Investor & Membership Guide · Chalfonte Foundation · Working Draft
Cass
Café, Inc.
Café, Inc.
Stock Offering · Membership · Employee Benefits & Housing · Business Plan · Community Ownership
All salary figures, menu prices, financial projections, and share valuations are working estimates. Final numbers will be established through direct conversations with staff, suppliers, and financial counsel before any investor presentation or public release. This document is an evolving planning tool, not a prospectus.
Part One
The Stock Offering
Cass Café, Inc. is offering shares to mission-aligned investors through a three-phase capital campaign. This is not a passive investment. It is an opportunity to become a co-owner of a Detroit cultural institution with a 40-year legacy — a restaurant and cultural hub structured to return ownership to the employees and neighbors who make it possible.
Cass Café, Inc. · Detroit, Michigan · Chalfonte Foundation
Cass Café
Cass Café, Inc. · Common & Preferred Stock
This certificate represents fractional ownership in Cass Café, Inc. — a community-anchored restaurant and cultural institution in Detroit's Cass Corridor, governed through the Chalfonte Foundation. Certificates are designed in the tradition of vintage railroad and company scrip — meant to be held, displayed, and passed on.
Share Price (placeholder)
$25.00
Per common share, Phases 1 & 2. Subject to final legal review.
Minimum Investment
$10,000
= 400 shares of common stock
Total Valuation
$1.2M
~48,000 total authorized shares
Chalfonte Foundation
7,000 shares
14.6% initial ownership
Phase 1 Target
$300,000
12,000 shares · Operational launch
ESOP Reserve
5,000 shares
For staff equity after 3 qualifying years
Note on all figures in this section: Share price, valuation, and capital structure are planning estimates based on current asset appraisal. All investment agreements require execution by qualified legal and financial counsel. This document does not constitute a securities offering. Formal term sheets will be provided upon investor commitment.
Three-Phase Capital Campaign$1.5M Total
| Phase | Target | Purpose | Instrument | Status |
|---|---|---|---|---|
| Phase 1 — Operational Launch | $300,000 | Staffing, equipment, licenses, supplies, pre-opening gala events and pop-ups | Convertible loans at 4.5% annual interest. Option to convert to common stock at $25/share before 3-year maturity. Secured by Chalfonte Foundation shares. | $200,000 committed. $100,000 gap remaining. |
| Phase 2 — Equity Acquisition | $900,000 | Purchase remaining shares from founder Chuck Roy; consolidate ownership | Preferred share offering. Fixed monthly dividends from triple-net lease income. Priority in dividends and liquidation. Option to convert to common after Year 5. | Launches upon Phase 1 close and operational opening. |
| Phase 3 — Expansion & ESOP | $300,000 | Equipment upgrades, expanded programming, DLT sourcing infrastructure, ESOP fund establishment | Common share offering at $30/share (post-appreciation). 5,000 shares reserved for ESOP staff equity grants. | Years 2–3, contingent on Phase 2 completion. |
| Total Campaign | $1,500,000 | Full launch + ownership consolidation + ESOP establishment | $200K committed · $1.3M remaining | |
Investor Returns & Exit Structure
Phase 1 — Loan Returns
4.5% annual interest, paid quarterly from net profits. Full principal repayment at 3-year maturity if not converted. Option to convert to common stock at $25/share at any time — protecting early investors from valuation increases in later phases.
Phase 2 — Preferred Dividends
Fixed monthly dividends from triple-net lease income, proportional to preferred shares held. Paid regardless of operating profitability. Priority over common shareholders. Dividends accrue if lease income is disrupted. Convertible to common shares after Year 5.
Phase 3 — Common Appreciation
Common shareholders receive dividends after preferred are satisfied. Voting rights on major business decisions. Primary return is capital appreciation — Phase 3 shares priced at $30 reflect post-launch value growth.
Liquidity & Exit Options
Shares sold back to Cass Café, Inc. at fair market value after 3-year hold. After 5 years, shares may be sold to new investors — Chalfonte Foundation and advisory board hold first right of refusal. Any acquisition must maintain the café's artistic mission.
Part Two
Chalfonte Foundation Membership
One membership. All programs. Cass Café, Elk Rapids Cinema, Village Radio (99.7 FM), PuppetART, detroit contemporary, Camp Chalfonte, and Shepherdswork Farm & School. Benefits are structured as percentage discounts on food, drinks, and event admission — clean and easy for staff to apply at point of sale, no calculation required.
