Investment Multiple ?
Funded on August 1, 2017
Over the past 8 years, the Peli Peli restaurant group has created a series of successful dining destinations in Houston. The team has served Partner and Executive Chef Paul Friedman’s award-winning South African fusion cooking and has stayed true to its passion for creating extraordinary experiences for its clientele.
It's no coincidence that the group’s first expansion outside of Houston will be in Austin. The University of Texas at Austin was where partners Thomas Nguyen (BA '98, JD '01) and Michael Tran (BS '99) first met. The Longhorns rejoined forces in Houston several years later and began their journey with Chef Paul to launch Peli Peli in 2009.
Peli Peli has found a home within the diverse mix of cultures around Houston, celebrating its unique identity with its expression through food, service, and community. Their new location will be in downtown Austin's famed 2nd Street District.
In February 2017, Peli Peli won the People’s Choice Award at the Greater Houston Restaurant Association’s Golden Fork Awards Gala. This was the latest among a number of awards recognizing the group for their strong customer support.
Peli Peli’s first location was listed among OpenTable’s Top 100 American Fare Restaurants for 2013. By 2015, it was rated the #1 restaurant in Houston on TripAdvisor (out of 7,511 restaurants). By early 2016, less than a year after its Galleria location had opened, both spots were ranked among the top 10 restaurants in Houston on TripAdvisor.
The formula that Peli Peli has created is much more than the delectable cuisine. With each new location, the team develops eye-popping spaces. In its Galleria Houston location, the team constructed what Zagat has called one of Houston’s "Most Instagram Worthy" dining experiences with its dynamic, one-of-a-kind lighting display built into the ceiling.
Peli Peli Galleria
The team ran a successful NextSeed campaign in April and May of 2016 (under Texas intrastate regulations). The group launched Peli Peli Kitchen (“PPK”) in October of the same year. The vision behind PPK was a fast casual version of its high-end restaurant. The team had successfully pitched on the Food Network’s Restaurant Startup and received the largest funding offer in the show’s history. Negotiations after the show left the group parting ways with its potential investor, but the concept was executed and delivered beyond even their own expectations.
Peli Peli’s Austin location will be taking over a second-generation restaurant space on 2nd Street. The historic block is an established destination for thriving restaurant concepts. Peli Peli aims deliver a unique experience in the city’s dining scene while also serving a place that is deeply important to its founders.
Peli Peli is also resolute in its mission to serve others. In June 2015, Peli Peli launched an event called “Table Service Day,” closing its Galleria location for an evening to host a dinner for 150 homeless clients and volunteers with the Star of Hope Foundation.
In 2016, the Peli Peli team partnered with MD Anderson Cancer Center in Houston to host a prom for over 100 teens receiving care at the hospital. Numerous restaurants, community leaders, musical acts, and dozens of volunteers participated, dedicating their time and resources to creating an unforgettable evening for the children and their families.
In April 2017, Peli Peli will host a similar event with Austin Independent School District for their special needs students.
These initiatives are woven into the fabric of what Peli Peli is looking to accomplish with its business, serving the community, and the team hopes to inspire other restaurateurs to do the same.
As co-founder Thomas Nguyen, an alumnus of the University of Texas at Austin, describes, “I think it’s great for us to be able to come back to Austin and give back. I owe a lot to this city.” UT Austin was where Thomas met co-founder Michael Tran who brought the team together. Chef Paul Friedman’s decades of restaurant experience around the globe had honed his skills across multiple genres. However, he had always wanted to open a restaurant that showcased his home country’s diverse dishes. Chef Paul was a client of Michael’s retail point-of-sale services company at the time, and together with Thomas, they embarked on their exciting journey together.
Click here to view the Issuer's SEC Form C filing.
100% of the funding proceeds from NextSeed will be used towards the buildout of Peli Peli Austin and the purchase of equipment, furniture and supplies. Any additional proceeds will be put towards working capital.
|Principal||Investment Multiple||Maturity*||Total Payment*|
The first payment is not expected until the business is open for business, which is tentatively anticipated to be after the fourth (4th) full month following closing.
Once the Issuer commences operations, it will share a percentage 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.
Let’s assume that the total amount raised through this offering is $1,000,000 and the issuer is committed to sharing 6.0% of its gross revenue.
If Investor A invested $3,000, Investor A is entitled to receive 0.3% ($3,000 invested divided by $1,000,000 raised) of the $24,000 shared with investors for month X. Therefore, Investor A is paid $72 for month X.
Let’s assume that the total amount raised through this offering is $600,000 and the issuer is committed to sharing 4.5% of its gross revenue.
If Investor A invested $3,000, Investor A is entitled to receive 0.5% ($3,000 invested divided by $600,000 raised) of the $18,000 shared with investors for month X. Therefore, Investor A is paid $90 for month X.
Let’s assume that the total amount raised through this offering is $500,000 and the issuer is committed to sharing 3.0% of its gross revenue.
