Source: CrowdfundInsider
European crowdfunding leaders will meet this month to discuss the implementation of European Crowdfunding Service Provider regulation (ECSPR) and the Key Investment Information Sheet (KIIS) — a requirement for issuers raising money under the rules. The European Working Group will be meeting for the 2nd time to review pan-European crowdfunding.
ECSPR was created to enable a harmonized ecosystem for online capital formation across the EU. Previously, a firm needed to adhere to each member state’s national regulations if they wanted to solicit funds from the country. ECSPR is expected to boost access to capital for early stage firms as well as improve opportunities for smaller investors as they gain access to a growing asset class — private securities. The relevant authority must first approve any platform that seeks to operate under ECSPR in a member state — a requirement that has added some nuance to the ecosystem. As it stands today, an issuer may raise up to €5 million across the EU.
The KIIS is required under ECSRP, and crowdfunding platforms must provide the document outlining the risks involved in securities crowdfunding.
To quote the rules:
“The key investment information sheet should be drawn up by the project owners, because the project owners are in the best position to provide the information required to be included therein. However, since it is the crowdfunding service providers that are responsible for providing the key investment information sheet to prospective investors, it is the crowdfunding service providers that should ensure that the key investment information sheet is clear, correct and complete.”
Any shortcomings in the KIIS can result in a canceled or suspended offering or potentially other actions. At the same time, the KIIS does not need to be approved by the relevant authority. The document must be produced in at least one official language of the EU.
A platform-level KIIS is also required.
The European Securities and Market Authority (ESMA) is currently collecting these documents.
As for the meeting of the European Working Group, the notice explains:
“We are focussing on the Key Investment Information Sheet, which is the main document which the issuers of securities and loans have to provide to the investor. The KIIS is six pages long. At the meeting, we will discuss our experiences with the KIIS, and develop suggestions for making the KIIS better suited to the needs of the investors. The outcome of this meeting is a joint policy-paper of the European Crowdfunding and Fintech Associations.”
Source: https://www.crowdfundinsider.com/2024/05/224839-european-crowdfunding-leaders-to-discuss-key-investment-information-sheet-as-part-of-ecsp

The kitchen is on fire. Welcome to the final part of the Vapiano story where the tables are turning. In the first two episodes we followed Mark Korzilius' journey from setbacks to founding Vapiano, a groundbreaking restaurant concept, highlighting its fresh ingredients, dynamic atmosphere, and data-driven operations that drove rapid success. While achieving initial profitability and garnering attention from industry giants like McDonald's, Vapiano's global expansion has led to stellar revenue growth. However, it has also resulted in the emergence of numerous side projects (or distractions), operational challenges, increased costs, significant investments, and a notable accumulation of debt. This underscores the prioritization of top-line growth over profitable growth. We will continue on this thread and see how the story ends, but I would encourage you to read part one and two for better context. Vapiano P1: Italian Food Made in Germany (substack.com). Let's dig in.
Before Going Public
We are now in 2015 and the year is a disaster for Vapiano's PR department. Employee time stamps are being manipulated, endless overtime for employees and high turnover in managerial roles are reported; mice in the kitchen and even rotten food allegedly found.
The company is confronted with allegations of exceeding working hours among trainees in an article published by Welt am Sonntag, while the same outlet accuses Vapiano of manipulating punch times. The auditing firm PwC is commissioned to investigate the allegations and finds that there is no systematic approach but rather misconduct by individual employees, a mistake that’s being corrected. Internal however, investigations into stamp times are carried out regularly now and beyond its obvious reputational impact, this sucks up valuable management time and attention.
In the summer of 2015 CEO, co-founder and investor Gregor Gerlach, who has been running the group since 2011 is stepping down and Jochen Halfmann is taking over. A new Vapiano People Program with an App is being developed with the aim to better interact with customers that will incorporate innovate features such as mobile pay. The German website sees a launch of new magazine to further promote the brand and there is now a full inhouse blogger and Instagram team being installed. In October the company buys seven restaurants from original co-founder, former co-investor and ex-president previously responsible for internation expansion Kent Hahne (2x Bonn, 3x Cologne, 1x Koblenz and one in Cologne that’s under construction). This package of Vapiano restaurants is very successful and generates net sales of more than 20 million euros in 2014. Hahne opened his first Vapiano restaurant in Cologne in August 2006 and in 2015 with his company apeiron AG, Hahne operates six L'Osteria franchise restaurants, a direct Vapiano competitor, and two self-owned restaurants GinYuu.
Then in November of 2015, the next public relations bomb goes off with allegations regarding the company's quality standards. The company immediately investigates the issue through internal and external specialists but finds no evidence of any quality issues. Nevertheless, knowing that the group is now being closely watched, the company’s already in place hygiene standards are being reinforced. Additional audits and inspections are performed nationally. Further, all Vapianos worldwide are being audited twice by the partners SGS Institut Fresenius and SAI Global. Auditing software is purchased to simplify the implementation of the audits and the resulting measures. Apart from the external examinations, there is a food sampling plan in place being performed continuously. Again, all of this sucks up costs, management time and attention. With all these tumultuous developments the company’s growth engine is undeterred. Revenue grows by a whopping 50 million euros to 202 million euros, an increase of 33%. Impressive. While average spent per customer increases in all countries, the number of customers per day in Germany decreases by 3.3% partially due to the negative press towards the end of the year. Five own, four JV and 19 new franchise restaurants are added that year to the group, the total number of own managed restaurants grows to 51, there are 31 JVs and 84 franchises which bringing the total to 166 Vapiano restaurants. Global restaurant sales are now above 400 million euros.
But while revenue grows by an astronomical 50 million euros, operating profits, alarmingly, shrink again. Gross margins are staying perfectly healthy above 75% but operating costs keep growing disproportionately fast. The Company’s outstanding debt jumps by almost 30 million, close to 85 million euros by the end of the year. With operating profits at 9.5 million euros, alarm bells should be going off right now.
In Q4 of 2015, new CEO Jochen Halfmann introduces Strategy 2020. The new strategy includes five essential points. One, profitable growth in the newly defined core markets of Germany and Austria as well as in the UK, Netherlands, France and USA. Two, operational excellence through strict “best practice” management. Three, further development and digitalization of the concept considering guest feedback. Four, greater focus on long-term employee retention and five, building a modern and sustainable IT landscape. Sound’s good on paper but let’s see how things pan out.
Vapiano's investments (capital expenditures) that year are primarily directed towards new restaurant openings, renovations of existing establishments, and share acquisitions in other Vapiano restaurants from franchisees or JV partners. A significant portion of funds is allocated to the digitalization of the guest experience, including the development of a new app scheduled for market release in 2016 and the implementation of a time recording system across all group restaurants. The world's first standalone Vapiano restaurant with a delivery service that year is built in Fürth, Germany. The company keeps expanding its presence in both inner-city locations and international markets, such as Shanghai, China.
To finance all of this, the group has its own operating cash flow which comes in at 18 million while capital expenditures are 26 million euros plus 14 million for acquisitions. The funding gab is filled with 26 million euros of new debt and a seven-million-euro equity raise. At that end of the year and after the equity raise Gregor Gerlach (through his AP Leipzig GmbH & Co. KG entity) holds 30.1%, Hans-Joachim and Gisa Sander through their Exchange Bio GmbH hold 25.5% and the Tchibo heirs, Herz through their Mayfair Beteiligungsfonds II GmbH & Co. KG hold 44,4%.
But for the first time the restaurant’s concept that was so successful to date is being questioned. Some customers are starting to mislike the operational flow of the concept itself. If you want pasta, you must queue for pasta. If you want pizza you stand in a different queue. A small side salad, yet another queue. "You spend more time carrying trays than an actress in Berlin-Mitte. The audience in the pasta limbo can only consist of people who have worked for an insurance company for a long time and, like Stockholm syndrome, they can no longer get away from the industrial canteen feeling," writes TV host Beisenherz provocatively. While overly harsh in his assessment he's not entirely wrong judging by customers venting their frustrations in forums and social media channels. It isn’t uncommon for those who ordered pizza to have already finished eating while there is little movement in the pasta queue. Long term that doesn't go down well, QSRs competitors like L’Osteria are handling this process differently, with much success.
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Tipping Point

