2016 annual shareholders meeting presentation
TRANSCRIPT
Cautionary Items Regarding Forward Looking Statements
The informa,on in presenta,on contains forward-‐looking statements within the meaning of Sec,on 27A of the Securi,es Act of 1933, as amended, and Sec,on 21E of the Securi,es Exchange Act of 1934, as amended. These forward-‐looking statements involve risks and uncertain,es, including statements regarding the company’s business strategy and expecta,ons. Any statements contained herein that are not statements of historical facts may be deemed to be forward-‐looking statements. In some cases, forward-‐looking statements can be iden,fied by terminology such as “may,” “will,” “should,” “expect,” “plan,” “intend,” “an,cipate,” “believe,” “es,mate,” “predict,” “poten,al,” or “con,nue,” the nega,ve of such terms or other comparable terminology. Actual events or results may differ materially. The company disclaims any obliga,on to publicly update these statements, or disclose any difference between its actual results and those reflected in these statements. The informa,on cons,tutes forward-‐looking statements within the meaning of the Private Securi,es Li,ga,on Reform Act of 1995.
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Southern Concepts – Growing Fundamentals
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May 2015
Opened Southern Hospitality on Park Meadows Drive in Lone
Tree, Colorado
June 2015
Announces the development of Carve Barbecue, as a new, company owned, fast casual
concept at NIBA
June 2015
Realized Quarterly Same Store Sales Comps at Southern
Hospitality Denver of 14.9%
November 2015
Opened the first loca,on of Carve Barbecue at 1000 South Colorado Blvd in Glendale,
Colorado
December 2015
Southern Concepts realizes $758,319 in sales for the
month, sebng a new record for company-‐wide monthly sales
EOY 2015
Southern Hospitality Denver realizes year-‐over-‐year
comparable same store sales increases of 14.1%
©2016 Southern Concepts Restaurant Group, Inc. All Rights Reserved
Update on Current Southern Hospitality Units
¢ Downtown Denver
¢ Record same-‐store-‐sales growth during 2015 of 14.1%
¢ Con,nue to increase sales with addi,onal private event space, brunch and new partnerships
¢ Lone Tree
¢ Highest revenue per square foot Southern Hospitality in the system, $467 per foot
¢ Plan to increase same-‐store-‐sales during 2016 with addi,onal catering, brunch and maturity
¢ Colorado Springs
¢ Loca,on with the greatest poten,al
¢ Plan to increase same store sales during 2016 through the realiza,on of catalysts, new corporate campus lunch program and maturity
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Southern Hospitality Unit Growth
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Projected
¢ New Units
¢ Southern Concepts management has reached a verbal agreement with the franchisor of Southern Hospitality to develop up to five new units in Colorado and Arizona.
¢ New Units will be developed using the model of Southern Hospitality Lone Tree.
¢ Real Estate and Financing
¢ Southern Concepts management is current in discussions with various build to suit and dark to suit developers to partner with on new Southern Hospitality loca,ons.
¢ Southern Concepts plans to sell a percentage of store level equity in each loca,on to finance to capital expense associated with new unit growth.
¢ LocaIons
¢ Management is working with SullivanHayes Brokerage to develop a real estate pipeline for growth in the Denver metro area, Boulder and Colorado Springs
©2016 Southern Concepts Restaurant Group, Inc. All Rights Reserved
Update on Carve Barbecue Glendale, CO
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¢ Sales
¢ During the roughly two months of opera,ons in 2015, Carve Barbecue generated sales of $166,000. We plan to grow same-‐store-‐sales in 2016 through innova,ve marke,ng strategies and an increase in take out.
¢ Tweaking the Concept
¢ Many of the garnishes that were offered in the beginning will be going away, and the focus will be on the barbecue.
¢ Order flow will be altered from an assembly line to a double wait system, and food will be brought to the table afer being ordered at a point of sale.
¢ Certain aesthe,cs will be changed to embrace our barbecue and the barbecue culture.
Carve Barbecue Growth
9 ©2016 Southern Concepts Restaurant Group, Inc. All Rights Reserved
¢ New PotenIal LocaIons
¢ Southwest Plaza Mall, the corner of Bowles and Wadsworth in Ligleton
¢ 601 Broadway, the Northwest corner of 6th Ave and Broadway in Denver
¢ Focus on satura,ng the Denver metro area
¢ Financing
¢ Southern Concepts plans to sell a percentage of store level equity in each loca,on to finance to capital expense associated with new unit growth.
Licensing Opportunities
10 ©2015 Southern Concepts Restaurant Group, Inc. All Rights Reserved
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¢ New PotenIal Revenue Streams
¢ Management is currently considering new revenue streams, which may include a retail strategy for consumer goods, which are inherent to the Carve Barbecue concept, such as distribu,ng rubs, BBQ sauces and meats.
¢ Management believes that being successful in the distribu,on of these consumer goods will increase revenue and profitability at the holding company level and increase brand awareness.
Key Takeaways
¢ During 2015, the company opened a third Southern Hospitality, which is proving to be the most profitable unit of any of the three current loca,ons and will become the model for future Southern Hospitality growth. Addi,onally, during the year, SCRG opened its first unit of Carve Barbecue, a company-‐owned concept.
