$200,000 invested

148

Investors

7

Payments Made

Revenue Sharing Notes ?

Multiple 1.70x
Maturity 48 months
Minimum Target $150,000 ?
View Key Terms

Cinco TacoBar

San Leandro, CA

  • Next generation taco bar in the East Bay, with hand-pressed tortillas and "make your own" margarita bar
  • Opening 2nd location with projected first-year revenue of over $2 million
  • Strategic partnerships with retail giant Kimco Realty and celebrity restauranteurs Octavio Guzman and Alfonso Guzman
  • This investment is secured by a blanket lien on all assets of both locations

Investment Details

$200,000 invested

148

Investors

7

Payments Made

Revenue Sharing Notes ?

Multiple 1.70x
Maturity 48 months
Minimum Target $150,000 ?
View Key Terms

Company Description

Taco enthusiasts, rejoice! The Cinco TacoBar team ("Cinco") puts more than just a fresh spin on the traditional Mexican taqueria. Cinco prides itself on its delivery of old-world recipes packed with distinctive spices and quality ingredients in a vibrant, inviting and meticulously clean dining experience.

Cinco serves its customers a customizable burrito, taco, or bowl that’s served with uniquely authentic Mexican spices and produce, all on hand pressed tortillas, made to order! Its passionate team is focused on streamlining the experience and ordering process without cutting corners on an incredibly tasty and nutritious meal.

The menu also includes a select number of specialty dishes and sides, balanced with an assortment of mouthwatering Michoacán-inspired sangrias and beverages.

The first Cinco TacoBar location (Vive! Restaurant Group, LLC or "Cinco 1") opened in San Leandro in September 2016. Within 3 months of operations, Cinco 1 has already generated positive cash flow and is poised for over $1 million of revenue.

The second location (Vive! Restaurant Group Livermore, LLC or "Cinco 2") will benefit from the positive momentum and seating and parking areas over twice the size of the original space. An improved menu will include additional alcoholic beverage options, specifically an innovative MargaritaBar (make your own margaritas!) concept that’s newly added for Cinco 2’s larger footprint.

Cinco TacoBar was founded by William Bonhorst and Silvano Hernandez. With a combined 25 years of entrepreneurial experience in the food service and hospitality industry between them, they bring a focus on operations and business savvy that is on pace to drive profitability in the business within its first year.

The team is also supported with strategic partnerships that lend a hyper-local advantage in the SF Bay Area that is markedly unique to Cinco TacoBar.

Industry veterans Octavio Guzman and Alfonso Guzman support the team as mentors and with menu and recipe development. The brothers are the founders and owners of the highly successful La Penca Azul and La Piñata Mexican Restaurant & Tequila Bar chains of restaurants, bringing over 50 years of domain experience to the business.

Further, Cinco has a strategic partnership with Kimco Realty, one of the largest commercial real estate operators in the country. Cinco’s first location was launched in a Kimco property in San Leandro. The landlord is committed to Cinco and will help the business develop and source the best portfolio locations for its growth throughout the San Francisco Bay Area.

The public reception has been highly positive from local media, and Cinco has also built a solid foundation on various social platforms. After just three months in operations, searches for “Tacos” and “Mexican food” in the East Bay (San Francisco, CA) on Yelp both return Cinco TacoBar as the top recommendation.

Search results on Yelp from January 4, 2017

Cinco 1 in San Leandro, CA

Learn more:

Offering Summary

Issuer
Vive! Restaurant Group Livermore, LLC (also known as "Cinco 2")
Entity Type
Limited liability company
Principal Office
3415 Otter Ct.
Hayward, CA 94542
Securities
Revenue Sharing Notes
Offering Amount
Minimum of $150,000 to maximum $200,000
Ownership % Represented by Securities
0%. Investors will not receive any equity interests in the Issuer or any voting or management rights with respect to the Issuer as a result of an investment in Securities.

Use of Proceeds

100% of the proceeds will be used for a full renovation and build out of the interior space (including a new bar and electrical work), a redesign of the exterior facade and working capital.

