Tapville

A technology integrated food and beverage concept

Tapville

A technology integrated food and beverage concept

Naperville, IL
Food & Beverage
Tapville Franchising Inc., dba Tapville, is a tech-forward food and beverage franchising and licensing concept that makes it easy to integrate self-pour technology. Innovations like advanced data collection and self-service technology give Tapville Franchising Inc locations the capacity to take remarkable strides in the optimization of the customer experience, all while drastically cutting costs of a traditional restaurant.

$90,058

raised
$1,051,308
previously crowdfunded
85
Investors
$28.1M
Valuation
$6.25
Price per Share
$200.00
Min. Investment
Common
Shares Offered
Equity
Offering Type
$3.93M
Offering Max
Reg CF
Offering

$90,058

raised
$1,051,308
previously crowdfunded
85
Investors
$28.1M
Valuation
$6.25
Price per Share
$200.00
Min. Investment
Common
Shares Offered
Equity
Offering Type
$3.93M
Offering Max
Reg CF
Offering

Rewards

Get rewarded for investing more into Tapville:

$200+
Investment
StartEngine Owner’s Bonus
This offering is eligible for the StartEngine Owner’s 10% Bonus program. For details on this program, please see the Offering Summary section below.
$250+
Investment
$250+ | The Beer Expert
Invest $250+ and you’ll receive a 5% Tapville discount to use at all Tapville locations, plus you will receive free access to our online beer education course to become a world-class beer expert.
$500+
Investment
$500+ | I Am Beer Legend
Invest $500+ and you’ll receive our online beer education course and a 10% Tapville discount card.
$1,000+
Investment
$1,000+ | The Pour Master
Invest $1,000+ and you’ll receive our online beer education course and a 15% Tapville discount card.
$5,000+
Investment
$5,000 | My Beer
Invest $5,000+ and you’ll receive our online beer education course and a 25% Tapville discount card.
$10,000+
Investment
$10,000 | The Owner
Invest $10,000+ and you'll receive our online beer education course and a 50% Tapville discount card.

Reasons to Invest

Self-service technology and advanced data analytics give Tapville Franchising Inc locations a major edge when it comes to cost-cutting, and also position the brand to appeal to tech natives
Tapville Franchising Inc’s self-pour technology allows for endless taste-testing possibilities of beer, wine, cider and cocktails as well as food
Founded by a former consultant with expertise in technology integration, Tapville Franchising Inc also has votes of confidence from advisors with formidable credentials in franchising and tech



Welcome to Tapville 

We're the franchisor and licensor of a unique data-integrated taproom, on a mission to redefine the hospitality space as we know it. Our franchisees provide a customer experience uniquely tailored to each and every customer. Our goal is to grow the infrastructure of Tapville so that more and more locations can open up with a product we’ve seen people love.



THE PROBLEM


Restaurants are facing rising costs and providing guests with a personalized experience is incredibly challenging


For years restaurants have operated the same way, based on the same old assumptions. 


They’re absorbing the rising costs of labor (the minimum wage was raised in half of all U.S. states in 2020), tolerating naive operational practices resulting in unnecessary waste, and a missed opportunity to adapt to changing market demand. Accenture’s survey found that an astonishing 82 percent of consumers prefer loyalty programs that are tailored to their specific profile.


With the rise of craft beer, very few bars are equipped to offer cost-effective sampling experiences for beer-loving guests.




We believe restaurants are also one of the few industries that have severely lagged in the adoption of smart data strategies to help scale and run their businesses.





THE SOLUTION


Tapville offers a franchising and licensing model for the age of optimization.


Tapville is a franchising model that will use the latest in data analytics and self-serve technology to offer guests a smooth experience, and franchisees a system that provides a competitive advantage. As well as offering advertising support with unprecedented access to user data … that they can actually use to engage with current and future guests.



Between our Brick & Mortar, Kiosk, and Mobile Taproom concepts for shopping malls, airports and superstores, every location has the ability to offer exactly what their target market needs, without wasting a dollar.


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We take major steps to reduce the cost of labor through innovations like self pour taps (also reducing wasted draft beer, cider and wine), table tablet ordering, while upping the ceiling for customer satisfaction through an increased level of possible customization.


By using advanced data collection, our locations are able to create highly specific profiles on all of our customers, and use these insights to market to similar demographics on social media platforms. This also gives up a leg-up when it comes to tweaking the customer experience, adapting the menu options, and more.


