New partnership proposal
The proposal in brief
Since last me talked the world has changed and we had to face unprecedented challenges that created the opportunity for a wider partnership that includes the entire APAC region and the new facility in Singapore.
Singapore new facility
33% of the CulinaryON Singapore opened in March 2020
Culinaryon Asia
40% Culinaryon
Asia, that is also owner of 33% of CulinaryON SG and of the rights for APAC region
Exclusivity
APAC region
3 years exclusivity for development in the region JV or Franchising model
Only
600.000 USD
330K will remain in the company as operating cash. 70K will be used to pay debt and 200K will go to exiting shareholder
• 300K remain in the company for operating cash flow to ride through COVID19 storm
• 100K is used to pay-out existing debt
• 200K goes to the exiting partner (estimated as we are not the one selling)
600K USD (less than the construction price of CulinaryON Singapore)
CulinaryON SG + Asia
1. Why this deal
• Our local shareholder is looking for an exit due lack of cash

• We need a strategic partner in Asia

• Local subsidiary needs operating cash flow till Spetember when demand will pick-up
• Singapore as a training hub for expansion in India and Asia

• We could outsource Singapore callcenter to India, further optimising SG cost structure
Why you are the perfect match.
Why the shares are on the market?
2. Special Offer: Singapore
Since your last visit we have relocated to a brand new facility, that was supposed to fly like a rocket thanks to the combination of an optimised cost structure with the elements below:
3 Studios, 4000 sqft
Robinson Quay
150 guests capacity
New fully functional facility
Great visbility and high traffic
Optimised
layout
Market
leader
Since 2015
Cheaper rent (1/2)
Modern design
Investment of 700K SGD
In the heart of Robinson Quay, on the ground floor with large windows.
Larger rooms able to host up to 50 guest each, for a total capaicity of 150 geusts
We are the leading brand with a loyal customer base and existing pipeline
• Less back of the house
• Large rooms able to host 50 guest per room
• Total capacity of 150 guests
• Large windows on ground floor
• Premium location in Robintson Quay

New location in hight traffic area ideal for B2B and B2C business
Optimised layout
This time we know we got it right!

• The offer includes keeping 270K inside the company as cash flow
• We optimised the cost structure (rent is 1/2, Food and staffing cost is under control)
• Access to both B2B and B2C market (Old facility was not attractive for B2C)
• Larger rooms for better Yield Management
• High visibility (previous location was hidden)

3. Bonus Track: CulinaryON Asia
Rights to develop the brand in Franchsing or in Joint Venture.
At a super discounted price you receive also 40% of CulinaryON Asia, which has the rights for APAC region excluding India (that is to be finalised in a separate deal)
4. Post-COVID19 rebound will be an opportunity for CulinaryON
  • Lower competition
    Covid19 cleaned the market
  • Cheaper rents for expansion
    Retail and F&B crisis post COVID19, will free up retail space on the market that will be
  • Employer Market
    Better and cheaper employees will be available as tourism and F&B industry will have massive restructuring
  • People want to socialise
    Companies will need to bring people together on a constant basis, creating a sense of community even for the ones that will continue to work from home
  • Fragmentation of larger events
    Large companies replace mega events 500+ with smaller events 30 to 150 guests each
  • More Privacy
    Rather than celebrating an event or a birthday in a restaurant with unknown other customers, can get a private room
  • More safety
    • Having a small team we can get tested ALL the employees who work at your event
    • We stared to sell online events and teambuildings
  • More price sensitivity
    We are more flexible than other F&B outlets able to create tailor-made offers
5. Ok, lets have a look at the numbers
Here the assumptions and forecast for Singapore:
=
2020 assumptions
This was the plan in November 2019, before the outbreak
  • Re-opening in July 2020
  • -30% in July, -20% August, -15% Sept-Oct, -10% November & December
  • Break even in 2nd Half of the year
  • Still negative on a full year base due to 3 month of inactivity
=
Pre-Covid Projections
Before the outbreak the plan looked like this. We think that projected profitability is just postponed by one years as the fundamentals reain solid.
6. Last by not least... you are not buying just a cooking school
In the last year we have developed a full portfolio of experiences
EventyON's unique brand portfolio maximises customer choice, retention and customer life time value
CulinaryON: An immersive experience, blending hands-on cooking and party vibes.
Click here:
www.culinaryon.com
PaintON: Fun art-parties with great music, delicious food and wine
Click here:
www.painton.sg
WineON: A variety of experiences around the world of noble wines ranging from blind tasting appreciation game (WineON las vegas) to Wine blending game (WineONLab)
QuizON: Engaging trivia events, where teams are challenged on customisable topics
KidsOn: Premium tailor-made themed events for kids and teenagers, combining education and etertainment
We are n.1 in Tripadvisor in almost all the cities of presence
Made on
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