Octane Cafe is a unique, health minded, fast-casual restaurant concept featuring a creative combination of high quality, healthy foods and beverages.  

Octane Cafe, LLC is seeking venture capital to fund expansion into the franchise market.
For information about this investment opportunity, please contact our managing member
Sam Eells at: email: see@octanecafe.com

Our Restaurant
Octane Cafe offers our customers a full line of premium smoothies and blended coffees featuring low-fat, low-sugar, fresh ingredients, superfoods and state-of-the-art nutritional supplements. Nutritionally balanced sandwich wraps, salads, soups and a wide selection of healthy sides and snacks. Our made-to-order menu is prepared by a highly trained staff in an inspiring, refreshing, and healthful atmosphere.  

Our Market
Octane Café has combined the healthy café, the performance smoothie bar and the traditional coffeehouse to create a diverse menu that allows customers to visit Octane Cafes at any time of the year, any time of the day and into the evening.  Combine an attractive operating margin, a duplicatable business model, strong branding potential, and multiple channels of revenue and the foundation is in place for long-term growth as a franchise concept.

The product mix allows Octane Cafes to appeal to a broad demographic ranging from today’s high school and college students through the age conscious, health conscious baby-boomers. This targeted product mix was designed to allow for rapid expansion to multiple units in the widest variety of locations.  

Our Management
Octane Café was founded and developed by Sam Eells, a Cleveland native who spent several years researching the market potential for the emerging “wellness revolution” that has just begun to transform the landscape of the restaurant industry. Sam brings a passionate sense of purpose and a well-developed sales and marketing talent from 20 years as a sales professional.

Director of Marketing - Valerie Waugaman. Valerie is one of the top 10 IFBB Figure Pro's in the world and is one of the most recognizable names in the Fitness Industry. In 2008 you can see Valerie every Monday night at 8:00pm on NBC as "Siren" on American Gladiators. In addition, Valerie has been featured on the cover of Oxygen Magazine, Flex Magazine (Swimsuit Edition cover), Muscle & Fitness Hers, Cleveland Magazine (as one of Cleveland's 25 Most Interesting People) and she has been featured in numerous other Fitness magazines. Valerie brings a graphic design degree, years of experience in the Advertising industry and 4 years of operations experience, managing the corporate Octane Café in Cleveland.

Director of Business development, Rick Blum brings 20 years of Restaurant management experience specializing in new concept development. Rick offers a background in restaurant consulting as well as intensive operational training and management skills.
 

Our Objectives 

·          To become a leading café and franchise concept by opening additional stores in top locations, serving the best tasting healthy, fresh products, and providing fast and friendly service.

·          To aggressively enter the Franchise market in 2008.
 

Company Overview 

Business Description: Octane Cafe is a unique, health minded, fast-casual restaurant concept featuring a creative combination of high quality, healthy foods and beverages.

Form of Business: Octane Café is a Wyoming LLC.

Start Date: February 2001 

Location: The first Octane Café is located in the new Colonial Marketplace development. Situated next door to the flagship Fitworks health club in the heart of the historic gateway district and across the street from the heart of Cleveland’s high-rise district. Octane Café markets and sells its products to health club members and working professionals in the nearby financial district.

Contact Information:

Business Advisors:
Jeff Osterfeld of Penn Station – Jeff Osterfeld, founder and president of the Penn Station Franchise (now 128 stores strong), provides operational and franchise development expertise.  

Advantage by Design
The Octane Café menu was designed to appeal to a wide demographic, at all times of the day, and in all types of weather. The menu is designed to accommodate customers for breakfast, lunch and dinner, mid-morning pick-me-ups, a mid-afternoon fuel or pre and post workout refueling. Add feel-good music and quality hang-time and you’ve got consistent sales into the evening.

The Industry - Restaurant Industry Overview:  
The overall economic impact of the restaurant industry reached over $1 trillion in 2006.  This includes sales in related industries such as agriculture, transportation, wholesale trade, and food manufacturing. 

