Pappys Supper Club

We started thinking about Pappys in 2016.  It's been a long, crazy journey, and we've only just begun. After years of research we have finally achieved what we believe is the perfect combination of revenue streams and services to fill the voids in the suburbs of Las Vegas. 

Early 2020 we were ready to pull the trigger. Sitting with our architects discussing the Pappy buildout and vision the week before the entire city of Las Vegas went on lockdown. Since then the world has changed dramatically and to some extent so has our vision. We will no longer focus on gaming as a component of revenue. Covid has altered that landscape so much that it is unrecognizable. While cleanliness and safety were always a priority it evolved even more so. For instance all of our restrooms are now single units with a restroom attendant to ensure the utmost in cleanliness. The Member Only area even includes 2 Private restrooms for members only use. We have even revised our "Bitterman" Private Car service. Below we outline the new and improved Pappys Supper Club.

Pappys is offering a 2.5x early bird and 2x return to our WeFunder investors that is secured with a second mortgage on our building and contents. Anticipated timeframe to receive all funds are between 36 and 60 months.

Our offering is broken down in the following sections:

• Restaurant and Bar Industry Analysis after Covid-19
• Pappys Executive Summary
• GFC Investment Properties, LLC - Project Summary
• The Wefunder Return and Incentives
• Location and Floorplan
• Project Team and Advisory List
• Pappys Supper Club Summary of Operations
• Pappys Supper Club Concierge Services

Restaurant Industry Analysis

Covid-19 has forever changed the restaurant and bar business. The pandemic only exasperated some existing challenges that the industry had been facing for many years. Two of the largest impediments to making a profit were rents and rising labor costs. Many well known chefs such as Tom Colicchio, and his brand Craftbar, were closing prior to Covid-19 due to ever increasing rents with built in bumps each year. Rising rents coupled with the push for $15 minimum wage made profitability almost impossible for many restaurants and bars. Then came Covid-19 restricting capacity on top of rising costs.

How can the industry control costs without diminishing the guest experience? The first will be owning their space versus leasing. Yes, this can take much more capital than just leasing. The combination of increased equity over the long term and controlling your overhead will increase the chances of success. How do you pay your help higher wages without increasing food costs or reducing portions?

Pappy believes the answer lies in two places. First is crowdfunding. This not only gives us the necessary capital to solve the leasing dilemma, it also provides a built in customer base that will validate your concept. Second is with a membership model that creates consistent cash flow for the business to staff and pay its help reasonable wages and benefits

Pappys Executive Summary

Pappys has been planning an upscale restaurant and bar in the affluent Summerlin area for several years. Rents in Summerlin and the adjacent areas are some of the highest in Las Vegas. While John has the capital to lease a space and open Pappys we feel there is a lucrative opportunity to own a building rather than lease. Average rents for a fully built out restaurant and bar in Summerlin area can range from $3 - $6 per square foot + CAM. We have been working with Bob Potter, owner and general contractor of, Affordable Concepts, Inc. Based on our research we believe we can own equivalent or better space for at least 30% less than current lease rates. This gives us great stability compared to leasing a space with incremental increases annually.

A combination of real estate coupled with the Pappys operation gives our investors the safety of real estate with revenue participation from the restaurant and bar. The proposed lease would include base rent equal to the mortgage plus 4% of gross sales. Mortgage assumptions are based on our conversations with Celtic Bank of Utah for an SBA loan. Celtic is one of the 3 largest SBA lenders in the country with a specialization in business that own the real estate that supports the operations.

While it is definitely easier and faster to lease a space it is not cheaper or less risky. Commercial leases often require 3+ years of commitment and guarantees. If it becomes a long term lease, the landlord has built in rent increases.The tenant usually has to spend all of the money to build out a restaurant and bar space. At the end of the day we would spend hundreds of thousands of dollars to improve the landlords space, guarantee them income, and share in zero of the improved value.