One Membership Across the Whole Ecosystem
Chalfonte Foundation members receive benefits at every Foundation program. Detroit-area cinema members are already part of this community — Cass Café membership extends what they already have. Benefits vary by what each program offers, but the membership is shared, and the revenue is pooled in support of a unified mission. A significant number of existing cinema members travel from Detroit — Cass Café is their home venue.
Membership Tiers & Discount StructureAnnual · Cross-Program · % Based
All discounts are percentage-based — straightforward for counter staff and consistent across programs and price points. Member discount applies to food, non-alcoholic beverages, and event/performance admission. Alcohol is excluded from the member discount (standard hospitality practice). Higher tiers receive complimentary items rather than just discounts.
| Tier | Annual Fee | Food & NA Drinks | Event / Concert / Performance | Complimentary Items | Cookbook Discount |
|---|---|---|---|---|---|
| Neighbor | $24 | 5% off | 5% off admission | — | 10% off |
| Household | $52 | 5% off (up to 4) | 5% off (up to 4) | — | 10% off |
| Friend of Cass | $120 | 10% off | 10% off | 2 menu items/year · 2 event tickets/year | 15% off |
| Sustainer | $250 | 15% off | 15% off | 1 meal/quarter · 4 event tickets/year | 20% off |
| Producer | $500 | 20% off | 20% off | 2 meals/month · Bottle of Michigan wine/quarter | 20% off + signed |
| Owner Member | $1,000+ | Meals included (service hours) | Priority access + reserved seating | All meals during service · Annual shareholder meeting | Complimentary copy |
Staff Implementation — Keeping It Simple
Member discount is applied at point of sale via the POS system. Staff scan or enter the member card number; the system applies the correct percentage automatically. No mental math. No judgment calls. Counter staff do not need to know which tier a member holds — the system handles it. Complimentary items are tracked through a simple tally system (2 per year, 1 per quarter, etc.) linked to the member account. The goal is that membership never creates friction at the counter.
What "Events" Means at Cass Café
Member event discounts apply to all ticketed programming — not just film screenings. Cass Café's cultural program is broader than the cinema's, and membership benefits should reflect that.
Cass Café Events
Friday Fried Food Dinners (ticketed evening service) · Saturday Dinner Concerts · Live music performances · Art exhibition openings · Poetry & open mic nights · PuppetART performances at Cass · Two Moons cooking demonstrations · VIP Gala Dinners · Film screenings (when hosted at Cass)
Elk Rapids Cinema Events
All film screenings · Red Carpet Preview screenings · Annual Members' Gala · Write Here Write Now literary series screenings · Special outdoor screenings · Member-exclusive events. Cinema members receive the same tier discount at Cass Café and vice versa — one card, all venues.
Village Radio (99.7 FM)
Live broadcast events hosted at Cass Café · Studio audience sessions · Write Here Write Now radio premieres · On-air acknowledgment for Sustainer tier and above · Feature segments for Owner Members
PuppetART & Other Programs
PuppetART performances (Saturday Mornings at Cass Café or PuppetART venue) · Camp Chalfonte family events · detroit contemporary exhibition openings · Shepherdswork Farm apprenticeship and event days
Full Membership Tier Descriptions
Individual
Neighbor
$24 / year
5% off
5% off all food and non-alcoholic beverages
5% off event and performance admission (member only)
5% off at Elk Rapids Cinema screenings (member only)
10% off Two Moons cookbooks at Cass Café
Invitation to the Chalfonte Foundation Members' Annual Gala
Member newsletter and programming updates
Annual · Individual · Auto-renews
Valid at all Chalfonte Foundation programs
Household of 2 or more
Household
$52 / year
5% off (up to 4)
5% off food and NA beverages for up to 4 household members
5% off event admission for up to 4 members
5% off at Elk Rapids Cinema (up to 4 members)
10% off Two Moons cookbooks
Priority reservation for Saturday Morning PuppetART events
Invitation to the Members' Annual Gala
Member newsletter
Annual · Household · Up to 4 members on one card
Valid at all Chalfonte Foundation programs
Individual
Friend of Cass
$120 / year
10% off
10% off all food and NA beverages (member + 1 guest)
10% off event and performance admission
10% off at Elk Rapids Cinema (member + 1 guest)
2 complimentary menu items per year (select items)
2 complimentary event tickets per year
15% off Two Moons cookbooks
Early access to VIP Gala Dinner and Dinner Concert tickets
Red Carpet Preview — Members' Annual Gala
Name in annual program acknowledgments
