Revenue Sharing Notes ?
|Minimum Target||$250,000 ?|
|View Key Terms|
|Minimum Target||$250,000 ?|
|View Key Terms|
In the six years since its founding, Buffalo Bayou Brewing Company (“Buffbrew”) has grown and cultivated a craft brewery that is not only substantial in size, but even more importantly, substantive in quality. Their independent and relentless, boundary-pushing approach to craft brewing has resulted in an unmatched 70 innovative beer varieties and a business that is now Houston’s largest self-distributing brewery. Buffbrew has outgrown its brewing space, and it has heard the resounding demand for a dedicated taproom and event space. The team recently announced its new location at Sawyer Yards (see Chron, Eater, HBJ), which will encompass both an expanded brewing facility as well as an opportunity for the community to invest in the new Buffbrew Taproom LLC ("Taproom"). Buffbrew Taproom will be a new business that operates two bars on-site, a full-service kitchen, as well as a VIP room and event space for group reservations and larger gatherings at the new location.
Over the years, Buffbrew has developed a lineup of products that has drawn an adventurous community. Its brewing methods have applied cutting-edge technology, technique and unique flavor profiles to achieve a unique and superior taste that the team is extremely proud of. As important, its self-distributing model gives the business a degree of independence and control over its product that no other Houston brewery has matched.
The new Sawyer Yards location will allow Buffbrew the space to make beer and host guests in a beautifully and thoughtfully designed home. Standing three stories tall with over 28,000 square feet, the brewery will welcome a steady flow of beer enthusiasts, 7 days a week. The cornerstone of this experience will be the state-of-the-art Buffbrew Taproom, with over 40 beers on tap and a full-service kitchen serving up an elevated bar food menu.
The team’s partnership with Method Architecture has been a process in staying true to the beloved elements of Buffbrew’s current home on Nolda Street – an immersive, picnic-tables-on-concrete feel – while creating a new, unparalleled scenic view.
The main taproom will reside on the second floor. On one side, customers will be met with 30 feet of large, plate glass windows that directly overlook the tanks and brewers at work – a true tank-to-table, or tank-to-tap, experience. In line with its “Urban Brewery” designation, taproom patrons will also face magnificent Houston views with over 50 feet of downtown-facing windows. With no taller buildings standing between the brewery and downtown, the city’s skyline will make for a beautiful backdrop for private events, holidays, and any other reason to spend an evening on the rooftop patio or party room.
Breaking ground this winter, the Buffbrew Taproom is expected to open at Sawyer Yards at the end of 2018.
Click here to view the Issuer's SEC Form C filing.
BuffBrew expects the complete buildout of the new building and brewery to be a $14 million project. The scope of the Buffbrew Taproom is $3.4 million. Buffbrew is committed to financing the total project, while opening up a portion of the financing for BuffBrew Taproom through NextSeed.
100% of the funding proceeds will be used towards the buildout of the new Buffbrew Taproom facility. The spend includes construction as well as the purchasing of equipment, furniture and supplies.
|Principal||Investment Multiple||Maturity*||Total Payment*|
|1.70x - 1.90x||78 months||$170 - $190|
This investment has a 6-month startup period during which no cash payments will be made. The startup period commences the first full month after the offering’s close.
After the end of the startup period or once the Issuer commences operations (whichever comes later), the Issuer will share a percentage of each month’s gross revenue with the investors as a group until they are paid in full. The total amount raised by the offering will determine the Investment Multiple and the monthly Revenue Sharing Percentage.Total Raise Amount: $250,000 - $400,000
Each investor will receive its proportionate share of the monthly payments made to the investors as a group.
Based on the Total Raise Amount, the Issuer will share 4.0% of its revenues for the first 12 months of operations and then 7.0% of revenues thereafter, until the 1.70x Investment Multiple is reached.
Let’s assume that the Issuer generated $100,000 in revenues in month 9. The issuer will make a $4,000 payment ($100,000 x 4% = $4,000) to investors. Since you invested with 1% of the total amount raised ($5,000 / $500,000 = 1.0%), you would receive a $40 payment.
Based on the Total Raise Amount, the Issuer will share 4.0% of its revenues for the first 12 months of operations and then 13.5% of revenues thereafter, until the 1.90x Investment Multiple is reached.
Let’s assume that the Issuer generated $100,000 in month 24. The issuer will make a $13,500 payment ($100,000 x 13.5% = $13,500) to investors. Since you invested with 0.5% of the total amount raised ($5,000 / $100,000 = 5.0%), you would receive a $67.50 payment.
