|Minimum Target||$75,000 ?|
|View Key Terms|
Crab Corner has been serving Las Vegas with Maryland cuisine that provides all East Coast transplants a true taste of home since 2010. Specialties include fresh blue crabs, iconic boardwalk fries and authentic crab cakes. After expanding to their new location, the restaurant is looking to continue growing by renovating its patio space and tapping into Vegas’s world famous events market.
Brothers Mark and John Smolen grew up in the heart of Maryland, between Annapolis, Baltimore and Washington D.C., eating the region’s seafood staples. Five years after graduating from the University of Maryland with degrees in finance and accounting, John decided to join his brother in Las Vegas wholesale importing and selling the highest quality, live, fresh blue crabs. As more and more transplanted members of the Vegas community began inquiring where they could get the taste of home the Smolen brothers were selling, Crab Corner was created.
Previously named the best seafood restaurant in the city by the Las Vegas Review Journal, the restaurant has grown a cult-like following of former East Coasters and locals alike for its steamed and J.O.-seasoned fresh blue crabs. They’re served straight onto a butcher paper-covered table with a hammer and bucket, encouraging a social, communal, and casual cultural seafood experience unlike any other in the city.
Akin to the first barbecue restaurant outside of the south, or lobster dinner outside of New England, Crab Corner’s appeal isn’t limited to its food. The restaurant also serves as the de facto Maryland community hub in Vegas, hosting viewing parties of around 100 people for Orioles baseball and Ravens football games — turnouts for which are only likely to increase when Las Vegas receives its first professional football team, the Raiders, by 2020.
John is frequently told by customers that the restaurant smells like home, including by his wife, another Maryland native whom he met when she was visiting the restaurant. Diners regularly strike up conversations with people at other tables and discover they grew up mere miles from each other. The only thing that would make it feel more like Maryland, they say, is being on the water. Everything else the team has managed to recreate.
Crab Corner’s appeal is far from limited to Marylanders though, as the restaurant has also been able to attract a wide range of customers looking for serious seafood in a casual environment. After outgrowing its original location near the airport, Crab Corner opened a second, larger location on Rainbow Boulevard. Following a few years transitionary period, they decided to consolidate the two locations, and the sales followed suit.
The Rainbow Boulevard restaurant also came with a large patio space. When in use, it doubles the length of the bar, most restaurants’ highest profit center, and allows for outdoor dining, which further recreates the ambiance of eating pier side in Maryland. Hammocks make it a pleasant place to relax, and the restaurant regularly hosts events in the exterior space.
Brothers Mark and John Smolen created Crab Corner together in 2010. Beginning in 2017, John has been the sole owner-operator of the business.
Click here to view the Issuer's SEC Form C filing.
Currently the patio is uncovered and only utilized about 50% of the year. Installing a covering, along with the required fire system, would allow the ability to host larger events, and seat more customers year-round. Targeted large private parties around holiday season will help offset the seasonal lull with the ability to utilize this space year-round.
Remaining funds will be used to purchase high dollar items such as crab meat or snow crab in bulk to increase savings for the restaurant and its customers, and any surplus will be used to pay off existing higher interest rate, short-term debt obligations to help improve cash flow.
|Principal||Interest Rate*||Term||Total Payment*|
* Payment for any given month (including the total payment at the end of the final month) indicates the cumulative amount contractually required to be paid to an investor after the end of that month, assuming the loan is not prepaid. This calculation is a mathematical illustration only and may not reflect actual performance. It does not take into account NextSeed fees of 1% on each payment made to investors. Payment is not guaranteed or insured and investors may lose some or all of the principal invested if the Issuer cannot make its payments.
John didn’t come from the world of restaurants, but with his background in finance, accounting, and seafood wholesaling, he prioritizes ingredient quality and has been able to expertly oversee the business side of Crab Corner, making the restaurant incredibly efficient with iPad tableside ordering. Crab Corner aims to increase this efficiency by using some of the investment to order non-perishables in larger quantities.
Crab Corner uses social media to target potential customers, and relies on customers and their 50,000 Facebook followers sharing their photogenic dining experience on their feeds to further spread the word. The restaurant currently has four-star ratings on TripAdvisor and OpenTable, and even higher ratings on Facebook and Google. John also recently began working with delivery services like GrubHub to further expand Crab Corner’s footprint.
Serving a fresh product as its showpiece, Crab Corner is extremely reliant on its supply, which can be affected by winter storms and airline issues, but the restaurant negates some of this affect with multiple deliveries per week and serving non-live items like the best-selling crab cakes. Conversely, to avoid the issue of spoilage, Crab Corner has a text message club. The restaurant can send out promotions and specials to its 13,000 plus subscribers and quickly see people coming through the door for discounted food — a drastically better option than having to throw it out.
John’s on site nearly every day, and the team is highly attentive to all customer feedback no matter the medium. Multiple menu iterations over the years have responded to customer desires, including an expanded selection of offerings aside from seafood to better accommodate large parties where some members may not enjoy seafood.