Annual · Individual
Full cross-program access · Chalfonte Foundation
Individual or Household
Sustainer
$250 / year
15% off
15% off food and NA beverages (member + all guests at table)
15% off event and performance admission
15% off at Elk Rapids Cinema
1 complimentary full meal per quarter (select menu items)
4 complimentary event or cinema tickets per year
Priority seating at all Saturday Dinner Concerts
Invitation to exclusive Members' Dinner Series
Red Carpet Preview — Members' Annual Gala
20% off Two Moons cookbooks — signed copies available
Village Radio on-air acknowledgment
Annual · Individual or Household
Full cross-program access · Chalfonte Foundation
Individual or Household
Producer
$500 / year
20% off
20% off food and NA beverages (member + all guests)
20% off all event and performance admission
20% off at Elk Rapids Cinema (member + guests)
2 complimentary meals per month (full menu)
Complimentary bottle of Michigan wine per quarter
Exclusive quarterly "Behind the Kitchen" event with Two Moons
Priority access to all VIP Gala Dinners and Dinner Concerts
Name on the Cass Café donor wall
20% off Two Moons cookbooks + signed copy
Annual fee contribution credited toward ownership buyout fund
Annual · Individual or Household
Full cross-program access + buyout fund contribution
Investor Tier · Annual
Owner Member
$1,000+ / year
Meals included
All meals complimentary during standard service hours
All Producer perks included
Reserved seating at all Dinner Concerts and Gala events
Annual shareholder meeting invitation and voting rights
Annual fee converts toward share purchase at $25/share when formal investment is made
Named recognition in all major publications and programs
Village Radio feature segment — your connection to Cass Café
First right to VIP Gala and pop-up previews before public announcement
Annual Detroit Land Scrip allocation (when DLS launches)
Complimentary Two Moons cookbook + personal dedication
Annual · Minimum $1,000 · Equity conversion path
Full cross-program Chalfonte access · Investor pathway
Part Three
Employee Benefits, Housing & Whole-Life Support
Cass Café is not trying to solve poverty by underpaying the people who work here. The model is to compensate people well and then provide a suite of additional benefits that improve quality of life, build long-term stability, and demonstrate that a restaurant can treat its employees as whole people with whole lives — not just labor inputs.
"The goal is to set a model for keeping employees within walking or biking distance from where they work — and to help lift everyone up a rung or two. Not just with food, but with business, community, investment, and sustainable growth."
Aaron Timlin · Chalfonte Foundation
The Right Frame
Employee housing at Cass Café is not a workaround for low wages. It is an additional benefit — like a 401K match or health insurance — that improves quality of life for people who already earn a livable wage. The distinction matters: housing offered because we don't pay enough is a trap; housing offered because we want people to live close to the work they love is a genuine benefit. The model is the latter. The goal is a staff that can walk or bike to work, is embedded in the neighborhood, and has a meaningful stake — financial and social — in what they are building.
Employee Housing ProgramCass Corridor · NW Goldberg · Ferry Park
The Chalfonte Foundation is developing affordable housing options for Cass Café employees who want to live within walking or biking distance of the café. This is a voluntary benefit — employees are not required to live in Foundation-associated housing. Those who choose to participate gain access to affordable, high-quality housing in the neighborhoods they work in.
Immediate — Cass Corridor
Apartments on Alexandrine and Lawton — walking distance from Cass Café. Available to staff as affordable rentals. Priced below market rate for Foundation-affiliated employees. Priority access for full-time staff. Immediate availability upon opening.
Medium Term — NW Goldberg / Ferry Park
The Ferry Park neighborhood (NW Goldberg) is a 15-minute bike ride from Cass Café. The Foundation is developing over 20 lots for employee housing — a mix of affordable rental and ownership-track units. Modular construction for cost efficiency and speed. In active planning with Steve and Marianne (licensed lender and realtor).
Long Term — Employee Ownership
Modular construction on NW Goldberg lots with Foundation-assisted financing for employees who want to transition from renting to owning. The Foundation provides loan support, Marianne provides licensed lending and real estate services. Employees who stay and build equity in their homes and in Cass Café build two forms of wealth simultaneously.
