Restaurant Acquisition OpportunityTwo u n iq u e , resort a rea restau rants for sa le

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W W W . B R O W N T R O U T M O U N T A I N G R I L L E . C O M

Lake Toxaway, NC

W W W . C H E S T N U T C A F E A N D G R I L L E . C O M

Our Locations2

L a k e T o x a w a y , N o r t h C a r o l i n a

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1 Brown Trout Mountain Grille, Inc.

502 Blue Ridge Road

Lake Toxaway, NC 28747

(828) 877-3474

2 Chestnut Grille & Café

9 Toxaway Falls Drive

Lake Toxaway, NC 28747

(828) 877-3400

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Lake Toxaway, NC3

Area H i s tory & Appea l

• Visitors to Lake Toxaway will see the beauty and serenity that first drew visionary E.H. Jennings to this area. His belief in the viability in this region as a resort destination led to the forming of Lake Toxaway – the first man-made Appalachian lake. It quickly grew in popularity with affluent travelers in the Southeast. Read more about golf courses and country clubs on the Highlands-Cashiers Plateau.

• Lake Toxaway has accommodated discerning guests ever since, and beginning in the days when industrialists such as Henry Ford, Harvey Firestone and Thomas Edison visited in the early 20th century. In fact, our own Brown Trout Mountain Grille is placed on the site of the very first train station that brought such people here.

• Lake Toxaway is simply a hidden jewel, centered around a beautiful and serene lake and surrounded by picturesque mountains and lush forest. Families have enjoyed coming to Lake Toxaway for generations — it holds a special place in the hearts of those who have discovered its magic.

• Lake Toxaway is also home to the private Lake Toxaway Country Club, within which is located the historic mansion and retreat, the Greystone Inn & Resort. The Greystone was recently acquired by Natural Retreats and already are in process of bringing their resort brand, amenities and activities to the area via local, regional and international marketing to their more than 180,000 worldwide customer database. . http://www.naturalretreats.com/us/lake-toxaway/greystone-inn-accommodation/

• Situated at 3,014 feet above sea level, the lake is one mile wide, three miles long and offers 14 miles of shoreline. Today, it continues to serve as a major draw for the affluent and their families, with mild year round temperatures, beautiful natural settings and imaginative communities that echo another era with resort-quality amenities.

Lake Toxaway, NC4

Area H i s tory

• State growth has risen

over 18% in the last 10

years between the Year

2000 and 2010 Census,

which growth over the

last 4 years continuing to

rise.

• Transylvania County has

seen a 3% increase in

this period.

• Income for the county is

above the state and

national averages.

• Tourism dollars also

exceed the state and

national averages.

Brown Trout Mountain Grille

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About Us

For the last 14 years,

Brown Trout Mountain

Grille has been located on

beautiful Lake Toxaway,

NC, a private lake famous

for the Greystone Inn &

Resort

The ‘Trout’ is known for its fine-dining experience, and lodge like ambience. For 14 years, the Trout continues to

receive award-winning acclaim for its fresh, delicious Trout variety, prime steaks and stone-oven gourmet pizzas.

Positive reviews and countless customer experiences can be found online at Facebook, Yelp, TripAdvisor, NC

Living, and many others.

Our marketing efforts have nearly 400 Facebook friends, and more than 1,100 opt-in subscribers to our Constant

Contact monthly marketing, promotions and newsletters. We have mapped the return this year over last of more

than 13% of our customers due to menu, food provider, management, and marketing changes.

Chestnut Café & Grille6

About Us

Chestnut Café has been located in Toxaway Falls Village on Toxaway Falls, the only visible waterfall viewable roadside

within the Western NC region. Our parking lot is a known stop for viewing giving us quite a tourist draw year round, and our

open air dining experience offers views not viewable from the road.. This is also our entertainment venue, offering live

music from various regional/national artists on Friday and Saturday evenings. We serve:

• Lunch 11:00 a.m. – 4:00 p.m. M-F

• Dinner 5:30 p.m. -9:30 p.m. F-Sat

• Brunch 9:00 a.m. – 4:00 p.m. Sun

We serve high-quality chef-inspired fare,

Including gourmet hamburgers and salads,

BBQ, pork chops, Rib-eyes, homemade soups,

and desserts.