Based on our research, we believe the construction and added value of our proposal can return substantial appreciation through the sale of the property. If Pappys is as successful as we think it will be, then the investors might vote to hold the property and collect the royalty based on gross sales.

In conclusion, we have built a talented team with industry knowledge to minimize risk and maximize returns on investment. All of this while enjoying what is sure to be one of the most popular restaurant and bars in Las Vegas.

GFC Investment Properties, LLC  - Project Summary

Subject Property:

During the planning and research for Pappy’s Supper Club we found that we have the rare opportunity to purchase a pad ready site and build a home for Pappys for at least 30% less than leasing space. The location is, pad “C” in the Grand Flamingo Centre, near Summerlin. Summerlin is the most affluent suburb of Las Vegas, NV. The location is just South and West of the 215 on Flamingo Rd. Anchored by Las Vegas Athletic Center and Starbucks. The site also has excellent parking and accessibility.

Details:

Pappy has formed a team of professionals that has advised us on the property acquisition and development. This will allow save money on the project and provide equity for our investors.

PAD C:

We can build approximately 13,000 square feet maximum on the pad ready site. We have draft a floorpan that allows us to have space for Pappys restaurant, bars, cigar lounge and members area with patio space.

The Investment:

GFC Investment Properties, LLC has been formed to offer investors an opportunity to participate in the safety of real estate combined with the returns of the restaurant and bar.

The WeFunder Return

As enumerated above WeFunder investors will receive a royalty equal to 4% of gross receipts from sales and membership income of Pappys Supper Club, LLC. At the end of year 5 should WeFunder units be owed any portion of their 2.5x early bird, or 2x returns the investors will be paid that balance from the sale or refinancing of the building.

At this time, the Class A lead investors have discussed selling the building somewhere between 3 and 5 years once a rental track record has been established. Should this occur prior to WeFunder units receiving their full 2.5x or 2x returns, they will be paid in full from the sales proceeds.

In summary WeFunder units will be 2.5x or 2x somewhere between 36 and 60 months.

Perks and Incentives

While many of our investors and supporters will be local to Vegas, we also anticipate having a fair number from other places that love to visit Vegas. Of course everyone will want to visit Pappys while they are in town. So we are offering the following account credits to be used at Pappys:

Investors # 1-10 receive 100% credit

Investors # 11-20 receive 90% credit

Investors # 21-30 receive 80% credit

Investors # 31-40 receive 70% credit

Investors # 41-50 receive 60% credit

Investors # 51-60 receive 50% credit

Investors # 61-70 receive 40% credit

etc until 71 and on (if needed) will receive 30% credit.

These credits can be applied to membership dues, food, liquor, cigars or private lockers.

Location with Starbuck and Las Vegas Athletic Club Anchors

Grand Flamingo Centre PAD C - Developer layout

Pappys Supper Club Floorplan 

GFC Investment Properties, LLC
Project Team and Advisory List

Architect, Engineering and Design:

Cuningham Group

Frances Elliott

3770 Howard Hughes Parkway

Suite 100

Las Vegas, NV 89169

Banking:

Bank of America, accounts

Vienna Nellis

1960 Village Center Circle

Las Vegas, NV 89134

Celtic Bank, mortgage

Scott Foster, Vice President

Salt Lake City, UT

General Contractor

Affordable Concepts, Inc.

Bob Potter, Owner

2975 W. Lake Mead Blvd.

North Las Vegas, NV 89032

Legal

Lewis Brisbois

Paul Shpirt, Partner

6385 S Rainbow Blvd

Suite 600

Las Vegas, NV 89118

Operations

Chilled 100

Wendy Hodges

National Director of the Chilled 100

Music & Entertainment

Keith Thompson

Musical Director Jersey Boys

Pappys Supper Club Summary of Operations

Covid-19 has created a difficult and almost impossible environment for restaurants and bars to operate profitably. A Pappy membership will allow us to operate with reduced capacity without sacrificing quality and service. We will have a concierge team that will get to know our members and arrange everything they need for memorable experiences.