If Investor A invested $3,000, Investor A is entitled to receive 0.6% ($3,000 invested divided by $500,000 raised) of the $12,000 shared with investors for month X. Therefore, Investor A is paid $72 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. 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
*Investors who invest $50,000 or more can choose one of the bonus reward options at that level. Some quantities are limited.
Peli Peli focuses on delivering a fine dining experience that fuses South African cuisine with Southern comfort food. Although a portion of the menu is 100% authentic South African, Peli Peli is the first South African restaurant to incorporate American cuisine.
Peli Peli serves lunch and dinner throughout the week and brunch on the weekend. Event catering has consistently played a role in expanding the team’s reach, and outside delivery service has recently picked up through its partnerships with third-party service providers (e.g., Uber Eats, Favor).
Peli Peli also serves the country’s largest collection of South African wines. In addition to an array of key imports, Peli Peli has its own private label wines from South Africa as well. A careful selection Californian, Spanish, and French boutique wines round out its list.
Among the accolades that rings truest are the testimonials from South African expats who insist that Peli Peli is indeed the real deal. TheSouthAfrican.com named Peli Peli in its 15 favorite South African restaurants in the world, one of only two in the US to make the list.
The restaurant’s rise in the Houston restaurant scene has not been an overnight phenomenon. Over the past 8 years, the restaurant group has painstakingly created a community that serves as its foundation for everything.Read More
It has cultivated this brand by placing a strategic emphasis on company culture being a competitive advantage. The team dedicates significant resources towards employee development and satisfaction, believing its employees to be key contributors to Peli Peli’s success in delivering an outstanding customer experience. Wages and salaries are set above industry averages, and training and recreational perks for the staff help to bolster loyalty, morale and overall enthusiasm.
The Peli Peli team regularly pushes the envelope with marketing and PR initiatives to further generate awareness for its unique category. The team recently appeared on the nationally syndicated reality show “Restaurant Startup” (CNBC), where the trio pitched a new quick service concept called Peli Peli Kitchen (“PPK”) and negotiated the largest investment in the show’s history – a $1.25 million commitment from successful restaurateur Elizabeth Blau. Although the investment was not consummated, the show highlighted Peli Peli’s culinary appeal and ability to develop fantastic experiences for its customers. Chef Paul has also made appearances on “Cutthroat Kitchen” (Food Network) and numerous local and regional shows to promote Peli Peli and South African cuisine.Read Less
Peli Peli Restaurant has two existing locations in Houston, TX and is expanding outside of the city for the first time. Its location in Austin, TX will be located at 210 W 3rd Street, in the 2nd Street District area.
In addition to its location in the live music capital of the world, the 2nd Street District area has become an upscale adult playground in recent years. A newly constructed mixed-use development has sprung up, including chic retail stores, coffee and juice shops, restaurants, wine bars, and entertainment and living spaces in a vibrant urban setting. This area is considered an entertainment “hot spot” for listening to live music, dining and taking in the nightlife. (www.austintexas.org)
The map below shows Peli Peli’s location relative to I-35 (less than one mile) and the MoPac Expressway (approximately 1.5 miles), downtown Austin and the University of Texas.
Peli Peli faces minimal competition from other comparable competition in the nearby and downtown areas. Other fine dining includes Cru Wine Bar, Lamberts and III Forks; however, Peli Peli will be the first fine dining South African fare featured in Austin. The uniqueness of Peli Peli’s cuisine matches the disposition of Austinites. In the latest Zandal Poll, 41% of respondents said the creative culture is what makes the city great, and more than 50% of respondents consider both Austin and themselves as laid-back, environmentally friendly, technologically sophisticated, and innovative.
Within a one-mile radius of the location, median income of is approximately 200% greater than the national average and average expenditures are approximately 112% greater than the national average. The median age is lower than the national average (age 37 versus 42) with total population steadily increasing. (Piinpoint)
Chef Paul Friedman is the Executive Chef of Peli Peli. Chef Paul has over 35 years of experience in the restaurant industry, having owned and operated successful restaurant concepts in South Africa and Germany. Chef Paul’s menu features authentic South African cuisine along with steak, chicken and seafood favorites that are prepared in his distinctive South African fusion-style.
He was awarded the People’s Choice Winner in the 2014 Gumbo Smackdown and the Classic Division Winner in the 30th Annual Caesar Salad Competition. In 2013, his South African cuisine put him at the top at Houston’s Wine & Food Week competition where he took home the coveted Waterford Crystal “Chef of Chefs” Award.
Michael leads the business, finance, and technology initiatives at Peli Peli.
After graduating from the University of Texas at Austin, Michael has operated successful restaurant technology, construction and infrastructure businesses in the Houston area for over 15 years. His last business, Transtar Point of Sale, served over 400 restaurant systems, including Popeye’s, Fuddruckers, Church’s Chicken, and Bahama Bucks.
