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San Francisco

Valley Tavern

About Documents
490%
$49,000 Funded
$10,000 Target
Closed Time Left
34 Investors
$10,000 Min. Raise
$50,000 Max. Raise
36 mo. Term Length
5.0% Interest Rate
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Overview

The Valley Tavern is a neighborhood bar in San Francisco that prides itself on its customer service and warm atmosphere. We have a diverse selection of beers, wines, and cocktails, the best beer garden in the city (voted by San Francisco magazine), and an exceptionally friendly staff. We also have a reputation as one of the best sports bars in town, with over 20 screens and loyal fans who come for every game. Above all else, we value our relationships with our customers and our community. Our goal is to create a community meeting place where everyone feels welcome and where neighbors can get to know each other.

The Valley Tavern is many things to many people-- it is a sports bar, an Irish bar, a community hub, and most importantly, a safe space for all. Customers often say that the Valley Tavern is the only bar we would feel comfortable bringing our Mom one night and our friends the next. Our diverse clientele and friendly atmosphere make it the only bar in the city where you can comfortably host both a retirement party and a 21st birthday.

To stay afloat during COVID-19, we are raising $50,000. There will be a 6-month interest-only period at 3.75%, followed by a 30-month fully amortizing period at a 5.00% interest rate. The campaign ends on July 20, 2020 at 11:59pm.

 

We have 40 drafts on tap.

 

The Project

With the funds, we will pay past due bills (approximately $30,000), re-stock inventory ($15,000) and any remaining funds will go towards working capital for ongoing expenses. We have long-planned to put in a kitchen – which will radically improve revenue – but this would cost $50,000 so those plans have been shelved for now.

Due to the COVID-19 crisis, the Valley Tavern has been closed since March 16th (with the exception of 20 days worth of to-go sales, which brought in an approximately 1/3 of normal income).This has put the business in a very precarious situation.

Shelter-in-place was made effective the day before St. Patrick's Day. For an Irish bar, this is the ultimate disaster––for us, St. Patrick’s Day is our Black Friday. We had spent the money and stocked up on Guinness, Harp, Jameson, etc., just to have it sit unsold, setting the stage for a very difficult and uncertain future. Raising the required funds will put the business back on good footing. Ensure that we meet our outstanding financial obligations and have sufficient resources to restock once shelter in place has been lifted.

 

We are looking forward to reopening our doors!

 

Business

History

The Valley Tavern was founded in 2003 when Vince Hogan purchased what was then the Coyote Club. This was his seventh bar in San Francisco, and his fourth in Noe Valley. In 2010, his son Declan came on as general manager. In 2016, Vince retired, and Declan officially took over the business. The Valley Tavern is a true family business, both in ownership and in operation. We are lucky to have a longtime loyal staff that loves each other and our customers like family.

 

We are reknowned for our excellent customer service.

The Future

The future of the Valley Tavern amidst the Covid-19 pandemic is somewhat uncertain. With the support of friends and neighbors, we are confident that we will pull through this tough time, but it is still unknown when business will return to normal. We expect it will be an awfully long time before we will have a bar packed with sports fans and beer fanatics again.

Our long-term goals are to broaden our customer base, improve our facilities, and put in a full kitchen. But ultimately, our main objective currently is to survive this crisis and emerge with sound financials to continue to provide that home away from home for our customers.

 

Our outdoor patio space was rated Best Patio 2018 in San Francisco Magazine.

Community Impact

The Valley Tavern is a vital community hub, which is reflected in our slogan, "where the neighborhood meets." We have long played host to action meetings, political fundraisers, back to school nights, and other community events. We very much pride ourselves on being a good neighbor and an important member of the Noe Valley community.

We are an asset to the neighborhood, providing our customers with one of the few beer gardens in the city, a true oasis that would be sorely missed if the business were to fail. Throughout its history, the Valley Tavern has been helped by its community. For example, in 2014, a dozen beloved patrons spoke to the San Francisco Planning Commission on our behalf, helping us win a unanimous vote in favor of our proposed beer garden. They came out again in 2015 to help us secure a Live Music Performance license. We hope to replicate this success with the help of our community.

 

We are a special place to our customers, including to this couple that met here and got engaged here!

Fast Facts

  • 40 beers on Draught
  • A legal smoking room - one of only 9 in San Francisco
  • 2018 Best Patio according to San Francisco Magazine
  • Wide selection of Liquor & specialty cocktails
  • Ultimate Sports Bar with 23 TVs throughout the property
  • Highly rated by our customers on Yelp, Google and Facebook
     

Come visit us!

About the Owners

Declan Hogan

A Noe Valley native and the son of a bar owner, Declan has grown up helping his dad in the industry. Serving customers and being the purveyor of a good time comes second nature to him. After studying International Business at the University of San Francisco, he chose to join the family business. The Valley Tavern is his life and his obsession. To say he simply loves his job would not suffice.

Brittney Freed

A Bay Area native, Brittney had her sights set on a career in music. She was blessed with an angelic voice. She graduated from Boston University, where she was classically trained. However, life steered her away from music. Today, she is a hardworking member of the Valley Tavern team, beloved by the customers.

Vincent Hogan

Born in Dublin, Ireland, Vincent is a testament to the American dream. He left his homeland at the age of 30 with only $500 in his pocket. Within 6 years he bought his first bar and within 10 years he had three. Since then he has bought and sold 7 different bars in San Francisco and remains a well-respected businessman by the Noe Valley community and the Irish expats in San Francisco.

 

St. Patrick's Day is a huge day for any Irish pub––but it was the first to be cancelled due to COVID-19.

Deal Summary

Deal Summary

Issuer

  Craft on Draught LLC

Security Type

  Secured loan

Loan Purpose

 Working capital during the COVID-19 pandemic

Offering Amount

  $10,000 - $50,000

Interest Rate

 3.75% interest only period, followed by 5.00% fully amortizing 

Payments

 Monthly, disbursed to investors quarterly

Maturity

 6 months interest only + 30 months amortizing

Personal Guaranty  

 Declan P Hogan

Security Interest

 Blanket lien on assets of company

 

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 Craft on Draught LLC.

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

Investment Amount One-Time Fee

Potential Quarterly

Return: Interest-Only Period*

Potential Quarterly

Return: Amortization Period*

Potential Total Repayment*
$100 $1.40 $0.93 $10.66 $108.46
$500 $7.00 $4.68 $53.29 $542.32
$1,000 $14.00 $9.37 $106.59 $1,084.63
$5,000 $37.25 $46.87 $532.94 $5,423.15

Your ongoing responsibilities from investing are very limited. Over the life of the loan, you will receive a yearly 1099-INT, which is a simple tax document similar to what you receive for most savings accounts.*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 hybrid interest-only + amortizing loan, which means that there is a specified interest-only period followed by a an amortization period. There are no prepayment penalties and Craft on Draught LLC 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.

Craft on Draught LLC 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 the investors' behalf.

 

How Honeycomb is Compensated

Honeycomb charges Craft on Draught LLC a $100 posting fee and a 6.0% loan origination fee on the total amount funded.

Additionally, to cover expenses associated with each investment, Honeycomb charges a 1.40% investment fee capped at $37.25 per investor.

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Offering Documents

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