TENANT CLASS

Tenants making dough before baking with house-made ricotta cheese, tomato, herb oil & balsamic reduction

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.