Rise of the Mac Daddies
With a novel idea and a lot of elbow grease, a pair of East Village engineers opened a thriving restaurant.
S’MAC, short for Sarita’s Macaroni & Cheese, is a category-defining restaurant founded upon the idea of elevating macaroni & cheese from a perennial side dish to the status of a meal in and of itself.
S’MAC opened its doors in June 2006 in the East Village neighborhood of New York City and features a menu based solely around variations of traditional macaroni & cheese and to our knowledge was the first such restaurant and an inspiration for all the other mac & cheese eateries now opening around the country. On opening day, the long lines and media frenzy quickly proved that even though the predictions about the relevance of this concept were correct, the entire process at S’MAC would have to be redesigned because the existing kitchen, equipment and preparation techniques were labor and time intensive and not conducive to servicing the high volumes being seen.
The 3-4 years after opening were used as an incubation period for this concept, where a unique process was developed and deployed for delivering baked-to-order and individually customizable mac & cheese dishes in a fast-casual setting. The process was designed to maintain high food quality and baked to order dishes using freshly prepared ingredients yet staying at an affordable price point.
TARGET: To expand S’MAC from the existing 1 unit to 10 units and to refine the operating model so that it can subsequently be rolled out nationwide, incorporating its core purpose and its core values.
STATUS: Currently there is one S’MAC location extant averaging $22,000 per week in sales with dine-in and take-out alone (no deliveries). On average, each staff member has been employed at S’MAC for 6+ years. There is a loyal customer base with over 13,000 followers on Facebook and over 8,000 people on the mailing list. S’MAC ships food nationwide and after 11 years still gets requests almost daily to open a location in various cities in the US and throughout the world.
PLAN: We are looking to open 10 new locations over the next 2-3 years and will also use this time to:
FINANCIAL: This phase in the growth of S’MAC will require $6 million which will enable us to open 10 additional restaurants, one year of corporate salaries and to retire some current debt. People with operational expertise, and financial expertise, in multi-unit restaurants will need to be hired to help grow S’MAC successfully.
Convertible Promissory Notes
Note converts to Common Stock when the company raises $1,000,000 in a qualified equity financing.
Maturity Date: June 1, 2021
$3,000,000 Valuation Cap
25% Discount Rate
5% Annual Interest Rate
Maximum ($107,000) in convertible notes
Minimum ($10,000) in convertible notes
Perk
If you invest in S'MAC you will receive a $100 S'MAC gift card to our location.
For details on the bonus, please see the Offering Summary below.
The story of S’MAC begins in 2005 when we were still living in Manchester, NH and working in our respective careers as engineers. We were in love with New York City and would travel regularly and frequently – sometimes making the five-hour drive just for a day trip - and talking about moving there “one day”. Finally, on a drive back to Manchester after one such visit (Memorial Day weekend 2005 to be exact) and inspired by the energy of the city, we decided to take the plunge and move to New York. Over the next few weeks we sold practically everything we owned, quit our engineering jobs and re-located to a sublet in the East Village neighborhood of Manhattan on July 31st. It was intimidating yet thrilling! We had enough money to pay the bills for a few months and we decided that we would use those available months to find work that we actually love and not jump at the first opportunity that offered a stable salary.
When we weren’t spending time on the job hunt we were out exploring the city, and a major attraction of NYC is the plethora of amazing restaurants to eat at. Especially intriguing were the niche restaurants that served just one item and did it well. One such place was the Peanut Butter Company in the Village – a restaurant that dedicated its whole menu to different variations of PB&J sandwiches.
While eating lunch there one day, Sarita felt that in this city of niche eateries surely there must be a mac & cheese eatery somewhere and decided that was where we would eat our next meal. We searched but couldn’t find one anywhere in the city nor could we find any mention online of such a place existing anywhere else.