• Sales: $440 billion — on average, $1.2 billion on a typical day
• Locations: 878,000 — more than 54 billion meals will be eaten in restaurants and school and work cafeterias
• Employees: 12 million — more than 8 percent of those employed in the United States, which makes the industry the largest employer besides government

Restaurant-industry share of the food dollar: 46.4 percent — in 2006, the average annual household expenditure for food away from home was $2,030, or $812 per person.  In 2006, almost half of all adults (46 percent) were restaurant patrons on a typical day.  The typical person (aged 8 and older) consumes an average of 4.2 meals prepared away from home per week. 

Quick Service: Average Unit sales were $555,000 at limited-service restaurants last year.  Limited-service (quickservice) restaurants posted an average daily seat turnover of 4.4 — the highest among the restaurant categories covered by the National Restaurant Association study.  Median sales were $9,689 per seat. 

Average pretax profit of limited service restaurants was 7%.

The Fast-Casual market is the emerging trend in the restaurant industry showing all the signs of sustainable market growth.

The target - the coveted 18-to-34 demographic group that "fast-casual" outlets such as Crispers, Panera Bread, Chick-fil-A and now the Octane Café are attracting, is increasing numbers every day. The product mix is tasty and healthy, the food and beverage menu is sexy and the customer can be in and out in five minutes or sit and enjoy the inviting surroundings. Plus, average costs are typically no more $2 or $2.50 higher than a meal at a traditional fast-food restaurant such as McDonalds, Burger King or Wendy's.

With this chic image and lighter fare, the burgeoning fast-casual category is attracting more 18-to-34 year olds than any other restaurant type, according to a 2006 national survey released by NPD Foodworld. The Port Washington, N.Y., survey company found that 37 percent of visits to fast-casual restaurants were by 18-to-34 year olds during the year ending November 2006. By contrast, about 30 percent of customers at traditional quick-service outlets were in the 18-to-34 category. Fast food, as expected, had the highest percentage of under 18 visitors, at 22 percent.

Fast casual as a restaurant category typically includes few or no fried foods, more hand-held sandwiches or "wraps, salads, potatoes and a wide variety of exotic blended beverages, and attracts slightly higher income customers. The survey results bode well for the “fast-casual” genre as the highly sought 18-34 demographic adds substantially to the targeted baby boomer demographic.

“Market share for the fast-casual segment is expected to double within four or five years”, says Mitchell Speiser, an analyst at Lehman Brothers. He estimates that the fast-casual sector is growing in the range of 15% to 20% per year, while growth in the fast-food sector is only about 2% per year.

Our Restaurant 

What we serve: Octane Cafe offers our customers a full line of premium smoothies and blended coffees featuring low-fat, low-sugar, superfoods, fresh ingredients and state-of-the-art nutritional supplements. Nutritionally balanced sandwich wraps, salads, soups and a wide selection of healthy sides and snacks. 

Specialties: At Octane Café’s, one of the main attractions is the individualized and customization our made-to-order menu allows. Octane appeals to a wide variety of personal health and diet motivations.  

How we serve it: Prepared by a highly trained staff, using the best products available, in a fun, clean, creative atmosphere while continuously providing the finest in customer service. Fast, fresh made, healthy and served in a stimulating environment. Octane Cafe specializes in corporate catering and nutritionally balance custom menu-planning.

What we charge: Octane strives to offer good food at very good prices, attracting people who want something more than fast food, but for not a lot more money.  Most people will find something that will fill them up for between $5 and $9, including a drink.  Even less if they are in for breakfast.  Performance Smoothies range from $3.59 to $4.79, and $1.29 to $4.29 for a specialty coffee.  Sandwich wraps range from $5.99 to $6.59. Snacks and sides from $.79 to $3.49.   

What makes us different: Octane offers a creative combination of high quality foods and beverages that are proven to be in demand. The product mix allows Octane Cafes to appeal to a broad demographic ranging from today’s high school and college students through the age conscious, health conscious baby-boomers. This targeted product mix was designed to allow for rapid expansion to multiple units in the widest variety of locations. Octane Café is positioned to bring together the most in demand concepts in the specialty beverage and fast-casual dining markets. 