Why This Model Matters for the City
One of the quietly damaging effects of Detroit's development over the past decade has been the displacement of service workers from the neighborhoods where they work — pushed further out by rising rents while the businesses they sustain grow more profitable. Cass Café is attempting to reverse that pattern: not as a grand gesture, but as a practical operating model. When the person who makes your soup lives two blocks away, they are not just an employee. They are a neighbor, a stakeholder, and a reason the neighborhood holds together. The Foundation's housing program is designed to codify that relationship rather than leave it to chance.
Financial Education & Long-Term Wealth Building
Holistic employee support doesn't stop at wages and housing. Cass Café will provide structured access to financial education and wealth-building tools — because a livable wage is a foundation, not a destination.
Investment Education
Access to investment education workshops for staff — not generic financial literacy, but practical guidance on how to invest in what they already own: their ESOP shares in Cass Café, Inc. How stock works. What equity means. How to read a company's financial statements. Offered annually and on-demand.
Retirement Planning
401K enrollment from day one. Foundation provides employer match (rate to be negotiated with plan provider). Retirement planning consultation available through Foundation-organized sessions — not buried in an enrollment packet, but actively discussed and supported.
Housing Pathway Coaching
For employees who want to move from renting to owning — through the Foundation's NW Goldberg modular housing program or independently — access to Marianne's licensed lending and real estate services. One-on-one financial coaching to assess readiness, improve credit, and plan a realistic path to ownership.
ESOP Participation Education
Employees who qualify for ESOP grants (3 qualifying years of service — not necessarily continuous) receive a structured orientation: what they own, what it is worth today, how it grows with the company, and what their options are when they leave or retire. Equity ownership without understanding is a missed opportunity.
Supplier & Community Business Connections
Detroit-based suppliers — especially urban farm cooperative members — are introduced to Cass Café staff. Employees who want to understand the food system they work within, or who have entrepreneurial interest in becoming suppliers themselves, are actively connected to the DLT network and cooperative resources.
Health Insurance & Wellness
Health insurance enrollment for all full-time staff. The café's culinary philosophy — the whole-food, naturopathic tradition of Two Moons — extends to employee wellness. Access to the café's food (and the Add-On Reference Sheet's nutritional education) is part of the culture of working here, not just the product sold to customers.
ESOP — Employee Stock Ownership Plan3 Qualifying Years · Not Necessarily Continuous
Staff who complete three qualifying years of service at Cass Café become eligible for equity grants from the 5,000 shares reserved in the ESOP pool. "Qualifying years" does not require continuous uninterrupted employment. Good employees who travel, take leave, or step away and return should not lose their equity eligibility. Restaurants keep their doors open to good people — the ESOP structure reflects that reality.
The exact grant amount per employee is determined by role, tenure, and board approval. ESOP shares are accompanied by structured education: what the shares are worth, how to track their value over time, and what options the employee has upon departure or retirement.
All gratuity at Cass Café is shared equally across the entire house staff — kitchen, bar, juice bar, and front of house. No tipping disparity between front and back of house. This is a structural commitment to the people whose work — visible and invisible — makes the whole experience possible.
Core Value: Closed on Sundays
Cass Café is closed on Sundays. This is not an operational detail — it is a core value codified in the business plan. Seven days a week is unsustainable for staff and ultimately for the business. Sunday closure gives employees a genuine day off in sync with the social rhythm of their families and communities. It provides a pressure release valve that keeps the team healthy and reduces turnover. It also provides a weekly day for maintenance, reorganization, and the kind of unhurried work that makes Monday easier. The Saturday Morning Puppets event moves to Saturday morning — a better slot, in a better rhythm. The Sunday closure is written into the operating agreement from the start, not decided under pressure after opening. PuppetART performances and Dinner Concerts will be the highlights of Saturday — a full cultural day ending the week before a day of rest.
Part Four
Launch Sequence
Cass Café opens in deliberate phases. Bar first. Galas and pop-ups for training and investor engagement. Then full daytime service. Each phase has a purpose — and each phase is also an event in its own right.
1
Phase 1 · Now Open
The Bar Opens
The full bar is open. Great Lakes craft beer on draft. Michigan wines. Fresh-juice cocktails — Whiskey Fresh OJ, Vodka Cranberry with house-pressed cranberry, seasonal cocktails. No bottled mixers. No soda gun for juice. Non-alcoholic juices, Nikki's Ginger Tea, herbal teas from Two Moons' practice, coffee, espresso. The bar is open while everything else is being built.