Capital raised in excess of the minimum will be used for additional working capital for the first year of operations.

Key Terms

Minimum Investment
$100
Revenue Sharing Percentage
9.5% of monthly gross revenue of Cinco 2
Investment Multiple
1.7x
Investors will each receive in the aggregate 1.7x their original investments, as a result of being paid their proportionate shares of the Issuer’s gross revenue on a monthly basis.
Startup Period
Period from the closing through 2nd full month after the closing.
Payments
During the Startup Period, the Issuer will not make any payments. After the Startup Period, the Issuer will make monthly payments based on the relevant revenue sharing percentage.
Maturity
If the investors have not been paid in full within 48 months, the Issuer is required to promptly pay the entire outstanding balance to the investors.
Security Interest
The Issuer and Cinco 1 will grant a security interest in all of their assets in favor of NextSeed for the benefit of the investors to secure the Issuer’s obligations under the Securities.

Total Payment Calculator

Principal Investment Multiple Maturity* Total Payment*
1.70x 48 months $170

This investment has a startup period during which no payments will be made. The first payment is not due until after the second (2nd) full month following closing.

Revenue Sharing Summary*

Beginning after the 2nd full month following the closing, the Issuer will share 9.5% of each month’s gross revenue with the investors as a group until they are paid in full.

Each investor will receive its proportionate share of the monthly payments made to the investors as a group.

EXAMPLE:

Gross revenue in month X
$100,000
Revenue sharing percentage
9.5%
Total payment for month X
$9,500

Assuming that the total amount raised through this offering is $250,000, and Investor A invested $2,500, Investor A is entitled to receive 1.0% of the $9,500 shared with investors for month X. Therefore, Investor A is paid $95 for month X.

* 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

Bonus Rewards

EARLY BIRD REWARD

First 50 investors who invest $500 or more will receive:
  • $25 Gift Card

Invest $100 or more

  • One Free Entree

Invest $500 or more

  • Two Free Entrees
  • Investor Black Card: First Friday of each month, first drink is on us (forever!)

Invest $1,000 or more

  • Two Free Entrees
  • Investor Black Card: First Friday of each month, first drink is on us (forever!)
  • Invitation for 2 to Annual Investor Parties

Invest $2,500 or more

  • Two Free Entrees
  • Investor Black Card: First Friday of each month, first drink is on us (forever!)
  • Invitation for 2 to Annual Investor Parties
  • 2 Vip Tickets to La Penca Azul's 2017 Bay Area Tequila/Mezcal Expo

Invest $5,000 or more

  • Four Free Entrees
  • Investor Black Card: First Friday of each month, first drink is on us (forever!)
  • Invitation for 6 to Annual Investor Parties
  • 4 Vip Tickets to La Penca Azul's 2017 Bay Area Tequila/Mezcal Expo

Business Model

Cinco 2 will be open seven days a week, serving a unique menu of Mexican cuisine for both lunch and dinner.

Cinco’s build-your-own and customized menu is streamlined for speed and efficiency. The restaurant also offers a unique selection of additional dinner plates and sides, as well as authentic and regionally-inspired beverages such as horchatas, sangrias, and agua frescas.

The team anticipates that Cinco 2 will earn 40% gross margins on protein rich food and 45% to 80% on non-protein products and drinks offered by the business.

With its first strategic location, the team has been able to build excitement in the concept and establish a foundation on which to expand. Cinco 1 has exceeded the team’s initial forecasts. With only 800 sqft, the restaurant has been able to produce an impressive $95,000 in monthly revenue without alcohol sales. Cinco 2 will be twice as large and supports a surrounding neighborhood with a higher average household income.

Additionally, Cinco 2 is adding a new "Make your own Margarita" bar to provide a fun, new option for its customers while also supporting its revenue efficiency.

Fun efficiency fact (monthly revenue per square foot):

  • Habit Burger: $58.33
  • Chipotle: $80.25
  • Shake Shack: $94.75
  • Cinco TacoBar: $99.83

The Cinco TacoBar team forecasts over $2.5 million in average annual revenue for Cinco 2.

