Aftertaste - Meredith Mileti [140]
“Really, how interesting. I’ve heard—” I begin.
Jasper smiles. “I know, I know. You’ve seen the review in the Times. Look, Marcus told you part of what we do is retool and reorganize. It’s a process not without its share of growing pains. The bottom line is that when you normalize the numbers by taking out the nonrecurring setup and organizational expenses, we’ve been able to increase Grappa’s profit margin. Here,” he says, opening a packet of papers in front of me. “Take a look at the normalized first-quarter earning statements; see for yourself.”
I look at the highlighted portions of the spreadsheet, which shows a profit margin of forty-three percent.
“A ten-percent increase in profits in the first quarter. That’s impressive,” I tell him—and it is.
“And first-quarter profits, particularly in the restaurant business, are, as you know, typically the lowest, reflecting the post-holiday slump,” Jake interjects.
Of course I’d known that. Who does Jake think taught him that? I stare at him, my eyes flashing. I’m also piqued because I now know where Jake got the money to buy me out.
Marcus continues. “By investing some of Grappa’s capital, and with the help of some investors—Jake and Tony Marsden among them—we have managed to open Il Vinaio. And already at this juncture, we’ve been able to attract several additional investors, so that we envision being able to open three more restaurants within the next eighteen to twenty-four months: one in Vegas, one in Miami, and one in Napa.”
The Napa Valley is the second greatest restaurant region outside Manhattan—and every American chef’s dream. I’m momentarily overwhelmed with thoughts of Grappa’s country home. A lovely kitchen garden overlooking a nearby vineyard, a small cooking school where I could retreat with Chloe during the winter to teach, sip wine, and pick fresh herbs.
“I can see that one got you, didn’t it, Mira?” Marcus says, resting a hand lightly on my arm. “Look, what we see in Grappa and Il Vinaio is a brand, with you and Jake here as the primary concept people. By virtue of your initial investment, you will become a shareholder in the company—both as an owner and a manager at the restaurant syndicate that owns Grappa and Il Vinaio. Once we launch these other restaurants pulling on the Grappa/Il Vinaio brand, the profits will grow geometrically.”
I sit back in my chair and consider Marcus, who has paused to spread some clotted cream on his croissant. He holds it aloft for a split second before popping it into his mouth, chewing with the abandon of one who enjoys his food. Where just a few months ago I’d glimpsed a life without Jake or Grappa in the nearly empty loft, I can now see myself, without the slightest effort, back here in the city. I roll the idea around, tasting it, savoring the latent burst of possibility lingering like a flavor in the back of my throat, the Napa offshoot, the cooking school Jake and I had dreamed of, my life here, in this city.
“Okay, here’s the financial piece. The cash we are asking you to invest will be paid back within the first eighteen months. The financial plan calls for a cash down payment of only $72,000, plus a $288,000 loan, for a total of $360,000. We are having a closing with the Sixth Street Bank at the end of this month. For our first-tier investors who join us now, we negotiated an interest rate of just 6.8 percent, so debt service is minimal—under $20,000 per year. Of course, we cannot make guarantees, but based on our projections, which have already been blessed by our accountants and the banks, within the first eighteen months you will have recovered your initial $72,000, plus covered initial debt service on the loan. After