Whereas restaurants are generally regarded as bad investments with rising rents and labor costs, bars are considered a safer bet with high profit margins, thanks in part to alcohol, which is nonperishable and easy to mark up. But whether this style of fundraising will take off with other bars remains to be seen.
“The best part about a crowdfunded project is that you have people who have a vested interest in the success of the company,” says Jim Meehan, co-founder of New York’s legendary PDT. “The worst is when you have people you don’t know walking into the bar saying they know the owner or that they own the place. Will they see themselves as owners in a respectful way? Or does it give them a sense of entitlement?”
Crowdfunded investing in small companies is a relatively new development; prior to the JOBS Act, signed into law in 2016 by President Obama, only accredited investors (who had to prove a net worth of $1 million or have an income of $200,000 for at least two years) could buy stakes in promising new ventures. Following the JOBS Act, nonaccredited investors can now buy into emerging businesses. Other companies raising money on SeedInvest include Jason Calacanis’s mobile news app Inside.com and Dash, a connected car platform. This spring, buzzy luxury denim line DSTLD raised more than $2.9 million on SeedInvest.
Death & Co. was key to the exploding speakeasy trend in high-end drinking. It’s known for ambitious, design-focused takes on cocktails, such as the Dawn Patrol, which is made with Absentroux (an absinthe herbal wine), Bowmore 12-year-old single malt, Granny Smith apple, egg white, and seltzer.
The bar has also been a launching pad for bartending talent. Notable alums include Thomas Waugh (now head bartender at the Pool Lounge at the Four Seasons); Jim Kearns (co-founder of New York’s Happiest Hour bar); Jillian Vose (beverage director at the Dead Rabbit, named World’s Best Bar); and Brian Miller (head bartender at the Polynesian, recently opened in Manhattan).
This article was provided by Bloomberg News.