I Love Sushi
I love Sushi
I Love Sushi is one of the major players in home delivery and take-away of fresh Japanese dishes such as sushi and poke bowls in the Netherlands. We want to grow from 47 branches to 100 in the Netherlands. We want to achieve this growth through the issuance of 8% bonds by I Love Sushi Beheer BV to finance the rapid expansion of our franchise organization.
About I Love Sushi
Sushi and other Japanese dishes, prepared fresh from the knife, are delivered to your home from the I Love Sushi branches. The public can also pick up orders at the locations. After its founding in 2017, I Love Sushi is now the largest sushi chain active on the Dutch market.
I Love Sushi is a total concept, where the selected franchisees receive their branch 'turnkey' and can get started after training. I Love Sushi Beheer BV monitors the brand and quality and facilitates the online portal where orders can be placed. The formula includes competitive pricing and is aimed at a broad audience. Franchisers pay part of their turnover as a fee to franchisor I Love Sushi. The current 47 branches are spread throughout the Netherlands with accents in the Randstad. The aim is to double the number of branches in the Netherlands over the next two years in order to create complete national coverage. From 2021 we would also like to expand abroad, starting in Belgium and later Germany and France.
I Love Sushi is located in Huizen, the Netherlands. The employees of I Love Sushi ensure that new locations are found for franchisees, after which they deliver a turn-key location to the carefully chosen franchisee. I Love Sushi then continues to be involved with the branches for quality checks. The I Love Sushi branches are aimed at the delivery and takeaway market for Japanese dishes. The most common dishes within I Love Sushi are sushi, sashimi and poke bowls.
Milestones and timeline
I Love Sushi was founded on January 5, 2017 and from that moment on started the franchise concept. Since then, I Love Sushi has experienced enormous growth. In almost 4 years they have opened 47 branches. There is currently almost complete coverage in South Holland, North Holland and Utrecht. The aim is to achieve national coverage in the next two years by doubling the number of branches and to expand abroad.
Turnover and profit
Markt
I Love Sushi is active in the franchise market where our formula focuses on a Japanese concept for the Dutch (and eventually European) home market (food). The franchise market in the Netherlands has grown in recent years. The number of franchise formulas in 2017 was 824. This number increased to 2018 (+836%) in 1,1 and to 2019 (+921%) in 10,1. With regard to food retail (which includes I Love Sushi), the number of formulas increased from 94 in 2017 to 96 in 2018 (+2%) and 108 in 2019 (+12,5%). The number of branches of franchise formulas in food retailing also increased. In 2017 there were a total of 7.480 branches. This number grew to 2018 (+7.923%) in 5,9 and to 2019 (+8.119%) in 2,5. The total turnover of franchise branches in the food retail sector was €2017 billion in 15. In 2018, this turnover increased to € 15,7 billion (+4,7%) and in 2019 to € 17,1 billion (+8,9%). We are therefore in a (rapidly) growing market. I Love Sushi is the third fastest grower in the franchise sector in 2020. The turnover of the 'food' sector amounts to approximately 45% of the total turnover of all franchise locations in the Netherlands in all sectors. Moreover, we are in a significant industry when it comes to franchise formulas. In addition, COVID-19 is a significant (positive) change in our financial performance. I Love Sushi's turnover has increased by 19% to 25% since COVID-50. This is due to the fact that the pickup and delivery market has grown enormously since the outbreak of COVID-19 and the partial lockdown.
The expectation is that the total food market will continue to rise. Last year, the FSIN predicted a growth of 2025% until 23. The Dutch food market is expected to rise from an annual turnover of €61 billion in 2018 to a turnover of over €80 billion in 2030.
Japanese dishes are in fourth place with a turnover of € 105,6 million in the first half of 2018.
The National Franchise Guide
Management
Mr. YL Yuen
Mr. Yuen is the director and general manager of I Love Sushi. Mr Yuen is concerned with finding locations and maintaining contacts with real estate agents and private investors of properties, marketing, etc. He makes contacts to find new franchisees.
Mrs. C.S. Wong
Ms CS Wong is involved in the construction supervision of new branches (routing and layout). Ms Wong trains and guides franchisees in the preliminary phase. She has a vast amount of operational experience.
Mr HL Yuen Hee-Loy is responsible for, among other things, rental contracts and contact with all external advisors from finance to legal matters. He is also a spokesperson for I Love Sushi.
Structure
I Love Sushi Beheer BV is the original company that I Love Sushi started with. This is still the company from which management operates. In addition, sister companies have been established. I Love Sushi Property BV enters into rental agreements with regard to the buildings in which an I Love Sushi branch will be located. I Love Sushi Property II BV was founded to purchase properties in the future that are in a strategic location for us. AGF Administratie- en Advieskantoor supports the group companies and the franchisees with their administration. I Love Investments BV is the holding company of the group after a reorganization. Mr Yuen holds the shares in I Love Investments BV and has contributed the share interests in the other companies to I Love Investments BV.
Loan purpose
We want to use the money from the bonds to expand further. We would like to open approximately 31 new branches before December 2021, 25, for which we need extra money. The average investment per location is approximately €50.000. Since we are growing so quickly, we want to adapt our organization to this growth by investing extra in staff, marketing and the head office. As part of our growth, we plan to purchase commercial properties instead of renting them. We can finance part of this with bank financing, the rest we would like to finance with the bond loan. Finally, we would also like to further expand our sustainability concept, we would like to emit less waste and make more use of sustainable packaging. We also want to use the bond loan for this.
Risks and certainties
Investing always involves risks. The main risk you run is that I Love Sushi Beheer BV has no money to repay you or to pay the interest. This could happen, among other things, if there are malfunctions on our website or on Thuisbezorgd.nl, if the collaboration with Thuisbezorgd.nl ends or if there are problems with our suppliers. Then you may not receive any repayment of the loan and you will not receive any interest.
No further guarantees are provided. For the complete risk analysis, please refer to the prospectus and the information document.
Rates
The rates charged by NPEX are shown below.
| NPEX account | free |
|---|---|
| Deposit money | free |
| Registration fee for issue | 1% one-off |
| Service fee | 0,05% per month* |
*To be calculated based on the nominal value of the bonds in the portfolio on the coupon payment date and to be offset against the (monthly) interest payment.
