Northern Indiana's coffee market (St. Joseph, Elkhart, Marshall, LaPorte counties) has four +distinct competitor tiers. Each behaves differently and requires a different response.
+ +| Brand | Style | Local presence | Why it matters |
|---|---|---|---|
| 7 Brew | +Drive-thru only, double-lane, "stand" format (~600 sq ft, no seating) | +Opened in Mishawaka (5540 N Main St, former Windy City Gyros site) and La Porte; more Indiana + sites announced 2026 including Fort Wayne | +Nearly identical footprint/format to a trailer. Fast, friendly, huge menu (2,000+ combos), + aggressive expansion backed by Blackstone capital. | +
| Dutch Bros | +Drive-thru "shack" + walk-up window, high-energy brand, Rebel energy drinks | +Expanding into Northern/NW Indiana (Valparaiso, Warsaw); not yet in South Bend/Mishawaka core | +$2.1M average unit volume nationally — proof the drive-thru-only model works at scale in + Indiana-adjacent markets. Likely to target South Bend/Elkhart next as it fills in the region. | +
| Scooter's Coffee | +Drive-thru kiosk, franchise-heavy, seasonal/limited-time drink drops | +Distribution center built near Indianapolis to support Indiana growth | +Same small-footprint kiosk model; pricing sits at the premium end (see Sec. 3). | +
| Starbucks | +Brick-and-mortar + drive-thru, full café | +Multiple South Bend locations (downtown, Ireland Rd, South Bend Ave) | +Sets the "premium anchor" price point area customers already accept. | +
| Dunkin' | +Brick-and-mortar + drive-thru, donuts + coffee | +Multiple locations South Bend/Mishawaka (incl. Lincolnway E) | +Sets the "value" anchor price point — the number customers compare everything against. | +
| Brand | Style | Local presence |
|---|---|---|
| Caribou Coffee | Café + drive-thru, in-store at Martin's Super Markets | Mishawaka (Ironwood Dr / Martin's) |
| Biggby Coffee | Michigan-based café chain, drive-thru, sweet/flavored drinks, "creme freeze" smoothies | Mishawaka (McKinley Ave) and other Michiana locations |
| Shop | Notes |
|---|---|
| Chicory Cafe | South Bend + Mishawaka; Mishawaka location has a drive-thru — closest thing to a local drive-thru competitor |
| Bendix Coffee Roasters | South Bend micro-roaster; now also roasts the legacy Toccoa Coffee brand (Mishawaka). This is the region's dominant local bean supplier and already The Daily Pour's planned roaster — a strength, not a threat |
| Coffee Pantry | Elkhart — cozy sit-down cafe, light snacks |
| Coffee Spot Café, Sunrise Cafe, Le Peep | Breakfast-diner style with coffee as a side item, not a specialty program |
Self-serve pot coffee at gas stations and grocery stores. Lowest price, lowest quality, no +brand loyalty — this is the segment The Daily Pour's business plan already correctly targets as +"easy to beat on quality" rather than price.
+ +| Area | Current coverage | Opportunity for The Daily Pour |
|---|---|---|
| Elkhart / Goshen industrial corridor | Sparse — mostly gas-station and diner coffee; no drive-thru specialty brand confirmed | High — RV manufacturing shift-change traffic, no chain has claimed it yet |
| South Bend south side / Ireland Rd retail | Starbucks (brick-and-mortar) only | Medium-high — undercut price, same traffic, mobile flexibility |
| Notre Dame perimeter (non-game-day) | Campus dining + a few independents | Medium — steady student/staff traffic, seasonal (academic calendar) |
| Mishawaka Grape Road | Saturated (Biggby, Caribou, 7 Brew incoming) | Low — avoid as a first location; too much drive-thru chain density already |
| Vacant/underutilized commercial lots (per business plan) | None — that's the point | High — zero coffee competition, low rent, matches the trailer's mobility advantage |
Pricing across every format (national chain, regional chain, independent) converges on the same +three tiers by drink size/complexity. The table below benchmarks real observed prices (2025–2026, +standard hot latte/espresso drink as the comparison item) so The Daily Pour's menu can be placed +deliberately rather than guessed.