Why people will come: Octane Cafe products satisfy four main food and beverage retail necessities: taste, value, nutrition and convenience. Recent Public Media New USDA Food Guide and the wide spread increase in media exposure to the benefits of a balanced, thoughtful diet is helping educate the public on many of the healthy products Octane Cafe serves. People will
return to a clean, healthy, and wholesome atmosphere full of positive energy.

The Target Market 

We understand that the target market will have multiple components.  The first component of the target market will be the local people that live in the area.  Within the local population where the cafe is located, there are several segments of the population that will be especially likely to buy our product mix: 

·          Professionals:  Premium performance demands premium fuel. People are busy and getting busier everyday.  Professionals are not eating the standard 3 meals a day.  The Octane menu provides a balanced meal served fresh and made to order or a quick pick me-up. Whatever the time of day and whatever the demands, Octane has the fuel for the demanding professional. Catering business breakfasts and lunches are a specialty.

·          Families: The family that eats a healthy diet together lives long and well together. Octane Cafes will accommodate all ages and strive to be family friendly. A healthy kids-menu and plenty of healthy alternatives to fast-food for mom and dad.  

·          Athletes: Nutrition affects the performance of all athletes and athletes typically understand this and eat healthy products.  The Octane menu provide the nutrition athletes need to excel. 

·          Students:  High school, Jr. high school, and college students are proven to be large smoothie customers because smoothies taste great and are the perfect meal or snack at lunchtime or after school.  Smoothie bars close to schools typically see a huge influx of customers after school as students are looking for an afternoon pick me up. 

·          Dieters: Anyone seeking to lose weight and/or body fat needs nutritious meals. The Octane menu is filled with high protein nutrition low in calories.   

For future locations, the target market will vary based on location, but we will focus on professionals and families that are working or living in close proximity of Octane Cafe stores.  We will target the gym crowd, dieters, students, local professionals, small business and local residents through extensive marketing.  Octane Cafe products can be used as a meal, a quick pick me up, or a pre/post workout energizer which makes it very appealing to many types of people at all times of the day. Octane Catering and delivery service let's us bring a balanced high Octane meal to you.

Environment
Octane Cafés will be designed to give off an extremely high end, upbeat, energetic, and fresh feeling. We will focus on promoting the health aspect of the business in a fun, hip way.  When customers come to Octane Cafe, they will not only be purchasing a smoothie or sandwich, they will have an entire sensory experience.  When they walk up to the door, the colors will provide a feeling of energy.  Once the door is opened, the customer will hear the beat of the music, and be engulfed in the sweet smell of fresh brewed coffee.  After a pleasant encounter with an employee, the customer will finally have his/her taste buds awakened with the amazing taste of an Octane Cafe smoothie, blended coffee drink or healthy meal. 

Octane Cafe will be very visual with the preparation and presentation of the products being done in full view of the customer.  Octane Cafe will appeal to the major senses including sight, sound, taste, smell and intellect.

Marketing Strategy

Regional/National Level: Octane Café has outstanding branding potential to a remarkably wide age range. From a high school student with our logo sticker on his skateboard to the anti-aging baby boomer wearing an Octane cap, golf shirt or performance clothing. Octane is “cool” and that means it’s marketable.

Local level: Octane Cafe will market to at the neighborhood level.  Strategies such as couponing, sampling, and cross promoting will all be used as effective ways to get people into Octane Café. We will use aggressive direct mail and web presence campaigns to reach local residents and increase awareness that Octane Café is open and ready for business.  Octane Cafe will sponsor college, local high school, and youth athletic teams to support the community and gain exposure.  As the company grows and name recognition increases, Octane Café will become a recognizable sponsor for a wide variety of local and regional lifestyle events.  Because of our diverse menu and broad based branding appeal we can look for exposure at events that gather the 18-54 demographics. Examples would be:
 

·          Local Sporting Events –10K runs, marathons, triathlons, golf tournaments

·          Extreme Sporting Events – surfing, snowboarding, skiing, skateboarding, water-skiing, beach volleyball, etc…

·          Performance Motor Sports Events

·          Music Festivals 

Nutritional information is provided and allows customers to see that the products that they are consuming not only taste fantastic but also are healthy and performance enhancing. 

