A major equipment upgrade for Delicatus
Derek Shankland and Mike Klotz founded Delicatus on the simple concept that people in the greater Seattle area deserve a better sandwich.
Until now, the idea of a deli in Seattle has been broadly misrepresentative of the traditional European delicatessens and the ones that European emigrants founded in the Eastern United States. Here at Delicatus, our vision is to meld both local and European traditions by using primarily Northwest-sourced ingredients purchased directly from local farmers, artisan producers and suppliers of the finest regional products. Our principles of sustainability, superior quality, and commitment to service all combine to offer guests a dining experience unlike any other in Seattle.
We always planned to have deli products available for retail, but as a small startup restaurant company opening in the biggest economic downturn in two generations, we were forced to get crafty with our available financing. This forced us to open with used refrigeration, which often meant we had to move everything out of the cases every night because the old units would freeze overnight. This made it prohibitive to offer many delicatessen items like terrines, pates and other house made charcuterie.
In addition to the deli cases, we also plan to add some cold beverage storage and more taps… as we would love to have Root Beer and Cider on tap!
And finally, our end goal is to purchase a new Point of Sale system that would not only streamline the payment process for everyone, but also give us better inventory and cost control measures. As a company, we know what items are needed, but in order to provide the level of service that our customers have come to expect, we need your help in moving forward.
Here’s the outline of how these projects correspond to the funding goals:
-A new main deli case: $6,000
-A new beverage cooler and tap system: $9,000
-A new smaller deli case: $12,000
-A new POS System: $15,000
We pursue our love for our business through the relationships, energy, and hard work of our employees, purveyors, and community members. We simply seek to maintain these partnerships and continue building on the momentum that this foundation has provided.
When we were laid off in July of 2009, we took this as a blessing and pursued our concept of Delicatus (which we had developed over the previous 2 years) with every waking energy. It is within this concept that we found so many others that felt our yearning for a better sandwich in Seattle. It is this community that we have dubbed the “sandwich junkies” that has made all of this a possibility and we simply hope to better serve this community with the milestones that we have set forth in this project.
Our dream and most importantly, our goal, is to build a diverse, sustainable restaurant company that seeks to close the gap between our products, where they are produced, and the folks that enjoy the same values of community and locally-sourced food.
From the beginning of our venture into The Square, we have supported our community wholeheartedly. Whether it is working with Nord Alley for the 2010 World Cup, sitting on nearly every City of Seattle board that discusses Pioneer Square, or simply walking and talking with our neighbors, we have welcomed the relationships and partnerships that have been forged.
Community Sourced Capital (CSC) provides a simple way for community members to lend money to local businesses they know.
Our unique take on crowdfunding aggregates many small zero-interest loans (not donations) and turns them into one big loan for a business. We call those small loans Squares and the lenders Squareholders.
We think of this kind of lending as “sharing” because the only incentive for Squareholders is to support the business they lend to, not to make a financial return on their loan (hence the zero-interest loan and the low lending maximum of $250).
You can purchase “Squares” for $50 each to help fund part of this CSC loan for Delicatus. As Delicatus pays back the loan, we pay you back, fair and square.
We approve loan requests from businesses with at least a year of proven revenue in their books.
Borrowers pay back loans using a preset percentage of revenue instead of a flat monthly payment. As such, the payment timelines change as revenues accelerate or decelerate. We send monthly reports to Squareholders so they know how much has been repaid, but we never disclose how much revenue the business produced.
At the end of the day, this revenue-based financing is healthy for small businesses, especially those with seasonal revenue or projected growth.
In the case of Delicatus, we calculated the repayment schedule for this loan using two years of proven revenue and projected growth. The full loan is estimated to be repaid as early as 10 months from the time of issuance and as late as 28 months, depending on how much is raised for the business.
If you have extra questions, please don’t hesitate to send us an email at email@example.com. We’re still learning exactly what community funders want to know about these kind of loans, so your straight-forward input is very much appreciated.
This campaign was successfully funded on July 17, 2013