+ +| Tier | Brand examples | Small | Medium | Large | Positioning |
|---|---|---|---|---|---|
| Low / Value | +Dutch Bros, 7 Brew, Dunkin' | +$3.00–$4.00 | +$3.75–$4.75 | +$4.50–$5.75 | +Speed + volume; simple syrup-based drinks priced to move a line fast | +
| Mid | +Caribou, Biggby, Chicory Cafe, independent shops | +$3.50–$4.25 | +$4.25–$5.00 | +$5.00–$5.75 | +"Neighborhood quality" — better beans, still fast, local loyalty | +
| Premium | +Starbucks, Scooter's specialty/limited-time drinks | +$4.45–$5.55 | +$4.95–$6.50+ | +$5.75–$7.95+ | +Brand cachet, seasonal/limited drinks, highest-margin add-ons | +
The business plan's $8 average ticket target already lands correctly in the mid-tier — this +analysis confirms that target and breaks it into a defensible ladder rather than one flat price:
+| Category | Price range | Rationale |
|---|---|---|
| Drip coffee / hot tea | $3.00 – $4.00 | Matches Dunkin'/value tier — the "everyday driver" that builds repeat visits and beats gas-station coffee on quality at a near-identical price |
| Standard espresso drinks (latte, americano, cappuccino, cold brew) | $4.25 – $5.50 | Sits at the low end of Starbucks and matches Caribou/Biggby — undercuts the premium anchor while still reading as "quality," using the Bendix local-roaster story to justify the price vs. Dunkin' |
| Specialty/signature drinks (seasonal, flavored, matcha, frappes) | $5.50 – $6.75 | Priced just under Starbucks Frappuccino/Scooter's limited-time tier ($6.55–$7.95) — high margin, gives customers a "treat" option without matching premium-chain prices |
| Food add-ons (pastries, bagels, cookies) | $2.50 – $4.50 | Matches local bakery/cafe norms; kept simple since food is a margin-add, not the core product |
Bendix Coffee Roasters (South Bend) is both the region's most visible independent coffee brand +and The Daily Pour's already-planned bean supplier. No other drive-thru chain in the market (7 Brew, +Dutch Bros, Scooter's, Dunkin', Starbucks) can claim a South Bend-roasted bean. This is the single +strongest, lowest-cost differentiator available and should be printed on the menu board and cup — +it directly supports charging mid-tier prices instead of value-tier prices.
+ +The Company shall be Member-managed. Holdings (represented by Samuel S. James) retains sole authority over all day-to-day operational decisions and capital deployment.
@@ -205,7 +213,7 @@All other business decisions remain under Holdings' authority per §3.1.
-Each venture Kiowa participates in earns her equity in the Hospitality Group:
| Grant | Amount | When |
|---|
If Kiowa identifies, applies for, and secures a grant (non-repayable funding — government, foundation, or private grant money) for any venture under the Hospitality Group:
@@ -268,9 +275,7 @@FMV definition: Net asset value (total assets − total liabilities) × Kiowa's vested ownership percentage, as determined by the Company's most recent quarterly books. If disputed, an independent third-party valuation at shared cost.
-Payment terms:
-Payment terms: Lump sum within 90 days of the departure date, or a 12-month + installment plan at Holdings' election.
Unvested portion: Any unvested equity at the time of departure is forfeited automatically — reverts to Holdings at no cost, regardless of departure type.
@@ -322,7 +323,7 @@ mediation steps above. -| Scenario | Outcome |
|---|---|
| Leaves before 10 trailers — good standing + 90-day transition | Buyback at 100% of FMV. Unvested forfeited. |
The undersigned, being all of the Members of SnS Hospitality Group LLC, adopt and agree to this Operating Agreement as of the Effective Date first written above.
@@ -531,7 +532,7 @@This Operating Agreement (the "Agreement") is entered into by the undersigned Members - to govern the operations of SnS Hospitality Group LLC (the "Company"), a limited - liability company organized under the Indiana Business Flexibility Act (Indiana Code - § 23-18).
-The Company is formed to own, operate, and manage mobile and trailer-based food and - beverage ventures across Northwest Indiana and Southern Michigan. The first venture - is "The Daily Pour" — a fleet of drive-through coffee trailers deployed to - high-traffic locations.
-The Members acknowledge that the Company's success depends on both capital - investment (provided by Holdings) and operational excellence, systems development, - compliance management, and growth leadership (provided by Kiowa). This Agreement is - designed to fairly recognize and protect both forms of contribution.