* The calculations above are mathematical illustration only and may not reflect actual performance. They do not take into account NextSeed fees of 1% on each payment made to investors. ... Read More The exact length of time that it will take the Issuer to pay each investor in full cannot be known in advance since the Issuer's actual revenues may differ from its reasonable forecasts. If any balance remains outstanding on the maturity date, the Issuer is contractually required to promptly pay the entire outstanding balance due to each investor. Payment is not guaranteed or insured and investors may lose some or all of the principal invested if the Issuer cannot make its payments. Read Less
The Buffbrew Taproom will generate revenue streams from restaurant sales, tap sales, beer garden sales and facility tour and event sales.
Guests will stampede to the taproom to taste flavors and varieties of craft brews that just don’t exist elsewhere, putting more beer into more hands than ever before. The state-of-the-art facility will offer more than 40 Buffbrew taps.
Operating 7 days a week, the space will be open for lunch and dinner daily with extended weekend hours. By comparison, the taproom at Nolda is currently open only twice a week and with less product and no food.
There will be three distinct tap areas woven into the brewery at each level. On the first floor, a dedicated bar will be positioned next to the tanks to give visitors an old school brewery feel with access to a patio with outdoor seating. Situated on the building’s second floor, the main taproom is designed to be a fully immersive Buffbrew facility adventure. The brewing tanks will be centrally located to provide a theater-in-the-round experience. Large glass windows will allow guests to at once enjoy brews and view the brewing process. Finally, a third floor roof deck and VIP event space will maximize the position of the taproom. The views from the space will be a tremendous draw for private events and social gatherings. Reservations will be a source of business for the patio space and the party room.
The taproom also sits adjacent to the full-service kitchen. The chef and menu have yet to be finalized, but the concept will feature an elevated bar menu that will seek to match the creativity of the brewery. Restaurant seating will accommodate over 200 guests with an additional 25 seats at the bar.
The new facility will be located at 2101 Summer Street, Houston, TX 77007 across from Winter Street Studios. Its position places it in the heart of Houston’s First Ward and at the entrance of Sawyer Yards.
“First Ward radiates creative energy,” says founder and CEO Rassul Zarinfar of the new location. “There is Genius literally bouncing off the walls! It’s humbling and inspiring to join the incredible ecosystem they’ve built at Sawyer Yards. We’ve never played it safe, we’ve never cut corners, we’ve always challenged ourselves and our fans to push past the common expectations and through to the next big idea. There is literally nowhere on the planet that I would rather build our future home.”
Sawyer Yards is the premier hub for Houston’s artist and tech innovators. Located near Downtown, Sawyer Yards boasts one of the largest creative campuses in the nation. Its 40 acres of boutiques, galleries, restaurants and fitness studios host frequent community events and have breathed new life into the historic First Ward. Where better a place for Houston’s Most Creative Brewery than smack within its creative nexus. As Buffbrew founder Rassul Zarinfar notes, “This is super intimidating y’all, but we’re so excited to play with you. When you’re surrounded by hard-working geniuses, you have to bring you’re A-game every day.”
Existing commercial businesses and independent work spaces will generate steady traffic into the Buffbrew Taproom, an excellent after-work or weekend destination. The regular public programming from state-recognized Washington Avenue Arts District also brings higher numbers to the ever-exciting area.
The Sawyer Yards location will additionally cater to the adjacent Heights, a fast-appreciating residential area of single-family homes. The Heights is well-known to be one of Houston’s most walkable districts with many Houstonians flocking to its parks and trails. The scenic Heights Hike and Bike trail runs from Nicholson Street and 26th to the White Oak Bayou Greenway in downtown. This immensely popular trail brings a vast number of year-round hikers and bikers through Spring Street, within 3 short blocks of the brewery and taproom. The bulk of Heights’ residents fall into the 25-54 years age-range with a median household income of $82k/year aligning squarely with the craft beer clientele.
Rassul went to Rice and double-majored in Poetry & Beer. Luckily the latter had career options. In the decade before founding Buffbrew, his experience spanned all three tiers of the Beer Industry. He bartended & homebrewed in college. Upon graduation, he worked his way from Route Salesman to Sales Analyst for the top brass at Silver Eagle Distributors (one of the largest wholesalers in the country). After getting an MBA at Harvard Business School, he joined one of the top 25 craft breweries in the country, helping them turn around & prepare to sell an under-performing distribution subsidiary. In 2010, he started building Buffbrew because no one in Texas was taking creative risks & exploring flavor theory. Rassul delivered every keg out of his pickup truck for the first six months before finally hiring a second sales employee, and still brags about how they’ll have to pry the dolly from his dead hands (to which the drive team responds: “With pleasure”).
Ryan is the mad scientist behind all of Buffbrew’s forward-thinking flavor combinations. He started his beer career on the kitchen side of a brewpub (hence his culinary approach to beer). What started as a side gig to help a busy co-worker turned into a crazy logistics nightmare as he suddenly became responsible for all brewery operations for three locations spread 94 miles apart. Ryan & Rassul met at Uncle Buck’s in Grapevine, where Ryan had tricked the GM into buying barrels under the furniture budget and filled them overnight while the boss wasn’t looking, proving that creativity cannot be stifled even in the most corporate of settings.