Where are now in the year 2016 and things start to deteriorate visibility. Perhaps not for the leman’s eye but any business minded observer can see that there are problems under the hood. Yes, revenue grows yet another whopping 50 million to almost 250 million euros but half of that growth, comes from acquisitions of restaurants that the group didn’t already own 100%, which is now being fully consolidated within the group’s accounts. Here is a concrete example. In the past, Vapiano SE, the group’s top holding company held an indirect 50% stake in a French subgroup via the subsidiary VAP Restaurants SA, based in Luxembourg, and included this as an associated company in the Vapiano SE consolidated financial statements using the equity method. Due to the acquisition of additional shares in September of 2016, Vapiano SE's indirect share in the French subgroup increased to 75%. This means that Vapiano SE takes control of the French subgroup, which is therefore included in the group’s financial statements as part of the full consolidation. The revenue from the acquired subsidiary now recorded in the consolidated income statement amounts to 12.8 million euros. While that’s great for the top line, the loss of the fully consolidated entity equates to 0.2 million euros. Yes, you are buying revenue, but there are losses attached to them, not profits. A similar case is the Swedish entity that runs eight restaurants with revenue of 11.5 million euros but has losses of 235 thousand euros. So much for Strategy 2020 and “profitable” growth.
That year the group’s operating profits are absolutely tanking, halving to 3.5 million euros. Operating profits are now a mere 1,4% of revenue. Remember original founder Mark Korzilius who talked about operating margins of 25% to 28% at the restaurant level? Yes, there are overhead costs for the organization that sits above the chain of restaurants, but operating margins that low indicates a course correction is needed. What’s telling is that in the annual report, in the management discussion section, the company starts talking about EBITDA as a proxy measure of profitability, rather than operating profit or net income. This wasn’t the case in the years before. Is this window dressing for an upcoming IPO? EBITDA is short for earnings before interest, tax, depreciation, and amortization. How can you measure profitability of a restaurant chain that absolutely and unequivocally needs capital investment to maintain its restaurant operations, the very source of cash generation, by simply excluding this maintenance charge (depreciation in the income statement)? Vapiano’s own annual report talks about the fact that existing restaurants must be rejuvenated from time to time and that new interior designs have to be implemented every few years. These things wear and tear, they go out of style, kitchen equipment breaks and needs replacement. This business absolutely needs maintenance capital expenditure, why anyone talks of profits before these maintenance costs is beyond me. Fun fact: in the previous annual report EBITDA is mentioned seven times, mostly around restaurant acquisitions and financing, not however as a profit indication for the group. In the new annual report, EBITDA is mentioned 28 times. Maybe it’s just me but belated Charlie Munger liked to call EBITDA: bullsh*t earnings. When in doubt I stick with Charlie. Interestingly, EBITDA for Vapiano keeps growing while operating and net profits keep falling.
Operating cashflow for the group that year is about 21 million euros, but capital expenditure is 30 million and acquisitions for subsidiaries another 20 million. To finance these expenditures another 28 million euros of debt and 16 million of equity is raised. Net debt rises above 130 million euro. The operating cashflow of the group before any capital expenditures is 21 million euros. I am not sure free cash flow would be significantly positive after maintenance capex is paid out; it’s not broken out so we can’t be sure. Granted, I am not on the ground during this time, and I am not in the board room, I am simply reading what’s in front of me, but to me this is starting to look like a distressed situation. Regardless, the following year the company goes public.

