|1||COLORS will be part of the Restore Oakland center, which is a community advocacy & training center that'll mobilize the Bay Area community.|
|2||Our restaurant nourishes the professional development of our staff & students with CHOW trainings & by placing graduates in equitable jobs.|
|3||The US food service restaurant market is expected to grow at a rate of 11.3% during the forecast period of 2018 - 2023.|
|4||Our partner org has already raised $16 million in capital for our building, which will house our restaurant.|
|5||We are at an advantage in that we are the landlords of our building. We are setting up roots to stay & nourish the Fruitvale community.|
|6||Our mission is to promote a just & dignified workplace in restaurants throughout the Bay Area and to build a strong restaurant industry.|
|7||We treat workers with respect and dignity and care about their well-being.|
COLORS has a great track record and as I learned about the vision, the partnerships that have been developed with others locally who are in the food industry and the collaboration with the Ella Baker Center, I knew I wanted to be involved.
COLORS Oakland is a great opportunity to Invest locally, in a business where employees are paid not only fairly, but where they also receive professional development to improve their opportunities in the restaurant industry. I look forward to many delicious dinners there, knowing that the cooks, bartenders and servers are being given opportunities to improve their lives.
We're excited to inform you that we are opening up in April! COLORS: Oakland is a both a restaurant and mission-driven enterprise located in the heart of Fruitvale, in Oakland, CA. We will be serving delicious Afro-Latinx food that is representative of the surrounding community.
Back in 2015, we teamed up with the Ella Baker Center (EBC) and co-bought a building in Oakland, CA! It was a diamond in the rough.
We've wanted to hear what the community needed and what they wanted to see in our building. We held brainstorming sessions and listening sessions with the Fruitvale community to think through how to uplift the community for the better.
We surveyed many hundreds of community members to figure out what type of food our restaurant would have! We wanted it to be developed by the community, since it is for the community. We asked folks what they liked to eat. We found out that the community wanted Latinx food. But, competing with the vast amount of Latinx food in Fruitvale isn't an easy task. We also asked folks what type of food was missing in the area, and they said Soul food. So, we created a hybrid of Afro-Latinx cuisine. During that study, we also found that the community wanted healthy options on the menu, and that they liked to eat out with family.
We have teamed up with Nelson German to develop our Afro-Latinx flavor and delicacies. We're excited to share these distinctive tastes with you!
COLORS: Oakland Restaurant is both a business and a mission-driven enterprise! We train hundreds of working people, low-income folks, immigrants and formerly incarcerated people to climb the ladder of the restaurant industry and get better jobs. We already teach free classes for intro and advanced Bartending, Serving, and ESL.
Once we open up COLORS: Oakland, we will be able to offer even more classes! We are currently hosting our classes out of different partner restaurants, like Plum Bar, Kingston 11 and Copper Spoon. But, once we open up, we'll be able to have our classes on our site, and we will be able to expand our offerings to include Kitchen Management Training, Barista Training, and more ESL classes.
We are a national restaurant worker's rights organization that advocates to improve wages and working conditions for the 13 million people who work in America's restaurant industry. With nearly 13 million employees nationwide, the restaurant industry is one of the largest and fastest-growing private sector employers in the nation. In 2017, the restaurant industry garnered over $799 billion in sales revenue. Despite the growth and profitability of the industry, restaurant jobs provide largely low wages and little access to benefits. The Restaurant Opportunities Centers United (ROC United) engages people who work in the industry, employers and consumers to ensure all people who work in restaurants can achieve financial independence and improve their quality of life.
We are co-owners of the Restore Oakland building! Our restaurant, COLORS, is located in the Restore Oakland building. Restore Oakland is composed of various nonprofits that help advocate for low-income, people of color, and formerly incarcerated folks. As a whole, the organizations of Restore Oakland work to reverse a decades-long cycle of unjust economic and criminal justice policies that have had devastating impacts on communities of color and immigrant communities. We will build power and self-determination to shift resources away from prisons and punishment and toward community reinvestment, restorative justice, and economic opportunities.
Our restaurant brings in the economic justice component of our communities real struggles. We aim to create opportunities to secure living wage jobs in the restaurant industry—an important Bay Area economic driver—for everyone: people who have been incarcerated, working people, immigrants and people of color. We train people in our restaurant to advance the restaurant industry ladder and achieve more equitable careers that are more sustaining for their families.
Here are a few of the organizations that have joined us within the Restore Oakland building:
Our restaurant, COLORS: Oakland, has 100-person seating. It comes equipped with a large bar for delicious cocktails to be prepared, a spacious dining room, and a private dining room, for folks seeking their own private events. Our kitchen is roomy, and is able to produce for both our restaurant and our catering department.
Our primary two revenue streams will be our restaurant, which will include the rental of our private dining area, as well as our catering department. Our catering department will allow us to reach broader audiences in the Bay Area.
Our restaurant will serve the community and it will be a space where neighbors can come in and sit by folks who are visiting out of town. Where low-income folks and affluent folks can all come in and have a good time. Where Bay Area residents can grab some scrumptious food with their families, or some drinks during a date night. We will have events, whether poetry readings, or live-entertainment that will bring in more community members to come and rejoice and celebrate together.