We officially opened July 4th, 2013, but closed for

additional remodeling in January-May 1, 2014.

We re-opened May 1st and saw revenue growth of over

100% as compared to last year’s same months.

Revenue View7

2014 YTD th ru 3 r d Qua r te r

YEAR TO DATE REVENUE NOTES:2013 Chestnut Revenue: Reflects 6 months of revenue.2014 Chestnut Revenue: Reflects only 5 months of Revenue since re-opened May 1, 2014

YEAR TO DATE REVENUE NOTES:2013 Brown Trout Revenue: Reflects 12 months of revenue.2014 Chestnut Revenue: Reflects only 9 months of Revenue

Competition

North Carolina Living online http://www.ncliving.com/lake-toxaway-restaurants.html provides a list of area publically accessible restaurants, and which the Brown Trout Mountain Grille or Chestnut Café would consider area competition. This list is provided below and notes beside each indicated disposition of same is provided.

1. Amore Café (new café/pastries, formerly BrewBird #2 below; in small retail strip center, NO liquor license)

Small café serving lunch type fare and pastries. 15887 Rosman Hwy, Lake Toxaway, NC 28747 / (828) 885-6004

2. BrewBird Coffee Cafe and Bakery (out of business)

3. Brown Trout Mountain Grille (ours – fully operational)

Seafood, steaks, fowl, pasta and other gourmet fare, with several trout specialties. Warm and friendly service in a cozy cabin atmosphere.

Full bar and extensive wine list. Open for Dinner each evening 5:30 – until ???

502 Blue Ridge Road, Lake Toxaway, NC 28747 / (828) 877-3474

3. Chestnut Cafe and Market (No longer operating. We owned & operated this for 1 year before buying the new

Chestnut building formerly known as the Toxaway House. This location is now our Real Estate office)

Breakfast and lunch spot with organic foods and grocery.

Highway 281 North , Lake Toxaway, NC 28747

4. Country Cupboard (currently open, local, low quality, southern, inexpensive, NO liquor license)

Home cooking for breakfast and lunch; dinner service in season.

16614 Rosman Highway, Lake Toxaway, NC 28747 / (828) 883-5533

5. Earthshine Mountain Lodge (school or other tour groups or those who stay at lodge seasonally for camps)

Serving breakfast, lunch and dinner in a country gourmet style. Friendly staff.

1600 Golden Road, Lake Toxaway, NC 28747 / (828) 862-4207

6. The Toxaway House; NOW our Chestnut Café & Grille (we purchased and are now operating)

A finer quality family restaurant, bar & grille, and weekend entertainment venue overlooking beautiful Lake Toxaway Falls. Specializing in

Gourmet burgers, pastas, vegetarian, gluten-free, and organic options. Chef inspired dinner specialties include choice/prime steaks,

chicken and seafood entrees. Lunch 11-4 weekdays, Dinner Thurs-Sun. Brunch is served all day on Sundays. Full bar and wine list.

9 Toxaway Falls Drive, Lake Toxaway, NC 28747

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Restaurants in the Lake Toxaway Area

Sustainability

The Principals of both the Brown Trout Mountain Grille & chestnut Café believe that sustainability, viability, sustainable growth and profitability are greater than in years past given the following:

1. Marketing: Until this year, neither restaurant utilized any marketing tools, nor had a marketing budget driving both local, surrounding regional and tourist traffic to the restaurants. Investments in time and money have been made since the beginning of the year in the following:

Internal email customer cards provided to each customer with check which offers a free birthday dinner, anniversary dessert, newsletters and a monthly chance to win a free dinner for two in a drawing held the 1st of the month. All in exchange for providing your opt-in email, family names and dates and contact information.

