Revenue Sharing Notes ?
|Minimum Target||$150,000 ?|
|View Key Terms|
|Minimum Target||$150,000 ?|
|View Key Terms|
Oakland Rec Club (ORC) is the newest project conceptualized by owner Sky Wegman dedicated to the vibrant, social and creative local community in Oakland. Sky started bartending in the East Bay in the late 90s and has launched and co-owned several successful joints in San Francisco over the past 12 years. Since 2015, Sky has been working on bringing ORC, his biggest endeavor yet, to life in Oakland – a place he has called home for nearly twenty years.
Ranked by Forbes as America’s 13th fastest growing city in 2016, Oakland is undergoing a period of unprecedented growth. With 8 straight years of economic growth since 2009 and unemployment at 3.5% (versus 4.5% nationwide), the local economy has benefited from the spillover of the Bay Area tech boom and a significant investment by the local government to develop a robust small business economy. The economic vibrancy and convenient transit system (accessible by car, ferry, bike, and public transport) have attracted people and businesses across the bridge looking for better and more affordable alternatives to San Francisco.
The New York Times included the East Bay on its list of the top 52 Places to Go in 2016 (ranked 39th globally), and USA Today named Oakland one of 2016’S 10 Best Local Food Scenes in the country (ahead of both San Francisco and Los Angeles). The growing affluent consumer market and incredible new culinary talent are continuing to fuel the expansion in the local food and nightlife scenes.
Living in Oakland, Sky recognized the strong demand for nightlife options amidst the ongoing robust development in his own side of town. Drawing from his decades of experience bartending and running bars in both the East Bay and San Francisco, Sky conceptualized ORC to bring a uniquely inclusive social experience to Oaktown. He secured the location in 2015 and began collaborating with a team of experienced local bar and restaurant veterans to carefully curate an experience that the team felt was missing.
Centrally located in the heart of downtown Oakland with nearly 9,000 square feet of space, ORC will be a one-of-a-kind upscale bar, restaurant, and billiards club offering Oaklanders and downtown professionals a fun night out on the town. The menu will feature a unique array of creative and satisfying dishes served all day, and the drink list will focus on a core set of quality cocktails and seasonal specialties sure to please and surprise even the most discerning patrons. These patrons can also socialize over a dozen pool tables, shuffleboard and other recreational bar games. The food and drink menu will see regular monthly and seasonal turnover, and a portion of the mezzanine will be allocated as an entertainment space for buyouts or other house-sponsored events.
Owner Sky Wegman has over 19 years of industry experience as a bartender as well as the proprietor of some of the Bay Area’s best known bars and venues. His track record as an owner includes 83 Proof (Thrillist), The Dogpatch Saloon (Eater, UrbanDaddy), and Hopwater Distribution (Eater).
With Oakland Rec Club, Sky has drawn upon the knowledge he gained from his years of success in the hospitality field to create an exceptional experience for patrons that is uniquely Oakland. The leadership of ORC has spent the last two years building out the infrastructure and forming the team necessary to make Oakland Rec Club a thriving addition to the community and a positive contribution to the city of Oakland.
Construction is underway, and is anticipated to be completed in July 2017.
Click here to view the Issuer's SEC Form C filing.
100% of proceeds from NextSeed will be used to cover the buildout of the new bar and eatery. Any funds raised in excess of the minimum will be used towards working capital and additional decor.
|Principal||Investment Multiple||Maturity*||Total Payment*|
Once the Issuer commences operations, it will share 7.5% 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.
If Investor A invested $4,000 of the $400,000 that was raised by the Issuer, Investor A is entitled to receive 1.0% of the $15,000 paid to investors for month X. Therefore, Investor A is paid $150 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 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
Oakland Rec Club will feature a unique business model that allows it to capitalize both on daytime and evening foot-traffic. During the weekdays, Oakland Rec Club will be open during lunch hours, featuring a select lunch menu to provide refreshing and convenient options for working professionals in the downtown area. Evenings and weekends will feature a full kitchen along with a best-in-class bar, providing patrons with an upscale yet relaxing way to catch up with friends and colleagues. Additionally, game tables (with minimal maintenance cost) utilized by patrons will give ORC another revenue stream beyond food and beverage sales. Lastly, due to the large size of ORC and uniquely central location to various corporations, additional revenue streams will be available via opportunities to rent out the space for private events.
