F&L April 2022 Recap

FOUNDRY & LUX APRIL RECAP 2022

April was a very successful month! Foundry & Lux partnered with CBRE to host a week-long tenant event for the Cove for Earth Week. The event featured a wide variety of local artisanal purveyors; fresh produce, cheeses, baked goods, coffee and tea companies, breweries, and wineries.

April also brought a significant influx of events, both onsite and offsite.

This was the first month of the 2022 where we landed in the black! Showing a profit of ~$1,400 and the month of May is looking to be a profitable month as well!

FOOD SPECIALS Brussel & Farro Salad romaine, kale, farro, brussels, sweet potato, fennel, golden raisins, grapefruit vinaigrette

Spring Crostini goat cheese, strawberry, fig, balsamic glaze, basil

Bacon & Lentil Soup carrot, onion, celery tomato, lentil, bacon parsley

BEVERAGE SPECIALS

Planter’s Punch: Gin, carrot juice, pineapple juice, lemon juice, and ginger beer.

Lavender Lemonade: Lavender, butterfly pea flower tea, lemon

BEVERAGE SPECIALS JUNIPER BREEZE: Gin, cucumber, elderflower, honey and lemon juice – sold 142!

SPRING THYME: Tequila, hibiscus, thyme, amaro, honey, and lemon – sold 125!

Strawberry Sakura: Jasmine silver tip tea, lavender, strawberry puree, cherry blossom cold cream

EARTH WEEK

Tenants of the Cove loved decorating their terracotta pots to house their HPP branded mint plants.

The succulent station was a big hit!

Succulence set up a terrarium bar where tenants customized their dirt, rocks, succulents, dehydrated moss, & charms.

EARTH WEEK’S FARMER’S MARKET

Our partnership with CBRE created an ideal opportunity to host a week-long tenant appreciation event, celebrating Earth Day. The events allowed us to engage the tenants with special perks such as ewaste collection, bike repair, zumba, yoga, bouquet building, succulent planting bar, farmer’s markets, cheese mongers, local coffee and tea purveyors, and more! All tenants who attended received an Earth Week branded bag, The Cove bee honey, candles, and soap made from the beehives on campus. Foundry & Lux also showcased a multitude of wine, beer and spirit vendors to pair with plant- based goodies! Approximately 1,100 tenants participated throughout the week.

EARTH WEEK’S PARTICIPANTS TENAYA | ASTRAZENECA | SURROZEN | CYTOMX | DENALI | AMGEN | FRONTIER MEDICINES | AMBYS | HARPOON | ALECTOR | CODA | NUROBIO| SUTRO BIOPHARMA | FRONTIER MEDICINES | GBT Earth Week had 100% participation from each company!

EARTH WEEK’S FARMER’S MARKET

Foundry & Lux hand selected vendors based on locality and eco-friendly practices. Out of the 17 vendors that participated in the Earth Week events, more than half were women and minority owned businesses.

Vendors: Rozgol’s flowers, Nirvana Soul, Progeny Coffee, Teatuila, Lev’s Kombucha, Marshall’s Farm honey, Panorama, The French Spot, F.E.E.D Sonoma, Capay Organics, Simba’s Heirloom Garden, Cypress Grove goat cheese, Otherwise Beer, 47 Hills, Copalli Rum & much more!

ONSITE CATERING & EVENTS F&L

April event business increased 18% from sales in March. Additionally, event revenue grew significantly in April compared to pre-pandemic years by ~ $23.5K from sales in April 2019.

Genentech – 7 events, ~$22.5k total

Verily Life Sciences Happy Hour Vaxart Monthly New Hire Event

ZOOX Team Event

Social Surprise Birthday Party GBT Retirement Celebration Walmart Corporate Dinner Maze Therapeutics Happy Hour Allogene Dinner Social Theravance Team Building Silicon Valley Bank/Life Science Surrozen Founder’s Day Celebration Cares Community Mixer

OFFSITE EVENTS

F&L utilized Chandlery for one event request We were honored to host Hathaway Dinwiddie for a memorial service at Chandlery on April 14th. The service celebrated the life of a valued team member who was integral in the construction of the restaurant.

