SEATTLE, WA — Bill the Butcher, Inc., a leading retailer of organic and natural, grass-fed meats, today announced details of its regional roll out plan to expand from its current six stores in operation to 20. The company's neighborhood butcher shop business model has been enthusiastically received by consumers.
The company's regional rollout plan includes two phases. Phase I entails opening 14 additional stores in the metro-Seattle area, for a total of 20 stores by December 2011. This is to be followed by Phase II, in which 120 additional stores will be in operation west of the Mississippi. The company's rollout plan is contingent upon the availability of third party financing.
Bill the Butcher has outlined in detail its Phase I strategy and timeline. By the end of spring of 2011, the company intends to grow from having six stores in operation to 10. Bill the Butcher's seventh location in Edmonds, Washington is currently under construction. Lease locations are now being identified and evaluated for three additional stores. By December 2011, an additional 14 stores are slated to open in the Seattle area.
In rolling out its first 20 stores, Bill the Butcher is perfecting its commissary-and-store, wheel-and-spoke model. One central commissary is expected to serve up to 20 regional stores. This commissary model offers several competitive advantages that are expected to result in an 8-12% improvement in gross margins. The improvements stem from: 1) lower meat per pound costs due to whole animal purchase; 2) lower labor costs stemming from butchers being concentrated in the commissary versus at retail stores; 3) better customer service and lower labor costs at retail locations with staff being focused on customer service; 4) higher margin products offered by using parts of the whole animal for products including sauces and jerky.
The growing network of stores will be further supported through additional advertising and brand marketing. Educational programs will inform and inspire consumers to the cause of sustainability in farming and cooking.
"We have a very clear path to growth in the near term. Once we have 20 stores in operation, we believe this will put us in a cash flow positive position and give us momentum for further growth throughout the western United States and beyond. The combination of customer enthusiasm, our attractive in-store metrics, and established Bill the Butcher brand, position us as the leader in retail organic meats," stated Bill the Butcher CEO, J'Amy Owens.
About Bill the Butcher, Inc.
Seattle-based Bill the Butcher, Inc. sells organic, grass fed and natural meats through corporate-owned neighborhood butcher shops. The Company works directly with local ranchers and farmers, who follow sustainable and organic practices, to deliver the highest quality meat that is healthiest for consumers while being good for the environment. Founded in 2009, Bill the Butcher is publicly traded under the symbol (OTCBB: BILB). Learn more at http://www.billthebutcher.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933, including, but not limited to, statements related to our expansion plans and anticipated revenue growth and future profitability. Forward-looking statements reflect management's current expectations, as of the date of this press release, and involve certain risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including our ability to raise additional capital to fund our business and continue as a going concern; our ability to successfully implement our growth plan; our dependence on the financial performance of stores located in one geographic area; our ability to identify favorable sites for future stores and to obtain leases for new stores and our new commissary on acceptable terms; our ability to improve store sales and margins; and uncertainties related to expansion into new geographic markets. These and other factors that could cause future results to materially differ from our recent results or those projected in our forward-looking statements are described under the caption "Risk Factors" and elsewhere in our Annual Report on Form 10-K/A and in our other periodic reports filed with the Securities and Exchange Commission. You should not rely unduly on these forward-looking statements, which apply only as of the date of this release. We undertake no duty to publicly announce or report revisions to these statements as new information becomes available that may change our expectations.
Source: Bill the Butcher, Inc.