With the heavy increase in companies and employees moving into Oakland over the past decade, there’s a tremendous demand for lunch options. ORC will be open from noon to 3pm to serve lunch to the local professional workforce. Every restaurant and cafe in the immediate vicinity has heavy traffic during the traditional peak lunch break hours.
Frequently, take-out lunches are a fact of life for many of these individuals and therefore an added component of ORC’s midday service. A quality take-away program will allow ORC to increase sales far beyond the physical capacity of tables and chairs in the space. Many nearby restaurants succeed with limited hours that exclusively support lunch, but ORC’s overall concept extends far beyond this.
The bar program will carry weekday business from post-business hours through the end of the night. ORC expects the first happy hour push to take place at 5pm as many workers flow from local buildings looking for a social environment or a nice cocktail with which to wind down. ORC is located one block from a major transportation BART hub at 19th street, so a secondary busy happy hour period will be seen as local residents who work across the bay in San Francisco climb the stairs exiting the station. Weekend evening business is expected to be strong in this bar-hopping neighborhood, and in addition to a customary weekend party crowd, the draw of major national and international bands performing at the nearby Fox Theater and attendees of the monthly First Friday street fair celebration will add to the business's numbers. The kitchen is expected to shift focus away from a full meal service concept at this time, moving to a creative shared plate and small bite concept. Leaning on items with bigger margins, the goal here is to keep patrons satiated and promote an extended stay at the bar, while limiting the expense of an over-staffed kitchen on payroll.
Finally, game tables give ORC another big revenue source in various capacities. Most obvious is the $12 to $16 per hour charged for table rental. Aside from annual table maintenance at approximately $400, little needs to be spent by ORC to support this revenue stream. The soft revenue brought in from this direction is driven by the increased customer draw the tables provide as well as the reflected bump in liquor revenue.
ORC intends to establish a house-bottled cocktail program with an eye toward serving the mezzanine pool tables. The benefits of pre-batched and aged house cocktails are two-fold. Aging can soften a cocktail’s sharpness adding layers of flavor, but also provide a more streamlined effect on labor. If customers can purchase a large cocktail bottle for all the players at a table then time spent mixing cocktails can be reduced, allowing a greater number of patrons to be served quickly and efficiently.
Oakland Rec Club is located at 1618 Franklin Street, Oakland, CA 94612, in the heart of the thriving uptown district, home to top Bay Area music venues, collections of quality bars and restaurants, and various major local and national employers. Located between 17th & 15th Street, this site is easily accessible to the freeway and within close proximity to BART. Additionally, Oakland Rec Club is close to City Center and there is ample pedestrian foot and vehicle traffic in this area.
Among the many new developments planned for the neighborhood are two 30-story residential high rises already under construction, both just a block away from ORC in opposing directions. Several commercial and residential projects are currently in the works as part of the downtown Oakland revitalization, with over 600,000 square feet in commercial and residential development already underway. In addition, the local workforce demographic is set for a noteworthy increase. Pandora Media, Kaiser Permanente and Clorox are already located just steps away.
Included among the many businesses relocating to Oakland are Blue Shield, Sierra Club, and the present city-block-sized $100 million transformation of the old vacant Sears building into the Uptown Station, just a 5-minute walk from Oakland Rec Club.
To find a large collection of pool tables alongside food and drink, residents must travel to the surrounding cities of Emeryville, Berkeley and Hayward.
Ranked by Forbes as America’s 13th fastest growing city in 2016, Oakland is undergoing a period of unprecedented growth. The local economy has benefited from the spillover of the Bay Area tech boom as well as significant investment by the local government to develop a robust small business economy. Unemployment has fallen to 3.5% (v.s. 4.5% nationally). The economic vibrancy, affordability, and convenient transit system (accessible by car, ferry, bike, and public transport) have attracted people and businesses across the bridge looking for better alternatives to San Francisco.