¢ Finally, during 2015 the company grew comparable same-‐store-‐sales, year over year for Southern Hospitality Denver of 14.1%
¢ In 2016, SCRG will focus on con,nuing to grow same-‐store-‐sales in exis,ng units, while also con,nuing to pursue unit growth through built to suit and dark to suit developers.
¢ The company is currently in the process of tweaking the Carve Barbecue concept and believes that innova,ve marke,ng plans created for 2016, along with the new menu will increase sales and allow for quicker growth.
¢ Carve Barbecue growth will be fueled by success in the first loca,on, and future will be financed through store level equity.
¢ During 2016 the company will explore op,ons to increase revenue and brand exposure through licensing deals for consumer products using the Carve Barbecue brand.
11 ©2016 Southern Concepts Restaurant Group, Inc. All Rights Reserved
Mitchell Roth | Co-Chairman, President and CEO Mitchell Roth is the Co-Chairman, President and CEO of SCRG. Mr. Roth joined the company in 2013 and became the CEO in June 2014. During his tenure as CEO, the company opened its third location of Southern Hospitality, located in Lone Tree, Colorado. Additionally he led the company to develop its fast-casual concept, Carve Barbecue. Prior to joining SCRG, Mr. Roth worked in investment banking at Laidlaw and Company, Ltd. in New York City where he worked alongside senior investment bankers in helping clients gain access to capital through the public markets. He received a Bachelor of Science degree in Business Finance and Economics from Liberty University in Lynchburg, Virginia.
Leadership Team
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Heather Atkinson | Treasurer, Secretary and CFO Heather Atkinson is the Chief Financial Officer, Secretary and Treasurer of SCRG. Prior to her role with SCRG, Ms. Atkinson was the controller of Accredited Members Acquisition Corporation and subsidiaries and its predecessor, Accredited Members Holding Corporation. Ms. Atkinson has over 17 years of accounting, finance and financial reporting experience in both public and private companies, including consolidations, shareholder relations, SEC reporting, internal and external financial statement reporting, budgeting, cash forecasting, mergers and acquisitions, restructuring and international accounting while working closely with the outside audit and legal firms. She is a licensed CPA and holds a Bachelor of Science degree in Accounting from Evangel University.
Shawn Owen | COO Shawn Owen is the Chief Operating Officer for SCRG. With over 19 years of experience in restaurant operations and management, most recently as the General Manager at Southern Hospitality Denver, Mr. Owen brings an entrepreneurial spirit, dynamic leadership, team building, extensive culinary knowledge, and problem solving skills to the SCRG team. Prior to working with SCRG and Southern Hospitality, Mr. Owen worked in management at Walnut Brewery, New Berlin Ale House, StoneFire Pizza Company, and Dave and Buster's.
Gary Tedder | Co-Founder and Sr. Vice President of Business Development Gary Tedder is Sr. Vice President of Business Development and a Co-Founder of SCRG. Prior to SCRG, Mr. Tedder had devoted substantially all of his time and expertise to Smokin Concepts Development Corporation, occupying the roles of President and Director. He previously served as Sr. Vice President of Business Development for Accredited Members, Inc. Prior to his five years of service with Accredited Members, Inc., Mr. Tedder was a self-employed consultant for numerous business initiatives. Mr. Tedder has over 35 years of experience as an entrepreneur and business development director and creative advisor for various companies, from real estate to the entertainment industry.
Lexie Rayburn | Marketing Manager Lexie Rayburn is the Marketing Manager for SCRG. Her role consists of creating and managing marketing materials and objectives. Prior to working with SCRG, she assisted a creative marketing and public relations agency with their expansion into the Denver market. There she was the head of Denver business development and worked on marketing creatives on a per client basis. Ms. Rayburn holds a Bachelor’s degree in Print Journalism from the Walter Cronkite School of Journalism and Mass Communication and a Bachelor’s degree in Environmental Sustainability from the Global Institute of Sustainability at Arizona State University.
Corporate Information
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PUBLIC COMPANY INFORMATION Stock Symbol: RIBS Exchange: OTC:QB Cusip: 84264D106 Shares Outstanding: 56,425,000 LEGAL Burns, Figa & Will, P.C. 6400 S Fiddlers Green Circle Greenwood Village, CO 80111 Phone 303.796.2626 | Fax 303.796.2777 www.bfw-‐law.com AUDITOR Crowe GHP Horwath, P.C. 1801 California Street, Suite 2200 Denver, Colorado 80202 Phone 303.831.5000 www.crowehorwath.net
CORPORATE ADDRESS 2 North Cascade Avenue, Suite 1400 Colorado Springs, Colorado 80903 INVESTOR RELATIONS Liolios Group 20371 Irvine Avenue, Suite A-‐100 Newport Beach, California 92660 Phone 949.574.3860 | Fax 949.574.3870 www.liolios.com TRANSFER AGENT Corporate Stock Transfer 3200 Cherry Creek Drive South , Suite 430 Denver, Colorado 80209 Phone 303.282.4800 | Fax 303.282.5800 www.corporatestock.com
©2016 Southern Concepts Restaurant Group, Inc. All Rights Reserved