Octane Cafe will position itself as a great tasting convenient alternative to fast food.  Octane Cafe will serve products quickly in an environment that will make people feel good about their purchase.  The theme of education and nutrition will be emphasized, as Octane Cafe products are fantastic for building muscle, losing weight, a boost of energy and to prevent disease.   

An Octane Cafe will also educate customers on the features and benefits of our products. People need to know how what they eat affects the way they look, feel, and function.  By doing the research for them and then explaining concisely why what they're drinking or eating will help them in specified ways, our staff will help people make informed choices which will help build value and a loyal following. 

Once the customers have come into the store, the great products, fast and friendly service, and upbeat environment will make them a customer for life.  This will result in the best form of advertising possible, which is customer referrals and word of mouth advertising. 

Keys To Success

Several factors will help Octane Cafe become successful.  These include: 

·          Octane Cafe will be owned and operated by people that love what they do.

·          Highly focused location selection.

·          Robust Corporate Catering Program.

·          Better supervision, training, treatment and career growth opportunities for employees, will lead to outstanding service.

·          Octane Cafe products satisfy four main food and beverage retail necessities: taste, value, nutrition and convenience.

·          Octane Cafe is looking to open only in top retail locations. Other "draws" like popular stores, gyms, entertainment centers. 

·          Octane Cafe is working with top consultants to ensure that we draw on the strongest professional experience available to us.

·          A clean, healthy, and wholesome atmosphere full of positive energy.

·          The Specialty Food and Beverage industry is expanding rapidly which is helping educate the public on many of the healthy products Octane Cafe will be serving. 

Quality:  Our restaurant is dedicated to quality control to ensure a consistent customer experience in food taste and portioning, as well as to ensure safe food preparation and cost control.  Our quality assurance plan consists several important tasks:  

·          Daily visual and taste checks of the food being prepared

·          Daily measurement and spot checking of portions being served, checked against sales figures for consistency

·          Written recipe, portion and ingredient lists, used consistently by the kitchen staff

·          Daily measurement and spot checking of cooking times, cooking temps, holding temps, refrigeration and freezer temps, and storage conditions

·          Consistent use of product rotation schedules, FIFO, and product receiving inspections prior to acceptance

·          It will be the job of all staff and management to make sure that the customer receives the highest quality, correctly portioned meals that can possibly be delivered, each and every time.

Additional Revenue Sources 

Private Label Opportunities: Octane Café is positioned to seek additional revenue from the private labeling of both coffee and nutritional supplements. Octane will seek out specialty coffee roasters for a private label relationship as well supplement manufacturers to produce Octane Premium Supplements and energy bars. This provides two important benefits for Octane Café owners, licensees and customers. By carefully selecting our product sources, we control quality at every Octane Café. In addition, we make it very easy for our licensee’s to stock and promote our coffee and nutritional supplements. Strategically, we benefit in the following ways:

1) Octane Café is able to offer a lower monthly royalty percentage, by comparison to other franchise/license concepts, yet maintains long-term residual income margins. 

2) By purchasing from the Corporate entity, the licensee benefits by the easy sourcing of product and consistent cost and quality control. 

3) Percentage profit from the sales of coffee and supplements are contingent on gross sales at the store level. Thus the licensee only pays for product as it’s sold.  

4) Unique product that is only available at Octane Café’s increases customer loyalty as well as brand appeal for licensees. 

Additional Private Label products:
Octane Performance Sportswear and accessories
Octane Energy Bars
Octane Private Label Soups
Octane Private Label water: Octane H₂O

*Additional supporting financials available upon request.