, loans paid back, misc costs, etc.) - If you aren't an Excel wizard, go the old pen and paper route, it will take forever, but something that needs to be done.

Good luck with the new location!

 
For reals. We were all picturing ourselves giving each other hi-fives and being up to our elbows in profits and BBQ sauce. Then they have to come along with their "K-1s" and their "legal entities" and their "MS Excel" and piss all over our collective campfire. Jerks.

 
Smoke Meat.

Eat Meat.

Make More Meat.

Eat More Meat.

Give Money To Guy To Make More Meat.

Sounds simple to me. :banned:

 
Bull Dozier said:
Just to muck this up even more with another half baked idea, what is occuring to me is the residual ownership piece seems to be the sticking point in the complication. Personally, I have no idea what the annual "profit" for a restaraunt is. I'm guessing it is not going to be all that high. If I'm doing my math right (and there is a high chance I'm not), if the annual profit is $100,000, each $1000 investment would net $133 at the end of the year. While that is nothing to sneeze at, I'm not sure that is what all these guys are after. I'm thinking they are more after the claim they can make of being an ownership, and being part of the community.

Here's my proposal:

Make the $1000 more like a loan. You can pay them all back the same way you've proposed. However, after the loan is paid back, while the investors still retain some ownership stake, their stake is essentially Green Bay Packer like ownership, no rights, no profits, nothing other than being able to say they are an owner. Come up with some kind of benefit to kick the owerns way if things go good. Some free rub, and special t-shirt with some clever ownership phrase, host a ownership cornhole, catered with your grub of course. Something more than nothing, but nothing more than can be expected when you've already been paid back. If the restaraunt goes ok, make it some rub. If you are rolling in it, make it a catered cornhole. Whatever fits the situation. I don't think people are getting in for this hoping for a huge payday out of this.
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Problem with that is that we can't write off the trip to NO w/o a legitimate business reason.

 
BassNBrew said:
Bull Dozier said:
Just to muck this up even more with another half baked idea, what is occuring to me is the residual ownership piece seems to be the sticking point in the complication. Personally, I have no idea what the annual "profit" for a restaraunt is. I'm guessing it is not going to be all that high. If I'm doing my math right (and there is a high chance I'm not), if the annual profit is $100,000, each $1000 investment would net $133 at the end of the year. While that is nothing to sneeze at, I'm not sure that is what all these guys are after. I'm thinking they are more after the claim they can make of being an ownership, and being part of the community.

Here's my proposal:

Make the $1000 more like a loan. You can pay them all back the same way you've proposed. However, after the loan is paid back, while the investors still retain some ownership stake, their stake is essentially Green Bay Packer like ownership, no rights, no profits, nothing other than being able to say they are an owner. Come up with some kind of benefit to kick the owerns way if things go good. Some free rub, and special t-shirt with some clever ownership phrase, host a ownership cornhole, catered with your grub of course. Something more than nothing, but nothing more than can be expected when you've already been paid back. If the restaraunt goes ok, make it some rub. If you are rolling in it, make it a catered cornhole. Whatever fits the situation. I don't think people are getting in for this hoping for a huge payday out of this.
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Problem with that is that we can't write off the trip to NO w/o a legitimate business reason.
Click to expand...
Quarterly board meetings, testing of Tipsy to see that he is maintaining proper products, easy to figure something out!

 
In addition to the advice on here related to protecting investors, it's also important to note that Tipsy needs to have proper documentation about these transactions in order to protect Tipsy and his businesses. It only takes one disgruntled investor to start something that could unwind or drain the business - especially if SEC rules are violated.

Tipsy - does your lawyer or accountant have a relationship with any broker-dealers or finders in LA? Given the small amount of money you're trying to raise (and given your local success and accolades), you may be able to find someone locally who will put up the entire amount. Having one person invest (instead of 35+) will greatly reduce the legal headaches associated with the sale of securities (and, by the way, that is what you are doing).

 
tipsy mcstagger said:
Lots to process after reading these posts and a couple of PM's.

I don't really see a big roadblock to making it all more legitimate. I have a lawyer, I have an accountant. I just want to get this train rolling I guess....I follow my instincts and this project had me begging my wife to 2nd mortgage our house and sell a kid to make it happen.

Btw...does anybody want to buy my children? I'd go with the youngest...he is really funny.
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Does this include free ribs and brisket?

 
So much going on.....I'm trying to update but still waiting on a phone call from accountant. Other opportunities out there as well.

Glad I slowed down. There is less hurry than I thought. Will explain later.