THE MARKET


Gen Z is becoming an increasingly impactful demographic for restaurants and bars


Peak restaurant consumption tends to occur in one’s late 20s and early 30s, and as Gen Z (Born between 1996-2010) ages into that sweet spot, these tech natives will be clamoring for a hospitality brand that mirrors every other part of their lives.


We believe we are also well-positioned to capitalize on the self pour trend. Thanks to our self-pour taps, our franchisees can offer sampling for beer, wine and cider creating an experience unparalleled by traditional bars, satisfying guests while collecting higher margins.


In addition to providing self-pour options, we’re also giving customers shared culinary experiences that bring friends and family together


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In 2019 there were over 770K franchise establishments, and Tapville intends on fusing the massive franchising market, as well as the increased demand for fast-casual, with a data-driven experience in order to become a major disruptor and category creator in the restaurant industry.


We believe we are positioned for growth and success in the post COVID-19 world

Now more than ever, with the lasting effects surely to be caused by the COVID-19 pandemic, we believe our contactless operating procedures, smartphone app ordering and self-pour technology will be even more desirable to guests with public health concerns.



Our concept has procedures, technologies and workflows to position us as the premier hospitality establishment mitigating guest concerns for COVID-19. For example, guests can enjoy a visit to Tapville using our smartphone app for ordering, pouring drinks and paying for their visit without even touching a tablet, credit card, or paper check. Plus, we’ve been doing this for over 5 years and in our opinion have perfected the guest experience.


OUR TRACTION


Our restaurants have generated over $8M in lifetime sales revenue.


Between our flagship brick & mortar 4,500 foot location and all our franchise locations, Tapville restaurants have generated over $8M in lifetime sales revenue. An additional brick & mortar Tapville location is launching soon. In addition, we have two franchised kiosk locations open. We expect to have additional franchises opening in 2021, totaling 30 locations. 



*Image of Tapville franchise location. Investors are investing only in the Tapville Franchising, Inc., which is selling the Tapville franchise model. Franchise locations currently pay a royalty to Tapville Franchising, Inc.

 

Investors are investing only in the Tapville Franchising, Inc., which is selling the Tapville franchise model. Investments in this raise may or may not include investments in to future locations. These affiliate locations currently pay a royalty to Tapville Franchising, Inc. 


Our brand has also become a hot topic for outlets throughout the Chicago area like the

Chicago Tribune, and the Daily Herald



Through these flagship Brick & Mortar prototypes, we’ve been able to refine our product (thanks to our innovative approach to data analytics), and further establish Tapville to franchise our brand.



We’ve since added a new product that customers can franchise in the form of a kiosk location. In the Chicago area, we have two kiosks already open in shopping malls, where patrons can stroll through the shopping center with adult beverages in tow. Since then, we have had 250+ franchise inquiries hoping to become our next franchisee.


*Image of Tapville franchise location. Investors are investing only in the Tapville Franchising, Inc., which is selling the Tapville franchise model. Franchise locations currently pay a royalty to Tapville Franchising, Inc.


Additionally, 7 of the top 10 REITs (real estate investment trusts) have contacted our team to inquire about adding our concept to their retail centers.


WHAT WE DO


We're a highly specialized franchising and licensing opportunity.


Our Brick & Mortar Restaurant operates carefully to bring together efficiency and outstanding customer experience.



*Image of Tapville franchise location. Investors are investing only in the Tapville Franchising, Inc., which is selling the Tapville franchise model. Franchise locations currently pay a royalty to Tapville Franchising, Inc.

 

This starts the moment guests walk in the door: They receive an RFID card (pre-authorized via their credit card), which keeps track of their tab throughout their visit. On their way out, they simply drop their card in an Express Check-out box and they’re free to go. Takeout or delivery is also available via Tapville mobile ordering.


*Image of Tapville franchise location. Investors are investing only in the Tapville Franchising, Inc., which is selling the Tapville franchise model. Franchise locations currently pay a royalty to Tapville Franchising, Inc.

  

Our other two models are Kiosks and Mobile Taprooms, smaller locations that can be opened in places like retail centers or airports, or, in the case of our Mobile Kiosks, dynamic locations outdoor events, festivals and private events.


*Image of Tapville franchise location. Investors are investing only in the Tapville Franchising, Inc., which is selling the Tapville franchise model. Franchise locations currently pay a royalty to Tapville Franchising, Inc.






THE BUSINESS MODEL


Our revenue comes directly from royalties, franchise fees and licensing fees.


