Funded on NextSeed TX
Term Notes ?
|Minimum Target||$100,000 ?|
|View Key Terms|
Funded on NextSeed TX
|Minimum Target||$100,000 ?|
|View Key Terms|
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.
SquareRut Barton Springs is seeking to raise $100,000 on NextSeed to help finance build-out of the third SquareRut kava bar and for working capital. The bar will be located on Barton Springs Road in the heart of Austin and will act as the flagship store for the SquareRut brand.
|Principal||Interest Rate||Term||Projected Total Payment*|
Months after Closing (starting with first full month)
This investment has a startup period during which no cash payments will be made. During the startup period, interest will be "paid in kind" and capitalized as additional principal. The first cash payment is not due until after the third full month following closing.
*The projected payment for any given month (including the projected total payment at the end of the final month) indicates the cumulative amount projected to be paid to an investor after the end of that month, assuming the loan is not prepaid. This projection is an illustrative example only and may not reflect actual performance.
*Loyalty Card: After your first $200 of purchases, you will get $10 free. Thereafter, every time you spend $100, you will get $10 free.
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.
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.
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.
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.
Introducing kava lemonade for your summer fun! More kava-infused goods at SquareRut, so don’t miss out – ice cream, chocolate and more.
SquareRut has opened for business! Thanks to all the investors who supported and believed in us. Stop by! You’ll love the new patio.
December 7, 2015
We raised $100,000 for our new flagship store! We’re taking over a prime location on Barton Springs Road, so stop by when you’re on your way to Austin City Limits or any other festival in Zilker Park.
November 10, 2015
SquareRut Kava Bar launched its NextSeed campaign to raise $100,000. We’re building a new flagship store on Barton Springs Road in the heart of Austin!