The business’s cost structure is also streamlined through its strategic relationship with successful Bay Area concepts La Penca Azul and La Piñata brands. Owners Octavio and Alfonso Guzman support the Cinco TacoBar team with their 40+ years of successful restaurant industry knowledge. However, the support extends far beyond the intangibles. Cinco TacoBar has been extended the collective purchasing power of the 10+ Bay Area restaurants of La Penca and La Piñata brands. Additionally, Octavio has had a hand in crafting and optimizing the recipes for Cinco, lending his decades of expertise directly to the team.

Cinco 2, the second location, is the only entity offering and selling securities through this campaign. However, Cinco 1 and Cinco 2 are both granting first liens on their assets to secure Cinco 2’s obligation through this campaign.

Location Analysis

Cinco TacoBar will be operating two separate locations in the San Francisco “East Bay” region.

Cinco 1 (Vive! Restaurant Group, LLC) first opened its doors in September 2016 at 15100 Hesperian Blvd, San Leandro, CA 94578. Sales have been robust since launch, with initial monthly revenue nearing $100,000. Its small footprint (800 sqft) makes the large revenue figures even more impressive.

Cinco 2 (Vive! Restaurant Group Livermore, LLC) is also located in a Kimco Realty property, continuing the business’s relationship with the large commercial real estate partner. It is located at the corner of First St. & Las Positas Rd in Livermore, CA. This property is a 104,465 square foot commercial retail center located off of Highway 580. The center, located in an affluent residential community of the Bay Area, includes nationally recognized anchors and a strong tenant mix. Tenants include Target, TJ Maxx, Big 5 Sporting Goods, and FedEx Office. A Shell gas station is also directly adjacent to the space, providing additional traffic.

The larger footprint (over 2,000 sqft) in Cinco 2 allows for plentiful seating and a full margarita bar to support larger revenue goals. Also, the unit is positioned in a corner location where a previous Taco Bell had operated for many years. The prior tenant vacated because of the lack of a drive thru, leaving behind a great space and a kitchen and infrastructure that’s perfect for Cinco TacoBar’s operations.

Founded in 1869, Livermore is one of California’s oldest wine regions, marked by award-winning wineries, farm lands and ranches that mirror the valley’s western heritage. The City of Livermore is the easternmost city in the San Francisco Bay Area. Insulated by the coastal range, the Livermore Valley boasts a mild climate that enhances the relaxed lifestyle enjoyed by its residents. In close proximity to renowned science and technology centers, Livermore itself is also a technology hub with an academically engaged community. It has become an integral part of the Bay Area, successfully competing in the global market with its wealth of research, technology and innovation.

Within a one-mile radius of Cinco 2, the median income is approximately 197% greater than the national average, and average expenditures are approximately 135% greater than the national average. The median age is slightly lower than the national average with total population steadily increasing. (Piinpoint)

The green flags in the map below represent other Mexican restaurants in the area.

Ref: Piinpoint

Leadership

Silvano Hernandez, Co-founder

Silvano has fifteen years of experience in the food and restaurant industry. He has spent nearly his entire career helping to build and grow the La Penca and La Piñata brands in the Bay Area, and he’s taken on almost every front-of-house and back-of-house role. He got an early start bussing and waiting tables, bartending, working the kitchen as an aid and prep and chef, and eventually began managing one of the Bay Area’s busiest restaurants with 72 employees and annual sales of $4.8 million. His expanded role as Marketing Director also helped develop a new area of expertise and continue supporting La Piñata’s growth.

Silvano prides himself on the route he’s taken, giving him a unique set of skills to succeed in an ownership role. His innate curiosity and energetic personality drive him, both as an entrepreneur and proud father. Silvano is a self-proclaimed tequila and mezcal connoisseur, a “taco snob,” and a certified mixologist.