IPO

Where are now in the year 2017 and its Vapiano’s first year as public company. The company’s annual report reads the following “Sales revenue, like-for-like growth (LfL) and the earnings figures EBITDA and adjusted EBITDA are used as the most important financial performance indicators for controlling operational business activities.” The very same report however also says: “The majority of the group's investments regularly go towards opening new restaurant locations and modernizing existing restaurants. The latter are differentiated into regular replacement investments that occur during ongoing operations (Maintenance CAPEX) and fundamental investments in the renovation of a restaurant (Remodeling CAPEX). On average, a restaurant remodeling takes place nine years after opening.” It says it right there in their own report; every nine years a remodeling is taking place. Remodeling and updating is not cost free, so why exclude depreciation charges which reflect capital expenditures? I understand that perhaps you would want to strip out one-off opening costs, that’s fine and fair, but don’t go overboard.
The number of restaurants increases by 26 (previous year: 13) to a total of 205. The increase consists of 27 new openings and one closure. Group revenue grows to an astonishing 325 million euros but here comes the shocker, operating profits turn negative to 25 million. Fine, strip out foreign exchange losses of 3 million, IPO costs of 5.8 million and new opening costs of 6.1 million and you still have 10 million euros of operational losses. All the while the debt load of almost 130 million hasn’t materially changed, so those operating losses are before a six-million-euro interest payment. 184 million euros are raised through the IPO of which 85 million go to the company. This money is earmarked for further expansion as the group has ambitions to almost double the footprint to 330 restaurants by the end of 2020. The company is currently not profitable on an operating basis, and still wants to expand aggressively? I don’t get it. The remaining 100 million euros of the IPO money raised is distributed to co-founder Gregor Gerlach and Wella heirs Hans-Joachim and Gisa Sander. The family office of the former Tchibo owners Günter and Daniela Herz with a 44% stake, don’t sell a single share. After the IPO, 32% of all the company’s shares are now in free float.
One year later, in 2018, things get even worse. Revenue grows to 371 million, but operating losses mount to 85 million euros, that’s before interest expenses of 9 million. Even the beloved EBITDA figure turns negative, meaning the operating business before any expansionary or even maintenance capital expenditures is loss making. All regions are experiencing significant deterioration in their earnings profiles. Like for like sales are down 1% across the board. That’s revenue, not profitability. The question naturally arises: is the Group approaching its natural saturation point here or this operational by nature? The operating cash flow is now 9 million while financing cost are close to 7 million. That leaves 2 million for maintenance capital for 74 own restaurants and 76 joint ventures ones. Describing this as financially tight, would be an understatement.
Things are not looking good at this point. Yet the company still grows restaurants by 26 new sites. 64 million euros are spent on acquisitions, new openings, and maintenance costs, financed through a 20 million-euro equity raise and 72 million of new debt. The Company now has net debt outstanding of over 160 million euros. After the equity raise and by the end of the year 2018, Mayfair owns 47.4%, VAP Leipzig, Gregor Gerlach’s entity owns 18.9% and the Sander couple own 15.5% of the company. Yes, the Sanders and Gerlach may have taken 100 million euros off the table, but they still have substantial skin in the game. Plus, Mayfair hasn’t sold a single share and instead injects more money into the company through the equity round. The stock has now fallen from its IPO price of 23 euros per share to under 6 euros by the end of 2018. Something must be done here. And indeed, there is pivot in strategy and a hard push for change. At last, the management team abandons its aggressive growth plan and curtails new openings significantly. Additionally, the team wants to run a thorough analysis of weak locations to then either discontinue or sell sites. In Europe, the operating focus will be put on corporate restaurants and joint ventures in major cities to ensure the ideal size and location to match the respective demographic target group. Outside of Europe, the franchising business is being expanded and at the same time a consolidation of the existing corporate and joint venture markets is being sought. All future investments will be reviewed to achieve higher rates of returns on new openings. Investments are also being made in the renovation of older restaurants. The goal in the future is to also open smaller formats, like Mini-Vapianos (less than 400 square meters) or Freestander at prominent transportation hubs outside city centers (currently in Fürth and Toulouse) to cater to individual location requirements, and to enter new partnerships. I am not sure why management hasn’t stopped all expansion altogether, bringing the ship in order first, getting profitable, clean up, all hands-on deck before considering any further expansions whatsoever. But again, it’s easy to comment from the sidelines; maybe they saw white spaces that would be covered by competing concepts if they weren’t moving fast and aggressively enough. Although pushing internationally means competing with local players such as Jamie's Italian, Prezzo, Pizza Express, Wagamama, Nando's and many more which brings in its own dynamic.
