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Revision History For: Rascals Comedy Club Restaurants(RASC)

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Return to Rascals Comedy Club Restaurants(RASC)
Rascals International, Inc.(OTC symbol=RASC)
Comedy Club Restaurants

1) Resourceful Comedy Club Restaurant: Rascals Comedy Club Restaurants provide an evening of entertainment and dinner at a price that is competitive with the cost of a movie and dinner. Due to the limited décor and kitchen requirements, a Rascals Comedy Club Restaurant can be constructed for half the cost of an Applebee’s, Ruby Tuesday’s or other similar restaurant. This exceptional return on an investment is further enhanced by the extended hours of operation and the revenue generated by the sale of show tickets and food and beverage service in the showroom. Every dollar of capital invested yields over three dollars in annual sales.

The comedy industry has no age, ethnic, or socio-economic barriers. The clientele age ranges from 18-80 and regardless of your status you are always a potential customer. This makes the comedy club restaurant industry an endless opportunity for new and repeat customers. The key market drivers are the following factors for the increased interest in comedy club restaurants:

· Increased frequency of eating out combined with entertainment;
· The comedy business is once again flourishing with both new acts and established acts performing the circuit;
· Comedy club restaurants are an excellent date location providing both dining and entertainment
· The comedy club restaurant dinner and live show is price competitive with dinner and a movie;
· Shopping malls are willing to provide premier space for entertainment concepts at discounted rates; and,
· Hotel food and beverage operations need a competitive edge over the Applebee’s, Ruby Tuesday’s and other restaurants pulling guests out of the hotel for dinner.

2) Rapid Growth Hotel Joint Venture Strategy: Rascals has strengthened its comedy club restaurant business advantage by forming joint ventures with national hotel chain properties such as Holiday Inns, Sheratons, Ramada Inns and Crowne Plaza Hotels to:

§ Accelerate its national expansion;
§ Minimize its operating expenses by reducing its investment, and staffing requirements;
§ Increase seating capacity for headliner act nights with the hotels grand ballroom facilities; and,
§ Cross marketing groups and other promotional events with the hotels existing sales and marketing group.

At selected hotels, Rascals operates a comedy club five nights a week with two shows on Friday and Saturday and assumes responsibility for its profit and loss. In exchange for rent, the hotel provides the food and beverage service in the showroom and the pre-show and late supper dinners. The hotel contributes the premium on showroom food and beverage prices to defray the cost of the sales and marketing program.

Rascals Comedy Club joint venture provides the hotel with:

· Significantly increased food and beverage revenues with little or no capital investment;
· "Live" comedy entertainment, which is a flexible and dependable marketing tool that stimulates promotional events, parties, meetings, and conventions to all age, ethnic and income groups;
· Major marquee entertainers economically and profitably to stimulate revenue and interest in the hotel;
· The opportunity to offer an evening of good food and live entertainment for mixed aged groups at the cost of a dinner and a movie;
· Significant additional sales promotional opportunities for dinner and show specials, room and entertainment specials; and,
· A distinct competitive advantage in its local market.

3) Comedy Club Roll-up Rascals International, Inc. is the only publicly traded comedy club chain giving it the enviable position of being able to acquire existing comedy club operations for stock and where appropriate, retain existing management to continue the successful operation of the unit.

4) Development Strategy The Company's objective is to be the premier and largest chain of comedy club restaurants in the country. Through strategic mergers, acquisitions, hotel joint ventures, franchising, and the creation of new comedy club restaurants, the Company plans to have 150+ units within five years. Industry observers now see the potential for 1200 units, or a $2 billion market in the United States.
Now that the Company has established its prototype comedy club restaurant, hotel joint venture strategy and a public market for its stock, it is focusing its attention on:

· A national chain of 120+ hotel joint venture units or a total of 150+ combined;
· Rolling up existing comedy clubs that are compatible with its operations;
· Developing marketing opportunities for its library of “before they were famous tapes”; and,
· Establishing long-term comedy talent entertainment agreements.

The simple operating format of the comedy club restaurant and its hotel joint venture strategy enhances the Company’s ability to attain rapid growth. This unit expansion will strengthen the Company’s ability to negotiate long term and profitable talent agreements with comedians that will add to the profitability of the franchised operations of the Company.
5) Other Mega Opportunities - Comedy Library Over the years, Rascals has featured such famed comedy stars as Jay Leno, Billy Crystal, Eddie Murphy, Andrew Dice Clay, Jerry Seinfeld, Paul Reiser, Tim Allen, Rosie O’Donnell, Chris Rock and many other well-known comedic entertainers. In 1984, the Company started taping its performers and it owns a 50% interest in the library. The Company produced the show and the taped broadcasts were shown on many of the cable networks throughout the New Jersey metropolitan area. The show consisted of three to four comics, a comic host and a band. The Company continued to tape the show until 1992. During the nine years of filming, the Company accumulated a library of 400 hours of stand-up comedy. The Company is currently in the process of buying the remaining 50 % interest in the library. Plans for a home video series tentatively titled “Before they were Famous” is in the works. The Company will use its premier comedy club chain market position to tape additional comedy shows to enhance the value of its library. In addition, the Company has scheduled an Internet comedy pay per view special. The Internet site is http//
6) Management and Directors:
Edward Rodriguez- President, Chief Executive Officer, Chairman. Mr. Rodriguez has since 1996 served as president of Lancaster Consultants Inc., a company involved in financial management and consulting. From 1992 through 1995 he worked for Prudential Securities. Mr. Rodriguez became associated with Rascals in 1998.

Gary Marks – Director. Mr. Marks is currently Executive Vice President and Chief Marketing Officer of Cybertel. Prior to Cybertel, Mr. Marks held senior positions at Conner Peripherals, SyQuest and Western Digital. Mr. Marks holds an MBA in Finance and a BBA in Business Management and Statistical Analysis.

Michael Margolies – Director. Mr. Margolies Chief Executive Officer of U.S. Transportation Systems, Inc., a diversified group of transportation-related businesses, from its creation in 1975 until its sale, for $43 million, in 1998.

Ken Brice, Chief Financial Officer, is an accomplished financial executive with 25 years of as a chief financial officer and business executive in both private and public companies including, CFO of Digital Solutions, Inc., a publicly traded Professional Employer Organization; Group Controller of ADP’s payroll business; Corporate Controller of Interim Services, the nation’s 4th largest temporary help company.

Andrew J. Whelan, Vice President Development is a seasoned entrepreneur and financial executive. Mr. Whelan was a founding director of Show Pizza Place, now Chuck-e-Cheese, Chief Financial Officer of Brock Hotels, the largest franchisee of Holiday Inns and Marriott’s Vice President of Finance and Administration of its Architectural and Construction Division.

7) Financial: Rapid revenue and EPS growth should occur, especially as the growth of the Hotel Joint Ventures accelerates.
On a pro forma basis, the Company projects revenue escalation from $4 million in 2001 to $126 million in 2006, EPS tracking from breakeven in 2001 to $.50 in 2006.
A premium P/E is supported by:
· Exceptionally good economics of its Comedy Club Restaurants at the unit level;
· The accelerated growth potential of the Company’s Hotel Joint Venture program; and,
· The mega potential revenue bonanza from the Company’s market position and the sale and or rental of the Comedy Library.

The Company’s equity capitalization is small with 15 million shares outstanding and only 5 million shares in the float.

Buyout potential is clearly present.

Contact: Edward Rodriguez, President, 412 Pleasant Valley Way, West Orange, NJ 07052
Telephone: 973-243-8000,