William Bonhorst, Co-founder

Before launching Cinco TacoBar, William built a career in hospitality and service companies. His experience ranged from heading up HR for a startup in mobile app development to handling a portfolio of services for a Fortune 500 corporation. William has managed organizations of various sizes, allowing him to a develop an aptitude for creating and managing processes with people, operations, and analytics. This has translated directly into Cinco TacoBar’s strong operational efficiency and relentless focus on the bottom-line.

William’s educational background includes a BA from California State University Los Angeles and an MBA and SCPM from Stanford University.

Octavio Guzman & Alfonso Guzman, Mentors

Octavio and Alfonso are the brothers and co-owners of La Penca Azul and La Piñata brands. These restaurateurs have generations of industry knowledge, and they have expanded their scale to 10+ locations over the past thirty years.

Octavio Guzman has helped Cinco TacoBar construct a scalable menu that is both delicious and highly efficient. He’s also a celebrity chef for the Golden State Warriors.

History

September 2016
Cinco 1 opened in San Leandro, CA
January 2017
NextSeed campaign launched
Est. July 2017
Cinco 2 to open in Livermore, CA

March 4, 2018

We Opened!

We officially opened February 16th at 11:00 am. We have had a line out the door every day: Livermore locals have gone loco for Cinco! We will also begin making payments to our NextSeed investors effective this month according to the terms of our agreement.

In addition, we have completed bonus reward fulfillment for all vouchers. We will be providing updates in the near future for the remaining bonus rewards: Investor Black Card, Investor Parties, and VIP Tickets. If you have any questions please contact us at info@cincotacobar.com.

January 29, 2018

Update from Cinco TacoBar

Hello NextSeed Investors,

Thanks for hanging in there, Cinco TacoBar Investment Team! In January, we soft opened for a week and then tweaked some of our internal operations from what we learned.

We are hiring like crazy and training new staff at both locations to get them ready. The public grand opening is being planned for early February and tentatively includes the mayor.

January 26, 2018

Time-lapse Video of Cinco TacoBar Mural

Check out our video time-lapse below!

December 28, 2017

Update From Cinco Taco Bar

Thanks for hanging in there Cinco TacoBar Investment Team! Believe me, great things are in the future for this brand and it’s because of each and every one of you. Thank you.

We are proud to announce that San Leandro Mayor Pauline Cutter presented the Cinco TacoBar team with the 2017 Small Business of the Year Award!

 

The opening of Cinco TacoBar Livermore is imminent. Mayor John Marchand and the city’s Economic Department have enthusiastically committed to cutting the grand opening ribbon in January. We are working to identify the best date to maximize press exposure. We have been playing with bar & kitchen configurations and the final ABC inspection pushed our launch date back a few weeks. We will open the doors to the public the first week of the New Year. Final pictures will be sent over once we launch to max out on the opening excitement!

We hope everyone had a great holiday and want to wish you the best New Years Ever! Invites for our investor thank you party will be sent out in a few weeks. Tacos and Tequila for all 😉

December 1, 2017

Update from Cinco TacoBar

Feed me tacos and tell me I’m pretty! The entire Cinco TacoBar team is extremely thrilled to wrap up our build out in just a few weeks.

Our final inspections and approvals are just around the corner, and our soft opening is scheduled for early December. We will blast out some pretty pictures at the end of the month and feed our friends, family, and investors as we launch.

Stay tuned – the Team is on a Mexico Inspiration Taco Tour (photo inspiration below) and will bring back some spice!

 

October 31, 2017

Update from Cinco TacoBar

We recently launched our website on October 1st to accommodate the overwhelming amount of catering requests which are now handled all online and are also anticipating an early-December opening. We are also launching our #LiveForMore marketing campaign in a few weeks in anticipation of our “Livermore” launch which is slated for mid-November. Please stay tuned for pictures and more details in the coming weeks!

Happy Halloween!

 

August 21, 2017

"A Couple of Guys with a Taco Dream"

 

Cinco TacoBar made the Top Ten List in the August Food Edition of SF Magazine! In addition, all our meal voucher reward gift cards and early bird gift cards have been distributed via email and can be used at either location. The distribution of investor black cards and invitations to our Winter festival will be made prior to opening!

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