The New York Times ranked Oakland 39th of the top 52 Places to Go in 2016, globally. USA Today named Oakland as one of the 10 Best Local Food Scenes of 2016 (outranking both San Francisco and Los Angeles). The growing affluent consumer market and incredible new culinary talent will continue to fuel the expansion in the local culinary and nightlife scenes.
Within just a half-mile radius of the location, population growth in this area is expected to increase by approximately 25% in the next ten years. Average expenditures of approximately 115% are slightly higher than the national average. (Piinpoint)
ORC will be located in Downtown Oakland
Sky has nearly two decades of experience in the local bar and restaurant scene. After learning the ropes at Johnny Love’s in 1998, he bartended his way around the East Bay for seven years. In that time, he saw how different owners were cultivating the right vibe within a space, and most importantly, he learned how to operate a profitable operation by effectively managing costs. Since 2007, he has been one of the principal partners at 83 Proof, followed by launches of The Dogpatch Saloon and Hopwater Distribution.
ORC is Sky’s newest concept to date, and it will be his first solo project - close to home and close to heart. Sky has been a long-time resident of the East Bay. After graduating from the University of Washington (Seattle) in 1998 with a B.A. in International Studies and History, he returned to the Bay Area and finally settled in Oakland. Sky also has an M.A. in Industrial Design from the University of California San Francisco.
September 24, 2018
As of Wednesday, September 5th, we have been open to the public! This week we are in full swing and look forward to meeting each of you.
Thank you to each and everyone of you for believing in us, sharing your kind words during our journey and stopping by our Labor Day Luau. It was an absolute blast! Once we are fully situated, we will begin to prepare bonus rewards for you. Please stay tuned for future updates.
August 31, 2018
A recent update was sent out to our investors. For the full update please check your investor emails from firstname.lastname@example.org!
August 31, 2018
We are thrilled to announce that after a lengthy and trouble-plagued build out, we are finally preparing to open our doors!
For the investors that qualify for the pre-opening invitation bonus reward, I will be sending a separate invitation to each of you with the details, later today. The celebration will take place on Labor Day, Monday, September 3rd; the short turnaround is because we anticipate opening our doors a few days after!
We look forward to sharing pictures of the space once we are officially open.
As always, thank you for believing in our vision. We can’t wait to meet & thank each one of you!
August 6, 2018
We are nearly complete! While we resolved the urgent issues from last month as explained in my previous update, over the past few weeks we have been waiting on our fire sprinkler inspection — the delay is due to the fact that our fire sprinkler inspection is contingent on the entire building passing its fire inspection, which is the responsibility of the landlord / building owner. We have been asking and pushing the landlord to get the building fire inspection completed as soon as possible, and hope that will be resolved in the near future. Passing the fire inspection will allow us to complete final inspections for formal opening.
The bar area is completely finished, and we’ve just been waiting for the final inspections to clear before we can finish installing all the art and furniture (some pictures below)
We are so close, and we are continuing to do everything we can for the opening. Thank you for your continued patience!
June 19, 2018
We have been trying to separate out city permits between the ground floor and the mezzanine in order to get the doors open more quickly. This process was extremely difficult, but coordination between the city planning department, our contractors, the building owners and their architect finally helped achieve the goal. We already have our liquor license in hand, and the overall venue construction (including kitchen) is substantially complete, pending finalization of the ADA-related issues.
At this point, we anticipate starting the final permitting process within the next week. If all goes well, we should finally be looking at a July opening. Please know that I am giving this project everything I can financially, physically, and emotionally to create a great business which we can all enjoy once it is open. Thank you again for your patience as we work our way through these few unforeseen issues.
For the full update please check your investor emails from email@example.com.
May 1, 2018
We are still moving along. We are currently finishing up the low voltage and music system installation, bar foot railing and other small details. I am trying to sort out a few small back bar equipment installation errors, however, this is nothing major. The biggest thing we are currently working on with the building owners is to get the main floor approved and open before we get into the mezzanine buildout. Stay tuned for more to come next month!
