2016 annual shareholders meeting presentation

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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.  

2 ©2016  Southern  Concepts  Restaurant  Group,  Inc.  All  Rights  Reserved  

Southern  Concepts  –  Who  We  Are  

3 ©2016  Southern  Concepts  Restaurant  Group,  Inc.  All  Rights  Reserved  

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  

7 ©2016  Southern  Concepts  Restaurant  Group,  Inc.  All  Rights  Reserved  

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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  Menu  

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Carve  Barbecue  Growth  

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¢  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  

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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.  

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Appendix  

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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