2
Phase 2 · Pre-Opening Events
VIP Gala Dinners & Pop-Up Dinner Concerts
A series of VIP Gala Dinners and Pop-Up Dinner Concerts serve three simultaneous purposes: kitchen training and menu testing in real conditions; investor presentations and ownership opportunity introductions; and community previews that rebuild the Cass Café social fabric before full opening. Owner Members and Foundation members receive first invitation. Press invited to select events. Village Radio broadcasts live. detroit contemporary curates the walls for opening night.
3
Phase 3 · Soft Opening
Member Preview Week
A week of member-only daytime service before public opening. Final training run and early perk for Foundation members. The full menu is available. Staff work through the counter flow, the mix-and-match system, and the Two Moons recipe history. The Add-On Reference Sheet is tested and refined with real patrons.
4
Phase 4 · Full Launch
Public Opening — Monday through Saturday
Full daytime counter service Monday through Friday, 6 AM–6 PM. Friday evening Fried Food Fridays — full kitchen and fryers. Saturday: PuppetART in the morning, Dinner Concert in the evening. Closed Sundays. "The Cass" YouTube documentary series begins filming from opening week. Monthly art exhibitions curated by detroit contemporary. Village Radio live broadcast events. Two Moons cookbook signing events. Everything running in concert.
5
Phase 5 · Year 1
Stability, Profitability, Phase 2 Capital
Profitability projected from Month 4 (placeholder — subject to actual ramp). Phase 2 capital campaign for founder buyout launches during Year 1. Membership program grows. ESOP framework filed. Employee housing program launched for Alexandrine/Lawton units. DLT cooperative farm sourcing agreements finalized. Salary review with restaurant manager and team.
Part Five
Kitchen Operations
A prep-before-service model. Almost all cooking happens before and during the first hours of the day. Exceptions are Friday evenings (full kitchen and fryers) and Saturday Dinner Concerts. The pasta question — whether to boil to order, hold pre-cooked, or limit to cold pasta salad and Friday/Saturday service — is an active operational conversation requiring testing and costing before final decision.
Pre-Service Production (Before 6 AM)
Soups made in large batches and placed in commercial warmers. Grains and rice cooked and held at 135°F+. Flatbreads baked fresh. Activated nuts (soaked overnight, low-roasted 200–250°F) completed and stored refrigerated. Sauces and dressings made in batches. Cold-hold items prepped and chilled. Fermented items restocked.
During Service (6 AM–6 PM)
No live cooking except assembly of fresh-built items, poached eggs to order, and pasta (see pasta note). Counter staff assemble dishes from prepared components. Kitchen staff monitor warmers, rotate grains within the 4-hour hold window, and prep next-day batches during the late service window.
Soup Batch Protocol
Large weekly batches made without pasta, rice, or potatoes (which degrade in freezing). Bases frozen flat in labeled gallon bags. Upon service: blocks reheated to 165°F within 2 hours, transferred to warmers at 135°F+. Grains and pasta added fresh. Revive frozen soups with lemon, fresh herbs, and re-seasoning after thaw.
Pasta — Active Decision Needed
This requires testing and costing before final call. Options: (1) pasta boiler station — one dedicated cook pulls timed basket portions to order, adds labor cost; (2) hold pre-cooked pasta lightly oiled, sauce to order — simpler but quality degrades over shift; (3) limit warm pasta to Friday/Saturday dinner service only; cold pasta salad available all week. Mikael (restaurant manager) to lead this decision with kitchen team.
Nut Activation Schedule
Cashews soaked 2–4 hrs, walnuts/pecans 6–8 hrs, almonds 8–12 hrs. Rinsed, low-roasted at 200–250°F for 12–24 hours until completely crisp. Almonds kept below 266°F to prevent acrylamide formation. Stored refrigerated or frozen immediately after roasting. Tamari-glazed batches prepared separately.
Friday Evening Kitchen
Fryers activated. Vegetarian and meat items on separate fryers. Love Basket, wings and legs (Shepherdswork chicken or seitan), Motor City Fish & Chips, Chicken & Waffles. Full kitchen team on shift. Friday evening is a distinct service mode — the kitchen is not doing daytime prep during Friday dinner service.
