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Macro Location Analysis
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Purpose of the loan
The CLAV group is a family group, created in 2014 by Laurent VILLA, which operates in the catering sector through three labels:
* BEEFHOUSE: the group's historic label dedicated to meat lovers with an offer of world meats and premium burgers.
* BEER & BEEF: the label with a Sport's Bar atmosphere that offers a wide choice of burgers and beers, at attractive prices and in partnership with Heineken.
* TRIBECA: the premium label dedicated to the Casual Premium Brewery concept, which offers, in a refined décor, a wide range of culinary delights and a very dense brewery offer in association with the Coca Cola Europe and Heineken groups.
The Group's banners are mainly located in premium shopping centers with significant and regular traffic, enabling the restaurants to provide services with an average of 150 to 500 seats per restaurant.
Group CLAV restaurants
Each of the establishments under the Beefhouse label is destined to switch to the TRIBECA label.
Restaurants in progress of opening:
* Luxembourg : November 2020
* Créteil : October 2020
* Grenoble : December 2020
* Nice : Q1 2021
* La Ciotat : Q2 2021
The Tribeca brand
Initially developed under the BEEFHOUSE label, the CLAV Group is now directing its development under the TRIBECA label.
Indeed, the Beefhouse label reached its peak in 2014 with the opening of the Marseille and Toulon sites. However, for the past two or three years, the Group has seen a continuous erosion in sales of "meat from around the world" because these products have been subject to inflation, and at the same time consumption patterns have evolved towards less meaty dishes.
Therefore, the Group has chosen to make a strategic shift in its commercial positioning to evolve from now on under a more generalist label, TRIBECA, by proposing a wider culinary offer, with the top 5 sales concentrated on premium burgers, pizzas, pasta dishes and salads, capable of capturing a wider customer base and above throughout the day, by developing the Brewery activity.
The group's labels also offer a digitalization of the customer experience in the restaurant business thanks to the deployment of the RX Club application, developed entirely in-house by Group CLAV. It enables restaurants to initiate a new customer relationship by giving them full control over the ordering and payment phases of their meals.
An internalized value chain
From the design phase of restaurant projects to the site operation phase, the CLAV Group has structured teams and organizations with specific skills to serve and support each phase of development or operation:
* BUILD UP: the "Architecture and Works" department brings together a team of architects who design all the plans and all the administrative and technical documentation for each new restaurant.
* RX USINE (FABULOUS MEAT): the "Industries" department supplies restaurants with food products. Supported by 2 laboratories, the teams develop recipes and produce 80% of the sweet and savory ingredients.
* RX CLUB France: the "DIGITAL" department designs and develops all the Group's digital tools to improve the customer experience, such as tools to optimize the operational management of sites.
* ALVIL GESTION: the " MANAGEMENT & OPERATION " department ensures all the administrative, social and accounting follow-up of the restaurant network.
The future TRIBECA restaurant will be located at 2 et 6, rue du commandant René Mouchotte in the new shopping centre adjoining the Gare de Paris Montparnasse with a retail surface area of 823 m².
The premises are currently empty. It used to be a petrol station, whose premises have been completely emptied and cleaned up by ALTAREA, the manager of the Gare Paris Montparnasse building complex.
The lease was signed on 01/10/2020 for a period of 9 years.
The CLAV Group also plans to operate the 300 m² terraces along with the restaurant. A request to this effect will be made to the Paris City Hall.
The future restaurant benefits from a high-potential location with:
* A dense population living nearby (100,000 inhabitants less than 10 minutes from Montparnasse)
* Increased use of the station (90 million visitors in 2020)
* The presence of a dense economic fabric (80,000 employees work in the Gare Montparnasse district)
* The presence of important cultural infrastructures (Théâtre Bobino and Théâtre de la Gaieté Montparnasse). The cinemas in the Montparnasse district attract more than 2.5 million spectators every year.
The transaction is being carried out by SAS TMP (in France), with a capital of €15,000, registered with the Trade and Companies Registry in Cannes under number 889 701 975. TMP is carrying out the transaction. It is 100% owned by SA Group CLAV under Luxembourg law.
To comply with the regulations governing bond issues, SA Group CLAV, a Luxembourg company owned by Laurent Villa (85%) and Chloé Albertini (15%), will provide its First Demand Guarantee.
The bond will be issued by SAS TMP at an annual rate of 8% per annum for a period of 60 months. The validation threshold for the collection is €2 million.
The bond issue will be amortized each year from the second year by the operator in tranches of €875,000, with interest paid annually, but guaranteed for a minimum period of 6 months.
To provide additional guarantees, the repayment of the bond is guaranteed by :
* Personal guarantees from Laurent Villa (100%) and Chloé Albertini (15%) with total assets of €12 million.
* First Demand Guarantee from the SA Group CLAV
* Pledging of the business, valued at 80% of the turnover on average, i.e. €7.2 million here
Group CLAV owns a real estate company, SAS VILLA D'AILLEURS, which is carrying out several real estate projects in Corsica, with asset valuations over €15 million when they are put on the rental market, and which is currently valued at €3 million.
All the documents associated with this fundraising are available in the "documentation" tab.
*The first financial year is an 18-month financial year: 6 months of work + 12 months of operation.
The brewery passages correspond to customers consuming only a snack/drink as opposed to the restaurant passage. The margins and amounts are not the same: 40% margin for the brewery and 20% for the restaurant.
Cutlery assumptions :
* Breakdown by type of clientele: 40% office / 40% leisure / 20% station traffic
* Indoor/outdoor distribution: 65%/ 35%.
* Day/evening cutlery distribution: 50% / 50
The implementation of the digital RX Club tool saves time in the ordering phase and therefore in the table rotation phase. The recipes are produced in the factories, so the restaurants use only an assembly kitchen, allowing a larger serving volume.
Rents and expenses
* 400 000 € (excl taxes and expenses): year 1
* 500 000 € (excl taxes and expenses): year 2
* 600 000 € (excl taxes and expenses) or 14% of turnover excluding VAT if this exceeds €600,000 from the third year onwards.
Rents paid for the following materials and equipment: kitchen/sound/image
The fixed fee charged for the use of the digital concept developed by the subsidiary of the RX Club group.
4 Managers, 20 people in the dining room, 5 people at the bar, 21 people in the kitchen, 1 person in administration and 2 people in security and reception.
The objective of the Raizers loan is €3,500,000, however, the validation threshold is €2,000,000. If the maximum objective is not reached, the balance will be contributed as equity by the operator.
*Fiscal year over 18 months (including the work period)
*Eighteen-month period (including the work period)
At break-even, the average number of customers in the catering sector should be 530 persons/day for the first two years, then 640, thus reducing the forecast provided by Group CLAV by 30%.
Reminder: the objective of the Raizers loan is €3,500,000, however, the validation threshold is €2,000,000. If the maximum objective is not reached, the balance will be contributed as equity by the operator.
Laurent Villa, 49 years old, French:
After a degree in financial engineering at the University of Sophia Antipolis, Laurent Villa created several concepts such as Mediaparc, a company specializing in car park signage, the online hotel search engine and the Dobble board game via Playfactory, which has become the leader in the youth press. In 2010, after the resale of Playfactory, he launched into the restaurant business with the creation of the Beefhouse group and then the CLAV Group in 2014.
He and his partner, Chloé Albertini, a 15% shareholder in the CLAV Group, have a property portfolio worth €12 million.
It should be noted that the Fabulous Meat and Build Up entities generate most of their sales internally: 95% for the former and 80% for the latter.