The best way to keep people safe is to limit the number of guests in a space and limit the unknown factors. At Pappy’s you will not need to stand in line to get your favorite cocktail. Even our bars will allow reserved seating so you can interact with your favorite bartenders without feeling crowded. The Members Only area will also have two dedicated bathrooms to minimize having to access the main facilities.

After this pandemic, some of the major concerns about restaurants & bars are cleanliness, social distancing and crowds. You will not have to worry about that here. Single bathrooms that are cleaned after each use by an attendant, tables with spacing from your neighbors, contactless payments are just some of the ways things have changed post-pandemic. Every business can say they will have the cleanest facility, but how many will allow their members to tour in the off hours and see firsthand how the space is being treated. If you still aren’t ready to venture out, our Bitterman service will be happy to deliver your meal directly to you.

Personal Service is at the forefront of Pappy’s. Our Cigar Lounge will also be available only to our Members. This is the only area where smoking is allowed in the Club. Members can have their favorite bottles cleaned and placed in humidity and temperature controlled personal lockers so that only they or their dedicated servers have access or can handle them.

We are creating extraordinary experiences for our Members

Pappys is currently offering Memberships to the Supper Club and Cigar Lounge. Members can skip lines, reserve tables and couches, listen to live music, and attend private tastings. Membership also gains you Invitations to club events for private dinner parties, cocktail soirées, themed parties, film, and sporting events.

If that doesn’t catch your eye, the dedicated full time concierge should. Our Members Only priority reservation system not only allows you to make reservations but the ability to reserve your favorite wait staff to make your night spectacular. You like the same seat every Friday? Just call and make arrangements.

The best part of this service is our exclusive Bitterman private car service. Call your personal concierge to have Bitterman pick you up. Had too many drinks while you were here? Bitterman will take you home safely. Our members can enjoy our unlimited private car service and our other concierge level services are included in their monthly or annual dues.

Pappys Concierge

*Summary of the various member benefits. Please see full membership package for complete details.

Bitterman Private Car Service

Our concierge team will arrange for transportation to and from the Club. It is our job to provide consistent customer service and focus on your safety, comfort and satisfaction. Everyone wants to be socially responsible, but they also want to be safe. Pappys will own their own fleet of SUV’s and employ full time drivers. Our customers will have the satisfaction of traveling in style in a constantly cleaned vehicle driven by the same few employees. While Uber and Lyft are very popular, many people do not want to get into cars with total strangers or them coming to their homes. Lyft Black or Uber Premium services can easily cost $25-30 and more each way. When available, Bitterman can also provide service to and from Aviator, Golden Knights and Raiders games once they are back to normal schedules.

Membership Discounts

As a thank you for your membership commitment we give our members a discount of 10-30%, depending on membership level. The discount applies to your total bill including all food, alcohol and cigars. This includes your guests that visit with you. No more guessing when happy hour begins or ends. We are all about guest satisfaction. These discounts will ensure that you are always getting the best price in town and your membership provides us with steady cash flow even during the craziest of pandemics.

Reservations and Seating Requests

All of our members will be able to make general reservations with our concierge team. When available, members will also be able reserve specific tables, sofas, or seats at the bar. Our membership will help eliminate overcrowding. No more bumping elbows when getting drinks or hoping seats are available when you arrive. We space reservations appropriately so that we can properly clean the tables between guests. Our founding members can also request specific staff to build that personal rapport that results in unparalleled personal service.

Private Lockers

Our members will have the access to a limited number of private lockers that are humidity and temperature controlled to store your favorite cigars, wines and liquors. While we will have extensive lists of whiskeys and wines there are always some items that may escape us. A call to our concierge team will allow us to find most anything available. We can store the entire bottle of rare scotch or a special cigar in your locker waiting for your next visit.
 

