The Spanish chef José Andrés and his partners have started looking for investors for their restaurant in Chicago, according to group sources.
Although one of the secrets of its success is the business structure behind it, on this occasion it has launched a request for money through a subscription offer to raise two million with which to undertake investments in the restaurant's kitchen and furniture, in what it calls its “first round of community investment.”
The operation is based on a valuation of 50 million dollars (about 46 million euros) for the Bazaar Meat steak restaurant and its tapas annex Bar Mar, in Chicago, according to the offer documents, to which EL has had access COUNTRY.
José Andrés' group has around thirty restaurants around the world.
Bazaar Meat is a joint venture between Grupo José Andrés and Gibsons Restaurant Group (GRG), a leading operator of 13 locations in three states, including its iconic Gibsons Bar & Steakhouse in Chicago, founded in 1989 and owned by the Lombardo family.
Bazaar Meat and Bar Mar, open in late 2021 and designed by the Lázaro Rosa-Violán studio, occupy rented space on three floors in the Bank of America tower, a commercial building in the Loop, the business, tourist and cultural center of Chicago .
An image of Chicago's Bazaar Meat & Bar Mar provided by the company.
Although the minimum investment is only $500, the offer is aimed at qualified investors with a certain level of assets, income or financial knowledge, among other criteria.
More modest small investors can also invest, but with certain limits.
The operation is designed to raise a minimum of one million dollars and a maximum of two million.
The offering documentation indicates that Bazaar Meat estimates that it will have revenues of almost $18 million in fiscal 2024 with a profit margin before interest, taxes, depreciation, amortization and management fees of 5.3%.
It expects to grow and improve its profitability to estimated revenues of $23 million with a margin of 11.4% in fiscal year 2028, equivalent to approximately $2.6 million in gross profit.
The total expected gross operating profit before management fees over five years amounts to $9.5 million.
The valuation of 50 million dollars is, therefore, about 19 times that expected gross result for 2028.
It is a very demanding valuation, especially for a minority stake that will be 3.85%, and without voting rights.
Perhaps that is why, as a complementary attraction to the subscription of new shares, some additional advantages are offered depending on the volume of the investment.
For level 1, those who invest between $1,500 and $9,999, the company offers early access to table reservations at Bar Mar/Bazaar Meat and a $150 gift card for drinks at the premises.
For level 2, with an investment of $10,000 to $49,999, membership comes with an invitation to a special tasting event, early access to reservations, and a $1,500 gift card.
Finally, level 3, for investments starting at $50,000, implies a 40% discount on food and drinks, an invitation to a special tasting, early access to reservations for that restaurant and others in the group, and products from the company. unspecified brand.
Bazaar Meat specializes in meat, but has an extensive menu.
It offers a tasting menu for $145 (drinks, taxes and tips apart).
Bar Mar has two menus of tapas and lighter dishes, one for $75 per person and another for $95, with a wine pairing for another $75. In both it is possible to eat à la carte.
In addition to red meat, there are croquettes, octopus, gazpacho, Iberian ham, bravas potatoes, garlic prawns or sea bass, among many other options.
Bazaar Meat belongs to one of the chains of the José Andrés Group, managed through ThinkFoodGroup (TFG).
José Andrés opened The Bazaar de Washington restaurant last year in the spectacular and luxurious atrium of the Waldorf Astoria hotel, on the legendary Pennsylvania Avenue.
The location is in a historic building, the Old Post Office, built at the end of the 19th century, which has a tower of almost 100 meters, the third tallest construction in the capital of the United States.
The decoration was also carried out by the Spanish studio Lázaro Rosa-Violán.
With slightly outdated data, the offer brochure indicates that the TFG group, which has more than 30 restaurants, served approximately 2.3 million customers in 2019. The group was born in Washington and is also present in Miami, New York, Los Angeles, Chicago, Las Vegas and Dubai.
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