Blue Sparrow

, Specialty Food

Introduction

Blue Sparrow is a food truck that collaborates with local coffee shops and breweries around Pittsburgh in addition to participating in festivals and events. We have been operating out of one food truck but due to the amount of success and support we have received we have expanded our fleet. We are looking to purchase kitchen equipment and a tap system to outfit this second vehicle.

We are looking to borrow between $10,000 and $10,400 at 9.5% over 3 years. Anyone at least 18 years old can invest.

 


About Blue Sparrow

The Blue Sparrow food truck was founded in 2016. I started with a scratch food concept, built upon the idea of quality ingredients, small menus and great customer interaction. The dishes are called Global Street Food, ranging from fusion Korean cuisine to unique takes on the classic street cart dishes we all love like gyros and banh mi. Basically, that is a fancy way to say I cook a little bit of everything. Nothing gives me greater joy than taking local ingredients, fusing it with cultures from around the world and then getting to present that dish to the customer in front of me. Seeing their reaction as they receive the food I have created is why I do what I do.

 

 

The best part about having a food truck for me is the fact that I get to truly immerse myself and become a part of the community. Every week, you will find us at Brew Gentlemen, Commonplace Coffee Northside, Dancing Gnome and Eleventh Hour Brewing. From day one we have been collaborating with these businesses because that is how I can invest in the community.

It is from this mindset of wanting to be a part of the community that gave birth to the next evolutionary step for Blue Sparrow: I have purchased and started renovating a 1956 Greyhound bus to not only become the second vehicle in the Blue Sparrow fleet, but to be able to do something that is entirely new on the food truck scene. What I am doing is putting two entirely separate kitchens into one bus along with a full tap system. Why two kitchens? Because having two kitchens not only will enable me to do special events like weddings where multiple dishes are required, having each dish going out separate windows; but I will be able to do collaborations with other chefs in a way that has never been possible on the road before.

 

The Blue Sparrow Bus. Photo Credit Zack Morgans

 


Fast Facts

  • First kitchen is already done and the bus will be able to start serving food in a matter of weeks!
  • An experienced chef of 12 years
  • Currently booking events for the Blue Sparrow food truck 2 years out
  • 9.5% interest rate with additional investor perks

 


The Project

Still with me? Awesome. Some of the reasons for adding a bus to Blue Sparrow’s fleet is purely numeric. The Blue Sparrow Bus not only doubles our mobile capacity, but more than triples our food holding abilities. That means more customers served, faster, in more locations with more options. Additionally, the added space, equipment and taps the bus provides will have a huge effect on our revenue when we do festivals, roundups and other large events.

Another advantage to the bus is the tap system itself. Currently, the Blue Sparrow food truck does not have the capability to sell alcohol. I love to partner with local breweries but we always have to go to them to be able to serve their beer. The bus changes that. We can take their brews on the road with us, taking advantage of the mobile liquor license that breweries have access to.

The truly unique aspect of this project though will be the ability to do collaborations with other chefs. If you view food as an art, like I do, you will understand that getting to collaborate with another chef is an exhilarating experience. Together you get to create something that neither of you could alone. Restaurant takeovers are not a new concept but a food truck take over? A food bus take over? That is something that is new. We are so lucky here in Pittsburgh to have so many wonderful and talented chefs and that is because we have a community that loves great food. Everyone I have talked to about this concept, chef and customer alike, are a) shocked that this is something that can be done and then b) super excited to be able to participate.

In terms of the specifics of what this campaign is raising funds for, I am looking to create the second kitchen in the bus. As of writing this, the first kitchen is almost done! All of the equipment is purchased and in the bus and now just needs to be bolted to the floor, hooked up to the electricity and gas and then inspected. As soon as those things are done the bus is ready to go to work. The funds from this campaign will go towards the purchase and installation of the second kitchen, which will be a mirror image of the first as well as the tap system.

 

The first kitchen in the back of the bus. Photo Credit Zack Morgans

 

Tier 1

$10,000 Total

  • Custom 80" cooler with built in tap system - $4,500
  • 60" hood vent and installation - $3,000
  • 36" flattop range - $1,500
  • 12" range burners - $1,000

Tier 2

$400 Total

The tax on all of the equipment
$10,400 Total Total cost for Tier 1 and Tier 2 combined. 

 


 

About the Team

 

Over the last 12 years I have run restaurants, been a culinary instructor and worked in development in both private and corprate arenas. My love of being a part of a community and interacting with peopole is what pushed me to launch a food truck rather than my own restaurant. When you are in the back of the restaurant, in the kitchen, you loose that direct connection with people and I couldn't stand that. So, I took the streets in 2016 and haven't looked back!

 


Deal Summary

Issuer

Blue Sparrow LLC

Security Type

Unsecured Loan

Loan Purpose

Purchase of kitchen equipment and custom tap system

Offering Amount

$10,000 - $10,400

Interest Rate

9.50%

Payments

Monthly, Disbursed to Investors Quarterly

Maturity

36 months

Personal Guaranty

Yes, Luke Cypher (owner)

Security Interest

No

 


The Location

The awesome part of doing what we do, is we don't have just one location. We can be anywhere! Check out our calendar to see where we are going to be next!

 


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. Once the campaign successfully reaches its target, the funds will be distributed to Blue Sparrow.

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

Investment Amount

One-Time Fee

Potential Quarterly Repayments*

Potential Total Repayment*

$100

$2.85

$9.60

$115.31

$500

$14.25

$48.04

$576.59

$1,000

$28.50

$96.09

$1,153.18

$5,000

$37.25

$480.49

$5,765.93

*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 Blue Sparrow 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.

When Blue Sparrow 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 Blue Sparrow a 6.0% loan origination fee if this campaign is successfully funded. Our origination fee is reduced and our posting fee is waived for Blue Sparrow because they are an Early Adopter.

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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