|1||The comprehensive approach and versatile business model mitigating risk, from cafes to wholesale|
|2||The vision beyond coffee and its multiple revenue streams: CPG, music, fashion, etc.|
|3||The growth opportunities with several iterations of the concept in multiple real estate environments|
|4||The checks of post-pandemic and new-reality boxes, mainly consumption flexibility and cleanliness|
|5||A project that defines the future of the hospitality industry, especially from a people standpoint|
|6||A $70b market in 2020 in the US only, with an average 9% yearly growth expected for the next 5 years|
|7||Our versatile team has 30+ years of experience in the food business and hospitality in general|
|8||We complement our skill sets with strong experts in their fields (design, coffee sourcing, etc.)|
I invested in El Condor because of their potential of growth, the market industry is clearly there, especially during this period, we notice that the coffee industry remain persistent.
The Founders Nicolas and Mucgio are strong with domain expertise and previous operating experience with the well know French chef Alain Ducasse (Michelin stars) and Four Seasons.
I am most impressed by their sense of humanity and the taste of their products.
Compare to different tech startups, El Condor is a daily return business and profitable since day one.
The available deck provides much detail about concept and brand already (please read through it carefully), but we wanted to emphasize a few aspects that are particularly important to us.
Our labor models do not reinvent the wheel, yet they allow for true HR policies in favor of our teams: fair compensation for all, no discrepancies between back and front of the house, revenue share vs tips, insurance, advancement opportunities, on-going learning and training, empowerment and more. In other words: what you would expect from basically any other industry...
Below a couple of recent pieces that illustrates very well the current challenges our industry faces from a compensation standpoint.
Yes, the current pandemic requires everybody to enforce new rules in terms of cleanliness and safety. Good news is that has always been part of how we run things, as basic as it sounds: no coffee stains on tables, no crumbs on the floor, no trash cans in sight, spotless uniforms, thorough cleaning schedules in place... you get the point.
And cheers to a cleaner world as a silver lining to this unprecedented crisis...
Because of Covid-19, again, the hospitality industry has aged 5 years in the past 9 months! Brutal and throwing everything off balance right now, but no real surprise as to where we were headed...
We are no special visionaries, yet El Condor has embraced many necessary evolutions since the very beginning, as a business plan: delivery and takeout (including a nice window on the street), digital strategy from POS to social SEO/SEM, maximization of hours of operation, multi-use venues (co-working, exhibitions, etc.), retail, "ghost" products/brands from our cafe kitchens.
Not to mention the wide range of locations and layouts the concept offers, as demonstrated by the immediate real estate options at stake as well as the surprise right below.
We are in negotiations with Selina to take over F&B operations at their new property in Chelsea, NYC (formerly Hotel Americano).
Excellent opportunity for a 4th El Condor as an all-day dining outlet on the ground floor of the hotel, under a management contract (hence limited to no investment cost to us).
Regardless of that opportunity, we can expand fast within many different environments and position ourselves as an amenity/enhancement to our various real estate partners.
Just think the opposite of cookie-cutter... The concept of course has its own DNA (like that mid-century modern interior design approach that brings comfort and openness) but it first and foremost celebrates the immediate surroundings of its locations: history, art and culture of a city or a neighborhood within, primary purpose, specific partnerships.
That translates into interior design changes from one place to another, evolution of the branding identity, different F&B menu options, grass-roots initiatives, and more.
By now you know that we not only think "full-spectrum" when it comes to coffee, but also want to expand the brand beyond its core business: fashion collaborations, music production, furniture design, coffee equipment design, the opportunities are pretty much endless as long as they remain qualitatively relevant.
Many fun projects to work on in the future and very promising revenue streams!
Here are the next 5 key milestones as soon as the raise is completed (this is not guaranteed):
- February 1st, 2021: lease executed at the first stand-alone location
- March 1st, 2021: both coffee counters with Primary are open for business
- April 1st, 2021: the first wholesale accounts are being supplied
- June 1st, 2021: opening of 1557 Lex, aka El Condor's first coffee shop
- July 1st , 2021: our retail business scores its first major distribution deal (supermarket chain for instance)
And right now, while the fundraise is under way, we are just getting ready as much as possible to execute on the plan as soon as the investment is finalized (conversations with key people, companies and suppliers to be involved, pre-selection of equipment, etc.). All funds will go towards opening the 3 locations as described above and in the deck.
El Condor Pasa by Simon & Garfunkel, courtesy of Youtube... This is the song that originally inspired the whole concept and its ties to the wilderness, sense of freedom and quest. Enjoy!
El Condor has financial statements ending September 10 2020. Our cash in hand is $0, as of November 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.
El Condor is a new coffee brand defining the future of hospitality, from roasting to cafes and lifestyle. At the parent company level, Wilcuma develops, builds and operates its proprietary hospitality concepts, as well as provides a wide range of services to select clients.
Five years from now, we hope to celebrate the 10th location of our coffee concept and it will have become a recognized brand and household name in that space. These projections cannot be guaranteed.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
El Condor, LLC was organized in the State of Delaware in September 2020.
Since then, we have:
Historical Results of Operations
Our company was organized in September 2020 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, our projected runway is 12 months before we need to raise further capital.
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 plan to raise capital in 12 months. 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
El Condor, LLC cash in hand is $0, as of November 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 6 months.
There have been no material changes since the date of our financials. The operating company for that "start-up" project was specifically formed in order to proceed with the crowdfunding campaign, so there has not been any activity yet.
We expect to need a total oof $540,000 in capital to reach a revenue-generating point. We hope to generate $675,000 in revenues after 6 months (combination of cafe sales, retail and wholesale) and $625,000 in total expenses (costs of sales, labor, operational expenses and rent). These projections cannot be guaranteed.
We have no other sources of capital at the moment, this crowdfunding campaign is our first attempt at raising capital for this concept/project.
Hospitality in general and restaurants in general are a low-margin and high-risk business with many reasons to fail, especially in a post-Covid environment.
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 coffee industry is highly competitive, although we have a unique, strong and scalable concept with the right skills and resources to succeed.
Our financial projections and returns on investment cannot be guaranteed despite reasonable and thought-through calculations. Moreover the company has so far no financial or operating history to back up these numbers.
Public health and safety: despite being an everyday top priority and having all measures and practices in place we are not protected from a potential issue that might affect the reputation of the business and its sales. That risk is even more relevant in the current Covid situation the world is dealing with.
Negative publicity may damage our image. Our transparency as well as a strong digital presence and strategy will be our best assets to control the narrative.
Litigation regarding employment practices (despite operating with a strong and lawful HR policy), as well as federal and local regulations might become threats to the business.
Increasing labor costs (such as minimum hourly wage or benefits), as well as utilities, insurance and goods are all expenses that we cannot always monitor when not our own decisions.
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