- - -| Member | Interest | Type |
|---|---|---|
| SnS Network Solutions Holdings LLC ("Holdings") | 75% minimum | Capital + control |
| Kiowa Scott ("Kiowa") — service | Up to 15% (guaranteed, earned over time) | Vested through operational work |
| Kiowa Scott ("Kiowa") — investment | Up to 10% (proportional to startup capital contributed) | Must invest at startup per venture. Formula: (contribution ÷ startup cost) × 100, capped at 10%. |
The Company shall be Member-managed. Holdings (represented by Samuel S. James) - retains sole authority over all day-to-day operational decisions and capital deployment.
- -Kiowa serves as Operations Director — a strategic and administrative leadership - role. Her responsibilities:
-Each trailer is run by a Location Manager — the lead barista/operator who is - empowered to handle day-to-day operations independently:
-The Location Manager runs their trailer. They are NOT managed by a General Manager — - they report directly to Sam and Kiowa as co-founders.
- -Sam and Kiowa share responsibility for issues the Location Manager cannot - resolve on their own, including:
-Either founder may handle an escalation. Neither founder is solely responsible for - day-to-day store operations — that is the Location Manager's job.
- -The following decisions require the written consent of both Members (Holdings - AND Kiowa), regardless of ownership percentage:
-All other business decisions remain under Holdings' authority per §3.1.
- - -Each venture Kiowa participates in earns her equity in the Hospitality Group:
-| Grant | Amount | When |
|---|---|---|
| Formation grant | 5% | Vests immediately upon venture formation (Articles filed) |
| Service grant (Q1) | 2.5% | 3 months from Opening Date |
| Service grant (Q2) | 2.5% | 6 months from Opening Date |
| Service grant (Q3) | 2.5% | 9 months from Opening Date |
| Service grant (Q4) | 2.5% | 12 months from Opening Date |
| Total | 15% | Fully vested after 12 months of active service |
For each venture, Kiowa may earn up to an additional 10% Membership Interest by - contributing working capital at startup. The investment equity is proportional to - her contribution relative to the venture's total startup cost:
- -| Venture Startup Cost | Kiowa Invests | % of Startup | Investment Equity | + Service (12 mo) | Her Total |
|---|---|---|---|---|---|
| $50,000 | $5,000 | 10% | 10% | 15% | 25% |
| $50,000 | $2,500 | 5% | 5% | 15% | 20% |
| $50,000 | $1,000 | 2% | 2% | 15% | 17% |
| $50,000 | $0 | 0% | 0% | 15% | 15% |
If Kiowa identifies, applies for, and secures a grant (non-repayable funding — - government, foundation, or private grant money) for any venture under the Hospitality - Group:
-| Departure Type | Buyback Price |
|---|---|
| Good standing + 90-day transition (helps onboard replacement, documents systems, hands off cleanly) | 100% of FMV |
| Good standing, immediate departure (no transition, but no misconduct) | 75% of FMV |
| Abandonment (no notice, 30+ days unresponsive, no communication) | 50% of FMV |
| For Cause (fraud, theft, intentional misconduct — see §8) | $0 — full forfeiture |
FMV definition: Net asset value (total assets − total liabilities) × Kiowa's - vested ownership percentage, as determined by the Company's most recent quarterly books. - If disputed, an independent third-party valuation at shared cost.
-Payment terms: Lump sum within 90 days of the departure date, or a 12-month - installment plan at Holdings' election.
-Unvested portion: Any unvested equity at the time of departure is forfeited - automatically — reverts to Holdings at no cost, regardless of departure type.
- -Instead of hourly commitments, Kiowa's performance is measured by outcomes:
-If Kiowa is not meeting these outcomes, the following process applies:
-Only after this process is exhausted may Holdings invoke the buyback. No buyback may - be triggered on the basis of a performance issue without completing the notice + cure + - mediation steps above.
- - -Forfeiture for Cause is triggered only by intentional, serious misconduct:
-What does NOT trigger forfeiture: Performance issues, honest mistakes, - negligence, circumstances outside Kiowa's control, or disagreements between Members. - These are handled through the notice/cure/mediation process in §7.3, potentially - leading to a buyback — not forfeiture.
- -Holdings shall provide Kiowa written notice of the alleged violation, specifying - the conduct at issue and the evidence supporting the claim. Kiowa has 15 calendar - days to respond in writing. If the parties cannot resolve the matter within 15 days - of Kiowa's response, either party may submit the dispute to binding arbitration - in St. Joseph County, Indiana, under Indiana law. Forfeiture does not take effect until - either (a) Kiowa acknowledges the violation in writing, or (b) an arbitrator rules in - Holdings' favor.
