Christopher Davis
Louisville, KY (USA)
Role(s):
Founder/Owner/Principal
Rio LLC
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Startup
Location:
Louisville
Industry:
Food Service/Restaurant
Year Founded:
2010
Number Employees:
10-50 people
Business Stage:
Creation/Idea
Entity Type:
Limited Liability Company
Description:
RIO Brazilian Steakhouse is a new Brazilian Steakhouse concept to be introduced to downtown Louisville, Kentucky.
The restaurant will be an exciting and vibrant addition to the few upscale restaurants currently attracting guests in downtown Louisville, adding an additional 50+ jobs to the market and gross revenues of about $2.5-$3 million. Guests will have the option of enjoying set entrees, visiting the extensive hot-and-cold buffet laden with Brazilian specialties, or experiencing the signature tableside Gaucho meat service, with an all-you-can-eat format. Price points for this new dining experience in Louisville will be about $16.75 for lunch and about $34.75 for dinner, which will make RIO Brazilian Steakhouse one of the more reasonably priced yet unique dining experiences in Louisville.
RIO Brazilian Steakhouse will be owned and operated by Rob Mastro, a food industry veteran, and Chris Davis, an experienced manager. These gentlemen have formed a LLC, which will be the parent company of Rio Brazilian Steakhouse.
Louisville is emerging from a period of residential decline in the downtown area. The greater Louisville metro area has over 1.2 million residents, with more than 74,000 commuting downtown daily within 6 blocks of the proposed location for RIO Brazilian Steakhouse. There are a number of major new residential projects planned or under construction which will double the downtown population in the next few years. The entire area is under intense redevelopment, compelling area residents to return to downtown to enjoy the new ambience.
The downtown Louisville market lacks sufficient upscale dining options. RIO Brazilian Steakhouse will fill a void in which there are currently no unique, energetic, and exciting options for the increasing number of diners and visitors.
RIO Brazilian Steakhouse will require an estimated $ 1,750,000 for its development in a new addition to the EON building on West Main (Approx $500k from private investors and $1.25 million from an SBA loan). The restaurant will have 5,000 square feet and accommodate just over 175 guests, including the lounge area. RIO Brazilian Steakhouse will hire over 50 employees and should generate gross revenues of about $2.5-3 million within 2 years of opening. We have tempered the cash flow projections by subtracting a contingency factor of about 15% to arrive at very conservative estimates. Before tax profits are expected to average 13-14% of revenues once the growth of the business has stabilized.
The structure of the development debt will determine how quickly this business will grow beyond projected expectations.
The continued growth in downtown construction and residency will result in increasing revenues for RIO Brazilian Steakhouse for at least 10 years before stabilizing. This growth will make Rio comparable with other Brazilian-style steakhouses in the U.S. which are enjoying sales revenues of $4-6 million annually.