FDA Food Safety Standards: Hot-held foods at minimum 135°F (USDA recommends 140°F). 4-hour maximum hold — all unused hot-held food discarded after 4 hours. Previously cooked foods reheated to 165°F within 2 hours before warmer placement. CVap holding cabinets specified for grains and rice — maintain temperature and moisture. All staff trained on TCS (Time/Temperature Control for Safety) food handling. State of Michigan health department guidelines followed throughout.
Essential Equipment — Phase 1 Purchases
Juice & Smoothie Station
Commercial cold-press juicer (Norwalk or equivalent). High-capacity commercial blenders (Vitamix). Citrus juicer. Nut butter and seed grinder. All juices and smoothies fresh-pressed to order — no bottled products ever.
Grain Mill
Countertop grain mill for whole-wheat flour. Visible to patrons — part of the Pantry Wall. Fresh flour for daily flatbreads, sandwich bread, and baking. A Two Moons farmhouse tradition at operational scale.
Soup Warmers & CVap Cabinets
Commercial soup warmers for 3–5 soups simultaneously. CVap (controlled vapor) holding cabinets for grains and rice — maintains both temperature and moisture, preventing the drying that standard warmers cause over a long service shift.
Nut Soaking & Roasting
Large stainless soaking vessels. Low-temperature convection ovens (200–250°F) for 12–24 hour roasting cycles. Commercial food dehydrator as an alternative for lowest-temperature activation. Refrigerated storage for finished activated nuts.
Bread & Baking
Commercial deck oven or convection oven. Proofing cabinet. Tortilla press. Daily baking before 6 AM. Mexican Town bakery delivery on a set schedule for sourced breads.
Friday Fry Station
Dual commercial fryers — one dedicated vegetarian, one meat/fish. Separate fryers prevent cross-contamination. Temperature-regulated at 350°F. Hood ventilation system upgraded. Oil filtration system for consistent quality. Pasta boiler station (decision pending — see pasta note above).
Part Six
The Detroit Land Trust Sourcing Network
Cass Café is the food-service anchor of a citywide urban agriculture network managed by the Detroit Land Trust and the Stewardship Farms Cooperative. What grows on Detroit's vacant lots flows directly to this kitchen. The café's scraps return to the land. The loop is closed.
Neighborhood Vegetable Gardens
Garlic, lettuce, squash, root vegetables, tomatoes, peppers — grown on Detroit vacant lots under DLT management. At least one-third of produce sourced directly from Detroit. Cooperative members trained in composting, soil regeneration, and the full agricultural cycle.
Herb & Spice Gardens
Dedicated lots for culinary herbs — parsley, basil, cilantro, dill, rosemary, thyme, and medicinal herbs from Two Moons' herbal practice. Essential for the kitchen and for the herbal tea program at the bar.
Goat Dairy Farms
Maximum 3 goats per cooperative lot — supplying milk and fresh cheese. Breeding rams offsite. Architecture students from local universities design sustainable off-grid barn structures on each lot.
Chicken & Duck Farms
Maximum 12 hens or ducks per lot — supplying eggs. No roosters in the city. Cooperative members as shepherds. Tiny day houses provided for on-site management.
Michigan Mushroom Network
All mushrooms sourced exclusively from Michigan — cultivated farms using sustainable practices and skilled foragers harvesting wild varieties. Lightly cooked to enhance digestibility and mineral bioavailability.
Hydroponic Aquaculture
Vacant Detroit buildings for hydroponic fish and vegetable production. Closed-loop aquaponic systems. In development — Year 2 target for first supply to the kitchen.
Compost Loop
All Cass Café food scraps and organic waste composted and returned to DLT gardens. The café feeds the gardens; the gardens feed the café. Zero organic waste to landfill.
Shepherdswork Farm
Primary meat and animal product source. Lake Township, Michigan. Humanely raised, pasture-managed. 50-year history of conscientious land stewardship. Aaron Timlin's family farm — the story behind the menu's protein philosophy.
Great Lakes Regional Network
Wild-caught Great Lakes fish. Michigan craft beers, wines, and spirits. Mexican Town family bakeries on Vernor. Regional farms for seasonal produce. Michigan first — Great Lakes second — national or international only for what Michigan cannot grow (certain spices, specialty nuts, etc.).
