Capital & Scenarios
What it takes to open the doors, what it takes to keep them open, and how the $70K TI reimbursement reshapes the risk picture.
Capital Needed to Get Open
Estimated Remaining Opening Need
| Category | Estimated Amount |
|---|---|
| Known unpaid obligations | $21,000 |
| Punch list / final buildout buffer | $5,000 – $10,000 |
| Initial inventory / supplies | $4,000 – $8,000 |
| Opening marketing / misc. | $3,000 – $5,000 |
| Total | $33,000 – $44,000 |
Practical Rounded Estimate
Lean
$50,000
Realistic
$60,000
Conservative
$70,000
Recommendation: plan around the realistic $60,000 remaining opening need and have access to the conservative figure as a buffer.
Working Capital — Day One
Fixed & Variable Operating Cost Assumptions
Rent: $9,200/month (~$110,400/year). Lease executed; rent commences June 1, 2026. This is the largest recurring fixed cost.
Pre-opening rent burn: every month between June 1 and Certificate of Occupancy is a $9,200 cash outflow with no offsetting revenue. The capital plan must fund this gap.
Espresso machine financing (pass-through): $1,026.73/month × 24 months via Pour Decisions / Vince corporate; first payment $1,626.73 on 6/1 (includes $600 initial). No PD Heights capex outlay required — operating expense only.
Payroll:
- 4 part-time employees
- ~25 hours/week each
- $16/hour base
- Base weekly payroll: 4 × 25 × $16 = $1,600/week
- With burden & cushion: ~$2,000/week (~$8,700/month)
Reserve Recommendations
| Reserve Category | Estimated Amount |
|---|---|
| Payroll reserve (≈ 90 days) | $20,000 – $25,000 |
| Rent reserve (≈ 90 days @ $9,200/mo) | $27,600 |
| Espresso financing reserve (≈ 90 days @ $1,026.73/mo + initial $600) | $3,680 |
| Utilities reserve (≈ 90 days) | $3,000 – $5,000 |
| Emergency reserve | $10,000 |
| Inventory replenishment | $5,000 |
| Opening marketing / misc. | $3,000 – $5,000 |
| Recommended Working Capital | $72,280 – $81,280 |
Rent reserve sized to actual lease rent ($9,200/mo). Prior estimate ($10K–$15K combined rent + utilities) understated the obligation.
Real Capital Need vs. Prior Forecasts
| Forecast | Amount | What it covered |
|---|---|---|
| Original | $104,000 | Initial capital plan; did not factor rent commencement timing or itemized opening inventory. |
| Updated (booked actuals) | $143,102 | Reflects actual project cost as booked through 6/22/26 — paid + unpaid + future obligations. |
| Real (target) | ~$180,000 | Includes pre-opening rent burn from June 1, opening inventory ($10,905), and rent-aware day-one working capital reserves. |
Why the increase: rent commences June 1, 2026 at $9,200/month. Every month between rent start and Certificate of Occupancy is pre-revenue burn that prior forecasts did not size. Add to that an itemized opening inventory of $10,905 (Webrestaurant) and rent-aware day-one operating reserves, and the realistic deployment lands around $180K.
Capital Assessment — Bridge Need Before TI
| Bucket | Estimated Amount |
|---|---|
| Pre-CO buildout costs (remaining) | $50,000 – $70,000 |
| Pre-opening rent burn (June 1 → CO, 2–4 months) | $18,400 – $36,800 |
| Opening inventory (Webrestaurant list) | $10,905 |
| Day-one working capital reserve (rent-aware) | $50,000 – $95,000 |
| Total real capital need before TI | $129,000 – $213,000 |
Recommended target: ~$180,000 total capital deployed before TI reimbursement.
Expected TI reimbursement: $70,000 after Certificate of Occupancy.
Net long-term capital exposure after TI: Lean ≈ $60,000 · Recommended ≈ $110,000 · Conservative ≈ $145,000.
