Tootie's Famous Italian Beef

93 s 16th st Pittsburgh United States, PA 15203 Pittsburgh

Introduction

Tootie’s Famous Italian Beef is a quick service restaurant. We specialize in slow roasted meats piled into a soft Italian roll. Our meats are infused with spices and seasoning to create unique tastes that cannot be found elsewhere. Known currently as "the hidden gem of the South Side," Tootie's is expanding to Market Square in Downtown Pittsburgh. In one of the most trafficked areas in the city, we are hoping to reach more customers.

We are looking to borrow up to $43,200 at an interest rate of 11.50% over a 60 month term. Anyone age 18 or older can invest.



About Tootie's Famous Italian Beef

Our first competitive advantage is the speed of service. An experienced employee can assemble a sandwich in under 15 seconds. Tootie’s second competitive advantage is the quality of our food. We use fresh products that have never been frozen. Tootie’s third advantage is our inventory turns. All our inventory turns over every 3 days at the longest.

One day in 2010, Karl made a batch of Italian beef in his house. His brother came over for dinner that night and as he was shoving his third sandwich in his mouth he said, “don’t get any bright ideas like you are going to open an italian beef shop!” Karl laughed and said, “yeah ok…”



Fast forward two years to October 2012: Karl saw a restaurant for rent in the heart of the Southside for $500 a month and thought to himself, “how could I not take the chance?” So he signed the lease, fixed up the place a little bit, bought his initial equipment and inventory, and opened up shop on November 12, 2012. His initial investment was $3,500.

The Pittsburgh press had a slobbering love affair with Tootie’s. They wrote 12 articles about Tootie’s in the first year. All of the Post-Gazette food staff came down to eat. 

Tootie’s has a very bright future. Our next location is located in Market Square. Aside from Oakland, there is no other highly trafficked area in Pittsburgh. It is the busiest daytime location in the city. We are expecting to serve 300+ people per day. We are hoping this store is the catalyst that will provide the capital to grow into the company we have always envisioned.



If things go as well as we are hoping, we plan to open stores throughout the Pittsburgh region and Western PA. There is no similar product on the market. Ideally, we would like to open drive thru restaurants and incorporate a Triple D strategy: Dine-in, Drive-thru, Delivery. If you want to enjoy your food in our restaurant, have a seat. If you are too lazy to get out of your car, enjoy our drive-thru. If you are too lazy to get in your car, we will bring it to you. 

In the immediate Pittsburgh market, we see opportunity for about 20 - 30 stores. If you consider a two hour drive radius around Pittsburgh, this figure jumps to over 100. Ensuring the same quality experience for this many stores is paramount to success. All cooking will take place at a central commissary with delivery to the stores every 3 days. 

After this model is perfected, Columbus is next on the radar.


Fast Facts

  • Tootie’s was named Pittsburgh’s Best Roast Beef by the food editors at Pittsburgh Post Gazette.
  • Tootie’s has sold over $1.7 million in food to date.
  • Tootie’s was written about 12 times by the local media in its first 12 months in operation.
  • Tootie’s is frequently said to be one of the top restaurants in the city by its customers.
  • Tootie’s is listed as an iconic restaurant in a Google search.
  • Tootie’s is referred to as a Southside Legend by its customers.
  • It is not uncommon for a new customer to eat Tootie’s three times in one day.
  • Other restaurateurs come to the store and try our Italian Beef and then try to copy our recipe. ( We have yet to find another close copy.)
  • Tootie’s has changed the food culture of Pittsburgh. People enjoy our Italian Beef so much, they try to make it at home for their friends. Most have never had anything like it.
  • The owner holds an MBA from Duquesne University.

 

The storefront in the Southside location.


The Project

The use of funds are as follows:

  • Walk-in Refrigerator – $9,000
  • Double Stack Convection Oven – $10,000
  • Indoor Smoker – $3,000
  • Steam Tables – $4,000
  • Work Tables – $1,000
  • Auto Sham – $3,000
  • Point of Sale Kiosk System – $10,000

We are designing this space to be the fastest quick-serve restaurant in Market Square. The quality of
Tootie's is unmatched in the immediate trade area. We will quickly become the restaurant of choice for
diners in this area.

The volume will drastically change. Right now we see about 300 tickets during our busiest day of the year. This is going to be every day in our new location, plus more from catering. This equipment will help us meet the anticipated demand while supplying some excess capacity to grow. 

Our menu will expand to offer more options for consumer tastes. This in turn will expand our servable demographics. Plans include incorporating a few vegetarian/vegan sandwiches, expanding our roasted meats by adding turkey, corned beef, and pastrami. 

Our goal is to become the dining destination of choice for regular Market Square patrons.


The new restaurant will be located in Market Square, pictured.


About the Owner

Karl Horn is the sole owner of Tootie’s Famous Italian Beef. His foodservice background includes managing a McDonald’s restaurant, working as waiter, bartender, and line cook. Prior to opening his restaurant, he worked as an analyst and consultant in the hospital consulting industry. His work included data analytics and operational change management. He earned a Masters in Business Administration from Duquesne University and a Bachelor of Science in Business Administration from West Liberty University. 


The owner, Karl Horn.


Deal Summary

Issuer

  Cissonius Corporation ("Tootie's Famous Italian Beef")

Security Type

  Secured Loan

Loan Purpose

  Purchase of equipment to open new retail location in Market Square, Pittsburgh

Offering Amount

  $30,000 - $43,200

Interest Rate

  11.50%

Payments

  Monthly, Disbursed to Investors Quarterly

Maturity

  60  

Personal Guaranty  

  Karl Horn

Security Interest

  Equipment to be purchased


Your Earnings Potential

If you choose to invest, you will make a one-time investment via ACH that will be transferred to a secure escrow account. If the campaign successfully reaches its target, the funds will be distributed to Cissonius Corporation ("Tootie's Famous Italian Beef").

For more information on the mechanics of Honeycomb’s crowd investing platform, please review our Education Materials.

Investment Amount One-Time Fee Potential Quarterly Returns* Potential Total Repayment*
$100 $2.85 $6.59 $131.95
$500 $14.25 $32.98 $659.77
$1,000 $28.50 $65.97 $1,319.55
$5,000 $37.25 $329.88 $6,597.78

*Individual payments may vary slightly based on rounding. Potential repayments include principal and interest, they do not include the one-time fee which is assessed when you make your investment. These amounts are calculated as a fully amortizing loan: principal and interest are paid down starting with the first payment. There are no prepayment penalties and Cissonius Corporation. may pay down their loan early which may impact your earnings potential. Please note, returns are not guaranteed and investors could lose some or all of their investment.

Your ongoing responsibilities from investing are very limited. Each year over the life of the loan you will receive a 1099-INT, this is a simple tax document similar to what you receive for most savings accounts.

Cissonius Corporation pays as agreed, you will receive quarterly payments directly into your bank account. In the event of a default, you will be contacted by the Administrative Agent to manage the collections process on investors' behalf.

 


How Honeycomb is Compensated

Honeycomb charges Cissonius Corporation a $250 posting fee and a 8.0% loan origination fee on the total amount funded.

Total Amount Raised Origination Fee
$30,000 - $43,200 7.0%

 

Additionally, to cover expenses associated with each investment, Honeycomb charges a 2.85% investment fee capped at $37.25 per investor.

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