Michael was named Entrepreneur of the Year in 2007 by the Houston Asian Chamber of Commerce.
Thomas heads up communication, community outreach, and marketing initiatives for Peli Peli.
Thomas completed his law degree at the University of Texas at Austin and started his career as a litigation attorney. Dissatisfied with the path he was on, he left his legal career behind to pursue his passion in business and marketing.
In 2015, he was named one of Houston Business Journal’s "40 Under 40" for his achievements in philanthropy and brand development. He received the Entrepreneur of the Year award from the Houston Asian Chamber of Commerce in 2016. He was also a 2016 finalist for the Ernst & Young Entrepreneur of the Year for the Gulf Coast Area.
Thomas founded the Omega Phi Gamma fraternity at UT Austin, the largest Asian-interest fraternity in Texas. In 2016, the organization created the Omega Phi Gamma Endowed Scholarship, a scholarship at UT, aimed towards helping an incoming student with the greatest financial need, regardless of ethnicity or nationality.
March 30, 2018
As you may be aware of at this point, there have been substantial delays to our project due to a repair that has to be made to the grease interceptor that runs from our space to the roof of the residential building that we are located in.
Fortunately, it seems an agreement will be reached this week with repairs finally being made shortly thereafter. Once this is done, we feel confident we can finish our project and be ready to open by Summer 2018.
We will keep you posted on this situation and hope to have a more comprehensive update by mid-April. In the meantime, we have had a great deal of press excited about our upcoming opening in Austin:
February 5, 2018
Hello NextSeed Investors,
We have fulfilled all Peli Peli Austin bonus rewards for our investors over the past week. This includes all Early Bird Gift Cards, $25 Gift Cards, Dinner Vouchers, Complimentary Entrees, Peli Peli Black Card and the additional Bonus Reward Incentive (for those that qualify). Anything else not listed will be sent in a separate email as we near opening!
That said, please check your inbox for rewards that you qualify for. If you did not receive an electronic copy of your reward or have a question about reward redemption, please send an email to Tracy Miller at firstname.lastname@example.org.
We are excited about our opening and are undergoing many changes, in addition to the structure of our loyalty program. We look forward to keeping you updated as we continue to make progress.
Thank you again for being a supporter of Peli Peli Austin, it means everything to us!
Peli Peli Austin
January 23, 2018
Happy new year! We wanted to provide a quick update on the progress of Peli Peli Austin.
At this time, construction is about 30% complete at Peli Peli Austin. The biggest issue we are facing right now – which has finally been negotiated and agreed on – is the repair of the grease interceptor that runs from our space all the way to the roof of the building.
Right now, we are hoping to complete construction by late April or early May, with a soft opening in May. We will continue to keep you informed as we reach major milestones.
Also, Peli Peli Austin was one of the top three vendors at the most recent Austin City Limits and anticipation for our opening in Austin has been very high!
October 29, 2017
We experienced construction and permitting delays that pushed our projected opening back by a few months. We are now back on track and focused on maintaining strict quality control standards for the remainder of the buildout. Our expected opening is April 2018!
We have fulfilled all early bird rewards and black cards and we anticipate fulfilling the remainder of rewards over the next two weeks. If you have not done so already, please register on our Loyalty Site using your current cell phone number and email address (same as the one that NextSeed has on file). For any questions related to your rewards or comments/concerns related to the loyalty program, please reach out to Michelle Cimafranca.
Thank you for being a part of our family!
July 17, 2017
Hi, NextSeed investors! We’re excited and humbled by your continued belief in our team. As a sweetener for the last two weeks of the campaign, we’re adding a bonus incentive! Anyone who invests $1,000 or more will receive an additional voucher for a “Dinner for 2 (up to $100 value).” This will be good at any of our Peli Peli locations. Don’t worry — if you’ve already reserved your investment, you will receive this bonus, too!
July 13, 2017
Our exclusive party at Peli Peli headquarters was buzzing with energy from the continued support from our NextSeed investors! Our investors had the opportunity to sample Chef Paul’s latest tasty creations, experience a virtual reality tour of our Peli Peli Austin location, and sip on a wine from our select collection all to the backdrop of a live DJ. Once more, our team can’t thank you enough for your support and we look forward to continuing to grow with you!
Click the gallery below to view all the awesomeness!
May 26, 2017
We launched a NextSeed campaign last Spring and raised $358,000. That working capital played a big role in our expansion plans, getting us ready to grow the business in a number of ways. We’ve been incredibly fortunate to have the support of our investors, and we are excited to announce that we have paid the loan off early! It was always our intention to create a win-win for both the investors and us. We believe in NextSeed’s vision and want to reward our investors with perks, financial returns, and ease-of-mind with our growth. After just 11 months of payments, we returned a total of $409,513 – investors earned a 16.821% annualized return! Thank you to everyone who participated. We’re excited about this new round of fundraising, as we continue reaching new heights.