• We have a more than 90% unique visitor response rate, which in 6 months has allowed us to grow a database from ZERO to 891 opted-in subscribers that we market to weekly!

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Effective, Responsive Marketing

Constant Contact AdWords

$0.33 p/click

$0.0004 p/impression

• We experience an average 36% open to response rate!!

• Our conversion rates are phenomenal, especially when you recognize that as a rule in marketing, a 2% click-thru to open rate is considered a good average and worthwhile investment.

We also invest in measurable, valuable and cost effective online social media campaigns including Google AdWords Campaigns, Yelp Business Marketing, Open Table, Facebook Business, Trip Advisor and other online social media campaigns with marked and profitable results.

2

36

0 10 20 30 40

Industry Avg %

US!

Click 2 Conversion %

Sustainability

The Principals of both the Brown Trout Mountain Grille & chestnut Café believe that sustainability, viability, sustainable growth and profitability are greater than in years past as a result of its marketing efforts, but also contributing are:

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Growth Prospects

3. Loyal Affluent Customer Base: What we know as a result of the close personal relationships we’ve developed over the years with our customers, is what we have seen validated by our marketing analysis and surveys, which is simply this… we have a very loyal customer base.

Judging by survey respondents, we recognize that a majority of our customers have been for 10+ years!

Our surveys also indicate that the ambience and upscale, yet casual environment, food quality and consistency, and friendly service rate as Top 3 reasons for coming back.

89% say they have recommended or brought other patrons to our restaurants!

By a large majority, our customers are highly affluent and successful, and include actors, comedians, musicians, artists, executives, CEO’s and long-time bluebloods with rich family history here. Many, if not most, owning multi-million dollars houses, vacation homes, within the surrounding country clubs and golf course communities from Lake Tox to Highlands-Cashiers.

2. Market Share: The Brown Trout Mountain Grille believes it has obtained and will continue to retain the largest revenue and customer capture in the area for many reasons:

Lack of competition in class, food quality, consistency, and value. Many of our customers tell us that they bought homes on the Lake because we were here, and recommend many others to us consistently.

The Brown Trout has been in the area and sustained 14 years of continual success, unlike any other restaurant within a 15 mile swath, and has developed a great reputation for its brand.

The addition of the Chestnut Café & Grille, which offers similar quality but different fare, provides cross-over branding and marketing opportunities to the locals, the loyal’s, and the tourists who are attracted to its location on the only visible roadside waterfall in the area. It also brings families, which given the upscale dinner service only Brown Trout, expands our customer base laterally.

Both the Brown Trout, but especially the Chestnut, have become known for the area’s only weekend entertainment with live music, and events.

Monthly Holiday events, special event catering such as annual company parties, weddings, showers, family reunions and other large occasions bring in additional thousands of dollars monthly.

The Chestnut Café can house nearly 200 people. The Brown Trout 78. Individually they represent alone the two biggest publically accessible restaurants from Brevard to Cashiers.

Acquisition Opportunity1 1

Brown Trout Mounta in Gr i l le

BRIEF: The Trout is a North Carolina C-Corporation formed in May, 2000 with Cliff Singleton being its sole

stockholder, and has two principal officers, Cliff Singleton and Lisa Terry. .

SALE PRICE & TERMS: $375,000 Cash, with a $25,000 discount for Cash Terms, i.e., $350,000 cash firm at

Time of Closing. Otherwise, negotiable as to terms.

The asking price is in consideration for ‘good-will’ and is significantly undervalued if a Times Multiple Ratio

were to be used as a valuation model. The asking price includes the fixtures, equipment, furnishings and

certain other assets, including its client’s marketing database, except for personal effects and certain computers.