April 4, 2018
The name of the game today is progress, so much progress. Our kitchen & bar equipment has been delivered and installed. The bathroom fixtures are all in place now and we just need to put up the stall dividers. The flooring installation is underway and beginning this week we will sand, stain, and seal.
We’ve had to turn our attention back upstairs a bit. The temporary certificate of occupancy strategy that was going to open the main floor while we completed the mezzanine is a little in question right now. We are working instead on getting about half the mezzanine functional at opening, with the rest hopefully shortly behind.
We anticipate opening in Summer of 2018 and look forward to the next few months of more progress.
February 20, 2018
Thank you for your patience while the Payback was experiencing some unexpected delays. I am pleased to inform you that we have resumed final construction at this time!
We are wrapping up the bathroom fixtures and adding a little bit of light carpentry work. It took about a week, but all the kitchen and bar equipment is scheduled for delivery this Wednesday & Thursday. I’m finally able to work on some aesthetic elements as well that will create the right experience at the Payback.
We still need to lay down new flooring, purchase furniture and finish up the sound system – I’m looking into some acoustic panel options. My general contractor was gone last week, but I hope to receive an updated timeline this week upon his return.
Conservatively, we are targeting an open date in May, and in the meantime, we will continue to keep you informed with our progress.
Thank you again for your support during this process.
– Sky Wegman
January 8, 2018
We’ve undergone some significant changes that have paused the final phase buildout of The Payback. The extent of those details have been sent out to all our investors, please be sure to check your email.
Contact firstname.lastname@example.org if you have further questions or did not receive an email update.
October 20, 2017
We’ve undergone some significant changes and have had to pause construction which has pushed our opening date to December. We also received a gentle request from our neighbors to reconsider our name, given the concern that it could be mistaken for a gym that kids might seek out. Taking this concern seriously, we have changed our name to “The Payback”. The somewhat obscure reference actually pays homage to Benjamin Franklin, which is befitting of our address on Franklin Street.
Investors can check their email from The Payback for an extended update.
August 15, 2017
Many projects are ongoing with tiling and painting underway and equipment delivery soon to follow. Installation of the 1,000 amp electrical panel in the basement has also begun. The space is beginning to show some character now!
May 24, 2017
May 16, 2017
We’re re-working the menu with some exciting new items! Here are a few highlights from various sections. More updates coming!
* Crispy Chicken Skin: pickled jalapeño tartar, oyster, cocktail sauce
* Potato Skins: raclette, pickled onion, gherkin, pomme puree
* Tater Tot Takoyaki: octopus crisps, takoyaki sauce, kewpie mayo, togarashi, wasabi greens
CHEESE & CHARCUTERIE SERVED WITH CROSTINI
* Tomales Farmstead Creamery, Teleeka (cow, goat, sheep): blackberry oregano preserves, walnut, honeycomb
* Pork cheek and beef tongue terrine: pickled green strawberry, lovage oil
THINGS ON BREAD (Artisan Baguette Toast, The Loaf with tha most)
* Hard-boiled egg, pickled vegetables, anchovy
* P’tit basque, chorizo, dates, romesco
PLATES (No apps, entrees, or rules. Order one, two, all. Pass around and share… or keep for yourself)
* Brentwood Corn: parmesan, bone marrow, crispy shoestring potatoes
* Cauliflower: with parmesan, almond, feta, and mint
* Charred carrots: garum butter, thai chili tomato sofrito, scallion
May 10, 2017
Hello, NextSeed investors! We have reset the campaign for Oakland Rec Club today to reflect a few updates.
Specifically, we 1) increased the investment multiple to 1.65x, 2) extended the repayment period to 54 months, 3) lowered the minimum raise target ($150,000), and 4) extended the campaign period (ending on June 7th). These changes in the campaign require that the funds raised to date be returned to investors and that each person re-confirm their investment.
We’re excited to have the community participate in ORC. Thank you for the interest!