Special Events, Live Music and Shows

Pappys knows that date nights are important and not everyone wants to go to the Las Vegas Strip to be entertained. After the lockdown, people want to be social but be able to go out in a safe environment. Pappys will also have special Members Only private events like Great Gatsby, Kentucky Derby and Super Bowl Parties. Live music and special shows will be showcased in our Supper Club. We are fortunate to have Keith Thompson the music director for Jersey Boys on our advisory board to make sure we have the best entertainment available.

Other Membership Benefits

Pappys will offer tours or video streaming of the kitchen to certain members so that they can see firsthand just how seriously we take cleanliness and safety. Of course tours will not be done during meal prep times to make sure food is being handled properly.

From time to time everyone loves to feel special. On occasion, Pappys will provide something special at no cost to our members. Maybe it will be chocolate covered strawberries on Valentines Day or a glass of champagne on your birthday. Little surprises can create lasting impressions.

Menu

The Pappys Menu is designed to bring you the very best ingredients exactly how you want them prepared. Todays world has many dietary restrictions and personal preferences.

The mixing board is our version of the modern Charcuterie board. At Pappys you can create your very own customized board. Each portion is designed to be small so that you can add as few or as many items as you like.

Select from a variety of olives, cheeses, meats, fruits & veggies, breads & spreads, as well as nuts and other delectables. This works perfectly when pairing foods with your favorite wine or whiskey.

Why offer a salad with ingredients you may or may not want? At Pappys we start with several types of greens and let you build from there to create the perfect salad. Pappys has built this menu with you as the customer at the heart of it.

How about a Burger Bar? One fabulous Burger cooked however you like. 34 different toppings. Now that’s the way to make a burger.

Pappys will offer only the best prime and aged steaks available. Choose your cut. Decide how you want to have it prepared and with which one of the many sauces and toppings.

For those that love a chop we will offer veal, lamb and pork chops. Cooked to your perfect temperature and accompanied with your favorite accoutrements. Of course, no Italian menu would be complete without chicken and veal available prepared as parmigiana, marsala, piccata or scallopini.

Our starter menu will include shrimp and crab cocktails as just a few of our many appetizers to begin your meal. Our entrees will also include several seafood dishes with Sea Bass, Salmon and other delicacies from the sea to balance out the heavier side of the menu.

The almost 23,000 acres known as Summerlin was owned by Howard Hughes and named after his maternal grandmother. This affluent area is home to the 1.4 Billion Dollar Red Rock Casino which is located about 5 minutes from Pappys. Part of the 400 acre Down Town Summerlin area that houses Red Rock Casino also has an outdoor mall will over 125 high end shops. Within the past two years, they have also developed the Vegas Golden Knights facility and the 10,000 seat Las Vegas Ballpark which is home to the AAA Oakland A’s.

Households within 5 miles of Pappys

Within 5 miles of Pappys are located some of the most expensive homes in all of Las Vegas. Pappys will be nestled in between Peccole Ranch which has 3,000 homes and Summerlin which has almost 20,000 homes in dozens of enclaves. prices from $400,000 - $30,000,000.

Some of the neighborhoods:

• Red Rock Country Club - over 1,000 homes on 738 acres. 44,000 sq ft clubhouse and private golf courses. The median home price $1,200,000.
• The Ridges - 887 acres that includes Bears Best Golf course and clubhouse with over 500 homes with a median price of $1,300,000
• The Summit - The newest enclave in Summerlin. Only 262 homes on 500+ acres for the ultimate estates.
• Queensridge Estates is directly across the street from Pappys. Almost 1,000 homes with a median price of $900k.
• Queensridge Place has 219 of the highest quality condominiums found anywhere in the world. Median price $2,200,000.
• TPC Summerlin has over 1,000 homes in the millions.

What's in it for me?  2.5x potential return on investment--if you invest $1,000, your contract allows you to collect up to $2,500 in repayments + up to 100% of your investment in credits to be spent at Pappys Supper Club.