Ancho Honey is a small takeout restaurant St. George, ME, a coastal town with a tight-knit community and strong tourism draw. In 2019, founder Malcolm Bedell realized there was a glaring hole in Midcoast Maine’s burgeoning food scene: “While you could throw a stone and hit an amazing chef doing innovative, imaginative work at a premium price point, or easily find a chain restaurant churning out the same microwaved dredge, there weren’t many options in between.”

He opened Ancho Honey to bring high-quality, affordable food to everybody while maintaining extraordinarily high levels of creativity, quality, and attention to detail. After seeing a powerful community response- their Sunday fried chicken sandwich specials have sold out in mere minutes- Malcolm knew it was time to expand. His vision was to take the most successful elements of Ancho Honey, spin them off into a new restaurant, and locate the restaurant more centrally. To raise funds for this new venture, Honey’s Fried Chicken Palace, Malcolm turned to the community that had become so passionate about Ancho Honey.

Why Mainvest

Mainvest’s focus on community aligned with Malcolm’s values. The revenue sharing note was an ideal financing structure for this highly seasonal business, building in much-needed flexibility for slower months while maintaining a compelling return for investors.

While traditional lending for restaurants is quite rigid- and often requires high interest rates and personal guarantees or collateral- the revenue sharing note is an accessible and flexible financing model. Instead of monthly payments, the revenue sharing note offers quarterly repayments tied to a share of revenue, not a set amount, meaning that the repayment fluctuates with revenue. For a Main Street business that sees seasonal fluctuations in traffic, the RSN can be a great way to access debt that doesn’t break the bank. Additionally, the revenue sharing note enables everyday investors to participate, creating growth opportunities within the community and building loyalty.

“I really liked the idea that, unlike a typical crowdfunding campaign, Mainvest offered me the opportunity to structure my fundraising as a real investment for our customers, without having to tackle any of the legal or ongoing record-keeping and payment requirements myself. I also really liked the way Mainvest opened up my campaign beyond the reach of my customers, and to their own pool of qualified investors.”

The Fundraising Process

With around 4 years of business under its belt, Ancho Honey used Mainvest to share its story of success and future vision. The campaign focused on the restaurant's commitment to community and quality, outlining plans for expansion with the new location and brand. With a strong existing following, Malcolm initially used direct outreach and existing marketing channels like organic social media and email marketing. Throughout the campaign, press opportunities offered greater reach. By building on an existing brand to introduce a new concept, Malcolm was able to re-engage his existing community while bringing new customers into the fold, creating growth opportunities across the entire brand.

“I was really happy with the degree to which Mainvest marketed my campaign across social media and to their pool of investors. I also really liked the “flow” and timing of the campaign…it kept potential investors on the hook and seemed to re-target them at the right time to ensure we raised the maximum amount of capital. The team was incredibly helpful, responsive, and friendly throughout the process. I always knew that when an issue or question arose, I could have it answered competently and quickly, at any time of day or night.”

Tangible Results

Ancho Honey’s campaign was oversubscribed within weeks, reaching their maximum goal of $124,000 ahead of their funding deadline. Funds raised were immediately put to work in the build out of the new location, and Malcolm expects an early spring opening for Honey’s Fried Chicken Palace. Existing customers who were able to participate in the community round are eagerly awaiting the opening, as are new customers and supporters who learned about the expansion through the community round itself.

“We hear every day from customers (and total strangers!) who are incredibly excited about our second restaurant. Mainvest was instrumental in helping us build that pre-open “buzz.” Investors in our business get to feel a certain amount of pride of ownership. They know that when we do well, they do well, and you can see that it’s something people really like feeling a part of.”

Conclusion

Ancho Honey's expansion story illustrates the power of community investment in sustaining and growing local businesses. Malcolm's partnership with Mainvest highlights the platform's effectiveness in matching businesses with investors eager to contribute to their local economies.

“Mainvest supercharged our own efforts to raise investment capital, unlocking access to a nationwide group of entrepreneurs and providing the tools we needed to communicate most effectively. We loved every second of it.”