- - -Full equity, full distributions, full management authority. Business as usual.
- -If Kiowa decides to sell her vested interest after the 10 trailers are complete:
-| Term | Detail |
|---|---|
| Who buys first? | Holdings gets first right to purchase |
| Price (good standing, all ventures excelling) | 100% of FMV — Holdings matches fair market value when all businesses are performing and the departure is amicable |
| Price (if any venture is declining) | 85% of FMV — reduced to reflect transition risk when performance is mixed |
| Decision window | 60 days from written notice |
| If Holdings passes | Kiowa may sell to a third party — but the buyer must be approved by Holdings. No sale to any party Holdings does not consent to. |
| Third-party price floor | Kiowa cannot sell to a third party at a price lower than what Holdings was offered |
| Partial sales | Same terms apply — Holdings' ROFR covers partial sales too |
As a multi-member LLC, the Company is treated as a partnership for U.S. federal - income tax purposes. Each Member reports their proportionate share of income/expense on - their individual return via Schedule K-1. The Company will file Form 1065 annually.
-Kiowa's access to personal information, business data, trade secrets, and proprietary - information is governed by a separate Non-Disclosure Agreement. The NDA applies - regardless of Kiowa's membership status and survives termination of this Agreement. - Violation of the NDA constitutes grounds for Forfeiture for Cause under §8.
- - -This Agreement may be amended only by a written instrument signed by all Members. - Amendments are effective on the date stated in the amendment.
- - -The Company shall continue in perpetuity unless dissolved by:
-Notice: Holdings shall provide Kiowa a minimum of 90 days written notice - before any dissolution. Kiowa continues earning distributions through the notice period.
-Upon dissolution, the Company's assets shall be applied first to creditors (including - any Member, if owed), then distributed to the Members pro rata in proportion to their - vested Membership Interests, after which Articles of Dissolution shall be filed with - the Indiana Secretary of State.
- - -This Agreement is governed by the laws of the State of Indiana. Any dispute - arising under this Agreement that cannot be resolved by the Members within 30 days - shall be submitted to binding arbitration in St. Joseph County, Indiana, under Indiana - law.
- - -| Scenario | Outcome |
|---|---|
| Leaves before 10 trailers — good standing + 90-day transition | Buyback at 100% of FMV. Unvested forfeited. |
| Leaves before 10 trailers — good standing, no transition | Buyback at 75% of FMV. Unvested forfeited. |
| Leaves before 10 trailers — abandonment | Buyback at 50% of FMV. Unvested forfeited. |
| Forfeiture for Cause (fraud/theft/intentional misconduct) | ALL equity forfeited. $0. Permanent removal. |
| Stays through 10 trailers, keeps working | Full equity, full distributions, full authority. |
| Stays through 10 trailers, stops working | Keeps equity (passive), loses authority, accepts dilution. |
| Stays through 10 trailers, wants to sell (all ventures excelling) | Holdings buys at 100% FMV. Must approve any third-party buyer. |
| Stays through 10 trailers, wants to sell (any venture declining) | Holdings buys at 85% FMV. Must approve any third-party buyer. |
| Term | Meaning |
|---|---|
| "Company" | SnS Hospitality Group LLC |
| "Holdings" | SnS Network Solutions Holdings LLC (sole member represented by Samuel S. James) |
| "Kiowa" | Kiowa Scott |
| "Formation Date" | Date Articles of Organization filed with Indiana Secretary of State |
| "Opening Date" | Date the venture begins revenue-generating operations |
| "FMV" (Fair Market Value) | Net asset value (total assets − total liabilities) × Member's ownership percentage |
| "Grant" | Non-repayable funding (government, foundation, or private grant). Loans and investor capital do not qualify. |
| "For Cause" | Any triggering violation listed in §8.1 |
The undersigned, being all of the Members of SnS Hospitality Group LLC, adopt and - agree to this Operating Agreement as of the Effective Date first written above.
- -MEMBER — SnS Network Solutions Holdings LLC (75%+)
- -Printed name: Samuel S. James
-Title: Sole Member, SnS Network Solutions Holdings LLC
- -MEMBER — Kiowa Scott (up to 25%)
- -Printed name: Kiowa Scott
- -