|1||3.5x return on investment in the affluent Summerlin suburb of Las Vegas. Our Gaming Parlor provides above average ROI for our investors.|
|2||Multiple revenue streams from Gaming, Mixology, food and Cigar lounge.|
|3||First of several planned locations in the Las Vegas Valley.|
|4||Talented Management team advisory panel led by Wendy Hodges Chilled 100 mixologist.|
|5||Already have 83 investors that have committed $407,000 before permitting|
|6||We have negotiated a favorable ten year lease to lock in savings while Summerlin continues to boom and before rates go up.|
|7||Pappys will target high end local gamers and cater to their requests that are not being met in the current market.|
We started thinking about Pappys Cocktail and Gaming Parlor 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. There are many taverns in the Valley but at the present time there are not any catering to the niche market of high end gamers, discerning diners and those seeking true mixology.
Our Story is broken down in the following sections:
I. What makes Pappy's a Supper Club
II. Gaming Parlor
III. Mixology and Dining
IV. Cigar Patio
V. Members Only Speakeasy - Only Members can access the hidden speakeasy
VI. Members Only Priority Reservation System - Only Members can make reservations at Pappys. Everyone else first come basis.
VII. Bitterman Private Car Service
VIII. Our first location in Summerlin, demographics and floor plan.
Bonus Perks for everyone!
If we reach our maximum goal of $800,000 we will announce the winners of the following at our Grand Opening Party and post on Youtube.
(2) Winners will receive a 23 yr old bottle of Pappy Van Winkle bourbon
(2) Winners will receive a Las Vegas vacation (2) RT air, 3 nights at the JW Marriott Summerlin. Private reception and tour of Pappys and Dinner with Pappy.
(6) Winners will receive a $500 gift card to Total Wine to help celebrate Pappy reaching our fundraising goal.
How to increase your odds of winning these awesome perks.
1. Each $100 invested will receive 1 entry.
2. Send me the name of your referral and you will get a bonus of one entry for each $100 they invest.
That's it. Thank you to everyone for your support and I hope to see everyone at Pappys this spring.
Las Vegas is a unique city. The Las Vegas “Strip” is world famous and has every type of restaurant, entertainment and gaming imaginable. The suburbs are equally unique. Video poker, Keno and slots are located in everything from our grocery stores, drug stores and gas stations. The most popular venues for locals are located in what are legally called taverns. Taverns are allowed to have 15 machines and cater to the masses. Brands such as Golden Entertainment (65 locations), Dotty’s (113 locations), Distill and many others have dozens of locations through out the Valley. While these brands are very popular and extremely profitable, they are all geared to masses. Dotty’s caters to women and heavy smokers with their down home decor. Golden Entertainment has several brands under their umbrella, but once again, caters to the masses with draft beer and Jameson shots.
Pappys Cocktail and Gaming Parlor seeks to operate under the Supper Club laws which allow 5 gaming machines. Our niche will be toward high end gamers. While this is a small percentage of the overall market it can be quite lucrative. We have all heard stories of casinos wanting to have whales play at their locations. One player at $10,000 equals 100 players at $100 in the same amount of time, yielding the same profits.
Many local players will play $2,000 or more in an average session and as much as $20,000 is not unheard of. The most common complaint of these players is why they can’t get a better wine, scotch, or proper mixed drink for the amounts they are playing. For many winning at the games is great but the comps can matter just as much. Even though they are locals they want to feel special and treated as good as the tourists that get catered to in the casinos.
Local players do not want to go to the Strip unless they have to. The Strip is fun, but crowded and overpriced for locals that have options. Why pay $20 + for a drink that should be $10? Why pay for parking and fight crowds with your valuable time? Pappys will offer an exceptional experience off-Strip to capture the high-end gamer and customers that live in the Valley.
Pappys will have several distinct areas to allow us to increase our ticket averages by having everything you need for a great experience under one roof.
As you enter Pappys, you will see our talented mixologists creating incredible cocktails at our main bar. This team is lead by our bar manager and lead mixologist, Wendy Hodges. Wendy has over 20 years experience creating masterful cocktails and is also a featured "Chilled 100" Mixologist. This area will also have community tables and a sofa area to allow our customers to have an exciting time during our signature "Pappy Hour" or while watching their favorite teams on our large screens.
