|1||Economic forward business model (less staff; lower cost of food goods) which results in higher margins than typical restaurants|
|2||Experienced team with Michelin pedigrees- Single Thread, Nobu, Guy Savoy, Social House, Daniel, Alexander's Steakhouse, andGrand Hyatt Tokyo|
|3||A sustainable mission forward business that builds closer relationships wifth the farmers of the food we serve and the community we serve.|
|4||Higher ROI. This is not a standard restaurant having higher margins leading to higher returns, lower cost of goods, and leaner staff.|
My first thought about this restaurant was about five years ago after an inspirational trip to Japan. While having been in the culinary world for two decades in New York, Las Vegas, and San Francisco, I saw a culinary frame of reference and dedication to the craft not often seen in the US. I immediately wanted to bring this back and create something that is not commonly experienced in the US and integrate the Japanese idea for hospitality “omotenashi” into our lives.
For the last seven years, I worked as the Business Development Chef for the Alexander’s Steakhouse group in San Francisco. In that time, I helped to grow the company from one restaurant to over five restaurants across the world. I spent many years not only cooking, but building out locations across California as well as launching restaurants in Taiwan and Japan from the ground up. During this time, I was able to dive deeper into the deliberate simplicity which gives way to subtle complexity of Japanese food as well as explore how food is richly interwoven into their way of life and culture.
When I was in Japan opening up the steakhouse, I spent time talking with farmers across the country. Wagyu, the Japanese breed of cattle, has always been a mythical food, across the world, and a particular interest of mine as farming practices are not disclosed to foreigners. As I was sourcing beef for the restaurant, I was introduced to many Wagyu Farmers. Throughout these years I learned about how the genetics, feed, terrior, and the care of the animal played into the flavors. At the time very few farmers would open up to me. Japanese beef farming is so different than our large facilities and I continued to fall deeper in love with it and Japan. There is a true sincerity to how these animals are raised and I was happy to be a part of it.
On a routine visit to pick out a few steers for Alexander’s a farmer asked me a question that changed my culinary direction from then on:. He said “When can you take the entire animal?” I feel like that was the seed of the idea that continued to grow in my head. I incubated that idea for several years thinking about all the beef that was being left behind in Japan. So many flavors and textures can be found in the wagyu breed and in these cuts that are rarely exported to the US. Few people here have the slightest idea.
I continued to grow this idea over the next several years at Alexander’s. I was bringing in cuts I had never worked with, some more than 50 lbs. My curiosity to explore the textures and nuance became skill and from there we really began to create some special things all the while being shadowed by the albatross “Steakhouse”
Two years ago I met my friend and business partner Ben Jorgensen. We talked about this idea that I had been working on, this idea of a restaurant that explores all the flavors and textures, the nuance and subtlety of Japanese beef in its entirety and cooked over fire. Ben quickly adopted the idea and has used many of his resources to help to grow it to the expression that it currently is.
When we began to design the framework for this restaurant we took a business approach, started in reverse and began with a healthy bottom line. We designed the space to be intimate and host a small group of diners. We are creating a healthy environment for our employees, with improved wages, a five day work week, and two nine day breaks a year. We have raised 1.3 of our 1.7mm goal. We are nearly two thirds of the way through construction and are set to open the doors in August.
We have selected our team, all of which I have spent multiple years working beside, which comprises over 50 years of hospitality experience. We have trained and learned from some of the most renowned chefs and restaurateurs and are excited to bring Gozu to life.
Gozu has financial statements ending December 31 2018. Our cash in hand is $20,000, as of September 2019. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $25,000/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.
Gozu is an upscale restaurant melding two styles of cuisine; kappo (chef prepared and served food and beverages) and robata (meats, seafood and vegetables cooked over an open fire) We are located at 201 Spear Street in San Francisco's Financial district. Our dining room seats 31 people around an open fire hearth. Chefs prepare and serve a menu designed to showcase the versatility and nuance of privately farmed Japanese Beef, prepared in its entirety. Our whisky lounge is a separate experience that hosts 12 guests and offers an array of beverages with a focus on rare and allocated Japanese and Scotch Whisky.
Our intention is to continue to grow our restaurant group and open additional restaurants in the US while widening the market and increasing awareness for wagyu beef served in its entirety. We also intend to play a role in the transformation of an industry traditionally lacking in employee health (both physically and mentally) into one that is thriving with creativity, professionalism and empowerment.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Kojin LLC was incorporated in the State of California in September 2018.
Marc Zimmerman owns 75% of MZ Dining Group; Ben Jorgensen owns 25% of MZ Dining Group. MZ Dining Group is the holding company that owns 70% of Kojin LLC (GOZU). Investors purchased up to 30% of KOJIN LLC (DBA - GOZU) through a convertible note set to convert at the end of September 2019 (right before opening). Majority Vote is by default Marc Zimmerman since he owns a majority of MZ Dining Group and MZ Dining Group owns majority of KOJIN LLC (GOZU).
Post Conversion: MZ will own between 61 and 64% of the company post-conversion of the notes (depending on final total) with 3% held by J&J, 3% by Lindsey Young, and 31-34% by the preferred investors.
Since then, we have:
Historical Results of Operations
Our company was organized in September 2018 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
To-date, the company has been financed with $380,000 in debt and $1,417,500 in convertibles.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 6 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 1 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
Kojin LLC cash in hand is $20,000, as of September 2019. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $25,000/month, for an average burn rate of $25,000 per month.
We have had no significant changes to our financial operations as our restaurant is not open yet. We hope to open the restaurant at the end of October, at which point we hope to be profitable in 4 months from opening.
We have already secured all the funds needed to open the restaurant. The funds from this raise will be used to purchase inventory and help fund operations in our first few months.
Over the next several months, we will be ramping up awareness of the restaurant to sell food and alcohol. Furthermore, we are selling a ticketed experience and will pay for their meal in advance. Added supplements and alcohol may be added during the dining experience. We plan to be offering a whiskey and wine club that will allow individuals to purchase a bottle in the restaurant and reserve for future use. Finally, we plan to be offering the ability to purchase house accounts, through InKind. House accounts allow people to purchase credit in the restaurant while receiving additional credits as a bonus as they buy larger packages of credit.
The success of the restaurant depends on the ability to stand out in the culinary world of San Francisco (one of the top Michelin starred cities in the world). Getting press coverage is essential to any restaurant. Receiving bad reviews could cripple the entire restaurant as we aim for an upscale dining experience with limited seats.
If the US economy takes a downturn, we will need sufficient operating capital to ride a negative economic shift.
Executive Chef Marc Zimmerman will be cooking and preparing the culinary vision of Gozu. His management and vision is critical to the success of Gozu and if anything happened to him, we would be crippled dramatically.
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 price of beef could fluctuate drastically and force the restaurant to shift the culinary direction.
Animal rights protests could impede on us doing business or present a negative image of the business.
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