Alex leads special project initiatives and production process engineering at Buffbrew. His analytical thinking and abstract problem solving—not to mention an intense passion for craft beer—allows the brewery to grow production in an increasingly complex and demanding market. Griggs joined Buffbrew in 2016 after ~10 years as a global project manager at Exxon Mobil, with projects spanning 3 continents. He holds dual degrees in Mechanical and Civil Engineering from Purdue. When we first interviewed Alex, we asked him how he deals with uncertainty. He told us about the time Pirates boarded his rig in Africa and tried to hold the staff hostage. What did he do? “We had anticipated that possibility, and already had a plan for Pirates. So we stuck to the plan and it all worked out just fine”. So yeah, he’s the guy managing the entire design & construction process. This is the smallest project he’s ever managed.
Troy has 34 years of experience in the Hospitality & Beer Industry, and manages Buffbrew’s Sales Team. His experiences spans the full spectrum from ultra-corporate (TGI Fridays, Dave & Busters) to ultra-independent (Petrol Station, Brews Brothers). He met Rassul at Petrol Station over the first ever test batch of Gingerbread Stout a year before Buffbrew opened. Troy joined the team in 2014 and is widely known for giving the best hugs in the world. When Rassul goes places wearing the Buffbrew logo, 99% of the time people say “Buffalo Bayou? You work with Troy! Tell him I say hi!” and Rassul is not at all annoyed by this. Ever. Seriously, totally cool with it.
Tre has been with Buffbrew since Day One. He has a PhD in biochemistry from the University of Texas M.D. Anderson and runs all of Buffbrew’s daily brewing operations. While in school, he ran the taproom on the weekends, and upon graduating he traded the monotonous academic life of microscopes and labs for the exhilarating brewing life of squeegees, microscopes and labs. After piloting the Quality Control department at Buffbrew, he grew from Cellar Manager to Brewery Operations Manager, and is now in charge of all staffing and all production.
November 1, 2018
While the hot & humid Houston summer transitions into the hot & humid Houston fall, we are full steam ahead as we conclude the first complete month of construction on the new brewery. With an already strong sales & production month boosted by a deep Astros’ playoff run and local Houston artist performances at the taproom, we look to capitalize on tremendous momentum heading into a November chock full of special releases and construction milestones.
An update was sent out to our investors. For the full update please check your investor emails from firstname.lastname@example.org!
September 25, 2018
We are beyond excited to experience with all of you what is one of the most important months in the history of BuffBrew. Everyone’s hard work, support, generosity and love is finally coming to fruition as we lift that first shovelful of earth and break ground on the new facility this week! Additionally, we participated in the nation’s largest craft beer festival, Great American Beer Fest in Denver, and Brewmaster’s Beer Fest in Galveston, one of the largest and most highly rated beer festival’s in Texas with two more festivals still to come this month.
Best in Show (According to our Moms)
In addition to being one of our busiest months sales and production wise, September sneakily overtook May as the new king of festivals. With excellent booth showings at Brewmaster’s and Great American Beer Fest, we still have Texas Craft Brewer’s Fest in Austin and Houston Oktoberfest on September 29th.
The calm before the storm
800 breweries, 4,000 beers & 62,000 attendees yet we kept the longest line in our section the entire event!
The team looking chipper and ready for their 5 am flight back to Houston!
Finally, the moment we have all been waiting for. This week we are breaking ground at 2101 Summer Street; putting the shovel in the ground and moving the first heap of earth. This day represents so much for all of us, it is impossible to convey how appreciative and grateful we are for all your support. We wanted to make this event as big in real life as it is in our hearts and minds, but unfortunately mother nature has been less than agreeable to our partying plight. Due to the preceding and projected rain, we are going to scale down our original ceremony, but we still want to share with you all that is happening!
Just Around the Corner
As we get ready to conclude a September that is chock full of milestones, we want you all to know that this is just the tip of the iceberg. We are producing and selling more beer than we thought we could. There are more people in Texas drinking BuffBrew than ever before. Construction is beginning on the new brewery, taproom and restaurant. While we are all blown away by what is happening right now, the best is truly yet to come, and we can’t wait to experience it with all of you.
Thank you, we’re all looking forward to having beers with you again soon!
July 10, 2018
An update was sent out to our investors. For the full update please check your investor emails from email@example.com!
March 14, 2018
We want to thank our investors for helping us reach our maximum funding goal of one million dollars! Buffbrew Taproom is closing this offering early with a new closing date of 3-21-2018. If the Taproom is under its maximum funding goal, the campaign will continue to accept investments until the new closing date. Investors can cancel investments until 48 hours prior to the closing date.