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Michigan

Metropolitan Variety Store and Metropolitan Bar & Kitchen

About Documents
65%
$9,700 Funded
$15,000 Target
32 days Time Left
12 Investors
$15,000 Min. Raise
$225,000 Max. Raise
60 mo. Term Length
8.0% Interest Rate
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Overview

Located in the heart of Detroit's very diverse and vibrant West Village neighborhood, next door to other locally owned and operated shops, Metropolitan Variety Store and Metropolitan Bar & Kitchen is sure to thrive. 

The two distinct commercial businesses will take over the recently renovated space in the first floor of the Parkstone & Parkhurst Apartment building. Although separate and distinct, the Variety Store and the Bar & Kitchen will be operated by the same experienced and passionate team and will regularly cross-market food and beverage products. The Variety Store, specializing in craft beer, wine and spirits and cocktail accoutrements will be managed by a local industry expert, well-renowned in the metro Detroit area for his affinity for unique beverages and ability to stock items that can’t be found anywhere else. The Variety Store will fill a gap in the current Detroit market for this type of store. The Bar & Kitchen will be managed by two of metro Detroit’s best chefs -- Brendon Edwards and Hailey Enszer -- offering a revolving, seasonal food menu created with locally-sourced ingredients and accompanied by a beverage menu that features the ingredients being sold next door at the Store. 

This perfect pair will bring a unique and interesting experience to Detroit’s West Village and fulfill many of the area’s needs. Craft and specialty cocktail bars and eateries have been popping up around the City and their popularity is soaring. In the alcohol business, the on-premise drinking establishments are meant to be the place where customers can sample products and these bars are supported by the off-premise consumption retailers. In Detroit, while the number of bars and restaurants catering to this craft cocktail crowd has increased substantially, we haven't seen a rise in the number of specialty liquor stores. From all accounts, the market is void of an adequate store offering a wide selection of liquors, craft beer and wine all supported by a friendly and knowledgeable staff. We are seeking to fill that void.

We want the Metropolitan Variety Store and the Metropolitan Bar & Kitchen to have the reputation that we carry a unique and interesting selection of craft beer, wine and liquor that can be purchased at retail from the store, or tasted alongside unique plates of food at the adjacent bar.

We are raising $225,000 at an interest rate of 8.00%, paid over a nine-month interest-only period and a 51 month fully amortizing period.

 

 

The Project

The campaign through Honeycomb will allow us to create a healthy reserve of funds to use in the first few months as the new business venture stabilizes. We may use this reserve to purchase inventory, pay rent and utilities, and for payroll (est. $50,000). The funds raised through Honeycomb will also be used to hire a third-party consultant to assist with the business' marketing which will include expanding the business' website, managing social media and creating other marketing materials (est. $18,000). The remainder of the investment dollars will likely be spent on legal and professional fees (est. $20,000), purchasing inventory ($10,000) unforeseen tasks for which we've built in a contingency (est. $78,515) and to pay a fee to the Developer (est. $48,485) to compensate them for their time spent on securing local and state approvals, securing traditional financing, creating financial projections and much more.
 
The success of this crowdfund campaign is the last obstacle standing before the start of renovations. This final capital raise will allow the business to begin renovations to the existing tenant space.

 

We'll be taking the baton from Craftwork, a community staple.

Business

Fast Facts

The concept of programming a variety of retail points (retail store, carry out window, bar and kitchen) under a single roof is tried and true. It works for a number of reasons:

  1. It creates a fun environment for customers which encourages them to spend more time (and money) in the space
  2. It's sustainable because individual concepts can evolve and transform to adapt to market changes
  3. It maximizes floor space creating multiple points for transactions, offering something for everyone.

This is a similar concept that was employed at Detroit Shipping Company by founder and owner Jon Hartzell. Detroit Shipping Company is a highly successful food hall and event space in Detroit's Midtown neighborhood that has been winning awards since it opened in the summer of 2018.

 

Currently, this is the front façade.

 

About the Owners

Detroit Rising Development (DRD) will oversee development and construction management of the buildout project. DRD Founder, Jon Hartzell, took his passion for the renaissance of Detroit and launched the Detroit Shipping Company, a restaurant collective and beer garden in Detroit's Midtown neighborhood. Since opening in 2018, the Detroit Shipping Co. has been serving up great food and great times and its chefs have been recognized as being some of the best in the city.

Born from the success of the Detroit Shipping Co., DSC Hospitality is a full-service food, beverage and hospitality business operator. The members, Jon Hartzell, Rick Stanza and Brendon Edwards, have a combined decades of experience in the build-out, design, operations and management of hospitality concepts.

Brendon Edwards

Brendon is DSC Hospitality's Operations Director. Most recently the Executive Chef/Partner at Gold Cash Gold, Brendon has over twenty years of both front and back of house experience. He has built his resume working for successful operations both locally and internationally, including Restaurant of the Year winners Forest and Roast and Michelin star restaurants Longman & Eagle in Chicago and Kichisen in Kyoto, Japan. Brendon's years of experience have made him knowledgeable about culinary trends, wine & spirits, marketing, public relations and finance. 

Stay tuned as the store's operator is announced!

We would love to introduce you to the operator for the Metropolitan Variety Store, but unfortunately he needs to stay anonymous for the time-being. However, we can divulge that he is one of the metro area’s experts in managing a boutique beer, wine & liquor store and has a special affinity for curating unique and hard-to-find products. We will be announcing his name before the end of the year.

Deal Summary

Deal Summary

 Issuer

 DSC Hospitality LLC

 Doing Business As

 Metropolitan Variety Store and the Metropolitan Bar & Kitchen 

 Security Type

 Subordinated Secured Loan

 Loan Purpose

 Startup costs + equipment

 Offering Amount

  $15,000 - $225,000

 Interest Rate

 8.00% annually

 Payments

 Monthly, disbursed to investors quarterly 

 Maturity

 9 months interest only + 51 months fully amortizing

 Personal Guaranty  

 Jonathan Hartzell, Richard Stanza, and Brendon Edwards

 Security Interest

 3rd lien on assets of company 

 Offered 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 DSC Hospitality 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  $2.85   $2.00   $6.96   $124.29
 $500  $14.25   $10.00   $34.79   $621.46
 $1,000  $28.50   $20.00   $69.58   $1,242.91
 $5,000  $37.25   $100.00   $347.92   $6,214.56

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 DSC Hospitality 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.

DSC Hospitality 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 DSC Hospitality LLC a $250 posting fee and a 6.0% - 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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