It’s these larger parties Crab Corner wants to better target. Much of the restaurant’s revenues come from parties of under 12 people, and the slow season is between November and February when many of its regular clientele are on the East Coast for the holidays. By expanding the restaurant, bar, and fully maximizing its patio, Crab Corner will be able to book holiday parties and corporate gatherings year-round, bolstering its business both in the winter months and beyond.
Las Vegas is the events capital of the world, but corporate events and private parties are revenue streams that are currently not being tapped to their potential by Crab Corner. They can’t run the risk of poor weather suddenly forcing an enormous group inside where they’ll struggle to accommodate them at the level of quality they pride themselves on.
Adding a roof to the patio will not only negate this problem entirely, it’ll also allow the bar to remain at maximum capacity whatever the weather, enabling Crab Corner to fully utilize its highest profit center where it sells its most lucrative product: alcoholic beverages. The restaurant currently makes just under 10% of total revenues from bar sales while only able to regularly offer about 40% capacity without consistent use of the outdoor bar seating, making this expansion one of the most pressing and exciting motivators for the covering.
Despite its name, Crab Corner occupies an outstandingly central spot in the desert oasis of Las Vegas (6485 S Rainbow Blvd, Las Vegas, NV 89118). As a somewhat niche and experiential dining establishment, Crab Corner’s accessibility has been a significant factor in its success, as diners from all parts of town can easily reach the restaurant. Most customers drive between three and five miles to visit the restaurant, which is a large distance for Vegas, so the pull is evident.
However, Crab Corner’s current location is most notable for its proximity to the airport. With its roots in the wholesale seafood business and prioritizing of fresh food, the owners understood the need to be physically close to their supply source. The proximity to the airport also makes visiting an even more appealing proposition for the restaurant’s large customer base of East Coasters, who are frequently traveling in and out of the city. Some make a point to eat at the restaurant every time they’re in town.
The Rainbow Boulevard location also sits just off I-215, between the strip and the affluent neighborhood of Summerlin in the northwest, perfectly situated to capitalize on the exciting development that Las Vegas is seeing: An IKEA opened down the road in May 2017, the Las Vegas Raiders’ stadium is projected to open nearby by 2020 after a $2 billion investment, and the Las Vegas Golden Knights showed everybody that Sin City could be a hockey town when they began playing at T-Mobile Arena this year and reached the Stanley Cup Finals.
John Smolen is the 100% owner of Crab Corner II, LLC as of January 1, 2017. John has been the managing partner and in charge of the Crab Corner brand since its creation in 2010. He has a degree in finance and a degree in accounting from the University of Maryland, and worked for 5 years in public accounting prior to leaving corporate America to creating the Crab Corner restaurant. He manages all aspects of the business including finances, menu, and marketing.
Charles Upathambhakul is the General Manager and responsible for all front of house tasks. He ensures a high level of customer service and a productive and happy staff with over 20 years of experience in the food and beverage industry. He has been with Crab Corner since March 2013.
David Hernandez is the Kitchen Manager. He has been with Crab Corner since its start in 2010. He is responsible all back of house tasks including inventory management, kitchen scheduling, food quality and consistency..
August 27, 2018
Our 2018 YTD sales maintain strong growth as this August outpaces the same period in 2017. We look forward to the Vegas weather dropping below triple digits as the summer nears an end. With the return of football season, and as the Ravens Vegas Bar, we are excited to welcome the sports crowd back with our famous Bottomless Sunday Brunch starting in September. We are thrilled with the positive feedback our campaign has generated to date and anticipate an extraordinary finish in the final weeks!
August 16, 2018
Hi all! We’d like to share that our debt obligations have decreased significantly since the launch of our campaign and we’ve updated our disclosure statement to reflect this. The Rewards Network and Can Capital loans are also maturing soon but have no prepayment benefit.
August 1, 2018
Our event on Saturday, July 28th for prospective investors went well! I shared my story about moving to Las Vegas and the evolution of our wholesale business from Maryland to our current location, including how we plan to continue to grow.
We were able to meet with a number of long-time customers and had others show up for the first time based on our segment on Channel 13 news! It was great to see old faces and new faces at such a productive event while enjoying light bites. We look forward to welcoming new & old-timers at Crab Corner!
July 27, 2018
If you’re in the Las Vegas area, please come out and meet the Crab Corner team and learn more about our vision for the business. Please feel free to invite any friends in the area who might be interested in learning more! We look forward to sharing our love of East Coast seafood staples with you!
Event: Prospective Investor Meet & Greet
When: Saturday, July 28th from 6:30-8:30 PDT
Where: Crab Corner, 6485 S Rainbow Blvd Suite 104, Las Vegas, Nevada, 89118
We will be providing light fare, and drinks will also be provided. Please RSVP at our Facebook event so we can properly plan!
June 29, 2018
Everyone – thank you for your interest and excitement so far! We just came off a record Father’s Day weekend with total sales being 25% higher than in 2017. With the transition into summer, we are looking forward to entertaining large groups.