Expected TI reimbursement: $70,000 after Certificate of Occupancy.
Net long-term capital exposure after TI: Lean ≈ $60,000 · Recommended ≈ $110,000 · Conservative ≈ $145,000.
Scenario Analysis (Rent-Aware)
All scenarios assume rent commences June 1, 2026 at $9,200/month. Pre-open rent is the burn between rent start and Certificate of Occupancy. Inventory is the Webrestaurant opening list ($10,905). Day-one WC is post-opening operating reserves sized to actual rent.
| Scenario | Remaining Buildout | Pre-Open Rent Burn | Inventory | Day-One WC | Total Bridge Need | TI Reimbursement | Net Exposure | Risk |
|---|---|---|---|---|---|---|---|---|
| Lean / Survival CO ~July (2 mo rent) |
$50,000 | $18,400 | $10,905 | $50,000 | $129,305 | $70,000 | $59,305 | High |
| Realistic / Recommended Target CO ~August/September (3 mo rent) |
$60,000 | $27,600 | $10,905 | $80,000 | $178,505 | $70,000 | $108,505 | Moderate |
| Stress / Timing Slippage CO ~October/November (4 mo rent) — not affordable |
$70,000 | $36,800 | $10,905 | $95,000 | $212,705 | $70,000 | $142,705 | Out of reach |
Affordability ceiling: ~$180,000. The partnership cannot finance the $200K+ stress scenario. That row is shown to quantify the cost of timing slippage, not as a planning target. The implication: CO must land by August/September (≤3 months of pre-open rent burn) to keep total capital need at or below the $180K target. Every additional month of slippage adds $9,200 of pre-revenue rent burn plus extended pre-CO buildout costs — and pushes the project out of reach.
If the project lands in the $200s — what it would actually require
Even though the stress scenario is not currently affordable, here is what the math implies if timing slips to a 4-month pre-open burn:
| Item | Amount |
|---|---|
| Total bridge need (stress scenario) | $212,705 |
| Less: $70K TI reimbursement (post-CO) | −$70,000 |
| Net long-term capital exposure | $142,705 |
| Less: contributions to date | −$123,650 |
| Unfunded gap if stress hits | $89,055 |
Read this as risk sizing, not a fundraising plan. Closing a $90K gap on top of existing commitments is not feasible under current partnership commitments — the practical answer is to hold the timeline so the $180K target stands. If timing slippage becomes likely, the conversation shifts to outside debt or equity, not to a higher partner call.
Recommended target: ~$180,000 total capital deployed before TI reimbursement (Realistic scenario). The math sums pre-CO buildout, pre-opening rent burn from June 1, opening inventory, and rent-aware day-one operating reserves. After the $70,000 TI reimbursement, net long-term capital exposure is approximately $110,000 under the recommended target.
Current Liquidity
Cash on hand (Chase business account)
$23,900
Total partner contributions to date
$123,650
Real capital target
~$180,000
Liquidity reality: only $23,900 sits in the Chase business account today. Existing commitments (paid $77.5K + unpaid $41K) and the rent-aware bridge plan must be funded by additional partner contributions, member loans, outside debt, or staged draws — not by current cash.
Note on Jason's contribution: Jason's total contribution is now $39,450. Rob fronted the $10,905.24 Webrestaurant inventory order (LLC liability — to be reimbursed; not equity) — $20,000 deposited into the Chase business account ($10K original + $10K paid 6/22/26); the remaining $19,450 was paid directly to vendors (incl. $450 Home Depot run 6/22/26 → equity) and is reflected in the expense log. Rob deposited an additional $10,000 into Chase (split $5K each toward Rob & Boi).
Equipment Procurement Plan
Moved to Action Items — the equipment list lives at the bottom of that page (post-TI procurement). The opening inventory below remains here as part of the day-one capital plan.
Opening Inventory — Webrestaurant List
Itemized opening inventory required to operate. 56 line items, total $10,905.24. This is part of the day-one capital plan and is included in the Real Capital Need above.