In 2005, it seemed like mac & cheese was a popular menu item on many restaurant menus where it would be one item among the many other things offered on their menu. We also read a lot of chatter about mac & cheese on foodie boards such as Chowhound with people trading favorite recipes or tips on where to find the best mac & cheese. To our knowledge, however, there was no restaurant that specialized in just mac & cheese, and we found this fascinating.
We have always known of niche restaurants focusing on a single menu item in this country – things such as burgers, pizza, tacos, etc. Yet one of the most quintessential of all American foods, macaroni & cheese, seemed to have never been represented by its own eatery.
Once we conceived of the idea of a restaurant dedicated to mac & cheese we couldn’t let it go. Neither of us had any prior experience of being in the food business, and opening a restaurant had never even registered in our minds as a possible future career. However, this idea was so compelling that we felt we had to either do something about it or spend the rest of our lives wondering ‘what if’, and so we started taking the first tentative steps to explore what it would take to open a restaurant in this city.
9 months after that lunch date at the Peanut Butter Company, S’MAC opened its doors and it has been an incredible ride ever since.
S'MAC has now been operating for over 11 years, serving delicious and innovative mac & cheese dishes but with a greater sense of purpose behind them. In 2017, the owners of S’MAC and its entire staff came together to articulate what the foundation of the company truly is. This is what was established:
Core Purpose of S’MAC
Core Values of S’MAC
Long-Term Goal of S’MAC
Vivid Description
At S'MAC, we are adamant about serving real food at all times. That means nothing is processed and nothing is pre-cooked. All ingredients that go into our mac & cheeses are delivered to the store and are chopped, shredded, and cooked by our staff. This includes cheeses, pasta, meats, vegetables, etc. In addition we cook in small batches all day and do not cook anything days in advance. It is our commitment that everything at S'MAC will always be cooked from scratch at each store.
The doors to S'MAC opened on June 24, 2006, and we are currently in our 12th year of operation. Being a small family-owned business has been an experience filled with ups and downs. During these 12 years, we have had two of our own children (now an 8-year-old and a 5-year-old).
With a novel idea and a lot of elbow grease, a pair of East Village engineers opened a thriving restaurant.
The line extends almost out the door of this newly opened restaurant in the East Village. Inside, the tables are full and dozens of people wait expectantly for their food under the peculiar orange-and-yellow lighting.
Gayle King's favorite New York spots.
Sarita at S'MAC dishes up some Thanksgiving comfort. Reporter: Cali Carlin. Producer: Sarah Mirza.
They say one is the loneliest number, but judging by the growing number of specialty restaurants, going solo can draw a crowd.
We chatted with Sarita Ekya to learn more about the comforting appeal of that perfect mix of carbs and cheese.
Rob Nelson and Michelle Charlesworth get cheesy with Sarita Ekya.
Cat Greenleaf explores Cheese for Today In New York.
If you think of Manhattan as a hyperurban center of gastronomy that feeds itself on beef cheeks, truffles and other trendy oddments, you haven't picked up on the latest trend here, which is really a steal from the heartland. Macaroni and cheese is turning up on just about every menu I see. It has ev
Make the mac and cheese of your dreams at S'MAC!
A S'MAC eating contest at Gantry Park in Long Island City (in Japanese).
Sheila Dillon charts the rise of the humble mac'n'cheese: a dish that crosses culture and classes and has established itself as a popular comfort food across the world.
INVESTMENT OPPORTUNITY
Convertible Promissory Notes
Note converts to Common Stock when the company raises $1,000,000 in a qualified equity financing
Maturity Date: June 1, 2021
$3,000,000 Valuation Cap
25% Discount Rate
5% Annual Interest Rate*
*Annual Interest Rate subject to adjustment 10% bonus for StartEngine shareholders. See 10% Bonus below
Maximum ($107,000) in convertible notes
Minimum ($10,000) in convertible notes
What is a Convertible Note?
