F&L and Chandlery Jan 2023 recap

F&L and CHANDLERY RECAP JANUARY 2023

Foundry & Lux is excited about the new opportunities 2023 will bring and is preparing for another successful year. F&L started the year strong with a host of new flavors and specials and has begun even greater menu rotation and variety to appeal to the tenants. The culinary team will be a force to be reckoned with the addition of F&L’s new Chef de Cuisine, Iron Hamilton.

Technology integrations, such as QR code ordering at the tables, has seen a tremendous spike in participation and continues to produce positive results! Though the severe weather in the early weeks of January heavily impacted business, the team capitalized on the slower services to integrate new menu items and specials.

FOOD SPECIALS

CRISPY CHINESE

EGGPLANT

eggplant, hoisin bbq, miso

mayo, tempura, cilantro, thai basil

Total Sold: 68

GARDEN VEGETABLE Pizza

Basil pesto, onions, marinated artichokes, olives, red bell peppers, mozzarella, feta

Total Sold: 29

MEATBALL SANDWICH

pork meatballs, marinara, parmesan, mozzarella, hero roll

Total Sold: 74

BEVERAGE SPECIALS

SPICY MELON MARGARITA

tequila, jalapeno, cilantro, melon liqueur, lime, agave, tajin

Total Sold: 148

FERNET ABOUT IT

bourbon, fernet, orange, maple, chocolate bitters

Total Sold: 27

THE REVIEWS ARE IN!

OFFSITE CATERING

In January, the recurring Tuesday/Wednesday boxed lunch service at Roblox continued, along with catering for the company’s bi-annual company-wide event, Roblox week. We served boxed lunches and buffet-style lunches for 350-700 people daily, Monday – Thursday.

HPP Office Catering

Thurs, Jan. 12 – Lunch

Wed, Jan. 18- Breakfast

ROBLOX Boxed Lunches

Tues. & Wed, Jan. 04 - Wed, Jan. 18

ROBLOX WEEK Lunch Buffet

Monday, Jan. 23 – Thursday, Jan. 26

Social media

Now at 1503 followers!

performforlife

Perform for Life was on site at The Cove in South San Francisco today for their monthly Farmers Market! It was so nice to engage with this lovely community and share more about P4L’s fitness classes, a complimentary amenity offered by the Cove exclusive to its tenants! Thank you @thecovessf and @foundryandlux for hosting, we hope to be back soon � • #fitnessclasses #corporatewellness #pilates #ujam #zumba #perform forlife #sfgym #sffitness #sfpersonaltraining #cscs #whynotnow #stre ngthtraining #strengthandconditioning #fitnessgoals #fitnessjourney #fitnesshome #goalsetting #wellnessfair #community

#plantbased #vegan #instantmeal #instantramen #in stantnoodles #tasteofinstantjoy @jennibackholm

foundryandlux

A salad that looks and tastes ‘yam-tastic’! Sweet Potato Kale Salad - roasted sweet potato, baby kale, quinoa, cucumber, feta, and a tahini vinaigrette. And add any of our salad protein options!

Available for lunch from 11am to 2pm!

#lunch #salad #lightlunch #saladlife #yamtastic #sweetpotato #babykale #kalesa lad #tahinidressing #sfgoodeats #ssfgoodeats #goodeatssf #thecovessf #Foundrya ndLux #LoveBonAppetit

foundryandlux

Looking for a tasty lunch treat? We have a new daily special to meet that need. A chicken teriyaki bowl with rice, romaine lettuce, pickled daikon, carrots, cucumber, sesame seeds and green onion. It’s savory, and little sweet and here for just today. Don’t miss this!

#foundryandlux #goodeats #bonappetit #thecovessf #teriyaki #ch ickenteriyaki #dailyspecial #tastylunch

www.foundryandlux.com

Sales: Sales for the four-week period totaled ~$173.4k with a weekly average of ~$43.3k. F&L has been producing catering for ROBLOX two days each week, contributing an estimated $6k in weekly revenue. ROBLOX resumed services starting 1/10. Weeks 1 & 2 were slow due to the extreme weather, which caused tenants and nearby businesses to work remotely. Several more significant events were canceled or postponed their events to later dates, which reduced overall revenue for the period. We were able to make up some of the losses from week 1 & week 2 with more significant catering than anticipated. Roblox week generated ~$42k of revenue in week 4!

COGS: Cost of goods was 27.7% against the budgeted 24%. The initial budget assumption was that F&L would operate under an updated contract which allowed a purchasing credit of 3% back to the cost of goods line. COGs continue to be a moving target due to distribution and vendor challenges. Additionally, the low sales from week 1 and week 2 greatly affected cost of goods with low revenue while still needing to remain fully open for tenants.

Labor: Management monitored labor closely and made as many reductions as possible without impacting service levels. January labor is at 76% against revenue.

Other Expenses: Total other expenses were ~27.3%, which is higher than budgeted due to the booking of outside services for Roblox as requested by the client for special add ones. Additionally, the catering van and truck had the catalytic converters stolen on-site. The additional repair expense was needed to accommodate offsite catering and events. Other expenses included services for the vendors, rentals, culinary garden, computer expenses, catering vehicle expenses, insurance, bank, and armored car services, computer and POS costs, and safety equipment.

Bottom Line: Total losses came in at -$53.3k against budgeted losses of ~$27.5k. Closing for MLK holiday helped reduce total operational costs however, weeks 1 and 2 revenue totaled only ~$43k. Weeks 3 and week 4 equaled ~$130.2k.

ASSUMPTIONS FOR FOUNDRY & LUX:

FEBRUARY: Four–week period and business is expected to remain slow but should pick up in comparison to January, with events ramping up in week 2 and week 4. Management is planning to closed on Presidents Day to reduce operational costs. Roblox anticipated catering 2 times a week and will be adding more meals in week 4.

