Investors Relations
Overview
Barley Bean was founded in September of 2014 by Mohit Mehra and Ryan Mosler in Austin TX.
BB is a brain child of the result of the vision that Mohit had to create a unique specialty grocery
and café concept in Austin TX which is the Organic and Specialty HUB of TX. Akar studios
from Santa Monica, CA was hired to design the logo, branding and the space which is located
on 2222 Rio Grande St, suite 190 C Austin TX 78705. The construction and menu development
was finalized by December of 2014.
In January of 2015, Barley Bean officially opened to public with the west campus location. This
was the first café concept that was chosen by the top 10 roasters in USA like Four Barrel and
intelligentsia to be the coffee supplier. Another highlight of BB is growlers to go and beer on
draft. Yes, Mohit was the first individual to serve craft beer on draft and sell craft beer by growlers in a café.
Other unique features of BB are the authentic Italian style Paninis, NY style pizza, cold pressed
squeezes and fresh smoothies made from fresh juice and fruits with no sugar added. The
message is simple ”Healthy eating at an affordable price”. Mohit wanted to create a business
which was recession proof.
The feel of the space is industrial and rustic per Austin standards.
Vision
The primary plan and focus was to test the market and make the 1st store profitable. Once the
market was tested and it was confirmed that the business model works, the plan was to open a
minimum of 10 stores in Austin, stand alone or co-brand and expand. The plan to open 10
stores was aimed on achieving till 2018. Other feats that needed to be accomplished while in the
growth process were,
1. In house bakery
2. Private label grocery unique to BB
3. Commissary Kitchen
4. Coffee Roasting
5. Private label line of craft Beer exclusively for BB.
6. Licensing the concept.
7. Training lab for new licensees
8. Coffee and roasting training.
9. Pizza training
10. Business consulting.
11. Real Estate development
12. In house financing.
Results from the vision and change of purpose
Within 3 months of operation, Barley Bean drew a lot of attention from investors, Landlords,
existing business owners and individuals wanting to start their own business. This was
overwhelming. As the saying goes, “Decision making is crucial, cannot delay issues”, we were
forced to start putting the vision in perspective and started rolling the dice.
Our Purpose became well defined: “To provide products with the highest ingredient at an
affordable price and to empower entrepreneurs to gain entry into the food and retail business
world at an attractive price level with 100% back up and support from the ownership group.”
This worked.
In less than 1 year in business, we co- branded with 2 upscale grocery stores and signed licensee
contracts with them. We opened our commissary kitchen making our own doughs and sauces.
We started private labelling and having exclusive rights to specialty products. We started the
training lab at west campus. Mohit financed the projects with 6 months’ pay back at 4% interest
and jump started the operation. We signed 4 leases and started the construction under Mohit’s
construction company and financed through Van Orton Financial which is also owned by Mohit. This was 2015. All the three stores were profitable and the name was out.
2016– We opened the stores that the leases were signed in 2015. We signed 2 more leases, South
Lamar and Burnet road. Got certified as an official roaster, and competed in Las Vegas Pizza
fest where we came 3rd and were ranked the 3rd best pizza in the world. This was in March of
2016. We opened our bakery in June of 2016 making the in house sauces, dry baked goods and
most important our delicious and highest selling item, “the focaccia bread” which has now
become our signature. We also signed our next licensee with the Airport location and licensed
our next main store in downtown Austin in October of 2016.We currently own assets worth $425000.00 with less to no liability to the company. We bought our roaster in December of 2016 and are on the verge of starting the supply of our coffee to other stores by March of 2017. We currently have 21 stores and 18 offices in the pipeline waiting on our coffee to be supplied apart from our cafes.
2017– Brewery: We signed a non- compete contract with Strange Land brewery where they are
working on creating an exclusive beer recipe for Barley Bean with 4 flavors permanent and 1
rotating. They are also working on 2 lines of Kombucha that will be exclusive to Barley Bean.
Barley Bean will then have the distribution rights to the beer in the form of retail in 250 grocery
stores on which Mohit sits on the board of GAMA (Greater Austin merchant association) and on
draft in local cafés in and around Austin. Along with these, we will also be putting our coffee
and bakery items the stores. Super 8 and Hampton Inn are due to sign a contract in July of 2017 where we will provide Keurig K cups coffee and drip coffee in their business. The K cup will also be sold in grocery
stores where other public can have access to them. Apart from the product development, we sign the lease on Manor road, Mueller and Highland Mall by March of 2017 with licensees selected and $100,000.00 deposit received. With having over 5 stores in 2017 and counting, Barley Bean is getting ready for a reverse
merger and getting ready to submit papers for IPO on March 18 of 2017. 2 years before the
target date.
