We've been providing real food, fast to our customers at our store in Auckland's CBD for over 2 years. Everything we make is free from gluten, dairy & refined sugar. We use the best local and organic produce to create 4 seasonal menu's each year.
We set out on a mission to create a company that did more than just make a profit. We wanted to create amazing food, an experiential space for customers to hang out and great jobs for our team. A company that genuinely looked after it's environment right from the source through to the community it operated in.
Now that we've established a store that operates smoothly, we're ready to apply our learnings into a new store which will serve as a blueprint for a franchise model, with strategic sites staying under company ownership.
This is a store for franchisees to get excited about and see themselves running. It will provide a training ground and serve as a standard to which all franchisees will be challenged to meet and exceed. Everything for our first NZ stores will be made centrally at our Wyndham St store and delivered fresh to franchise stores each morning. We expect to offer franchising opportunities by the end of 2017.
Ultimately, we envision operating 1000+ stores under franchise and ownership all around the world.
We are offering a minimum of 405,000 and 607,500 shares, priced at $1. This constitutes a 13% to 18% ownership stake in Misters Trading Co Limited.
You can read about the rights attached to both Investor Shares and Ordinary Shares in our offer document.
About our Team
Our team started with just two of us, directors and long time friends, Alex & Fraser. We brought on 2 full-time team members to open our first store. Soon that grew to 3, then 4 and now our team consists of 8 full-time and 2-3 part time team.
We originally worked in the business every day but now we spend our time working on the business every day. We've been friends for over 10 years and we've been building this business for more than 3 years.
Alex oversees the store operation & financial management of the company. Once a season he writes a new menu. Alex came top of his class in business at university in Auckland and Copenhagen where he found a knack for numbers. He also worked in his family business from a young age & marketed for big box retail before founding Misters.
Fraser oversees the front of house operation and creative direction of the company. Year round, he's responsible for keeping the troops energised with his wit and charm. Fraser worked in early childhood care and in fashion production & design before founding Misters
Through her agency Scizzorface, Jess designs all of Misters marketing including graphic, web and this very prospectus you're reading. She also moonlights as Misters unofficial taste tester.
Since day one, we've surrounded ourselves with people who know this business and now have an advisory board consisting of Paul Kane, a partner at Grant Thornton; Scott Goodwin, a specialist lawyer in F&B food franchising and Martin Brayne, an entrepreneur with over 20 years experience in business.
What we've done so far
We incorporated our company in 2014 and opened the doors of our first store in October 2015. We kept EBITDA positive in our first full year in business on revenue of $610k. In our second year in business we nearly tripled EBITDA and increased revenue 36% to $830k. If we successfully crowdfund we're on track to increase revenue 80% to $1.49m and double EBITDA next year.
We picked up some great accolades along the way being named a Metro Top 50 Cafe in both 2015 and 2016. Maintaining a 4.5/5 on Tripadvisor and a 4.7/5 on Google.
We change our menu seasonally. this enables us to buy produce at it's best, support local & organic farmers and keep our costs low. Here's some of the food we've produced over the years.
We care deeply about the environment and our effect on it. That's why we source everything based on both quality and sustainability.
Almost all of our packaging is sourced from Ecoware, NZ's first carboNZero certified packaging supplier. Most of which is made from renewable sources such as sugarcane and is compostable
We separate our packaging and greenwaste so that it can be picked up during the week by our friends at We Compost. You'll find their green bags in our eatery. They cart it off to a commercial composting facility where it breaks down in as little as 6 weeks.
Free range & Organic
We think free range should be mandatory. That's why all of our fresh produce is free range. It is and always will be standard across our entire menu. We also agree that organics shouldn't be called organics. They should be called what they are. It's the chemically sprayed produce that should be labelled otherwise. We can't utilise organics across our entire menu just yet but if we can, we do. We estimate that we're currently about 60 - 80% organic on any given day although some items are 100% everyday! With the increases in organic production we believe that as time goes by we will be able to include more organics until we reach that 100% mark across our entire menu.
Now that we've proven our model financially and in uptake, we're ready to apply the learnings we've taken from running our store for over 2 years. We'll apply these learnings to a new store which will serve as a blueprint of exactly what a Misters should look like and how it should operate. We know how to do things better, faster and with more margin.
