For the past year, Mission Street Food has been donating its profits to charity; now, we would like to open a full-time charitable restaurant. This restaurant would be here in the Mission, open daily, offering fine dining food at affordable prices, benefiting a changing roster of charitable organizations.
While unconventional, the business model we’ve used thus far has enabled us to donate $22,000 to local charities in 2009, and we’d like to propose another unconventional business decision for the new restaurant: inviting you to participate in the venture. Mission Street Food is currently in negotiations to purchase a restaurant space, but we need a little more capital upfront. So we’re announcing a co-op of sorts, in which many investors could contribute a reasonably small amount to the start-up costs and earn annual dividends and more.
Here are some details regarding this proposition: We need about 100 investors at $500 apiece. If there is enough interest in this project, we will hire a lawyer to manage an escrow fund and accept contributions. Our tentative business plan projects a level of profitability that would make the annual dividend around $70 (14% return on investment). It also projects fundraising of $40,000 to $90,000 per year for charity. Investors can choose to hold their membership and redeem annual dividends or redeem the membership at any time for $1000 in gift certificates at the restaurant. If the restaurant does not open, investments would be returned in their entirety.
This is, undoubtedly an unusual offer, but we’re trying to build a charitable engine and hope you'll be interested in participating. The restaurant will not be strictly not-for-profit--some profits will go to partners/investors and some will go to members of the co-op as dividends. But I think we can raise a lot of money for charity. More importantly, if we’re successful, other people might follow suit by incorporating charitable elements in their businesses.
If you're interested in getting involved as an investor/Co-op member, I would be happy to provide more detailed information. And if anybody wants to invest an amount over $5000, we would be glad to discuss partnership terms on that level. Email me at firstname.lastname@example.org.
Thanks for your support,