View all 56 items
| Item # | Name | Vendor | Qty | Unit | Total |
|---|---|---|---|---|---|
| 711BT655114CS | Big Train 3.5 lb. Vivaz Horchata Mexican Inspired Blended Creme Frappe Mix - 5/Case | Big Train | 5 | $108.99 | $544.95 |
| 66ATSCDBLK | Lavex Black Surface-Mounted Toilet Seat Cover Dispenser | Lavex | 1 | $10.99 | $10.99 |
| 600AKR60 | Regency 6 Keg Aluminum Keg Rack - 20" x 60" x 76" | Regency | 2 | $324.99 | $649.98 |
| 74776115 | Pit Boss 76115 Sausage Hook - 12/Pack | Pit Boss | 2 | $8.89 | $17.78 |
| 214EPP180BLK | Cambro Cam GoBox® Black Top Loading EPP Insulated Food Pan Carrier - 8" Deep Full-Size Pan Max Capacity | Cambro | 5 | $54.00 | $270.00 |
| 98020422 | Matfer Bourgeat 4" Stainless Steel Fine Mesh Strainer 020422 | Matfer Bourgeat | 1 | $16.50 | $16.50 |
| 176BMATBK | Choice 12" x 18" Black Bar Mat - 4/Case | Choice | 3 | $19.99 | $59.97 |
| 167NLG1018 | Winco 18" Black Natural Latex Rubber Unlined Gloves - One Size Fits Most - Pair | Winco | 1 | $14.99 | $14.99 |
| 274MBCKT26BK | Lavex 26 Qt. Black Mop Bucket and Side Press Wringer Combo | Lavex | 1 | $39.77 | $39.77 |
| 519KSM8990OB | KitchenAid KSM8990OB Black 8 Qt. Bowl Lift Countertop Mixer with Standard Accessories - 120V, 1 3/10 hp | KitchenAid Commercial | 1 | $999.99 | $999.99 |
| 407SSDSHSQ8 | Choice #8 Round Stainless Steel Squeeze Handle Disher - 4 oz. | Choice | 1 | $6.99 | $6.99 |
| 407SSDSHSQ20 | Choice #20 Round Stainless Steel Squeeze Handle Disher - 2 oz. | Choice | 1 | $6.99 | $6.99 |
| 40710HSPNULA | Choice 10" Spoonula with Heat-Resistant Silicone Blade | Choice | 1 | $3.49 | $3.49 |
| 40716HSPNULA | Choice 16" Spoonula with Heat-Resistant Silicone Blade | Choice | 1 | $5.99 | $5.99 |
| 5013339 | Lavex Li'l Herc 33 Gallon 1.2 Mil 33" x 39" Low-Density Medium-Duty Black Trash Bag / Can Liner - 100/Case | Lavex | 5 | $16.99 | $84.95 |
| 187SILCN15BK | Vigor SafeMitt 15" Black Silicone Oven Mitt | Vigor | 1 | $8.99 | $8.99 |
| 407CUT9BK | Choice 9 1/2" Black Coated Handle Stainless Steel Scalloped Tongs | Choice | 2 | $3.99 | $7.98 |
| 407ALSC05 | Choice 5 oz. One-Piece Aluminum Scoop | Choice | 4 | $3.99 | $15.96 |
| 407CTO4FVBK | Choice Black 4-Section Adjustable Slanted Countertop Cup and Lid Organizer | Choice | 2 | $19.49 | $38.98 |
| 220KBCHEF8 | Choice 8" Chef Knife with Black Handle | Choice | 2 | $6.59 | $13.18 |
| 4072OZPSPRD | Choice 2 oz. Red Perforated Portion Spoon | Choice | 2 | $2.99 | $5.98 |
| 214SFC6 | Cambro CamSquares® 6 and 8 Qt. Red Square Polyethylene Food Storage Container Lid - 6/Case | Cambro | 4 | $15.99 | $63.96 |
| 6903210 | Choice 1 Cup Clear Plastic Measuring Cup | Choice | 12 | $2.99 | $35.88 |
| 511KP196RNBL | Noble King-Pail 6 Qt. Red Sanitizing Pail | Noble | 4 | $5.09 | $20.36 |