Why Local — Beyond Flavor and Marketing
Local sourcing at Cass Café is an ecological commitment. The Great Lakes watershed holds 20% of the world's fresh surface water. Every local purchase reduces the carbon and water cost of transportation. Every dollar spent with a Detroit urban farmer or a Mexican Town bakery circulates within the community rather than leaving it. The Detroit Land Trust 99-year lease model prevents speculative displacement of the farmers who grow the food. Eating at Cass Café is a vote for a different kind of food economy — one where the land, the community, and the kitchen are in direct and accountable relationship with each other.
Part Seven
Financial Projections
Working draft. All figures are estimates based on market research and operational benchmarks from comparable Detroit establishments. They will be rebuilt from the ground up once supplier costs, staff compensation, and menu pricing are negotiated. Do not use these for investor commitment conversations without updating them first.
These are placeholder projections. The concept has evolved significantly from earlier drafts — the prep-before-service model, the mix-and-match system, the DLT sourcing network, and the phased opening sequence all affect labor costs, COGS, and revenue timing in ways not yet fully modeled. A full re-projection is required before these numbers are shared with investors in any formal capacity. Tip income, which will be meaningful in a café doing $1M+ in food and beverage, is not yet incorporated into staff compensation modeling.
Year 1 Revenue — Draft Estimate
| Revenue Stream | Draft Estimate | Notes |
|---|---|---|
| Food & Non-Alcoholic Beverage | TBD after menu costing | Ramp from Month 3 (partial) · Full service Month 4+ |
| Alcohol Sales | TBD after bar program costing | Bar open from Day 1 · Fresh-juice cocktails at premium |
| Cultural Programming & Events | TBD after event pricing | VIP Galas · Dinner Concerts · PuppetART · Art openings |
| Merchandise & Retail | TBD | Two Moons cookbooks · Art prints · Branded items |
| Grants & Sponsorships | TBD after grant research | Knight · Kresge · NEA · MACC · Michigan corporate giving |
| Membership Revenue | TBD after membership launch | Existing cinema members + new Detroit-area members |
| Total Year 1 Revenue | To be projected after costing | Prior draft estimated ~$1.25M — needs full rebuild |
Year 1 Expenses — Draft Estimate
| Expense Category | Draft Estimate | Notes |
|---|---|---|
| Staff Compensation (total) | TBD — see Staffing section | Base salary + benefits + tip pool must be fully modeled together |
| Food & Beverage COGS | TBD after supplier negotiations | Local sourcing premium partially offset by DLT cooperative pricing |
| Triple-Net Lease | ~$70,000 (estimated) | Tenant pays taxes, insurance, utilities per lease terms |
| Utilities & Insurance | ~$60,000 (estimated) | Commercial kitchen, bar, and event space |
| Marketing & Community Engagement | ~$50,000 (estimated) | Opening campaign · Membership launch · Social · Print |
| Equipment & Maintenance | ~$50,000 (estimated) | Ongoing; major equipment from Phase 1 capital |
| Programming & Artist Stipends | ~$80,000 (estimated) | Dinner Concerts · Exhibitions · PuppetART · "The Cass" filming |
| Employee Housing Program (operating subsidy) | TBD | Depends on structure of Alexandrine/Lawton arrangement |
| Contingency | 10% of operating budget | To be calculated once full budget is built |
| Total Year 1 Expenses | To be projected after full costing | Prior draft estimated ~$1.1M — needs full rebuild |
Part Eight
Staffing Plan
All salary figures are working placeholders. Final compensation will be negotiated directly with the restaurant manager and each position before any offer is made. The principle is simple: investors take the financial risk, not employees. Compensation must be genuinely livable — and tip income, ESOP equity, and the employee benefits package (housing, retirement, investment education) are part of the full picture, not separate from it.