There is a $15,000 POS system that was installed earlier this year, along with a $3,500 server, which is on a

lease-purchase and can be taken over.

The Trout does not own the building it operates from, and has been on a long-term 14 year lease with

Holbrook-Nichols, whose offices reside above the ground floor Trout restaurant, and which is currently on a

month-to-month lease. As such, there is no equity value in the building or land. Monthly lease is $1,750.00 per

month.

OFFER PERIOD: Offers will be accepted thru December 30, 2014 on a First-Come First-Served Basis, Good

Faith Basis.

CONSIDERATION & CLOSING: A 5% Non-Refundable Deposit shall be submitted at time of Offer to pull

other offers from consideration and remove sale from market to provide a good-faith negotiation period of 15

business days. Closing shall take place on or before February 15, 2015.

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Acquisition Opportunity1 2

Che s tnu t Ca fe

BRIEF: The Chestnut Café is an North Carolina LLC formed in March, 2013. Cliff Singleton and Lisa Terry

are its two Principal Members. Cliff Singleton is its Founder & Proprietor.

SALE PRICE & TERMS: $695,000 Cash or Cash and Take-Over Owner Finance Mortgage (Will Carry

Paper). A $50,000 discount for Non-Negotiated Cash Terms, i.e., $645,000 cash at Time of Closing.

Otherwise, negotiable as to terms

If Mortgage Note Carry is elected, terms will be negotiated with Owner-Financers on Balance of approximately

$380,000 +/- .

Current mortgage payment currently split and paid to 2 owners/partners at $1,200 each, or $2,400 monthly. The

asking price is in consideration for ‘good-will’ , fixtures, equipment, furnishings and certain other assets,

including its client’s marketing database, except for personal effects and certain computers. There is a $12,000

POS system that was installed earlier this year, which amounts equal only a monthly credit card processing fee

for its use.

There is certain equity value in the building and land, with a discounted owner-finance mortgage in place, and

which includes two additional adjacent lots. The entire property is managed by Toxaway Property

Management Association, with no debt owing, and which pre-approval for additional signage and parking lot

expansion has been pre-approved.

OFFER PERIOD: Offers will be accepted thru December 30, 2014 on a First-Come First-Served Basis, Good

Faith Basis.

CONSIDERATION & CLOSING: A 2.5% Non-Refundable Deposit shall be submitted at time of Offer to pull

other offers from consideration and remove sale from market to provide a good-faith negotiation period of 15

business days. Closing shall take place on or before February 15, 2015.

W W W . C H E S T N U T C A F E A N D G R I L L E . C O M

Contact US1 3

P lea se v i ew u s on l i ne

502 Blue Ridge Road

Lake Toxaway, NC 28747

t h e b r o w n t r o u t g r o u p @ g m a i l . c o m

( 8 2 8 ) 8 7 7 - 3 4 7 4 M a i n O f c

( 8 2 8 ) 5 5 3 - 4 3 8 0 C l i f f C e l l

( 8 2 8 ) 5 7 7 - 8 1 4 5 L i s a C e l l

https://www.facebook.com/brown.trout.10

http://www.urbanspoon.com/r/230/802546/restaurant/North-Carolina/Brown-Trout-Mountain-Grille-Lake-Toxaway

http://www.yelp.com/biz/brown-trout-mountain-grille-lake-toxaway

http://browntroutgroup.com

https://www.facebook.com/BrownTroutMountainGrill

http://www.menupix.com/northcarolina/restaurants/3300969/Brown-Trout-Mountain-Grille-Lake-Toxaway-NC

http://www.tripadvisor.com/Restaurant_Review-g49269-d2143434-Reviews-The_Brown_Trout-Lake_Toxaway_North_Carolina.html

http://www.gogobot.com/brown-trout-mountain-grille-sapphire-restaurant

http://www.yellowpages.com/lake-toxaway-nc/mip/brown-trout-mountain-grille-15613157

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