COLORADO SPRINGS, Colo., Feb. 17, 2015 (GLOBE NEWSWIRE) -- Bourbon Brothers Holding Corporation ("BBHC") (OTCQB:RIBS) currently operates two full service restaurants: Southern Hospitality located in lower downtown Denver and Bourbon Brothers Southern Kitchen in Colorado Springs, Colorado. The Southern Hospitality concept was developed in New York City, and was co-created by New York City restaurateur Eytan Sugarman, Grammy Award winning artist Justin Timberlake and entrepreneur Trace Ayala.
On February 8, 2015 the Company signed an amendment to their Master Franchise Agreement with SH Franchise and Licensing, LLC, the Southern Hospitality franchisor, which grants BBHC the right to develop two additional full service Southern Hospitality restaurants during 2015, which are set to open in the second and third quarter respectively, in Lone Tree, Colorado and downtown Colorado Springs, Colorado. Furthermore, the agreement allows for a re-branding of the Company's Bourbon Brothers Southern Kitchen restaurant, which is to be renamed Southern Hospitality Southern Kitchen and will serve as a slightly differentiated, suburban iteration of Southern Hospitality.
On February 10, 2015 the Company announced it had reached an agreement with the creators of Southern Hospitality to license the Southern Hospitality brand for a new fast casual barbeque concept, which will also be rolled out in the Denver market during 2015. At this time, management is planning to open one to two new stores during the year as a part of building five new fast casual stores in the next 18 months.
On February 10, 2015, Dave Lavigne, Senior Analyst and Managing Partner at Touch 4 Partners, LLC, a Colorado Springs-based Venture Capital fund manager and equity research firm, released a valuation analysis on BBHC to its equity research subscribers and syndicated partners. In addition to his position at T4 Partners, Mr. Lavigne also sits on the board of directors for BBHC.
T4 Partners' analysis centers on BBHC's ability to primarily grow via new fast casual units, while financing its growth in a way that limits dilution of the public company stock almost entirely, ultimately allowing the Company to achieve proof of concept and build assets.
The Company will introduce its Southern Hospitality-branded fast casual concept this year in the Denver market. Management has stated that beyond the two additional full service Southern Hospitality units this year, much of the anticipated growth for the company will come in the form of new unit growth with its fast casual concept; the concept which management feels will scale most efficiently.
The Company plans to end the year with four full service restaurants and one or two fast casual units, with plans to build between six and eight fast casual units during 2016.
Mr. Lavigne delves into the Company's growth plan, both from their financing plan as well as their operational strategy. As the Company begins to roll out fast casual units, management intends to sell 49% of the store level equity in each unit to finance nearly 100% of the capex required to develop a unit, which will allow the Company grow without borrowing money or issuing additional shares of stock. Moreover, Mr. Lavigne analyzes the fast casual segment of the restaurant industry, current industry comps and BBHC's ability to capture market share within the fast casual segment, with its Southern Hospitality fast casual concept, as the "industry pie" continues to expand.
Mr. Lavigne commented, "Within the larger trend of restaurant growth is an equally powerful sub-trend favoring fast casual restaurants. These restaurants, led by companies such as Chipotle Mexican Grill and Panera Bread, hit the sweet spot for consumers by providing quality food, reasonable prices, and quick service. This value proposition resonates with many consumers that are looking for a quick meal that is healthier than the fast food brands and less expensive than casual and fine dining options."
http://t4partners.com/wp-content/uploads/2015/02/RIBS-Valuation-Analysis-02-10-15.pdf
More information is available at: www.bourbonbrothers.com
Forward-Looking Statements:
The information in this news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve risks and uncertainties, including statements regarding the company's business strategy and expectations. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "should," "expect," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," or "continue," the negative of such terms or other comparable terminology. Actual events or results may differ materially. The company disclaims any obligation to publicly update these statements, or disclose any difference between its actual results and those reflected in these statements. The information constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.