Kava beverages designed for stress relief and served in a relaxed, cozy setting.

Pioneered the kava bar concept in Texas
Existing locations have 4.5 stars on Yelp based on 103 reviews
Projected first-year revenue of over $800,000 for the new location


SquareRut Kava Bar
January 8, 2017

Kava Chillers are here!

Introducing kava lemonade for your summer fun! More kava-infused goods at SquareRut, so don’t miss out – ice cream, chocolate and more.

Kava Chillers!

Company Description

SquareRut kava bars have been operating successfully in Austin, TX since 2011 and currently are the only establishments in the entire State of Texas where you can purchase and enjoy kava beverages. Given the growing success of the first two locations, Square Rut Kava Bar - Barton Springs LLC ("SquareRut Barton Springs") was established in 2015 to operate the latest addition to the SquareRut family – the flagship store that will be located on Barton Springs Road less than ½ mile away from the famous Zilker Park.

Kava (also known as piper methysticum) is a tall shrub in the pepper family that grows in the South Pacific. For thousands of years, island cultures have used kava as a folk remedy for its medicinal properties and consumed kava both recreationally and in ceremonial settings. In the United States, kava beverages now make up a small but growing portion of an emerging segment of functional beverages referred to as relaxation drinks.

Kava has been known to evoke feelings of happiness and relaxation and is reported to help with stress, anxiety and insomnia. The kava beverage is often used as a substitute for alcohol because of its sedative and muscle-relaxant effects.

According to a report published by IBISWorld in 2014, the relaxation drink industry has rapidly gained momentum as consumers increasingly look to functional beverages to help them unwind, relieve stress and achieve mental and physical relaxation without using alcohol. Already a $150 million industry in the US as of 2014, the relaxation drink industry is projected to continue growing at 12% per year over the next five years and is expected to be worth $263 million by 2025.

The relaxation drink industry has seen significant developments and gained a great deal of attention from the professional investment community and popular media in recent years. There has been extensive coverage of the positive effects of relaxation drinks and the robust development of the industry in leading publications such as the Wall Street Journal, Bloomberg Business, Forbes and Huffington Post.

Relatedly, in the 2014 World Beverage Innovation Awards, a fast-growing relaxation drink startup by the name of NOA Potions won top honors in the best premium drink category with its anti-stress drink named NOA Relaxation. The Swedish startup beat out a formidable array of multinational companies, including Del Monte, Pernod Ricard, Coca-Cola, Nestlé, Arla Foods, Carlsberg and Evian. Earlier this year, NOA Potions launched an equity crowdfunding campaign that raised $180,000 in the first 3 minutes of going live. The campaign ultimately raised $1,095,318 from 191 investors in less than one week.

Business Model

SquareRut Barton Springs will serve premium kava beverages composed of Fiji and Vanuatu strains, dessert kava bars, tea, coffee and soft drinks. Customers will also able to purchase instant kava, raw kava and prepared kava in to-go containers. This location will also feature live musical performances.

Since inception, the existing SquareRut kava bars have retained approximately 80% of their customers. As a result of strong customer loyalty, the second store located on North Lamar Boulevard in North Austin turned profitable within six months of operation.

The SquareRut kava bars operate a loyalty program with over 600 members currently. On average, these members spend around $462 per person, per month. The Barton Springs location is anticipated to greatly expand the loyalty program’s membership base, resulting in a high level of recurring income from a stable customer base going forward.

Additional information about SquareRut and its product offerings can be found online at www.squarerut.com.

Location Analysis

The flagship store will be located at 1601 Barton Springs Road, Austin, Texas, 78704. This location is expected to experience heavy customer foot traffic year all year round. The store is situated at the heart of a well-established community with a median household income over $108,000 and per capita spending on dining out exceeding the national average by more than 20%. The site is highly recognized locally, having most recently been an iconic meeting and performance space occupied by Flipnotics Coffee Space – a beloved landmark in the Austin arts scene. The site is also located on the direct route to and from Zilker Park, “Austin’s most-loved park” which hosts a variety of events throughout the year. In 2014, Zilker Park hosted numerous highly popular events, such as the world-renowned Austin City Limits Music Festival (~450,000 attendees), Trail of Lights (~400,000 attendees) and several others, resulting in more than a million visitors to the area that year.


Source: Piinpoint


December 2011
First SquareRut kava bar opens on South Congress Ave in South Austin (the first-ever kava bar in the entire State of Texas)
September 2014
Second SquareRut kava bar opens on North Lamar Blvd in North Austin
April 2015
Lease is secured for flagship store location on Barton Springs Road in the heart of Austin at a highly coveted site previously occupied by Flipnotics Coffee Space
September 2015
Build-out begins at the Barton Springs location
December 2015
Barton Springs location expected to open for business

Meet the Team

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Scott Pingel

Scott Pingel is a successful serial entrepreneur with over 10 years of experience building private companies. He began his career in insurance over 20 years ago, traveling throughout the U.S. handling insurance claims for major insurance companies. Prior to launching SquareRut, Scott started and grew a water extraction and mold remediation business to over $1 million in gross sales with four locations and 68 employees across two states. After Scott discovered kava and became a kava connoisseur, he was inspired to open the first-ever kava bar in the State of Texas and moved to Austin, TX to open the first SquareRut kava bar. In Scott’s free time, he enjoys playing golf, going out on the lake and spending time with his family.

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Tracy Moreno

Tracy Moreno began her career with State Farm Insurance in 1999 after graduating from Indiana State University and quickly climbed the management ladder to manage over 25 adjusters. She continued to work as an insurance professional until 2011, when she and her husband Scott moved to Austin, TX to launch SquareRut. By the time of their fourth anniversary, they will have opened their third kava bar together. Tracy enjoys reading, exercise and home-making crafts. She loves being entertained by their five-year-old son, Austin.

Bonus Rewards



  • $50 Gift Certificate
  • Loyalty Card*


  • $100 Gift Certificate
  • Loyalty Card*


  • $250 Gift Certificate
  • Loyalty Card*


  • $350 Gift Certificate
  • Loyalty Card*


  • $450 Gift Certificate
  • Loyalty Card*


  • $700 Gift Certificate
  • $700 gift certificateVIP Loyalty Card (10% OFF LIFETIME)


  • VIP+ Loyalty Card (35% OFF LIFETIME)

Issuer Statement

The information contained on this campaign page (the "Campaign Information") is furnished solely by the Issuer to prospective investors in the investment opportunity described herein. All Campaign Information is intended to be a summary of the terms and information contained in the Disclosure Statement and the Note Purchase Agreement, and is fully qualified by reference to those documents. In the event any Campaign Information conflicts with the terms of the Disclosure Statement or Note Purchase Agreement, the terms of those documents will control. The Issuer has provided the Campaign Information for inclusion on the website located at www.nextseed.com, and in no way will the Campaign Information be deemed to have been created or provided by NextSeed Securities, LLC, NextSeed Services, LLC, or their affiliates.