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A Korean American Food Brand That's Good For People & The Planet

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Security Type
Convertible Note
Technology, Consumer Goods & Products, Sustainability, Community & Lifestyle
Min Investment
San Francisco, CA
Expected Close Date
April 29, 2024
Target Raise
No. Investors
Security Price
Number of Employees
Short Term Debt
Cost of Goods
Long Term Debt
Net Income

Company Description

Queens is seeking to double down on its wholesale and CPG product line and become the first national Korean American food brand to develop a line of pantry products made entirely from ingredients grown locally and sustainably and packaged in zero-waste, minimal packaging.

The company makes high-quality American Korean food products. The ingredients are sourced from an incredible network of farmers in the Bay Area of Northern California. The restaurant “Queens” opened in 2019, emphasizing daily fresh banchans, ferments, and grab-and-go cold and hot foods. It launched its wholesale channel in 2020 with its award-winning Queens SsamJang. In 2021 the company added 28 new wholesale accounts in 10 major cities. In 2022, the company expanded its in-house offerings to an entire line, including sauces, meal kits, condiments, pantry snacks, frozen foods, and to-go specials that continue to evolve along with the seasons. It also reintroduced Queens as a mixed retail and restaurant concept. Going forward, it is seeking to double down on its wholesale and CPG product line and become the first national Korean-American food brand.

The K-food retail market is estimated at $5B. The company has taken on a new perspective as American-grown foods are used as ingredients in a market where the supply chain behind most Korean food products sold in the US is controlled by a handful of big Korean conglomerate companies: CJ/Bibigo, Sempio, Chung Jung One, Ottogi, Haitai, Jinro, Orion, Lotte, etc., who have no incentive to produce Korean ingredients that are as good for bodies as they are for the environment.

Queens has been featured in Bon Appetit, Goop, Thrillist, the San Francisco Chronicle, and New York Magazine. The total revenue to date is $2.4M. The bestselling products include Gochujang, Baechu Kimchi, Mitsugaru Shake, Ssam Jang, and Dwaejang. Baechu Kimchi accounts for the highest sales in the last three years, followed by Mitsugaru Shake and Gochujang.

In 2022, the Company had revenues of $617k compared to 2021, when it had revenues of $739k. Its gross margin was 64.8% in fiscal year 2022, compared to 67.11% in 2021.

The company projects to grow from 75 accounts to 500 accounts combined from E-tailers, specialty retailers, and large retailers by 2026. The projected net revenue is $1.2M in 2026, with a net profit of $125k. The company expects to be profitable by 2023.

Key Deal Facts

Queens as a retail shop was the first of its kind concept; constantly striving to innovate & disrupt 4+ years developing brand and concept Qualified founders who have a deep understanding of the Korean food market + market opportunities Queens has been featured in Bon Appetit, Goop, Thrillist, San Francisco Chronicle, New York Magazine Queens' goal by 2026 is to be in 500 retail & e-tail stores nationwide *forward looking projection*

Use of Proceeds

The company plans to use the proceeds for new equipment, partial operations (rent, staff, COGS), and platform fees.

Management Team / Advisory Board Bios

Eddo Kim, Co-Founder and Managing Member
Formerly Penn, Columbia, Harvard, nonprofit sector; currently ops and business development at Queens.

Clara Lee, Co-Founder and Managing Member
Formerly at Cornell, Harvard, and the EdTech sector; currently culinary and creative at Queens.

Valuation Notes

The company had raised $500k in pre-seed to build out the Queens storefront and fuel its growth. The company is issuing a convertible note at a $3.5M valuation cap and 5.25% interest with a 60 months maturity from the effective date.The valuation looks reasonable.
Amount Raised : $98,757
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Security Description

A convertible security is a security that can be converted into another security, typically equity in the next round of financing.

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