Once established, this store will act as a blueprint to show potential franchisees what they can own. This store will act as a benchmark, training ground and test store for the future of Misters. We plan to franchise all over NZ and prove the franchising model of Misters before taking on international markets.
We'll focus on aggressive but sustainable growth. We plan to re-invest all profits back in to the business for long term shareholder gains. Once established in the long term we will pay dividends to shareholders.
If we successfuly raise capital in this campaign we will restructure Misters to ensure that the trading and intellectual property aspects of the company are separated. Whis will ensure more protection of all shareholders investment.
This diagram depicts how we plan to structure the company. As an investor, you are purchasing shares in Misters Trading Co Ltd, the parent company that will own 100% of all subsidiary companies. This means you'll have an indirect stake in all of Misters subsidiaries too.
Risks and Challenges
Note from PledgeMe
We have completed a Veda check on the company and their directors, as well as a google check. There were no adverse findings.
Tea, Biscuits & Investing
12:05PM Thu 30/03/17 on Misters
We'd like to invite you to a Q&A evening at Misters on Wednesday 5th April from 6pm. Session to start at 6.30pm. The event will be live streamed on Facebook so if you can't make it, please feel free to tune on in and ask questions there.
Tea & biscuits will be provided, please feel free to email any questions through prior to the event via email@example.com
RSVP attendance at https://attending.io/events/teabiscuitsandinvesting
Alex & Fraser
Comment on this update:
|Maximum Shares Offered||607,500|
Explanation of valuation:
The management of the company is providing guidance to investors based on a pre-money valuation of $2,767,500. The management believe this represents a fair current value and would provide a significant return on investment over the mid to long term, qualifying the level of risk shouldered by investors.
This valuation is provided on the basis of Misters Trading Co Ltd as a company,
with one operating store under ownership that will own 100% of Misters Intellectual Property Co Ltd, an IP 'bunker' company. It will also own 100% of Misters International Licensing Co Ltd, a licensing company that will hold the master franchise rights and also own future company operated stores.
This figure takes in to account a current 3.33x revenue multiplier, asset value & goodwill including Misters brand recognition, operational advantages & future earnings potential as a franchisor that will derive royalties from franchisees as well as profits from stores under ownership.
|Prev Year||Current Year||Est. FY 2019||Est. FY 2020|
Company Name: Misters Trading Co Ltd
Company Number: 4531001
Ask a Question (You must login to ask a question)
Hi, can you tell me how much of your own savings has been invested into the business (and how much the bank loan was) and what level of salaries/directors fees you are taking at this stage (and are forecast to take based on the projections - I looked but couldn't find this anywhere).Secondly, how did you come up with the valuation? Did you just use the Burger Fuel sales multiple or did you get an independent assessment? It seems a little on the high side to say its worth $2.7m based on 1 store that basically breaks even that anyone could come and replicate. That aside, love the concept, hope it goes well. Good luck.Posted on 30-03-2017 by Rowan Johnston
Hi Rowan. Thanks for the feedback! Originally we invested about $140k cash in to the business with a $30k bank loan. We were able to make that original investment stretch a very long way as we fit out the premises and built everything ourselves with the help of some talented friends (we certainly wouldn't do it this way again, hence the need for more investment in our second store). Directors fees are currently set at $96k. This is forecast to increase alongside the performance of the business and it's profitability. As the directors we are potentially the most invested in the long term strategy of the company so we expect to keep our fees low to facilitate as much growth as we can in the short term. We arrived at our valuation independently of knowing the Burgerfuel offer value. Agreed that the valuation would be on the high side for a standalone cafe or restaurant however our valuation includes a tangible assessment from a business broker as well as with the intangible value including IP (which we've invested heavily in) such as branding, recognition, website, operational knowledge, systems & processes, recipes (which are very unique in the market) and would be difficult to replicate. Not forgetting of course about the future potential of course. This company has been built with the long term vision in mind since the beginning. Hope this all thoroughly answers your questions. Cheers, Alex.Answered on 30-03-2017 by Alex
Hi - can you tell me who owns the 10% of the company that is recorded as being held by the Brayne Investment Trust? Who are the trustees?Posted on 30-03-2017 by Simon
Hi Simon. Thanks for your interest. The trustees behind BIT which currently holds 10% of the company are Martin Brayne (you can find more about him in the advisory team) and BBW Trustees 2006 Ltd.Answered on 30-03-2017 by Alex
