F&L June Recap 2022

FOUNDRY & LUX JUNE 2022 RECAP

Business was challenging with the rising cases of COVID and the summer holiday breaks. Juneteenth had an unforeseen impact on business levels. Management collected crucial data to use for the following year and plan to implement an abbreviated service to mitigate losses.

While guest participation was slow, F&L stayed busy. F&L hosted a farmer’s market, incorporated several new beverage and food specials, and executed over 40 caterings! The team is actively working on marketing goals to capture more market share and to increase brand awareness.

Tenants enjoyed the extended hours of the lounge while getting to watch the Goldens State Warriors winning the playoffs and the championship.

FOOD SPECIALS

Watermelon & Spinach Salad

Butter Chicken Bowl

June rotating lunch specials were a big hit! We sold 368 butter chicken bowls and 97 watermelon & spinach salads.

The roasted corn pizza was a happy hour favorite!

Roasted Corn Pizza

BEVERAGE SPECIALS

Coconuts For You el jimador tequila, coconut, blood orange, agave, lime

We celebrated National Bourbon Day by highlighting a a few of our favorite bourbon based cocktails!

Rum Forest Rum gosling's dark rum, don q silver rum, banana, pineapple, crème de cassis, lime, mint

FARMER’S MARKETS

FEED BIN from FEED Sonoma Co Op. Monthly multi farm produce boxes offered to tenants for prepurchase and pick up at F&L.

CAPAY organics This farm showed off several hyper-seasonal items, such as an assortment of stone fruit, heirloom tomatoes, and strawberries!

JUNE MOMENTS

June was full of impactful moments for the tenants. F&L extended hours of operation to generate revenue during the NBA playoffs and NBA finals. The Warriors received tremendous support through the Cove’s cheers and participation. Perhaps F&L is the lucky charm the Warriors needed to clinch the championship! Guests eagerly awaited the final score as they enjoyed food, beverages, and the company of Foundry & Lux.

ONSITE CATERING & EVENTS F&L hosted a pride month happy hour with Almanac Brewery for AstraZeneca tenants.

Almanac Brewing donated a percentage of purchased beer to the LGBTQ community in Oakland. Foundry & Lux is very proud to have partnered with them; as an inclusive company, it is a priority to highlight moments and vendors like these.

HOSTED EVENTS FOR… • • • • • • • • • • • • • • • • • • • • • • •

Thomas Edison School GCI and Genentech Walmart Stripe x2 Unity Biotechnology Encoded Genomics Frontier x 3 Genentech x 4 ZS Associates Marque Foods PWC AstraZeneca Global Blood Therapeutics x 2 Eurest Services Vaxart Inc Tenaya Therapeutics ThermoFisher Scientific Veeva Systems AbbVie Kitchell CEM ROBLOX x12 Ultragenyx Verily Life Sciences

OFFSITE CATERING

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Therini Bio – 6/23 Catered Dinner

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Ultragenyx Receptions at Chandlery – 35 guests on 6/2 – 25 guests on 6/21 ROBLOX boxed Lunch service – Weekly boxed lunch service on Tuesday, Wednesday, & Thursday

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Social media new users: 28

Stop by tomorrow for our monthly farmers market from 10:30am - 12:30pm.

Located on the amenity court @thecovessf. Come by to sign up for a monthly farmer’s feed bin from @feed_cooperative or a selection of locally grown produce from @capay_organic.

Specialparticipation from ourfriends @yogasix_oysterpoint and @orangetheory #foun dryandlux #farmersmarket #localproduce #organic #organicproduce #supportyourlocalfarmer #supportlocalfarmersmarkets #csa #thecovessf #summerproduce #harvesttime #feed sonoma #capayorganic

foundryandlux Slice to meet you, we’re the new pizzas on the menu!

- Garlic Adobo Shrimp Pizza 🍤 - Roasted Corn Pizza 🌽 Available in The Lounge starting at 2pm! #pizzamyheart #artisanalpizza #happyhour #barfood #weirdough #piz zapuns #thecovessf #bamco #LoveBonAppetit #foundryandlux #pizza #pizzalover #shrimppizza #cornpizza #pizzamyheart #happyhour #piz zatime

foundryandlux HAPPY #NATIONALBOURBONDAY !“Too much of anything is bad, too much good whiskey is barely enough” - Mark Twain.

Let us know in the comments what your favorite bourbon is! Ours is @woodfordreserve 🥃🤎

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foundryandlux Looking for a sweet treat or an afternoon pick me up? Our new butterscotch latte is the perfect way to start your day or unwind on a break. Made with @progeny_coffee espresso, butterscotch chips and your choice of milk. #foundryandlux #coffeespecial #drinkme #cafe #coffeebar #latte #latteart #butterscotch #butterscotchlatte #monthlyspecial #thecove ssf

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www.foundryandlux.com

REVIEWS ARE IN!

Sales: Sales for the four-week period totaled ~$330k with a weekly average of ~$82.4k. Additionally, F&L has been producing catering three days every week to ROBLOX, totaling an estimated $15k to weekly revenue. ROBLOX has reduced services due to high spikes in office COVID cases. Friday 6/17 and Monday 6/20 were unexpectedly slow due to the Juneteenth holiday. Tenant population at the Cove were reduced to occupancy on major holidays.

COGS: Cost of goods is at 20.5% against 19.8% from the last period. Cost of goods continues to be a moving target due to distribution challenges. The team has been actively targeting to reduce cost of goods to make up for the rise in cost of labor.

Labor: Management monitored labor closely and made as many reductions as possible without impacting service levels. June labor was at 61% against revenue. As the cost of labor continues to rise, we are actively decreasing cost of goods to balance the bottom line. Next year for this period we will revisit offered services for the Friday and Monday surrounding Juneteenth holiday to mitigate losses.

Other Expenses: Total other expenses were at 25.8%. Expenses included services for the culinary garden, interior plants, computer expenses, catering vehicle expenses, insurance, bank and armored car services, computer and POS costs, and safety equipment. Other expenses were higher than forecasted due to the number of specialty events and the unique client asks.

Total Losses: Total losses were ~$25.4k against budgeted losses of ~$9.7k.

However, F&L closed Q2 at ~~52,5k in the black! YTD total losses are ~$144k against budgeted losses of ~$161.3k.

ROLLING 3

ASSUMPTIONS: JULY – Slow business week 1 and week 2 due to July 4th holiday. Steady ramp up for business from forecasted $40k to ~$20k increase in revenue. The period should close out at ~$230k in revenue but is expected to be the loss leader of Q3.

AUGUST – Roblox will continue to get catering from F&L 3x a week. Events will begin to pick up in August.

SEPTEMBER- Five-week period and business is expected to ramp up significantly and should have the best financial result of Q3.

CHANDLERY Chandlery is picking up to a consistent level of business! The tenant feedback has been extremely positive regarding the value, freshness, and variety of options.

Foundry & Lux continues to cater the grab-and-go options to the Shore to reduce labor and food waste. The team has added several rotating specials to keep the tenants engaged with the restaurant. Some highlights include breakfast bagel sandwiches, chicken chile verde burrito, and an assortment of sandwich wraps.

Chandlery also has some fun new additions to the beverage options, such as new summer kombucha flavors and several iced tea options! Management is happy to announce our first happy hour will begin on August 4th from 3 pm-6 pm!

New F&L happy hour specials Several Chandlery offsite events ROBLOX week increased catering Patio ordering capability HPP cocktail class and event Weekly happy hours at Chandlery beginning in August