Management also aims to enhance guest satisfaction. This involves refining operational processes, reorganizing the support center, and refocusing on the core offering: providing fresh and high-quality Italian food at affordable prices for a broad audience. The group also aims to reduce waiting times, especially during lunch, while also improving the evening atmosphere. There is even what I would call an evolution, away from Vapiano’s original concept, reorientating the customer journey. The ordering flow is being changed, offering guests synchronized preparations of all dishes while eliminating wait times at the cooking stations. The open show kitchen remains, staying true to original mantra of freshness and transparency but now guests can choose their preferred method of ordering through a mobile app, using a digital order point (kiosk), or by personally placing an order with a waiter. Guests can still freely choose their table and are then informed about the complete preparation of their order through a pager or their smartphone. This is a substantial deviation from the original concept, but a needed one. The group is also exploring and implementing the expansion of take-away and home delivery services but only at suitable locations, not universally across new openings. I am not sure why home delivery is even a priority here; it adds operational complexity. It’s better to clean up shop first and get back to the basics before adding new complexities. To be fair management does try to simplify. There are 49 different permanent dishes on the menu and additional 10 seasonal ones. Customers can choose from eleven different types of pasta. There is simply too much choice, and it makes orders complicated. The company announced to slim the menu down to its most popular and typical Vapiano dishes. There’s no need for an Asian salad at an Italian restaurant. "We have to go back to the roots, i.e. classic, honest Italian cuisine" says COO Everke. Regardless, in November of 2018, the supervisory board pulls the plug on CEO Jochen Halfmann and replaces him with Cornelius Everke. Everke himself has just become COO five months ago. Since 2017 he was responsible for international expansion. From 2011 to 2017 that role was filled by Mario Bauer – put a pin in that name, he’ll play a key role in the groups fate later. Then nine months later, in the middle of 2019, Cornelius Everke quits. He essentially concludes that his skillset and experience in the areas of internation expansion is no longer needed in the foreseeable future. To put it differently: Vapiano has moved from a growth story and has become a restructuring case, and other skills are required for that job. In June of 2019 Everke says the following “(we’ve) made a bit of a mistake when it came to foreign expansion”. No sh#t. Vapiano postpones the presentation of the 2018 annual financial statements three times in the spring of 2019, citing negotiations over an urgently needed loan of 30 million euros. It’s not until the end of May that a binding loan commitment comes through from the financing banks and major shareholders.
We are now in August of 2019 and the corona pandemic is just around the corner. Supervisory board chief Vanessa Hall takes over as interim-CEO and things are unravelling. Visitor numbers are declining; originally, it was planned to sell the US business but halfway through the year the buyer cannot come up with the money. But not all restaurants are performing poorly. The group's poor figures contrast starkly as an example with the experiences of the Swiss-German franchisee, who runs six restaurants. The Sodano family in Switzerland pays Vapiano a royalty of 6% of sales for the use of the brand. Enrico Sodano explains in an interview that they operate largely autonomously from the licensor. If an “accident” were to occur, he could immediately replace the Vapiano sign with Sodano, he says. The family concluded the rents and contracts with employees and suppliers independently. The Sodano family have six locations in Bern, Basel and Zurich, around one million guests every year and 350 employees. Things are going well on the ground. The delivery service they’ve built is offering them a second income stream. Expansion into Winterthur, St. Gallen and Lucerne are being planned; small locations with 150 to 250 square meters and an attached delivery service. Originally, Vapiano restaurants used to be huge but for such a large restaurant to be profitable, 800 to 1,000 guests per day are needed. That’s possible in medium-sized cities, but not in smaller towns which is why the Vapiano group now also supports smaller formats. Back to our corporate drama. The 2019 annual report would be the last report the group files. By the end 2019 the outstanding debt of the company is at an astronomical 450 million euros. Revenue has grown by another 7%, produced by four net new openings through two JVs and two franchise restaurants but operating losses come in at 317 million euros. That sound like an absolute shocker at first but depreciation and amortization charges are 345 million, so that operating cash flow is actually positive but unfortunately capital expenditures and interest payments are so large that they are eating up all of the company’s operating cash flow. Then in the beginning of 2020 Corona hits with full force and the world shuts down. As a result of the measures to prevent further spreading of the virus, the group is forced to cease all global business operations (except in Sweden). While all these shutdowns are happening, the group is the middle of negotiating with its lending banks and main shareholders. There are additional financing needs for restructuring measures, even without a pandemic happening in the background. The situation is so dire that the company starts pleading to the German government to roll out the package of financial help more quickly. Unfortunately, it’s to no end. The rapid closure of restaurants and the resulting lack of operating cash inflows in conjunction with the additional financing requirements, lead to the company’s final knockout punch. In April of 2020, the Vapiano group officially files for insolvency proceedings. The end of an era.

