Spanish chef José Andrés and his partners have begun looking for investors for their Chicago restaurant, according to the group. Although one of the secrets of success lies in the underlying business structure, on this occasion the company has made a request for funds through a subscription offer to raise two million, which will be used to invest in what it calls the kitchen and furniture of the restaurant The transaction is based on a $50 million valuation for steak restaurant Bazaar Meat and its tapas annex Bar Mar in Chicago, according to offering documents accessed by EL had. José Andrés' group has around thirty restaurants around the world.
Bazaar Meat is a joint venture between Grupo José Andrés and Gibsons Restaurant Group (GRG), a leading operator of 13 locations in three states, including the legendary Gibsons Bar & Steakhouse in Chicago, founded in 1989 and owned by the Lombardo family. Opening in late 2021 and designed by Studio Lázaro Rosa-Violán, Bazaar Meat and Bar Mar occupy three floors of rented space in the Bank of America Tower, a commercial building in the Loop, Chicago's business, tourist and cultural center.
A company-provided image of Chicago's Bazaar Meat & Bar Mar.
Although the minimum investment is only $500, the offer is intended, among other things, for qualified investors with a certain level of wealth, income or financial knowledge. Even more modest small investors can invest, but with certain limits. The operation is expected to bring in a minimum of $1 million and a maximum of $2 million.
Offer documents show that Bazaar Meat expects to generate revenue of nearly $18 million in fiscal 2024 with a profit margin before interest, taxes, depreciation and administrative fees of 5.3%. The company expects to grow and improve its profitability in fiscal 2028 to an estimated revenue of $23 million with a margin of 11.4%, representing gross profit of approximately $2.6 million. The five-year total expected gross operating profit before management fees is $9.5 million. So the $50 million valuation is about 19 times expected 2028 gross earnings.
It is a very demanding valuation, especially for a minority stake of 3.85% and no voting rights. Depending on the investment volume, there may therefore be a number of other advantages as an additional incentive to subscribe to new shares.
For Level 1, those who invest between $1,500 and $9,999, the company is offering early access to table reservations at Bar Mar/Bazaar Meat and a $150 gift card for drinks at the venue. For Level 2 with an investment of $10,000 to $49,999, membership includes an invitation to a special tasting event, early access to reservations and a $1,500 gift card. Finally, Tier 3 includes a 40% discount on food and beverages, an invitation to a special tasting, early access to reservations for this restaurant and others in the group, and company products for investments of $50,000 or more. Unspecified brand.
Bazaar Meat specializes in meat but has an extensive menu. It offers a tasting menu for $145 (drinks, taxes and gratuities excluded). Bar Mar offers two menus of tapas and lighter dishes, one for $75 per person and one for $95, with wine pairings for an additional $75. In both it is possible to eat à la carte. In addition to red meat, there are croquettes, octopus, gazpacho, Iberian ham, Bravas potatoes, garlic prawns or sea bass, among others.
Bazaar Meat is part of one of the José Andrés Group chains, managed by ThinkFoodGroup (TFG). José Andrés opened The Bazaar de Washington restaurant last year in the spectacular and luxurious atrium of the Waldorf Astoria Hotel on legendary Pennsylvania Avenue. The site is located in a historic building, the Old Post Office, which was built in the late 19th century and features a tower nearly 100 meters high, the third tallest structure in the capital of the United States. The decoration was also carried out by the Spanish studio Lázaro Rosa-Violán.
With slightly outdated data, the offering brochure shows that the TFG Group, which has more than 30 restaurants, served around 2.3 million customers in 2019. The group was born in Washington and is also in Miami, New York, Los Angeles, Chicago, Las Vegas and Dubai.
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