Franchisees pay us a franchise fee for the right to open up one of our locations. We collect a one-time franchisee fee of approximately $44k from brick & mortar and approximately $19.5k from kiosks. We train, market, and support our locations — allowing us to ensure a high degree of consistency among our locations. We also receive royalty fees from every location, and in return, we give them the right to operate using our brand and trademark.


All capital for franchisee locations are funded by the franchisee, which helps greatly reduce our upfront costs and risk.





We expect our royalties to scale with the revenue of our locations - we take 5% of the location's total sales annually:


  • Based on the historical performance of the Tapville flagship location, we anticipate new franchise locations to generate once fully operational in the range of $2M -  $3.5M annually, in which Tapville collects $120K - $210K in royalties per location.

  • We expect fully operational Kiosks to have unit volumes from $350K -  $800K in which Tapville collects $17.5K - $40K in royalties per location.

With our systems, our past franchisees have already outperformed large chains and still haven’t fully realized the economies of scale

The prime cost, which is the metric to gauge the success of a restaurant is the cost of goods sold such as labor, food, and beverage costs. Most large successful chain establishments typically yield 60% - 65% prime cost.


Using our technology and business model built into our franchise can deliver prime cost targets in the 48% - 55% range. We expect Tapville kiosks to deliver a low 30% - 35% prime cost. 


We believe that our model for Tapville Franchised locations cuts down on the industry average waste levels by 20%, allowing us a potential gross profit on beverage sales over 82%.


We believe our business model has the ability to outperform large chains when operating at the highest level. Even though we’ve seen this performance at some of our first affiliate and franchised locations, that is not a guarantee that we will see the same performance at new locations. Opening new locations and new businesses contains inherent risks. We are hopeful though that as our franchise system grows, we will further increase our buying power with suppliers to reduce our cost of goods sold. In our view, large chains would have to reconfigure their entire business and operating model to realize these metrics. Today, you would be investing in the Tapville Franchising brand and helping us continue to grow.








HOW WE ARE DIFFERENT


We believe our proprietary data insights give our franchisees a leg up on competitors

*Image of Tapville franchise location. Investors are investing only in the Tapville Franchising, Inc., which is selling the Tapville franchise model. Franchise locations currently pay a royalty to Tapville Franchising, Inc. 



We compete with other food and beverage concepts to attract franchisees, and we believe one of our most valuable advantages lies in our tech-forward approach. When we pitch our concept to franchisees, we are able to back up our approach with the latest in data analytics, and promise that their franchise will have the full weight of our optimization strategies behind them.



All of our data is shared among all of our locations, and the larger we grow, the more powerful our data becomes.


Larger chains have tried to copy our model, but we believe that their ingrained processes and intractable investments make the switch far too disruptive.



THE VISION


Using technology to disrupt the hospitality industry and become the premier self-service franchisor


We want to completely redefine the hospitality industry by making Tapville known to everyone. Through the number of franchise applications we’ve been seeing, as well as the success of the eight active affiliate locations that are currently in operation, we truly believe that Tapville has the potential to create a completely new type of experience.



PRESS








OUR TEAM


Major players with a history of bringing tech to hospitality


Our Founder and CEO Joseph Tota has spent over 20 years as a consultant to some of the world's largest brands in areas like technology integration and organizational development and decided to take all he’d learned and combine it with his love of excellent food and beer to start Tapville.


Alongside Joseph are a team of advisors and investors who run the gambit from franchising experts like Sean Thomas (Grandson of Dave Thomas, Founder of Wendy’s), to data gurus like Brandt Kucharski, former Chief Accounting Officer of Grubhub.





WHY INVEST


We’re a proven concept with a clear path toward fast-paced scale


There’s one thing that every industry has in common: Technology will always be around the corner and poised to disrupt.


Hospitality is an old-fashioned industry, with a ton of inertia, but we have already proven that our concept of bringing tech to the industry was a smashing success, and our waitlist of franchisees can attest to that.


*Image of Tapville franchise location. Investors are investing only in the Tapville Franchising, Inc., which is selling the Tapville franchise model. Franchise locations currently pay a royalty to Tapville Franchising, Inc.



We believe that by taking the best parts about classic bars and restaurants — great drinks and delicious food — and eliminating the costly elements that are getting in the way, we have a business model that can become a category-defining phenomenon.



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Offering Summary


Company

:

Tapville Franchising Inc.

