Information contained herein was provided by the Company and has not been independently verified by Raymond James
Bugaboo Creek Steak House
Bugaboo Creek Steak House
or the “Company”
) is an unique 30 unit casual dining chain that deliverscustomers a full-service dining experience. Founded in 1992, the restaurant was inspired by the culinary secrets
uncovered by mountain guide Conrad Kain’s exploration of the Bugaboo Mountains in British Columbia, Canada.Bugaboo’s
hunting lodge atmosphere is reminiscent of the Canadian Rocky Mountains and life-like animatronics withtalking animal heads provide side-show entertainment for the entire family. In FY 2009, the Company generatedapproximately $74.4 million in sales and $9.0 million in four-wall EBITDA.
Summary Investment Highlights
Differentiated Brand in the Casual Dining Restaurant Segment
The Bugaboo atmosphere and experience is unlike any other concept in casual dining. The entertainmentexperience, the robust décor and the appealing menu offerings present an opportunity for a new buyer to capitalizeon the brand value and concept development that has occurred over the past 18 years since inception in 1992. Thecost to create a brand such as Bugaboo is significantly higher than an acquisition cost of the company today.
Menu has Broad Appeal for the Entire Family
Bugaboo’s mission has always been to provide high quality food in a
family-friendly and entertaining setting. Themenu has broad appeal for the entire family with a varety of steak cuts: prime cuts of sirloin, T-Bone, ribeye andtheir signature spare ribs, as well as spit-roasted chicken, grilled salmon, pasta, a kids menu and gluten-freeoptions. In May 2010, the average check was $18.82.
Bugaboo is Poised to Benefit from the Economic Recovery
With access to capital and investment in the brand, history has shown that the company has the potential to reachhigher than current financial performance levels as the economic recovery continues.
The recession and the downturn in the real estate market present the opportunity to pursue new unit growthidentified but not pursued by the current ownership.
Compelling Future Growth Opportunities
Viable growth prospects and sales and margin drivers include: (i) refreshing the brand to continue differentiationwith casual dining competitors with minimal capital investment, (ii) refining the menu with items that appeal tocustomers and can be prepared consistently and efficiently in the kitchen, (iii) re-establishing at minimal cost the
“Bugaboo Creek Culture” within employee (cast) training processes to further enhance the guest experience
, and(iv) re-establishing a unique physical element that creates a compelling destination driver.