A convertible note offers you the right to receive shares in Sarita's Macaroni & Cheese, Inc. The number of shares you will receive in the future will be determined at the next equity round in which the Company raises at least $1,000,000 in qualified equity financing. The highest conversion price per share is set based on a $3,000,000 Valuation Cap or if less, then you will receive a 25% discount on the price the new investors are purchasing. You also receive 5% interest per year added to your investment. When the maturity date is reached, if the note has not converted then you are entitled to receive your investment and interest back from the company.
Company | Sarita's Macaroni & Cheese, Inc. (DBA S'MAC) |
| |
Corporate Address | 197 First Avenue, New York, NY 10003 |
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Description of Business | Pioneering fast-casual restaurant specializing in mac & cheese. S'MAC has been in operation for 12 years. |
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Type of Security | Convertible Note |
Minimum Investment Amount (per investor) | $500 |
Perk
If you invest in S'MAC you will receive a $100 S'MAC gift card to our location.
The 10% Bonus for StartEngine Shareholders
Sarita's Macaroni & Cheese, Inc. will offer a 10% bonus on the annual interest rate for all investments that are committed by StartEngine Crowdfunding Inc. shareholders (with ≥ $1,000 invested in the StartEngine Reg A+ campaign) within 24 hours of this offering going live.
StartEngine shareholders who have invested $1,000+ in the StartEngine Reg A+ campaign will receive a 10% increase in the annual interest rate on Convertible Promissory Notes in this Offering if they invest within a 24-hour window of their campaign launch date. For example, if invest in the first 24 hours, your annual interest rate will be 5.5% instead of 5%.
This 10% Bonus is only valid for one year from the time StartEngine Crowdfunding Inc. investors receive their countersigned StartEngine Crowdfunding Inc. subscription agreement.
A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.
Just a quick note to remind everyone that today is the last day for our equity crowdfunding campaign on StartEngine.
Best,
Sarita
Hi Everyone!
Back in October we had decided to extend our investment campaign by two months. Those two months are coming to an end and we will not be extending it again. Monday December 10th is the last day of our campaign and your last chance to invest in S'MAC if you have still been thinking about doing so.
For those of you who have already invested, a big thanks for your belief.
Best,
Sarita
[The following is an automated notice from the StartEngine team].
Hello!
As you might know, S'MAC has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in S'MAC be on the lookout for an email that describes more about the disbursement process.
This campaign will continue to accept investments until its indicated closing date.
Thanks for funding the future.
-StartEngine
[The following is an automated notice from the StartEngine team].
Hello! Recently, a change was made to the S'MAC offering. Here's an excerpt describing the specifics of the change:
S'Mac is extending their campaign by 60 days.
When live offerings undergo changes like these on StartEngine, the SEC requires that certain investments be reconfirmed. If your investment requires reconfirmation, you will be contacted by StartEngine via email with further instructions.
Hi everyone!
Our campaign is coming to a close soon and if you have been wanting to invest in S'MAC now is the time to do it!
To everyone who has invested so far, thanks for your belief in S'MAC.
Best,
Sarita
[The following is an automated notice from the StartEngine team].
Hello!
As you might know, S'MAC has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in S'MAC be on the lookout for an email that describes more about the disbursement process.
This campaign will continue to accept investments until its indicated closing date.
Thanks for funding the future.
-StartEngine
Hi everyone,
Two weeks ago we introduced our self-ordering kiosk system. Our restaurant is fast casual where people come to order at a counter and then we run the food out to the tables. The benefits of the new kiosks include increasing order accuracy and allowing our staff to focus on hospitality instead of data entry. Since using these self-ordering kiosks we have already seen a significant reduction in payroll costs and more efficiency with the order process. And although a majority of our customers have taken to them seamlessly, for the few who would rather place an order with a human, or pay in cash, we are able to take their orders on handheld tablets.
Best,
Sarita
[The following is an automated notice from the StartEngine team].
Hello!
As you might know, S'MAC has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in S'MAC be on the lookout for an email that describes more about the disbursement process.
This campaign will continue to accept investments until its indicated closing date.
Thanks for funding the future.
-StartEngine
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