Hi, can you tell me what your sales are for 2015-2016 and 2016-2017 and how much money you made from that, and your projected revenue in 2017. I like the idea of the store, but I can't get to the valuation. You're valuing the company at $3.1m, even at $2.7m, it's high. I'm more concerned with the earnings of the company. What earnings multiple did you use to arrive at $2.7m?Posted on 01-04-2017 by Kenneth Paz
Hi Kenneth. For the year ending March 31 2015, our Wyndham Street store GST exclusive sales were $202k. For the year ending March 31 2016, $614k and for the year ending March 31 2017, $815k. We project the Wyndham Street store sales to be just over $1m for the year ending March 31 2018. We have used a revenue multiplier (3.33x) as opposed to an earnings multiplier to arrive at the valuation. With the company still being young and in growth mode, the focus has been on brand building and perfecting the operation which incurs more cost and negatively skews profitability. In our view, an earnings multiplier at this stage would undervalue the company.Answered on 02-04-2017 by Alex
I am interested in this, but before proceeding would like to confirm my assumptions about revenue.
I believe you have made a mistake in the IM with the revenue graph on page 28 (and on the main page here). When I compare it to your P&L figures on page 49 it seems the financial year is out of sync with those on the graph (so the graph shows the projected FY18 figures as being FY17 - which is potentially misleading.)
Furthermore, the financial summary on the details tab of the website has the FY18 estimate figure from the balance sheet showing as FY19 (and FY20 against FY19.)
Putting it another way, depending on where I look in this information pack, I could conclude that revenue will reach $1.49 million in either FY17, FY18 or FY19.
Can you please confirm that the figures in the attached Balance Sheet are the accurate ones, and have the been independently reviewed? Can someone please check the various figures in the IM/supporting documentation and confirm there are no other errors?Posted on 03-04-2017 by Stewart Clark
Hi Stewart. Thank you for the interest. You are correct in that there's a mistake on the business overview graph. It will be updated today. The FY axis labels should be one year later than they are (e.g FY15 should be FY16 and FY16 should be FY17). The values however are correct and the figures within the IM have been reviewed by a team familiar with crowdfunding, business and investment. The FY labels in the financial summary on Pledgeme's page were incorrect due to an auto update of their website as a result of the financial year concluding on 31 March 2017.This has now been updated. If you refer to the figures within the P&L and Balance sheet within the IM you can be confident that this is represents our historic, current and our future trading predictions.Answered on 03-04-2017 by Alex
Hi Alex, you have a great concept, and the store looks very sharp. I am interested in:
1) what your current food cost is (including COGS and packaging), as a percentage of your sales (ex GST)?
2) what is your current wage cost (including holiday pays), including all operational staff and working owner?
3) what is the total square meter of your current site?
These questions will help build a profile of how effcicent your current site is for expansion.
CheersPosted on 26-04-2017 by Mike
Followers of Misters
Alastair Willcock2017-04-23 15:21:42 +1200
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“Go for gold!”
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“All the best folks! Love the food you guys serve and the smiling service! Here's wishing your vision is realized.”
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“This looks like a really cool business and I hope it takes off!”
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“I wish more places sold food like yours - this is an investment in having tasty healthy choices available!”
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“Love being part of the Misters family, congratulations boys”
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“Ive got two options for you...”
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“A movement that I'm proud to play a small part in. Good people with big dreams.”
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“All the best with your venture - hope you open a store in Wellington soon!! ”
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“Great to be part of the Misters family!”
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“Alex, your proof reading skills have gone downhill ☺. Good luck with the crowd funding - hope you get there. Valerie”
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Equity crowdfunding is risky.
Issuers using this facility include new or rapidly growing ventures. Investment in these types of business is very speculative and carries high risks.
You may lose your entire investment, and must be in a position to bear this risk without undue hardship.
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The usual rules do not apply to offers by issuers using this facility. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment.
Ask questions, read all information given carefully, and seek independent financial advice before committing yourself.