MARCH: Five–week period and business is expected to be greater than February with larger events planed for Week 1, 4 & 5. Roblox anticipated catering 2 times a week but increases their catering numbers and meal services.

APRIL: Four-week period and business is expected to be a high revenue generating month with the week-long Cove Earth Week event, and larger number of events booking in Week 1 and Week 4.

Chandlery at the Shore

Chandlery saw challenges in the beginning of the period due to unprecedented severe weather, resulting in a low tenant population for weeks 1 and 2, drastically affecting revenue. Chandlery took advantage of this slower period by introducing new offerings for the tenants with weekly lunch specials, table service through QR code ordering, aggressive happy hour specials, and hosting a hands-on tenant cooking and cocktail class. Chandlery's culinary team worked diligently to produce a wide variety of globally inspired weekly lunch specials to meet tenant demands. Online ordering integrations are now more robust to accommodate Chandlery's growing popularity. Guests can now order ahead for easy pick up or dine in and order directly to their table using their phone and QR code. Chandlery offered the tenants a fantastic $5 happy hour drink special all month long to help bolster the expected slower period and drive revenue on days we would typically not see huge returns.

FOOD SPECIALS

Weekly Specials

Tenants have been extremely vocal with requests, and Chandlery has been listening by introducing globally inspired weekly lunch specials that fit within tenants’ daily subsidies. Chandlery has exceeded tenant expectations, and the prices and dishes have been incredibly well received!

Shrimp Fajita Bowl - $14

mexican rice, black beans, pico de gallo, lime crema, peppers, tortilla strips

Sold: 83

Eggplant Parmigiana - $13 roasted eggplant, fresh mozzarella, basil marinara sauce, mixed greens

Sold: 25

braised chicken thigh, red sauce, jasmine rice, raita sauce, pita

Sold: 65

FOOD SPECIALS

Shrimp Pad Thai - $14 sauteed shrimp, rice noodles, thai chili, onion, fish sauce, egg, lime, peanuts

Sold: 118

Chicken Bulgogi - $14 halal chicken thigh, japchae salad, shitake mushroom, egg, scallion, carrot, peppers, cabbage slaw

Sold: 74

BEVERAGE SPECIALS

TENANT CLASS

Chandlery held its 2nd tenant class in January, highlighting how to make focaccia and two seasonallyinspired cocktails. The class sold out in a single day, so the team added seats for an even greater engagement with the tenants. The class was a big hit with the tenants, and many have asked for more regular classes in the future. The team is planning to begin offering these events every other month.

TENANT CLASS

Tenants making dough before baking

with house-made ricotta cheese, tomato, herb oil & balsamic reduction

Tomato Rosemary Focaccia

A volunteer from the class making one of Chandlery's craft cocktails

Sales: Sales for the four-week period totaled ~$53.9k with a weekly average of ~$13.4K. We were heavily impacted in week 1 and week 2 due to the extreme rain which caused many tenants to work remotely. Sales in week 1 were only 3K, and week 2 produced a slightly better result with ~$13.7K in sales. During this time, Chandlery closed after lunch service to reduce operating costs and paired down our ordering to keep cogs as low as possible. Week 3, we closed for MLK Day which saved approximately 3.5K in total losses. Chandlery is still unable to maximize on revenue with space rentals due to the construction caused by the BMS remodel. P1 lost ~$7K in revenue from not being able to charge for space rental on meeting events due to disruptive construction noise.

COGS: Cost of goods came in at 34.6% against the budgeted 23%. This was largely due to the significantly low sales in weeks 1 and 2 which did not generate enough revenue to allow for purchasing without causing large spikes in cost of goods. Management worked to reduce purchases where possible to lower COGs. Additionally, we have begun offering new lower priced specials to the tenants as we have received strong feedback that the tenants want more affordable meal options rather than upscale dining offerings to fit within their limited daily subsidies.

Labor: Chandlery was able to drastically reduce labor in January due to recruiting fulltime hourly staff and reducing the need for expensive temp labor. Finding qualified employees for the budgeted pay rates has been challenging with additional al competing businesses in the area. Currently, Chandlery has one chef and one manager dedicated to the unit to minimize cost.

Other Expenses: Total other expenses were 159.3% of revenue. The high percentage is due to the reduced sales we experienced in weeks 1 and 2. Other expenses included vendors, POS equipment, software, licenses, insurance, and culinary garden maintenance. We were also able to host a group lunch for HPP this month which contributed 1.4K to other expenses.

Total Losses: Total losses were ~$50.6k against budgeted losses of ~$37.9k. The largest contributing factor is the missed revenue that the meeting room is not capturing.

ASSUMPTIONS FOR CHANDLERY:

FEBRUARY– Four–week period and business is expected to be slow and currently has no major events for P2. Management is closing February 20 to mitigate losses. Space rentals have been waived for all meeting spaces in the AM due to disruptions caused by construction noise.

MARCH – Five – week period and business is expected to be slow and currently has no major events for P3. Expecting business to pick up week 5. Space rentals have been waived for all meeting spaces in the AM due to disruptions caused by construction noise.

APRIL – Four – week period and business is expected to be slow but pick up from March with the preparations for additional move ins from the JNJ tenants.

LOOKING FORWARD

VALENTINE'S DAY SPECIALS

REDBAY COFFEE BAR

TAKEOVER AT F&L FOR BLACK HISTORY MONTH

DUMPLING TIME POP UP AT F&L!

FOUNDRY & LUX TENANT ENGAGEMENT CLASS

FARMER'S MARKET

HIGHLIGHTING BLACK OWNED BUSINESSES

CHANDLERY FEATURED ON WEDDING WIRE AND THE KNOT!