Our catering department will be another revenue stream that will have the flexibility of being to be able serve many people. We will be able to cater weddings, through multiple preferred caterer lists, but also to fill the lunch and dinner needs of large corporations and schools in the Bay.
We wanted to have the security of being owners of our building, as mentioned earlier. In order to do this with the high-rising prices of property and construction in the Bay Area, we raised $14.8 million to buy and renovate our building. Now that we have our building, we need to focus on our operating budget for our restaurant. We are seeking to raise $350K for our restaurants' operating expenses through Wefunder. Our mission is to provide opportunities for restaurant workers and community members. We are excited that we can provide another opportunity, and one that gives folks a stake in the business. We are excited to sell equity to community members so that we can all have ownership of COLORS: Oakland, and continue to build it together.
Once we hit out minimum fundraising goal, we will use that money to begin hiring our incredible team of core managers. There will be a lot of heavy lifting needed, so we must have our Chef, and our Managers on board and ready to move this forward.
Come be part of COLORS: Oakland with us! This is a huge community project that is for the community, and by the community. We want you all to have this opportunity to be partial owners and investors of this great vision and dream coming to life.
Please note that this offering is for ownership of COLORS: Oakland exclusively. Investors will not own any part of the other COLORS locations, ROC, or of any of our partner institutions.
COLORS: Oakland has financial statements ending December 31 2019. Our cash in hand is $0, as of January 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $0/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
COLORS is a business & a social mission enterprise. It's an upscale restaurant, catering & events facility providing excellent AfroLatino cuisine & outstanding service while training hundreds of workers of color to advance to livable wage opportunities in the restaurant industry. As part of Restore Oakland, a community center based in the Fruitvale neighborhood, COLORS includes a server training program, an incubator to provide low-cost business support to people of color-owned entrepreneurs.
In 5 years, we hope (although cannot guarantee) to have grown our business to profitability, bringing in more than $3.5 million in annual revenue & earning +$500,000 in profit. We also hope to have grown our training programs to provide training to more than 200 workers/year. Through community programming, including CHOW classes and creative forms of engagement, COLORS will serve as a hub for local economic growth and empowerment. We hope that in the future, COLORS will serve as an example to surrounding businesses.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
COLORS Oakland LLC was organized in the State of California in August 2019.
The building that COLORS will operate out of is owned by 1419 34th ave LLC, which is run by ROC (Restore Oakland Center) and EBC (East Bay Consortium). 1419 34th ave paid for the restaurant space to be developed, and the equipment and furniture is property of them. EBC and ROC are co-owners of the entire building. The Wefunder campaign will be used to cover operating costs for COLORS. COLORS is not expected to make repayments or share revenues with any other entity.
Since then, we have:
Historical Results of Operations
Our company was organized in August 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
After the conclusion of this Offering, should we hit our minimum funding target, we believe our runway is infinite and that we will not need to raise additional funds.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We have no plans to raise further capital. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
COLORS Oakland LLC cash in hand is $0, as of January 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $0/month, for an average burn rate of $0 per month. Our intent is to be profitable in 24 months.
We have still not opened the restaurant, and plan to open in March 2020. We will not begin generating revenues until we are open, and will not begin generating meaningful expenses until we have secured some funding.
The Managing Member has contributed $250,000 for initial startup costs. Approximately ~200k in additional funds are needed for the business to survive, since it's expected that the restaurant will operate at a loss for at least the first few months. The company hopes (although cannot guarantee) that six months following the raise monthly revenues will be approximately $200k, and monthly expenses will also be approximately $200k. The company does not have additional sources of capital to rely on outside of this raise.
We believe we are well aware of the high-risk nature of opening a restaurant, and have witnessed many restaurants nationwide close their doors because of lack of sufficient opening capital and poor management. We have outstanding, experienced management in our collaboration with Nelson German and Alta Restaurant Group, which has opened and maintained several well-known Michelin-starred restaurants. If we fail, we believe it would be because of lack of sufficient capital to get to a break-even point.
There isn't enough lighting on International Blvd, which could make non-local guests weary of coming after dark. However, we're working on remedying this prior to our opening. Our establishment will also have a parking lot with a parking attendant.
We are committed to paying equitable wages, which could be perceived as a risk given that it will be most costly to the business. But, we believe in quality jobs, and treating our workers with respect and dignity. We also hope that paying people a livable wage will substantially decrease the employee turnover rate, which will ultimately save us money.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
The Company, like many comparable full service restaurants, may make capital expenditures in such areas as research and development, and future project development. Therefore, management of working capital, strategic planning of capital expenditures and the company's debt position are all of major importance. Various risks are associated with interest rates and financing—these risks must to be managed well to ensure profitability. The company understands that the company must invest in growth while working to avoid taking on excessive debt levels, especially at high interest rate levels.
We operate in competitive markets and our future success will be largely dependent on our ability to provide quality products and services at competitive prices. The food industry is intensely competitive and sensitive to national and regional economic conditions. Demand for the products we make may be adversely affected by consumer spending, which may be adversely impacted by economic conditions such as consumer confidence in future economic and business conditions, interest and tax rates, employment levels, salary and wage levels and weather patterns affecting food production.
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