To the left of the our front doors will be our music area for our live entertainment. The architectural round area is a perfect stage for date night. Relax on our comfortable sofas and ottoman while having a signature cocktail and enjoying our talented guest bands.
The back left of our floor plan has our upscale dining room, decorated in a Gatsby meets Godfather style. Our diners will enjoy the finest lunches and dinners. One of our signature items will be our Pappys Mixing Board. Much like a charcuterie board but instead of getting whatever the kitchen feels like, you can customize your board with 1 - 30 items for yourself or a large group. Signature entrees will have everything from aged steaks to veal chops and various fish dishes. Since Pappys will not be open until 2020, our talented kitchen team has not yet given proper notice at their current establishment and therefore can not be featured here yet. Do not worry though, all of our team are excited about the Pappys vision and Las Vegas has many talented and creative chefs.
We have one other exciting area to visit before we head to our hidden Members Only Speakeasy. Out front and away from the front door is located our Cigar Patio. We are currently being courted by several of the successful cigar lounges in Las Vegas to partner with Pappys. Our cigar menu will feature a handful of carefully selected offerings to pair with our extensive whiskey menu.
Pappys signature area will be our hidden Speakeasy in the back area behind our main bar. Think of our speakeasy as Playboy Club meets Foundation Room. Our flapper girls will spoil our guests with their extensive knowledge of our signature cocktails and large whiskey menu. Feel like playing some billiards? The girls will be happy to set up one of our complimentary tables. We have already received many requests to rent out our Speakeasy for private corporate events.
For those more adventurous we will feature 5 gaming machines at our private bar. Here our high end gamers will be spoiled with their favorite video poker, keno and slot games. Qualified gamers can enjoy the finest scotches and wines typically only found in high limit areas of casinos. This will be a unique offering not found in any of the taverns in the Valley. For those wanting a more intimate evening they can relax in one of our private sitting groups.
While we are pampering you with all of our great features we can explain some of the great offerings that will make Pappys your go to place and a darling of social media. Pappys will be offering a Priority Reservation System to our members. This will allow guests to reserve specific seats anywhere in Pappys. Some of the requests we have already been asked about are:
Customers without a membership will not be able to make reservations at Pappys. While this might seem unfair to some it will build a mystique and also cater to our most loyal customers. Memberships will be offered throughout the year for those that were not aware of Pappys prior to it's opening.
Uber and Lyft have changed how people drink and drive. Pappys will elevate this experience with our Bitterman Private Car Service. For a nominal $10 fee, within 5 miles, our dedicated drivers will be happy to pick you and your group up at home or work and bring you to Pappys. And after possibly having one too many of our awesome cocktails Bitterman will make sure you get home safely. Uber & Lyft Premium would be approximately $30 for the same ride and not have the same panache.
Keeping with Pappys being not just a restaurant and bar we will also have incredible Special Events such as our Great Gatsby, Kentucky Derby and Black and White Parties.
Each month we will also offer Tasting and Pairing Events to help make mixology and specialty liquors more accessible. Our first tasting will feature several offerings from the Buffalo Trace distillery and will include Pappy Van Winkle, Blanton's, and other fine brands from their portfolio.
Our first location will be in the affluent Master Planned Community Summerlin. Pappys has secured the ideal space for our first location. We have entered into a lease for approximately 6,500 square feet of space at below market rents for a 10 year term + renewals. This below market rent will allow us to have above average profits to fuel our growth.
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.
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:
With literally thousands of affluent home owners within 5 miles of Pappys, it should be easy to keep our 5 high end gaming machines in our Members Only Speakeasy cranking all the time.
So what's Pappys all about?
Pappys wants to disrupt the market with our unique speakeasy supper club. In addition to 5 gaming machines intended for high roller players, Pappys aims to have exceptional food, service, and drinks.
Our first concept will be a full service steakhouse and cocktail parlor to show all aspects of the Pappys vision while catering to the affluent Summerlin residents. Pappys plans to provide high end spirits, wine and award winning mixology. There is a hidden speakeasy that can be rented out for private parties and corporate events.
Future locations will be smaller in size and focus on the needs of those markets. We believe that there is room for multiple Pappys throughout the Las Vegas Valley. We will entertain opening additional Pappys or possibly franchising outside of Las Vegas in the future.
Come join Pappys Cocktail and Gaming Parlor. We're closing in on the finish line, so we're reaching out to ask for YOU to help get us there.