| 176FROTHP20 | Choice 20 oz. Polished Stainless Steel Frothing Pitcher | Choice | 10 | $6.19 | $61.90 |
| 40710OZDRSSH | Choice 10 oz. Stainless Steel Shaker / Dredge with Handle | Choice | 4 | $3.99 | $15.96 |
| 176ICEBUCKET | Choice 5 Gallon Polypropylene Ice Tote with Lid and Mounting Bracket | Choice | 1 | $23.99 | $23.99 |
| 176IB200 | Baker's Lane 12.6 Gallon / 200 Cup Shelf Ingredient Bin with Flip Lid, Label Sheet, and Scoop | Baker's Lane | 3 | $64.99 | $194.97 |
| 928HBX20002J | AvaMix Apex HBX20002J 64 oz. 3 1/2 hp Programmable Commercial Blender with Touchpad, Sound Enclosure, and 2 Jars - 120V | AvaMix Apex | 2 | $699.00 | $1,398.00 |
| 21436CWCLCS | Cambro Camwear® 1/3 Size 6" Deep Clear Polycarbonate Food Pan 36CW135 - 6/Case | Cambro | 5 | $43.49 | $217.45 |
| 21430SCWH | Cambro 30PPCWSC190 1/3 Size Translucent Polypropylene Seal Cover | Cambro | 30 | $2.99 | $89.70 |
| 214EPPBEVH5 | Cambro EPPBEVH5110 Cam GoBox® 3-Compartment Black Insulated Cup Holder - 5/Pack | Cambro | 2 | $19.49 | $38.98 |
| 407SSDSHSQ24 | Choice #24 Round Stainless Steel Squeeze Handle Disher - 1.5 oz. | Choice | 1 | $6.99 | $6.99 |
| 177GHWDA15 | Galaxy GHWDA15 1.5 Gallon Hot Water Dispenser - 120V, 1,450W | Galaxy | 1 | $199.99 | $199.99 |
| 460EC2442K22 | Regency 24" x 42" x 27" NSF Chrome 2-Shelf Kit | Regency | 1 | $72.99 | $72.99 |
| 460EC2436K22 | Regency 24" x 36" x 27" NSF Chrome 2-Shelf Kit | Regency | 1 | $66.49 | $66.49 |
| 544SYPAR048CS | Monin Premium Macadamia Nut Flavoring Syrup 750 mL - 12/Case | Monin | 2 | $82.99 | $165.98 |
| 880244176CS | Torani Creme de Banana Flavoring / Fruit Syrup Plastic Bottle 1 Liter - 6/Case | Torani | 0 | $49.99 | $0.00 |
| 177MX30H | Avantco MX30H 30 Qt. Planetary Floor Mixer with Guard & Standard Accessories - 120V, 1 3/4 hp | Avantco Equipment | 1 | $1,879.00 | $1,879.00 |
| 274RKOPAPPEG | Noble Warewashing Full-Size All Purpose Peg Rack with Open Sides | Noble | 5 | $14.99 | $74.95 |
| 274RKDOLLYH | Noble Warewashing Gray Dish Rack and Glass Rack Dolly with 31" Handle | Noble | 1 | $64.99 | $64.99 |
| 214PWB22 | Cambro 22 Qt. White Customizable Round Polyethylene Bucket With Handle | Cambro | 4 | $16.99 | $67.96 |
| 2148SFSCWCS | Cambro CamSquares® Classic 8 Qt. Clear Square Polycarbonate Food Storage Container 8SFSCW135 - 6/Case | Cambro | 4 | $69.99 | $279.96 |
| 21416CWWH | Cambro 16CW148 Camwear® Full Size White Polycarbonate Food Pan - 6" Deep | Cambro | 12 | $15.99 | $191.88 |
| 176G1PITBLK | Choice 1 Gallon Polypropylene Beverage Pitcher with Black Lid and Handle | Choice | 12 | $8.99 | $107.88 |
| 21410CWCHNCL | Cambro 10CWCHN135 Camwear® Full Size Clear Polycarbonate Handled Lid with Spoon Notch | Cambro | 12 | $9.79 | $117.48 |
| 880361255CS | Torani Creme de Banana Flavoring / Fruit Syrup 750 mL Glass Bottle - 12/Case | Torani | 3 | $78.99 | $236.97 |