New Beginnings

Because of the pandemic, the majority of the group's subsidiaries in Austria, the Netherlands, Denmark, the United States, Sweden, and China also file for insolvency or seek liquidation. The US business never gets sold in the end and is wound down. In the summer of 2020, significant group divestments occur, including the sale of 75% shares in the group's French subsidiaries, shares in franchisor companies, Australian subsidiaries, German subsidiaries, associated companies, self-managed restaurants in Germany, and insolvency-related sales in the Netherlands, Great Britain, and Sweden. The buyer of the Vapiano brand and one of these bundles of Vapiano restaurants is company named Love & Food Restaurant Holding, a consortium led by Mario C. Bauer – a name I told you to remember. Bauer was a former Vapiano board member and led the national and international expansion, opening 200 sites in 33 countries from 2011 to 2017 until he was succeeded by Cornelius Everke. Bauer didn’t feel comfortable with the IPO at the time but clearly has a lot of managerial and entrepreneurial talent.
The buyer consortium is an absolute A-Team comprised of European QSR top league hitters, including the founder of the Pret A Manger chain Sinclair Beecham; Henry McGovern, the founder and Ex-CEO of the giant international restaurant and foodservice operator AmRest; the Van der Valk Family that runs hotels and Vapiano restaurants in the Netherlands, and co-founder and ex-CEO Gregor Gerlach. The acquisition value is 15 million euros and entails 30 Vapiano restaurants in Germany, albeit that’s just the purchase price which comes on top of any capital investment needed to refresh and return the sites to its former glory. Nevertheless, just as a thought experiment, if you can get each site to 2 million euros of revenue and 400,000 euros in operating profit on average, which wouldn’t be an overly aggressively assumption given the company’s history, you’ve got yourself a package that can deliver restaurant-level operating profits of 12 million euros or more. It’s not disclosed how much capex was needed to refresh the operations, just that fact that the overall investment plus purchase price was a middle double-digit million-euro figure. Stil, it probably was a decent purchase. The same consortium buys Vapiano’s French business for 25 million euros just two weeks prior. After the transaction concludes, the master franchise is given to Delf Neumann and his Gastro & Soul GmbH. Neumann is an experienced operator, and he is ambitious to revitalise the brand with new services and products. For example, instead of pizza, the restaurants will be serving pinsa - a flatbread made from sourdough, wheat and rice flour, topped similarly to a pizza. It targets a more health-oriented customer base looking for a less calory heavy option. The menu overall is expanded by including a variety of vegan and vegetarian dishes.
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Today Neumann’s Gastro & Soul GmbH operates 18 Vapianos on its own account and has 29 franchise sites, amongst other brands. By the year 2021, Vapiano operates 191 restaurants in 34 countries. This is around 50 fewer sites than before the bankruptcy. The number of branches is particularly thinned out in Germany – from 80 to 55. Nevertheless, Vapiano's home country remains by far the largest market, followed by France with 35 restaurants and Austria with 15 locations. “We have shrunk ourselves to health,” says Bauer in the aftermath and there is no further shrinking planned. Quite the opposite, the smell of expansion is in the air again – pun intended. Not as aggressively as before and with a new menu and ordering process.
Overall, the team around Bauer is filled with industry experts with knowledge and networks gained over decades who have a great track record, a long-term view, and the staying power to let Vapiano breath and finds its way back to success. The pressure of being a public company with all the associated quarterly, half-year and yearly disincentives have been removed. The menu is changed and extended with new types of pasta and sauces with significantly more vegetarian and vegan dishes available. Guests can order with restaurant staff, at terminals or on their phones and there are barcodes attached to the tables identify the respective seat. The food is brought to your table, all at the same time if you are in a group, no more annoyances with waiting in line. There is a plan for smaller, 350 square meter locations, with half the number of guests and significantly fewer staff and less set-up costs required to make the economics work. Locations that capitalize on remote work and increased demand for local lunch options, higher population density with shorter delivery routes and therefore cost-effective in house delivery services are targeted. And Bauer is testing the concept of ghost kitchens, which operate without a dining room or service staff, focusing solely on preparing food for delivery services, which for obvious reasons have a very different operational set up and footprint. Original founder Mark Korzilius however is not entirely convinced. He is not a fan of the pinsa for instance and he considers Vapiano's pizza as its cash cow, flagship product and believes that the core Vapiano proposition of Pizza, Pasta, Bar that has given the company its original success is being diluted. He instead admires the competitor L'Osteria, saying they’ve done a better job by focusing on Italian classics, especially the impressively large pizzas that sticks out beyond the plate is leaving every customer in awe. The guys who run L’Osteria are the same guys who have built Vapiano with him in the first place. Bauer on the other hand, like a true business leader, remains undeterred, stating that he is frequently asked whether Vapiano's restart was bold or foolish. He believes in entrepreneurship, franchising, in his experienced fellow partners and importantly the Vapiano concept. By the year 2024 you can find over 140 Vapiano branded restaurant in 27 countries across the globe, including locations far away from its birthplace like Australia, USA, Columbia, Chile, Bahrain, and Saudi Arabia. And why not? Italian food is, and will remain to be, incredibly popular. Vapiano offers fresh and tasty food at affordable prices in a good atmosphere. This combination of attributes should attract a lot of customers. It certainly has in the past.
For more stories: WIP Thomas Weitzendoerfer Substack

President Henry Martin “Scoop” Jackson

41st President of the United States
Vice President
Nellie Stone Johnson
Secretary of State: Claude Pepper
Secretary of the Treasury: Maurine Neuberger
Secretary of Defense: William Winter
Attorney General: John Tower
Secretary of the Navy: Arleigh Burke
Secretary of the Interior: Edmund Muskie
Secretary of Agriculture: Hubert Humphrey
Secretary of Commerce: Asa Randolph
Secretary of Labor: Leonard Woodcock
Secretary of Education: Jane Jacobs
Secretary of Health & Welfare: John Gardner (Since March 1965)
Speaker of the House: Charles Halleck (Republican, 1965-1967)/Adam Powell Jr (Labor, 1967-)
Pro Tempore: Lyndon Johnson (Labor)

1964 Election Results

Presidential
Liberal candidate John Kennedy receives 115 electoral votes
Margaret Smith received 38.57% of the vote
John Kennedy received 20% of the vote
Henry Jackson received 41.43% of the vote
Jackson defied poll numbers
While polling has consistently showed the election as a close race, almost all polls had the incumbent President, Margaret Smith, winning by 1 or 2 points up until the election. The last poll conducted on October 28th had Smith leading by 1 point, and Kennedy far behind both major candidates. Some have already begun to blame the Liberal Party and Kennedy for stealing moderate voters from another Republican victory. Regardless, The ever-ambitious Senator Scoop Jackson will enter the White House come January 20th.
House Results
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House Results After Liberal Dissolution (1965)
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• The one Independent is Speedy O. Long of Louisiana

Senate Results
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Senate Results After Liberal Dissolution (1965)
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• The one Independent is Russell B. Long of Louisiana

