Short Story

Vamos is a Spanish and Latin American Tapas bar and restaurant located in the heart of Melbourne – one of the food capitals of the world.

Vamos was founded in 2014 and has grown year by year since then.

Apart from providing amazing food and drinks, Vamos has a range of live bands that play from Wednesday to Sunday, making it a favourite venue amongst the locals for any type of celebration – from hen’s nights to birthdays and even weddings!

Vamos Melbourne

by Tom Norwood | Trybe

  • $100,000.00

    Funding Goal
  • $100,000.00

    Funds Raised
  • 102

    Days to go
  • Goal and Date

    Campaign End Method
Raised Percent :
100.00%
Minimum amount is $50000 Maximum amount is $100000
$
Melbourne, Australia

Tom Norwood | Trybe

32 Campaigns | 0 Loved campaigns

See full bio.

Campaign Story

Overview

The idea for Vamos started nearly six years ago, when four friends and work colleagues (Tom, Marcela, Iliana and Juan) started running Latin American themed parties. The parties were such a huge success, with hundreds of guests, that we decided it was time to open our own venue.

Vamos was born, and over the years it has evolved from being a party venue for a younger crowd into a tapas, wine, cocktail, and entertainment venue for a more discerning audience.

Our dream was always to bring a little bit of Latin America to Melbourne and showcase the best aspects of the culture; live music and a fun, party-like ambiance are still an important part of Vamos today – making it a favourite venue for many types of celebration.

We don’t think of Vamos as a restaurant, bar or live music venue by itself; customers experience a complete night that includes food, drinks, music and dance. For us it is a privilege to serve people with the high standards required in a city like Melbourne with the warmth and hospitality that the Latin American culture has to offer.

Problem being solved:

Every business needs to solve a problem to be successful, and the one that Vamos solves is providing a fun entertainment venue for a more discerning crowd. There are many great places for younger people to go out and dance and party, but for over 35 year olds, the options are severely limited, more so when this crowd is looking for quality food and drinks as well.

Vamos provides a unique combination – a place to eat, drink, listen to music, dance and check out local talent all in the same venue. We provide our customers an integrated experience.

Target market:

Our target market is 30-60 year olds who like Latin American or Spanish culture and are looking for nice food, good drinks, great service, and a safe, sophisticated venue to have a good time with people their own age.

This includes office workers and theatre goers who are an important part of the traffic in the area, as well as the Spanish and Latin American communities in Melbourne.

 

Competitors

There are a number of other venues in Melbourne that could be considered similar to Vamos:
 ‣ Movida

‣ Bar Lourinha
‣ Bomba
‣ Portello Rosso ‣ Añada

However, none of these offer live music, and all of them are smaller venues that are not suitable for celebrations (birthdays, hen’s nights, etc).

Kanela and Copacabana could be considered direct competitors because they offer food and live music but their target market is significantly different and they are located in suburbs outside the CBD. Currently, there are no concepts like Vamos in the city.

Vamos Key Statistics:

  • ‣  Open for 4.5 years and growing year on year
  • ‣  Turnover for 2018 financial year was $1.1M, up from $630K the year before
  • ‣  Current mailing list of over 10K people
  • ‣  Over 16K Facebook fans
  • ‣  Very popular destination in Melbourne for Hen’s nights, birthdays, Corporate events and even the occasional engagement party or wedding.
  • ‣  A sought-after venue by Melbourne tourists and hotel guests nearby.
  • ‣  Key location, in the heart of Melbourne’s entertainment and political district, Chinatown, Princess Theatre and Her Majesty’s Theatre just minutes away by foot and next to Punch Lane, across the road from Longrain.
  • ‣  A new “Le Meridien” 235 room hotel is going to be built in the next 2 years at 30 Bourke St, with a new laneway connecting to Little Bourke St right near Vamos.