| 115REALSTBRCS | Real Strawberry Puree Infused Syrup 16.9 fl. oz. - 6/Case | Real Cocktail Ingredients | 4 | $33.49 | $133.96 |
| 115REALBANACS | Real Banana Puree Infused Syrup 16.9 fl. oz. - 6/Case | Real Cocktail Ingredients | 10 | $43.49 | $434.90 |
| 115REALBLBRCS | Real Blueberry Puree Infused Syrup 16.9 fl. oz. - 6/Case | Real Cocktail Ingredients | 4 | $33.49 | $133.96 |
| 115REALMANGCS | Real Mango Puree Infused Syrup 16.9 fl. oz. - 6/Case | Real Cocktail Ingredients | 6 | $33.49 | $200.94 |
| 874992086 | Whole Milk Powder 55 lb. Bag | 5 | $206.99 | $1,034.95 | |
| 465B1872KE5 | Steelton 18" x 72" NSF Black Epoxy 5-Shelf Kit with 72" Posts | Steelton Metal Products | 1 | $159.99 | $159.99 |
| 600S13624SB | Regency 36" x 24" x 13" Utility Sink for (1) 8" Center Faucet | Regency | 0 | $412.99 | $0.00 |
| 522ETSG3072 | Steelton 30" x 72" 18 Gauge 430 Stainless Steel Work Table with Undershelf | Steelton Metal Products | 1 | $162.49 | $162.49 |
| 465B1848KE5 | Steelton 18" x 48" NSF Black Epoxy 5-Shelf Kit with 72" Posts | Steelton Metal Products | 1 | $124.99 | $124.99 |
| Total | $10,905.24 | ||||
$70,000 TI Reimbursement — Risk Reshaping
What it does
The Tenant Improvement reimbursement is released after Certificate of Occupancy. It materially reduces long-term capital exposure once the doors open — but it does not solve the pre-CO cash bridge.
Practically: the partnership must front the cost to reach CO, then receive $70K back to reduce ongoing exposure or replenish working capital.
Use of TI proceeds — to be defined
- Reimburse partners who fronted bridge capital?
- Replenish working capital reserves?
- Fund deferred equipment (espresso machine, etc.)?
- Pay down any short-term loans taken to bridge?
Decision logged in Action Items: define TI timing and use of proceeds before the partnership commits additional capital.
Opportunity Assessment
Strengths
- Differentiated concept (coffee + beer/wine)
- Houston Heights / Oak Forest market fit
- Experiential, brand-driven concept
- Material progress on lease, plans, permits, buildout
- $70K TI reimbursement improves the risk profile
- Operator involvement provides execution advantage
Risks
- Undercapitalization months 2–8 after opening
- Hospitality labor cost control
- Slow sales ramp
- Working capital squeeze before TI reimbursement
- Ambiguity around capital vs. operating expenses
- Need for clear ownership and dilution rules
Conclusion: PD Heights is a real opportunity if the partners solve working capital, define ownership cleanly, and execute well.
The opportunity is still good, but the business must be capitalized for stabilization, not just opening day.
The opportunity is still good, but the business must be capitalized for stabilization, not just opening day.