First 100 Days

Revenue Act of 1965
The Revenue Act of 1965 would take a more progressive approach to taxation, increasing income taxes up to 7% in the highest tax bracket; all while lowering income taxes down by 4% for lower income households. The Act would also increase the Social Security Tax to 8%.
House voted 228-207
Senate voted 52-48
Mass Transit Tax Act of 1965
The second Mass Transit Tax Act would lower short range rail and air transport by an average of 5%, while increasing long range rail and air transport by an average of 2%. International flight tickets would be increased as well, by an average of 6%.
House voted 236-199
Senate voted 62-38
Minimum Wage Act of 1965
The long-standing federal Minimum Wage of $0.80/hour has been around since 1949, with no increase on the federal side of things. President Jackson and other Laborites were able to pull their weight and increase the federally-mandated minimum wage to $1.30/hour. Although the Labor Party advocated for a higher hourly wage, others in Congress feared a wage any higher would result in another economic panic following the near-collapse of the National Debt Ceiling a few years prior.
House voted 227-208
Senate voted 52-48
Department of Health Foundation Act of 1965
Founded the Department of Health and Welfare to help administer and regulate various healthcare practices and the distribution of Social Security, medical tax breaks, and more. Though indirectly, Congress soon changes the Executive budget to cut the Department of the Interior's funding by 40%; most of that money going into the new Department of Health and Welfare.
House voted 249-186
Senate voted 64-36
National Environmental and Water Policy Act of 1965 (NEWPA)
Championed heavily by the President and young members of the Labor Party in Congress like Edmund Muskie, NEWPA places greater regulations and laws into place regarding water safety and treatment, water pollution, trash allocation, dump sites, and recycling; unseen since the progressive era of the early 1900s. These regulations are expected to greatly improve the environmental state of decay for decades to come.
House voted 221-214
Senate voted 54-46

Death of former President, Theodore F. Green: May 19, 1966

This morning, former President Theodore Francis Green passed away in his Rhode Island home at the age of 98, marking the oldest President at the time of his death. Green was a member of the Democratic Party and briefly the Anti-Fascist Alliance, taking charge from his previous position as Secretary of State after the sudden assassinations of sitting President Earl Browder and Vice President Upton Sinclair. President Green helped uncover the “Business Plot” orchestrated in part by J.P. Morgan Jr. and Prescott Sheldon Bush Sr, the latter being the father of sitting Texas Congressman George Bush.
President Theodore F. Green led us through the horrors of the second world war after the sudden attack on Pearl Harbor, resigning his post and organizing a special election the year following the conclusion of the war itself. He was instrumental in the foundation of the United Nations and eventual foundation of both NATO and EATO two Presidents later. He was, and still remains a national hero in our hearts. President Henry Jackson, among former Presidents and dignitaries are expected to show up for his public funeral in Providence, Rhode Island. The public has been allowed to pay their respects at his grave site before his proper burial et to take place from May 19 at 9:00 AM to May 20 at 9:00 AM.

Foreign Policy Ventures prior to the 1966 Midterms

Embargo Act of 1965
Supported already by the majority of the country, Scoop Jackson directed Congress to pass a full embargo of all raw and manufactured Cuban goods on entering the United States through any port or checkpoint.
House voted 313-122
Senate voted 76-24
With the law being signed by the President in August that year, he would make a speech in Miami celebrating the passage of the act, glorifying its protections of American, anti-communist goods. Scoop would face some backlash over his anti-communist posturing, as the Labor Party has a small (but noticeable) sect of Communists in their ranks.
The Saigon Summit
In July of 1965, after riots against the French government in Saigon, and the breakout of a guerrilla war in French Cambodia, a summit was called in Saigon to determine the future of the city. President Jackson, President Ho Chi Minh, and President Charles de Gaulle met within the French administrative building to discuss the recent riots in the city and future between Saigon and Vietnam. Although much of Vietnam was granted total independence from French rule in 1950, French Saigon remained a thorn in Vietnam's side. France wished to keep as much of its dying empire as possible, and no one would fight harder at that than Charles de Gaulle himself. President Jackson wished to keep the peace and eventually coerce Vietnam into rejoining EATO.
Talks were messy at times, as yelling could be heard from the chambers the talks were being held in, but the three would come to an agreement. Saigon would be administered by a joint Vietnamese-French government, and policing and law would gradually transition to local and Vietnamese systems. In return, Vietnam would promise to not get itself involved in the Cambodian guerilla war.

1966 Midterms

House Results
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7 Third Party/Independents

• Speedy Long (Louisiana Independent)
• Edward "Ted" Kennedy (Massachusetts Independent)
• deLeppes "Chep" Morrison (Louisiana Independent)
• Spiro Agnew (Maryland Independent)
• Gus Hall (Minnesota Communist League)
• Jarvis Tyner (New York Communist League)
• Charlene Mitchell (California Communist League)

Senate Results
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2 Independents

• Russell Long (Louisiana Independent)
• Edward Brooke (Massachusetts Independent)

Invasion of Saigon

In December 1966, a clash between Vietnamese and French police during a riot led the Vietnamese side of the Saigon Transitional Government to call on Vietnamese military aid. Within hours, the Republic of Vietnam marched into the jointly occupied city. Rumors immediately began amassing that the Saigon police force worked with the Vietnamese government in order to cease Saigon before the transitional period was up. Although these rumors were just that, President Jackson was surely worried when the news hit him the next morning; alongside the French Ambassador asking for an audience with the President.
French Ambassador Hervé Alphand would share with Scoop three things:

1. France intends to treat the invasion of Saigon as an act of war.
2. France is already mobilizing troops to southern Cambodia for a naval invasion of Vietnam.
3. France intends to call on the force of NATO and EATO to defend “France in her hour of need.”

No matter how Jackson tried to argue, Alphand was keen on these points. Jackson would argue that the incident be investigated by the United Nations to determine whether it was an act of war; while Alphand threatened that American delay on the issue could lead to French withdrawal from both NATO and EATO. Jackson, reportedly furious, refused to be threatened by a “dying empire”. He denied meeting with any French foreign dignitary for the time being until they promised to allow the UN for an investigation.
The French response was quick, with France officially leaving both NATO and EATO on December 18, 1966. The French declaration of war and further campaign into Vietnam began on the 20th. With naval and air landings concentrated around Rach Gia, Can Tho, My Tho, Saigon, and Vung Tau, the Second Indochina War began. Although Australia would provide weapon assistance, the other nations within both NATO and EATO held their breath on what to do. France had left the two most powerful military and economic alliances in the world, and President Jackson could not be more angry.