Plans for further growth:

SEARCH ENGINE OPTIMIZATION:

Over the next 6-12 months we are going to be focussing intensely on SEO to make sure that Vamos ranks organically for all relevant keywords relating to Spanish tapas as well as function rooms in Melbourne.

CHANGE OF MENU:

After an extensive survey of our guests, we realised that our menu was not to everyone’s taste or budget, nor was providing the perception of “value for money” because of the smaller dish size.

We have now implemented a new menu structure which is simpler and cheaper in execution and offers larger dish sizes more in line with a traditional Australian dining mindset. As well as being more appealing to a wider audience, we have already noticed that this menu has increased the spend per head as well as the perception of value for money. This will undoubtedly lead to better reviews and more frequent customers.

EXTENDED OPERATING HOURS:

Currently Vamos is only open for dinner from Wednesday to Sunday. We have run Sunday lunch services before with success, and we are considering doing these again. We have also considered Friday and Saturday lunch services.

Over time as Vamos continues to get more popular, we could run lunch and possibly even breakfast services every day of the week. Vamos’ location makes it ideal as an all day venue that could even cater to corporate events with the right fit-out in place.

NEW LOCATIONS:

Once we hit on the right formula in terms of the food and drinks menu, Vamos could easily open up in new locations. Other parts of Melbourne, other parts of Australia, or even other parts of the world are all possibilities.

 

Current Funding Requirements:

Vamos as a company has one fundamental problem. When we started Vamos, we started it with less than $100K in capital. This included the rent, bond, stock, and the fit-out (including the equipment). Given that most restaurants of this size start with at least $500K, it speaks highly of us that we have been able to grow the business and its sales – mainly due to the fact that the four of us have put in many unpaid hours (thousands).

Any profit we have made over the years has also been put back into the restaurant in terms of marketing and improvements, and we have also taken on debt in order to grow and improve the business.

However, now that we have stabilised our sales and hit upon a winning formula that we are confident in, we are looking for an outside investment to reduce our monthly payments and start to actually take salaries and profit from the business. Our $150K debt costs us nearly $8K per month, which means there is very little left over despite the hours we put into the business.

We would also like to update a number of other parts of Vamos: buy some new furniture, update our audio equipment (a key component of Vamos), build a large sign outside, create a new entrance using the front stairwell, as well as build a wine rack over the outside of the bar to display our range of Spanish and Latin American wines.

We are looking for a total investment of $150K, to pay off our debt and make these improvements. This will put Vamos in a much stronger financial position as well as improving the quality of our venue overall (allowing us to increase our turnover even more).

In return for this investment, we are offering two options:

  1. 1)  A 10% interest rate on an 8 year loan
  2. 2)  A 7% interest rate on an 8 year loan plus 5% equity in Vamos (conditions apply)Vamos Melbourne / 6 Level 1/37 Little Bourke St, Melbourne Phone: (03) 9001 0829, [email protected], www.vamos.net.au

Options:

Option 1

Total amount borrowed

$150,000

Interest rate

10% p.a.

Repayment frequency

Monthly

Length of loan

8 yrs

Repayment per month

$2,276

Total repayment

$218,496

Option 2

Total amount borrowed

$150,000

Interest rate

7% p.a.

Repayment frequency

Monthly

Length of loan

8 yrs

Repayment per month

$2,045

Total repayment

$196,320

Plus equity share

5%

Vamos Financials:

