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Louisiana

Social Coffee BR

About Documents
144%
$21,600 Funded
$15,000 Target
Closed Time Left
16 Investors
$15,000 Min. Raise
$50,000 Max. Raise
60 mo. Term Length
9.75% Interest Rate
Closed

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Overview

Social Coffee is a small, mobile coffee cart used to cater weddings, birthdays, business conferences, and more. We believe there is a large, untapped clientele in the corporate catering arena along with weddings. People hire us and buy from us because they want quality and enjoy the craftsmanship with each cup. We are also very passionate about the community; 15% of our profits go to a non-profit supporting foster kids like our son.

We are raising $50,000 at a 9.75% interest rate, paid over a 60 month term.

 

There is much untapped potential with catering events.

 

The Project

The priority for Social Coffee's growth purchasing more equipment, another bar, and a cargo van – in addition to hiring more employees.

Hiring two part-time employees at $10/hour ~20 hours a week would allow for us to maintain a consistent flow at the restaurant location opening in the middle of September.

Equipment will cost around $9,000 per espresso machine and grinder. If we are able to buy more than one set up and bar, we would be able to be in multiple locations with low overhead.

General coffee and supplies will run around $1200, depending on what is raised.

Lastly, the cargo van we are looking into would cost $9,000-$10,000.

We have one operator, one machine, and one built out bar. If we add employees and equipment, we would be able to be in multiple locations, businesses, and events at one time. The cargo van is simply an easier way to load and drop off carts at locations. My idea is to be able to load the cart and equipment into the cargo van, unload at a location, and have the barista show up. After a few hours – or when the event has ended – I would load everything back up and drive away.
 

By adding employees and equipment, we will be able to be in more than one place at one time.

Business

History

I learned quickly when I returned to my hometown of Baton Rouge, Louisiana that the coffee scene had potential to grow. I had moved back after living in San Francisco, Nashville and New York for the prior 3 years. I worked in a local coffee shop for over a year before moving into a job at a local church. Even in my time working for the church, I still stayed connected to specialty coffee. The leap into business finally came when some coworkers were getting married and asked about an espresso bar being at their wedding reception. My wife immediately told them we could provide the service for them. At that moment, Social Coffee was born.

After our first event came the question: what's next? We began setting up at local markets, doing pop-ups, events and eventually helped start a local market in a part of town where there wasn't one. Where we are now is at consistent locations which have brought reasonable sales, and in the beginning stages of a small build out in a local restaurant.
 

 

We are proud to serve Onyx Coffee Lab, an eco-concious company practicing long-term relationship-building with the coffee farmers.

 

Future

The future of Social Coffee is multi-faceted. In the coming year or years, a brick and mortar is inevitable. A consistent question we receive when we are doing events or pop-ups is: where are you located? People are looking for another specialty coffee shop in Baton Rouge.

The thought is to have a brick and mortar location while also sustaining and growing our catering business. We would continue to cater events with our mobile bars, yet also have a brick and mortar to point people to outside of the events we serve.

 

People often ask us where our brick-and-mortar is located.

 

About the Owner

Dillon is a former NFL offensive lineman and global missions pastor who has spent time in small, local businesses and communities helping foster the growth of the specialty coffee scene. He believes in quality, details, and community. It is important to him that each person he encounters, whether employee or customer, be treated with respect and dignity without stipulation. He sees business as an avenue to affect people locally and globally.

 

Owner Dillon Farrell at work.

Deal Summary

Summary

Issuer

  Social Coffee BR LLC

Security Type

  Secured Loan

Loan Purpose

  Food trailer

Offering Amount

  $15,000 - $50,000

Interest Rate

  9.75%

Payments

  Monthly, disbursed to investors quarterly

Maturity

  60 months 

Personal Guaranty  

  Dillon Farrell

Security Interest

  Blanket lien on assets of company

Offering Portal

  Honeycomb Portal LLC

Offering Type

  Reg CF

 

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 Social Coffee BR LLC. In order to recieve their invested funds, the campaign must meet its minimum funding goal. If the minimum is not met, all funds will be returned to the investors along with their one-time fee.

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: Amortization Period* 

 Potential Total Repayment* 
 $100  $2.85  $6.33    $126.74
 $500  $14.25  $31.68    $633.72
 $1,000  $28.50  $63.37   $1,267.45
 $5,000  $37.25  $316.86   $6,337.27

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 Social Coffee BR 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.

Social Coffee BR 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 Social Coffee BR LLC a $250 posting fee and a 8.0% loan origination fee on the total amount funded.

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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Q & A

+ Do you have a physical location and lease terms in hand for the location of the coffee bar?

At this time, we are partnering with a local restaurant called Chow Yum Phat (2363 Hollydale Ave, Baton Rouge, LA 70808) where we will be opening a full time coffee bar in the mornings before they begin to their lunch/dinner service. For the future, our goal is to open a specialty coffee shop in an area of Baton Rouge that doesn't have specialty coffee. We currently do pop-ups in this part of the city and have experienced a high percentage of profitability and great excitement.