Metropolitan Variety Store

Metropolitan Variety Store

Bringing a unique and interesting experience to Detroit’s West Village

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Security Type
Secured Loan
Categories
Food & Bev
Min Investment
$100
Location
Detroit, MI
Offering Date
November 19, 2020
Expected Close Date
January 21, 2021
Target Raise
$60.00K-$225.00K
Deal Notes

Interest Rate: 8.00% annually

Payments: Monthly, disbursed to investors quarterly 

Maturity: 9 months interest only + 51 months fully amortizing

Personal Guaranty: Jonathan Hartzell, Richard Stanza, and Brendon Edwards

Security Interest: 3rd lien on assets of company 

Company Description

Located in the heart of Detroit's very diverse and vibrant West Village neighborhood, next door to other locally owned and operated shops, Metropolitan Variety Store and Metropolitan Bar & Kitchen is sure to thrive. 

The two distinct commercial businesses will take over the recently renovated space in the first floor of the Parkstone & Parkhurst Apartment building. Although separate and distinct, the Variety Store and the Bar & Kitchen will be operated by the same experienced and passionate team and will regularly cross-market food and beverage products. The Variety Store, specializing in craft beer, wine and spirits and cocktail accoutrements will be managed by a local industry expert, well-renowned in the metro Detroit area for his affinity for unique beverages and ability to stock items that can’t be found anywhere else. The Variety Store will fill a gap in the current Detroit market for this type of store. The Bar & Kitchen will be managed by two of metro Detroit’s best chefs -- Brendon Edwards and Hailey Enszer -- offering a revolving, seasonal food menu created with locally-sourced ingredients and accompanied by a beverage menu that features the ingredients being sold next door at the Store. 

This perfect pair will bring a unique and interesting experience to Detroit’s West Village and fulfill many of the area’s needs. Craft and specialty cocktail bars and eateries have been popping up around the City and their popularity is soaring. In the alcohol business, the on-premise drinking establishments are meant to be the place where customers can sample products and these bars are supported by the off-premise consumption retailers. In Detroit, while the number of bars and restaurants catering to this craft cocktail crowd has increased substantially, we haven't seen a rise in the number of specialty liquor stores. From all accounts, the market is void of an adequate store offering a wide selection of liquors, craft beer and wine all supported by a friendly and knowledgeable staff. We are seeking to fill that void.

We want the Metropolitan Variety Store and the Metropolitan Bar & Kitchen to have the reputation that we carry a unique and interesting selection of craft beer, wine and liquor that can be purchased at retail from the store, or tasted alongside unique plates of food at the adjacent bar.

Key Deal Facts

It creates a fun environment for customers which encourages them to spend more time (and money) in the space
It's sustainable because individual concepts can evolve and transform to adapt to market changes
It maximizes floor space creating multiple points for transactions, offering something for everyone.

Use of Proceeds

The campaign through Honeycomb will allow us to create a healthy reserve of funds to use in the first few months as the new business venture stabilizes. We may use this reserve to purchase inventory, pay rent and utilities, and for payroll (est. $50,000). The funds raised through Honeycomb will also be used to hire a third-party consultant to assist with the business' marketing which will includeexpanding the business' website, managing social media and creating other marketing materials (est. $18,000). The remainder of the investment dollars will likely be spent on legal and professional fees (est. $20,000), purchasing inventory ($10,000) unforeseen tasks for which we've built in a contingency (est. $78,515) and to pay a fee to the Developer (est. $48,485) to compensate them for their time spent on securing local and state approvals, securing traditional financing, creating financial projections and much more.

Management Team / Advisory Board Bios

Brendon Edwards

Brendon is DSC Hospitality's Operations Director. Most recently the Executive Chef/Partner at Gold Cash Gold, Brendon has over twenty years of both front and back of house experience. He has built his resume working for successful operations both locally and internationally, including Restaurant of the Year winners Forest and Roast and Michelin star restaurants Longman & Eagle in Chicago and Kichisen in Kyoto, Japan. Brendon's years of experience have made him knowledgeable about culinary trends, wine & spirits, marketing, public relations and finance.

Stay tuned as the store's operator is announced!

We would love to introduce you to the operator for the Metropolitan Variety Store, but unfortunately he needs to stay anonymous for the time-being. However, we can divulge that he is one of the metro area’s experts in managing a boutique beer, wine & liquor store and has a special affinity for curating unique and hard-to-find products. We will be announcing his name before the end of the year.

Deal Notes

Interest Rate: 8.00% annually

Payments: Monthly, disbursed to investors quarterly 

Maturity: 9 months interest only + 51 months fully amortizing

Personal Guaranty: Jonathan Hartzell, Richard Stanza, and Brendon Edwards

Security Interest: 3rd lien on assets of company 

Amount Raised : $0
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Security Description

Secured debt is debt backed or secured by collateral to reduce the risk associated with lending. If the borrower on a loan defaults on repayment, the debt holder can seize the collateral, sell it, and use the proceeds to pay back the debt. Assets backing debt or a debt instrument are considered as a form of security, which is why unsecured debt is considered a riskier investment than secured debt.

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