Corporate Address

:

216 S. Washington Street, Naperville, IL 60540

Offering Minimum

:

$10,000.00

Offering Maximum

:

$3,930,000.00

Minimum Investment Amount

(per investor)

:

$200.00











Terms


Offering Type

:

Equity

Security Name

:

Class B Common Stock

Minimum Number of Shares Offered

:

1,600

Maximum Number of Shares Offered

:

628,800

Price per Share

:

$6.25

Pre-Money Valuation

:

$28,132,800.00











*Maximum number of shares offered subject to adjustment for bonus shares. See bonus info below.

Investment Incentives*

**Previous Tapville investors receive 3% Bonus Shares

Franchisees can credit 50% of their investment towards a franchise fee. Offer valid for qualified franchisees.

$250+ | The Beer Expert

Invest $250+ and you’ll receive a 5% Tapville discount to use at all Tapville locations, plus you will receive free access to our online beer education course to become a world-class beer expert.

$500+ | I Am Beer Legend

Invest $500+ and you’ll receive our online beer education course and a 10% Tapville discount card.

$1,000+ | The Pour Master

Invest $1,000+ and you’ll receive our online beer education course and a 15% Tapville discount card. 

 $5,000 | My Beer

Invest $5,000+ and you’ll receive our online beer education course and a 25% Tapville discount card.

$10,000 | The Owner

Invest $10,000+ and you'll receive our online beer education course and a 50% Tapville discount card.

*All perks occur when the offering is completed.

**Previous investeors will received 3% Bonus Shares in addition to whatever other investment incetives they qualify for.

***Investment incentives do not stack, i.e. investment incentive tiers cannot be combined, and an investor will only receive the incentives associated with the hightest tier for which they qualify. The previous investor bonus is the only exception.

The 10% StartEngine Owners' Bonus

The Company will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.

This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Class B Common Stock at $6.25 / share, you will receive 10 additional shares of Class B Common Stock, meaning you'll own 110 shares for $625. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.

This 10% Bonus is only valid during the investors eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are cancelled or fail.

Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.

Irregular Use of Proceeds

The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Vendor payments.

Show More
Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$269,425.00 USD
$112,673.00 USD
Cash And Cash Equivalents
$124,054.00 USD
$1,886.00 USD
Accounts Receivable
$40,697.00 USD
$1,842.00 USD
Short Term Debt
$2,213.00 USD
$1,788.00 USD
Long Term Debt
$0.00 USD
$100,000.00 USD
Revenues And Sales
$99,474.00 USD
$10,629.00 USD
Costs Of Goods Sold
$50,600.00 USD
$0.00 USD
Taxes Paid
$0.00 USD
$0.00 USD
Net Income
-$288,702.00 USD
-$9,115.00 USD

Risks

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.


Updates

Tapville restaurant locations coming to Pennsylvania and Texas

16 days ago

Thank you for your continued support of Tapville. Our team has been working really hard to open locations and close deals. It's been a very busy sales quarter at Tapville. We are excited to announce we have signed franchise agreements for restaurant locations in Wexford, Pennsylvania and Grapevine, Texas. 

Both locations will be full restaurant locations owned and operated by local franchise partners. The Tapville team is very delighted to work closely with the operators.

Press releases to follow next week.


Tapville launches first self-pour mobile taproom in Chicagoland

about 1 month ago

Tapville is very excited to announce the launch of the Tapville Mobile Taproom in Chicagoland. This is the 2nd market for Tapville to introduce the self-pour mobile taproom for events, private catering and festivals. Read the press release here:

https://www.tapvillesocial.com/tapville-launches-first-self-pour-mobile-taproom-chi


Tapville signs franchise agreement with multi-concept hospitality group to open location in Evanston, IL

about 2 months ago

The Tapville team is excited to announce our franchise agreement with B&L Holding Company, a multi-concept hospitality group in Chicagoland. Tapville will be opening up a location in downtown Evanston, IL near the campus of Northwestern University. Location is expected to open in Fall 2021.

Read the press release here: https://www.tapvillesocial.com/tapville-signs-franchise-agreement-evanston-il


We're back and expanding!

about 2 months ago

Thank you to the StartEngine community for all your support. Tapville was very pleased to raise just over $1mm on our last raise that ended earlier this year. We are now reaching out to the community to further support our growth strategy.

Since our last raise, we've been expanding with 30 franchise agreements signed. We've launched our mobile taproom concept in multiple states. In addition, we have new restaurants planning to open in three new states. It's been a very exciting year for the Tapville team. We've hired new team members to help with our expansion and our business model is proving to be more relevant in the pandemic-era.

Thank you for your continued support! Check out some recent photos from a Tapville Mobile Event.


Best Regards,

Joseph Tota

Founder & CEO, Tapville



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