 
Aaron Rudnicki said:
Buzzkill. Lawyers and accountants show up and kill all the fun.
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It's way better that they show up now and for free than show up later with lawsuit in hand. IMO get 3-4 qualified investors who want a 6% interest paid back in 3 years. Offer each a small equity stake with clawbacks once loan is paid off. Maybe they end up with a percent each after loan is repaid.

 
mr roboto said:
Aaron Rudnicki said:
Buzzkill. Lawyers and accountants show up and kill all the fun.
Click to expand...
It's way better that they show up now and for free than show up later with lawsuit in hand.IMO get 3-4 qualified investors who want a 6% interest paid back in 3 years. Offer each a small equity stake with clawbacks once loan is paid off. Maybe they end up with a percent each after loan is repaid.
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boring

 
Confirmed, will be there Sunday night 2/22 for an all meats/all sides extravaganza :pickle:

Tell me you're open Sunday's :oldunsure:

 
I am not going to do the space on the west bank it seems. Something better has presented itself and should be confirmed by the end of next week. Probably isn't going to require nearly as much money either.

All local beers on tap

Roof top beer garden

Kitchen

Space for my smoke house

Already has space next door...this is their expansion into much bigger digs.

Opens around Jazz Fest (end of April)

Phase two construction begins immediately after. It will be a music venue the size of a House of Blues I guess....its huge.

:pickle:

 
(Phew hey man that Belle Chasse Hwy concept sounded exciting but I'd say the future is in NO proper as it has been for the last 10 years, the hunger for good food in the crescent seems inexhaustible - and good beer means I won't have to traipse over to Bon temps, this sounds great. Good BBQ & music makes think of Stubbs in Austin, go get em).

 
I agree....NO proper is my home. But the other side of the river is a food desert ...except for the awesome Vietnamese food everyone over here used to have to drive over there for. I would kill it over there.

But...this is easier, cheaper, and the place already has more refrigeration than the current square footage of my restaurant :porked: And....having the permanent smoke house with no neighbors to piss off (they own 3/4 of the block).

Icon saw the photo I took of their crowd yesterday at the current space....easily 500 people hanging out there on a Friday afternoon as they do every Friday.

And the guys that run it and own it....already friends (not close friends...that would be risky no matter what the situation).

Again...so excited I want to pee. I'll fill in all the details once we get a 100% confirmation.

:towelwave: :towelwave: :towelwave:

 
Very cool Tip! Congrats man! Look forward to checking out the new McClure's location. Not sure if you remember, but we brought the craft beer party with us to your spot during bachelor party. Rolled in with like 12 big bottles i think. So you know i'm looking forward to the new place!

 
I think I got this, beyond awesome, makes perfect sense and as a patron (of both places) I am doubly stoked. You are going to kill it, so will they, perfect marriage.

 
Bottomfeeder Sports said:
tipsy mcstagger said:
...

Btw...does anybody want to buy my children? I'd go with the youngest...he is really funny.
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At the rate you are opening up new locations it seems short sighted to me for you to be unloading a decades worth of slave labor.
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I was hoping to trade my youngest to Tipsy in exchange for a small ownership percentage. I get to own a BBQ restaurant, Tipsy gets slave labor, and the kid learns a valuable skill. Win-win-win!
 
Congrats Tipsey. Exciting times! Obviously even more important to stay on top of cash flow and food quality as you expand. Kill it amigo.

 
Had parades start rolling by this weekend for Mardi Gras....the first weekend is much more tame than this coming week (wed, thurs, and sun being 3 of my top 6 days from last year). Yet...the weather was so nice yesterday it turned into a 7 hour parade day and we sold out of everything...i don't even have quarters, dimes, or pennies left in the drawer. All to go boxes gone. All meat in the house gone. All sides gone. 400+ fed in house...with less than 40 seats no less.

Today is going to be rough. Good.

 
tipsy mcstagger said:
Had parades start rolling by this weekend for Mardi Gras....the first weekend is much more tame than this coming week (wed, thurs, and sun being 3 of my top 6 days from last year). Yet...the weather was so nice yesterday it turned into a 7 hour parade day and we sold out of everything...i don't even have quarters, dimes, or pennies left in the drawer. All to go boxes gone. All meat in the house gone. All sides gone. 400+ fed in house...with less than 40 seats no less.

Today is going to be rough. Good.
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CHASE DAT PAPER MAN!

 
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It was rough yesterday. Was kind of anticipating a slower day....last week we only fed about 75 all day monday. Yesterday was 140. I'll take it...but I need more refrigeration :)

 
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