History

Profit and Loss

2016-2017

2017-2018

2018-2019

Total Sales

630,000

1,107,000

1,060,000

Total cost of sales

262,000

396,000

328,732

Gross Margin

368,000

711,000

731,268

Gross Margin %

42%

36%

31%

Expenses

Fees

21,879

21,133

31,673

Advertising

40,000

119,443

102,968

Entertainment

21,000

18,993

20,050

Utilities

8,092

18,657

13,781

General expenses

23,239

20,895

24,501

Insurance

2,588

746

1,509

Lease equipment

9,169

15,687

17,185

Rent

105,018

93,233

93,166

Improvements

125,217

Wages salaries

125,380

314,612

328,992

Directors fees

42,600

Total operating expenses

356,365

748,616

724,188

PROFIT

11,635

-37,616

7,080

Cash Flow Forecast

Cash Inflow

Year 1

Year 2

Year 3

Sales

1,193,000

1,252,650

1,377,915

Loans

150,000

Total cash inflow

1,343,000

1,252,650

1,377,915

Cash Outflow

Cost of sales

334,040

325,689

358,258

Accounting fees

40,672

39,647

42,753

Advertising

91,200

87,686

82,675

Entertainment

62,550

62,550

60,048

General expenses

23,000

20,000

20,000

Insurance

5,000

5,000

5,000

Utilities

24,296

24,300

24,300

Lease equipment

5,000

43,200

17,784

Rent

112,200

117,810

123,701

Wages Salaries

345,970

350,742

372,037

Directors fees

60,000

60,000

60,000

Improvements

20,000

Debt repayment

130,000

Tax payments

12,000

12,000

12,000

Loan Repayment

27,600

27,600

27,600

Contigency

20,000

20,000

20,000

Total Cash Outflow

1,313,528

1,196,224

1,226,156

Net Cash flow

29,472

56,426

151,759

Cash at the end of the year

29,472

85,898

237,657

 

Strategy:

  • ‣  Cost of sales reduction: With the new head chef and the new food and drinks menus our main goal is to increase our gross margin, reducing our cost of sales from 31% in 2019 to 28% first year and 26% years 2 and 3.
  • ‣  Advertisement expense reduction: Over the past few years we have spent a considerable amount of money in advertising, creating visibility and trying different options in order to find the correct channel. Now, 5 years after opening, this expense can be reduced due to the data base collected and the reputation achieved. Also, Vamos has evolved over time, and we have finally found our niche and have a clear idea of our target market and the service to be offered. Reducing the advertising expense from 10% of our turnover down to 6% over the next few years will be a major saving.
  • ‣  Wages and salaries: Our goal is to achieve a reduction from 31% at current levels down to 27% over the next few years.
  • ‣  Reduction in payment of debt and cost of debtValuation:‣ Liquor Licensed – On premise ‣ Capacity 150 people
    ‣ Commercial kitchen
    ‣ Size: 250m2‣ Great location ‣ Goodwill

 

Key Players:

Management Team

THOMAS NORWOOD

Marketing and business development expert

ILIANA HERNANDEZ

Food and drinks expert especially Latin American produce and dishes

JUAN ANGEL

Music and content management

MARCELA RODRIGUEZ

Financial expert with an MBA specialising in administrative procedures.

Professional Support

SCOTT WEBER

Scott has over 15 years experience as a professional chef. He is also a trained accountant which has enabled him to continually reduce our food costs.

PAOLO ARDOLINO

Paolo has been Vamos bar manager since April 2017 and he has over 25 years of experience in hospitality.

 

Business details

  • ‣  Established in August 2014 with a restaurant cafe license
  • ‣  In October 2016 changed to an on-premises license
  • ‣  Business name: Vamos Melbourne Pty Ltd
  • ‣  Registered address: Level 1/ 37 Little Bourke Street, Melbourne 3000
  • ‣  Venue capacity: 152 patrons
  • ‣  Business structure: Company
  • ‣  ABN: 56601060495
  • ‣  Names of owners: Thomas Norwood, Iliana Hernandez, Juan Angel, Marcela Rodriguez and Kathleen PendleburyConclusionThank you very much for your interest in investing in our project.Warm regards,
    Tom, Iliana, Juan and Marcela.

 

Rewards

$500.00

10% return over 8 years

December, 2025

Estimated Delivery
1 backers
999 rewards left
Name Donate Amount Date
Tom Norwood $100,000.00 July 17, 2019

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