Salary figures below are placeholders only. The current numbers do not reflect market rates for Detroit hospitality and should not be presented to candidates. A General Manager of this scope — managing kitchen, bar, juice program, cultural programming, community ownership model, and training — commands $65,000–$85,000+ in this market. These numbers will be rebuilt through direct negotiation with Mikael and each staff position before the staffing plan is finalized. Tip income (projected to be meaningful at this revenue volume) must be incorporated into total compensation modeling.
| Position | # | Base Salary (placeholder) | Equity | Additional Benefits |
|---|---|---|---|---|
| Restaurant Manager (GM) | 1 | TBD — market range $65K–$85K+ | $10K stock option after 1 year | Sign-on housing benefit · $50K low-interest renovation loan · Annual bonus (loan forgiveness) when net revenue 25%+ over budget · Access to employee housing program · Investment & retirement coaching |
| Kitchen Co-Managers | 2 | TBD — $30K placeholder | $10K stock option after 3 qualifying years | 5-year fixed contract · Health & 401K · Full tip pool share · Employee housing eligibility · Investment coaching |
| Bar Co-Managers | 2 | TBD — $30K placeholder | $10K stock option after 3 qualifying years | 5-year fixed contract · Health & 401K · Full tip pool share · Employee housing eligibility |
| Kitchen Staff | 3 | TBD — $20K placeholder | ESOP eligible after 3 qualifying years | Health & 401K · Full tip pool share · Employee housing eligibility · Investment coaching |
| Bar Staff | 3 | TBD — $20K placeholder | ESOP eligible after 3 qualifying years | Health & 401K · Full tip pool share · Employee housing eligibility |
| Juice Bar Tenders | 2 | TBD — $20K placeholder | ESOP eligible after 3 qualifying years | Health & 401K · Full tip pool share · Employee housing eligibility |
| Front-of-House Hosts | 2 | TBD — $20K placeholder | ESOP eligible after 3 qualifying years | Health & 401K · Full tip pool share · Employee housing eligibility |
| Culinary School Interns | TBD | School credit + stipend | Pathway to full employment | Schoolcraft University culinary partnership |
| Total | 15+ | Full model TBD | ESOP + stock options layered | Tip pool + housing + investment education + 401K + health |
On Compensation Philosophy
The restaurant industry fails its workers primarily through chronic undercompensation. The restaurants that last in Detroit — Selden Standard, Marrow, Grey Ghost — pay their people well, and it shows in retention, quality, and reputation. Cass Café's investors are the ones taking financial risk. The employees are the ones doing the daily work that makes the investment worth anything. Those two facts should be reflected in how compensation is structured — not the other way around.
Part Nine
Risk Assessment & Next Steps
The phased launch model, the ecosystem of partners, the prep-before-service kitchen, and the closed Sunday all reduce operational risk. What remains is named honestly here.
Phase 1 Capital Gap ($100K)
$200K committed; $100K gap. Bar open and gala events generating revenue and investor exposure while gap closes. Owner Member pre-sales contribute toward equity. Structured investor outreach continuing.
Financial Projections Not Yet Current
The concept has evolved significantly. A full re-projection is required before formal investor presentation. Tip income, DLT sourcing cost advantages, employee housing subsidy structure, and the prep-before-service labor model all need to be modeled from scratch.
Pasta & Live-Cooking Labor Cost
A pasta boiler adds a dedicated cook station. Whether pasta revenue justifies that labor cost requires real costing. Options include limiting warm pasta to Friday/Saturday service, or holding pre-cooked pasta for daytime service only. Decision to be led by the restaurant manager through testing.
Staff Compensation Structure
Salaries are placeholders and below market. Full compensation model must be built before any offer is made. Tip pool income, ESOP value, housing benefit, and investment education together create a compelling total package — but the base must also be livable.
Licensing Delays
Bar is open; food service and full liquor license finalization ongoing. Compliance consultant engaged. Gala and pop-up events allow training and community building during this window.
Phase 2 Buyout Complexity
Relationship with founder Chuck Roy is ongoing. Phase 2 capital campaign structured before buyout negotiations close. Legal counsel and advisory board oversee all transition documentation.
Employee Housing Program Startup
Alexandrine/Lawton apartments need confirmed availability and affordability structure before launch. Marianne's lending capacity needs to be formally engaged. The NW Goldberg modular construction timeline needs a realistic build schedule from Steve and the development team.
Supply Chain — Local Sourcing Costs
Local and ethical sourcing typically costs more at small scale. DLT cooperative pricing will help offset this — but the COGS model needs real supplier conversations, not estimates. Menu pricing must be built from actual ingredient costs, not the reverse.
Next Steps — Prioritized
"The next chapter of Cass Café is being written. We invite you to be part of the story — not just as investors, but as neighbors, members, and co-owners of something that belongs to Detroit."
Aaron Timlin · President, Chalfonte Foundation · aaron@chalfonte.org · (313) 444-4588