Glasgow Conference of 1967

With the war having gone on for nearly three months, and French military forces having begun to get bogged down by the Vietnamese harsh tactics; Can Tho remained the only major French-held territory in the young Republic. And although Vietnamese war tactics were questionable at best; much of the world was united in believing the French declaration of war was not entirely justifiable; with President Scoop Jackson and General Secretary Leonid Brezhnev at the forefront of organizing peace efforts within and without the UN. Although the United Nations have begun investigations into both the Vietnamese invasion of Saigon and the French declaration of war, they both had gotten bogged down by the surrounding war effort.
It was agreed upon by several major powers to meet in Glasgow with French and Vietnamese delegates to discuss an armistice. The United States, United Kingdom, Soviet Union, and the People’s Republic of China agreed to enforce the following terms:

1. Saigon and surrounding territories that formerly made up the French Vietnam Territory following the 1950 Treaty of Manila shall be ceded to the Republic of Vietnam. Saigon and the surrounding territories shall become a United Nations sponsored demilitarized zone until an official peace treaty between the 5th Republic of France and the Socialist Republic of Vietnam.
2. French military and bureaucratic personnel shall be allowed free and safe passage out of the cities of Can Tho and Saigon; sanctioned by the United Nations Peacekeeping Force. The French and Vietnamese governments must release all prisoners of war; sanctioned by the United Nations Peacekeeping Force.
3. Saigon officials implicated in the initial invasion of the city on December 16, 1966 must release all official, personal, and private documents to the United Nations Office of Legal Affairs for investigation.
4. Vietnam must retain its promise from the 1964 Saigon Summit to not aid or abet Cambodian guerilla forces or rebels.
5. All combat between the 5th Republic of France and the Socialist Republic of Vietnam shall cease and abide by the above rules, the United Nations, and Geneva Conventions.

Although both nations had much to say and change in their favor, the above is the final version of the armistice agreed upon by all parties. The armistice paper was signed by:

• President Henry Martin Jackson of the United States
• General Secretary Leonid Ilyich Brezhnev of the Soviet Union
• Prime Minister James Harold Wilson, Baron Wilson of Rievaulx of the United Kingdom
• Chairman Mao Zedong of the People's Republic of China
• Foreign Minister Ernest Charles Lucet of the 5th French Republic
• Foreign Minister Nguyên Duy Trinh of the Socialist Republic of Vietnam

Military Aftermath of the Second Indochina War:

• 57,000 KIA (66% Vietnamese)
• 12,000 MIA (81% French)
• 72,000 WIA (52% French)
• 134,000 Civilians KIA/MIA (89% Vietnamese)

Although the Glasgow Conference was seen as a great triumph of diplomacy between the major powers, Taiwan (the Republic of China) was greatly hindered in its geopolitical influence for the time being. President Jackson had recognized the People’s Republic of China the week prior to the Conference; Communist China would replace Taiwan's spot as a permanent member of the UN Security Council within the month.

The Better Society Plan

Plans drawn up between Pro Tempore Lyndon Johnson, Representative Claude Pepper, and Speaker Adam Powell Jr. would be taken to the President's desk following the first relatively calm year in the administration's history. Although much of the work on marketing the plan would be placed on Scoop himself; Johnson, Pepper, and Powell would act as the main sponsors of each piece in Congress. What would become the beginnings of the “Better Society Plan” would officially pass both houses of Congress throughout mid 1968.
Cheap Food and Housing Act of 1968
A large bill authored primarily by Speaker Adam Powell Jr. and Secretary Hubert Humphrey; the Cheap Food and Housing Act would cover extensive social programs. Although, with weak support in Congress, many Republicans were able to push to soften these programs and add their own agendas on top of them. The final contents of this massive bill were as follows:

1. A federal Food Stamps program would begin and be administered and funded by the Department of Health and Welfare. Certain imported foodstuffs would receive a 15% higher tariff. All American citizens that either fall below or are less than 6% above the poverty line would be eligible for the Food Stamps program.
2. Store-bought meat products will receive price controls to fit the monthly income of the average family. The Federal Government will cut 60% funds toward GMO Agriculture, Meat, Fish, and Poultry research.
3. Houses that take up less than a certain area size will be price capped based county-by-county income. This job is in the hands of State Governments. (Apartments are not covered in this)
4. Housing discrimination shall be made illegal based on identity.

House voted 241-194
Senate voted 53-47
Medical Bill Reduction Act of 1968
This bill was authored by Representative Claude Pepper and Secretary John Gardner in order to fundamentally reduce medical expenses for the youth, elderly, and medically unable. The bill however was weakened significantly by the Republicans in Congress, only allowing for those receiving Social Security benefits to have reduced medical expenses paid for partially by the Department of Health and Welfare; no matter if the recipient is signed on with private insurance or the Public Option.
House voted 220-215
Senate voted 53-47

Apollo 8: Americans on the Moon in November 1968!