• • • • •

4/7 Graphite Bio 4/19 & 4/13 Verily 4/15 - $5.7k ROBLOX boxed lunches 4/26 & 4/27 Myovant breakfast and lunch catering Arcus BioSciences are looking to set up reoccurring order of gift cards from Chandlery for office employees stipends

Social media Foundry & Lux is now at 1439 followers!

new users: 28

Don’t be shy. Take a bite, it’s Friday!

Our F&L Burger is 100% grass fed beef and comes with American cheese, lettuce, onion, tomato, and pickles. You can also add avocado, egg, and or bacon!

In addition to celebrating #EarthDay with a scavenger hunt focused on low-carbon food education, our teams went above and beyond with unique partnerships, events, and more! Here's a taste of what #EarthDay2022 had to offer: 1⃣ Our team at @foundryandlux worked with @feed_coorperative to share regeneratively grown, locally sourced ingredients with our guests at @thecovessf.

Spring into action and grab one of our newest seasonal refresher drinks in The Cafe! 🍓🌸 Strawberry Sakura - @silkroadteas jasmine silver tip tea, lavender, strawberry purée, with a cherry blossom cold cream!

Copalli Rum tagged F&L as one of the many vendors we showcased at the Earth Week tenant event

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Sales: Sales for the four-week period totaled ~$290k with a weekly average of ~$72.5k.

COGS: Cost of goods are at 24.2% for the period ~7% less from March and ~1% less than forecasted. Cost of goods continue to be a moving target. The team is working on cost analysis and researching product lists to reduce and maintain COGS percentage below 26%.

Labor: Management monitored labor closely and made as many reductions as possible without impacting service levels. March labor was at 69% against revenue, the month of April was significantly reduced to 53% against revenue. As the cost of labor continues to rise, we are actively decreasing cost of goods to balance the bottom line.

Other Expenses: Total other expenses were at 22.7%, Expenses included services for the culinary garden, interior plants, computer expenses, catering vehicle expenses, insurance, bank and armored car services, computer and POS expenses, and safety equipment. Other expenses were higher than forecasted due to residual Earth Week vendor charges.

Total Losses: This is the first month where we have been in the black since December! Total profit for the month of April totaled ~$1.4k!

THE ROLLING 3

MAY: F&L and Chandlery have several buyouts, one of which is on a Saturday in week 2. Foundry is executing a large-scale, high-end, offsite event in San Mateo on the 25th, contributing a minimum of ~$55k to revenue. Additionally, F&L will be producing catering three days every week to ROBLOX, totaling an estimated $35k to revenue.

JUNE: June is typically a slower month and a five-week period. F&L will still be doing ROBLOX catering three times a week and have an additional ~$40k revenue to execute the summer tenant event.

JULY: July, historically, has been one of the worst months of the year.

Typically, participation significantly decreases along with catering and events.

Total losses are ~$5k, even with substantially reducing labor to the lowest model.

THE CHANDLERY

The existing Shore tenants are thrilled that Chandlery has opened its doors! The management team has worked diligently to satisfy the tenant demand while balancing financials. We are working on a plan to implement additional services and extend hours of operation.

The population at The Shore has not increased since the first day of opening. As the tenants eagerly wait for the bar to open, we will be adding a supplemental menu that is made to order and a ”happy hour” period. Once the bar is open, the hours of operation will extend to 6 pm.

THE CHANDLERY

The month of April had a total of ~$8.3k in sales. And total losses of ~$26.3k against budgeted losses of ~$20.7k.

The tenant population at the Shore continues to fluctuate. We are not seeing a consistent or steady increase of people, due to their hybrid work models. We are currently running the lowest labor model possible to run Chandlery effectively.

The next step is to open the bar at a limited capacity by offering an abbreviated menu.

ONGOING ROBLOX CATERING MAY 25TH ~$55K OFFSITE CATERING MAY 18TH CHANDLERY TENANT HAPPY HOUR EVENT CINCO DE MAYO MONTH LONG HAPPY HOUR CINCO DE MAYO TENANT COOKING CLASS & COCKTAIL CLASS FEED SONOMA CSA BINS FOR TENANTS! JOHNSON & JOHNSON SUBSIDY DISCUSSIONS