Pappy has currently raised about $400,000 from many supporters and advisors. This has allowed us to sign a lease on the perfect space at a very attractive long term lease rate. Our goal has always been to crowdfund Pappys as it is being built for our community. Thankfully websites like Wefunder and Kickstarter allow us to reach many more people efficiently.
Beginning in January of 2019 Pappys formed an exploratory group of about a dozen people that also shared and appreciated the need for a Pappys in Summerlin. By May of 2019, we had over 200 people on our mailing list looking forward to Pappys opening. Our milestones include:
- January 2019: Small advisors group is formed to work on features, menu and locations to consider.
- May 2019: Mailing list of supporters passes 200 people.
- September 2019: 83 investors have committed $407,000 to Pappys
- Blueprints drawn up
- Mechanicals and engineering are underway
- General Contractor is ready to get building this fall
- 10 year lease signed at below market rates
While we could cut corners or lease equipment, which is always expensive, we would rather pay back our supporters with a generous 3.5x return on their money. We have budgeted 4% of gross sales to retire our Wefunder Revenue Sharing Units. If we can reach our forecasted sales this will allow a 3.5x return in approximately five years on $350,000 (provided we just hit our minimum goal).
What's in it for me? 3.5x potential return on investment--if you invest $20,000, your contract allows you to collect up to $70,000 in repayments. While we hope to repay all investors fully, repayments are based on a percentage of company revenues and cannot be guaranteed.
Pappys Cocktail and Gaming Parlor has financial statements ending August 31 2019. Our cash in hand is $0, 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 $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.
Pappys will be an almost 7,000 square foot Supper Club in the affluent Las Vegas suburb of Summerlin planned to open in March 2020. We will offer a members-only speakeasy for our customer base of high-end gamers with a private bar and lounge. The hidden Speakeasy will feature very talented mixologists of Vegas. As a supper club, Las Vegas allows us to have up to 5 gaming machines. To increase onsite Revenue and customer satisfaction, Pappys will also have an upscale restaurant, cigar lounge and live music.
Our goal is to have several Pappys Supper Clubs strategically located in the Valley near high end neighborhoods. We hope to expand and open additional locations in the Anthem and Seven Hills areas, for they have expressed interest in having a Pappys.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Pappys of Summerlin LLC was incorporated in the State of Nevada in June 2019.
Since then, we have:
Historical Results of Operations
Our company was organized in June 2019 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 $407,000 in debt.
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 expect to need a total of $400,000 to open our Supper Club. We can solicit investment from friends and family and apply for bank loans for additional capital if needed.
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. 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
Pappys of Summerlin LLC cash in hand is $0, 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 $0/month, for an average burn rate of $0 per month. We have secured a ten-year lease for our business and plan to open in March 2020, which is when we expect to generate revenue. At this time, our expenses are also expected to increase. Our intent is to be profitable in 8 months.
Since the date of our financials for the period ended August 31, 2019, nothing substantial has occurred except for our application to Wefunder to raise capital.
It is estimated that we can complete our buildout and be open for business March of 2020. So we will have zero operating cash flow for the next 3-6 months. Will plan on utilizing the funds raised on Wefunder, friends and family raise, and traditional bank debt if necessary to operate the business.
Societal shifts in consumption can always change. If by chance our customers no longer seek mixology, cigars, or gaming these could cause major differences in our revenue streams.
Our location was chosen on demographics and the current economy. Significant changes in either can cause business disruption.
Pappys is subject to gaming licensing in Las Vegas, NV. Although there is no reason to not be able to be licensed all businesses are always subject to governmental constraints.
Pappys is subject to Cigar licensing in Las Vegas, NV. Although there is no reason to not be able to be licensed all businesses are always subject to governmental constraints.
Pappys is relying on the hiring of key staff and has written agreements with them to join our team. Health and other issues could lead to not procuring these hires.
Economy is a variable that is unpredictable. A recession or other deleterious effect in the economy could lead to significant reduction in customers
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.
We face competition from restaurants and bars that are already established and have far more resources for funding and marketing. Attracting and retaining customers in this climate may be difficult.
Pappys owner, John Kaspar was sued civilly while he was CEO of Win 4 Charity in 2008. The lawsuit was led by Darcy Neighbors who was a vendor and board member trying to gain control of the company. The suit was dropped before it was ever filed in court. Accordingly, false statements of libel and slander could be made to damage the public image of the Company.
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