Thanks to streamlined efforts by Presidents Dwight Eisenhower and Margaret Smith the past 11 years, NASA and furthermore America were able to place the first men on the moon on November 12, 1967. In a speech made on national television that night in the hour following the conclusion of the live coverage of the moon landing, Scoop Jackson would put much of his thanks on the “Greatest mind our nation has ever had,” referring to Dr. J. Robert Oppenheimer. Oppenheimer, since 1961, has been placed in a secondary charge of the Apollo missions and a potential moon landing until his resignation in January 1967 and death the following month. Dr. Oppenheimer's expertise in theory and former President Smith's dedication for space exploration are likely candidates as to the victory America achieved that night.
State of Asia in 1968
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The United Nations has concluded their investigation into the potential legality and coercion in the events leading up to the invasion of Saigon.
“While France has made compelling arguments for the contrary, regarding available documents and other pieces of evidence, the Vietnamese military occupation of Saigon was not a result of coercion, manipulation, embezzlement, bribery, or corruption within the Republic of Vietnam. The invitation of Vietnamese armed forces into the territory limits was done by the legal Vietnamese co-government of said territory, and therefore, is deemed a semi-legal occupation of the city. The United Nations upholds the results of the Glasgow Conference.”

Gearing up for Reelection: A look at Potential Challengers

Notable Republicans that have declared candidacy
Former Vice President, Richard Nixon
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Richard Nixon is back at it with his 4th attempt at a Presidential run, and if he wins the nomination or is selected as a running mate, 3rd attempt on a Presidential ticket. He is generally a moderate, but is definitely the wildcard. Despite his past of losing elections, he is somehow the safest, and perhaps most dangerous, to the Jackson administration.
Governor Ronald Reagan
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The Governor of California has perhaps one of the most charismatic voices in the nation, and is definitely a threat should he receive the Republican nomination. While he is charismatic, he is also the most Conservative of the major players for the Republican nomination. Reagan has instituted a mix of conservative and liberal policy as Governor of California, but has spouted rhetoric like all the former dixiecrats; just without blatant racism. Scoop believes Reagan is not only a credible threat to his Presidency, but also a threat to minority groups nationwide.
“Draft Jack Kennedy” and “Draft Bobby Kennedy”
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Despite neither Kennedy having decided to throw their hat in the ring this year, 1960 and 1964 Presidential candidate John Kennedy has received some support among anti-nixon moderates for the head of the ticket later this year. He has an air of charisma around him, much like his fellow Republican Ronald Reagan, but Kennedy has only commented on the matter stating he is “far too tired” for 3 Presidential runs in a row. The Senator's health is seemingly beginning to fail, as well. Despite the unlikeliness of the matter, Jackson is prepared to deal with Jack Kennedy again if he wins a draft.
Opposed to his older brother, Governor Robert Kennedy has remained Non-Partisan since the fall of the Liberal Party 3 years prior. Bobby has had moderate support from both parties since the beginning of his governorship in 1963. Despite this, and probably with wishes to go against one of his brothers, Bobby Kennedy has denied to run or entertain a draft movement in his name. Scoop has declared Bobby to be of little threat.
Other potential challengers
Senator Russel Long
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The long-serving Senator and son of former President Huey Long has walked the line of conservative, liberal, and progressive support throughout his career. In recent years, he has become more supportive of progressive social policies, and definitely leans economically toward Labor; but his reach across rural southerners matches a more populist approach. Long has already declared his independent candidacy for President. If Nixon isn't one, Long is certainly the most dangerous wildcard if he plays his hand right. Scoop will closely watch him.
View Poll

Salem County John Doe (New Jersey, 1979) – Genetic Genealogy Testing after Forty-Five Year Mystery
Sometime during the winter of 1978 to 1979, along a rural dirt road, a young man was shot in the face and partially buried in the woods in Quinton Township, New Jersey. Though his body was covered with brush and logs, his left arm and left hip remained exposed, waiting to be discovered. Approximately six months after his death, police were called to the scene by a local resident on the afternoon of June 3, 1979. The man’s body underwent an autopsy, and newspapers featured descriptions of his unfortunate demise and deserted belongings. A facial reconstruction was painstakingly created and distributed, but the man’s identity has remained a mystery for nearly 45 years. Researchers and students at the Ramapo College of New Jersey’s Investigative Genetic Genealogy department have begun analysis of the man’s DNA in the hopes of bringing answers.
Sources differ on the level of trauma inflicted on this John Doe. Some papers indicate that he was shot in the left eye with a “small caliber” or “.22 caliber” bullet, while another suggests that his face was “completed obliterated, apparently by a shotgun blast”. Despite the undeniably poor condition of the remains, police determined the man to be between white, 18-22 years of age, approximately 5’8” tall, and 150 pounds prior to his death. He had straight, medium brown hair, that was 4-6 inches long. He had the following clothing and accessories with him:
• White Madewell brand painters’ pants (without bib) • Brief underwear • Dark blue Lee brand jacker (size small), adorned with a 1” gold colored metal letter ‘R’ on the right and a quarter-inch gold colored cross on the left jacket breast pockets • Michelangelo brand heavy knit V-neck sweater, dark blue or black yoke and sleeves with white body and large buttons no • Red plaid Cotton Poppy brand Indian style print shirt • T-shirt (size 34/36S) • Black Pro Ked brand sneakers (size 8) • Yellow metal 17-inch spiral twist chain necklace • Gray metal 14½-inch chain necklace with decorative gray metal horn ornament (possibly an Italian good luck charm) • Pack of Marlboro cigarettes with the words “Meth” and “Weed” written along one side with some artwork, and the words “Joints” and “Pot” written on the other side • A matchbook decorated with a gold Tolz Realty Co. advertisement
Sources: No 1. Unidentified Wiki: Salem County John Doe (1979) ) 2. NamUS: Unidentified Person/NamUS #UP1526 3. June 3, 1979, Press of Atlantic City (New Jersey): “Shotgun Murder is Probed” 4. June 15, 1979: Courier-Post (Camden, New Jersey): “Police request help to identify victim” 5. June 22, 1979, Press of Atlantic City (New Jersey): “ID on Body Of Slain Man Sought” 6. Ramapo College of New Jersey: Cases in Progress