The Opportunity
Grocery store and Café industry are one of the highly profitable and easy to operate businesses
in the nation. They are not only boutique or a lifestyle but also recession proof. Specialty has
taken over the industry and are growing at a faster pace. Both businesses complement each
other.
Change in trend
Because of this trend, Business owners have seen up to 60% increase in sales in their current
stores with increase in profit margins and less threat of competition. It has become a one stop
shop. Mohit was an early bird in the industry trend and created Market @barton creek and
Quickie Pickie both of them are a huge success.
The Issue
Many traditional business owners were hesitant and nervous with this change and with right
training, choosing the right equipment and with the right hire, it is getting more streamlined
and many more are now joining in.
We are the first true specialty and craft market
By introducing the specialty element and craft beer in retail industry and craft on tap, our
business model and brand has gained an immense popularity and attention. We have over 20
stores selling our bakery, to go wraps and now are ready for coffee.
Management
Mohit Mehra:
Founder and leader, great team player, sales and marketing, consulting and development,
training and set up.
Ryan Mosler:
Co-founder, Technical expert, brewer and roaster with Mohit Mehra and training lead.
How this works
We find the location, negotiate on the lease, acquire the financing, do the construction, provide
the training, assist in marketing and opening and provide ongoing support to ensure that the
business owners are successful maintaining the dignity and image of the brand.
Licensing fee is $25K and royalties are 7% of gross every month.
Investment
For an ideal foot print of 2500 sqft, the full turnkey investment is $350,000.00 plus inventory.
US Market :
Total population: close to 350 million
Austin Market:
Total population: close to $1.9 million
11th most caffeinated city in US.
Home meal replacement : 30%
Coffee and grocery consumers: 70%
Our Customers
average HH income: $45K and up.
Business owners: Grocery stores with $70K sales.
Young professionals’
Retired professionals
Office professionals
Our sources of revenue
Store front locations
Breakfast, lunch and dinner
Wholesale
Catering
Development and construction
Financing
Delivery
Academy – 2018
Brewery and distribution – 2018
Mission Possible
Marketing
PR
Social Media
Training completion
Internet Marketing and lead sourcing.
Improving on the product.
Competition
Starbucks
Strengths: brand, large market share, ambience, corporate back up.
Weakness: Does not do specialty, expensive, frozen food, bad coffee, average beer and wine
Trader Joes
Strengths: Larger foot print, better price, more products to offer, larger space attracts density.
Weakness: Not a convenient factor, does not do a great job at deli.
Other sandwich shops
Strengths: Household name, value price subs, for the masses.
Weakness: Does not have a strong breakfast program, did not see success with selling beer,
frozen and not fresh, quality declined over the years.
Jamba Juice
Strengths: Strong branding, lot of options, great locations.
Weakness: Not organic, usage of sugar, no food element, high labor.
Our Purpose
Being entrepreneurs at heart we not only want to create a profitable business, we want America
to be healthy and want to prove that healthy eating does not come at a cost. We will be donating
10% of our income of every store to manufacture clothes to provide them to people in
underdeveloped countries. We want the young America to eat good, invest good and live a
good life.. Because basic necessities of life are food, clothes and shelter.
Some FAQ
What are we looking for?
At the rate we are growing, we are looking for individuals to be a strong part of the team. Help
us achieve our goals and vision and grow with us.
Who Can invest?
Any one over the age of 18 can invest. Money is important but not everything. People willing to
provide sweat equity are also welcome. Value comes in a different form as well.
How do you invest?
You can invest through equity, loan, collateralizing your asset, guaranty, credit etc.
Are there any costs involved in investing?
No
How is the investment protected?
Every investment is guaranteed personally and if needed, we can provide a collateral.
If the company does not reach investment goals?
The principal is returned.
Can the shares be sold?
Yes.
What do you get?
If you are purely investing for interest – we pay 6% interest annually.
If you are looking for % in business- based on your investment and company pro-forma and
considering other factors of the deal, equity starts at 5%
Again some facts to be considered:
Company Growth rate: 300 %
Our coffee: Rated 6th in USA.
Our pizza: award winning and we finished in 3rd place at the Las Vegas pizza completion in 2016.
Finally…..
In life, we don’t get what we deserve, we get what we negotiate. Please feel free to discuss with
me the possibilities and options.
Financial forecast Pro-forma on actual store P and L to be sent soon for review.
Thank you for your time and consideration.
Mohit Mehra – 512-658-2601
