F&L and Chandlery December '22 recap

F&L brought the holiday cheer throughout the month of December with busy happy hours, festive events, cocktail kits and holiday specials. Teatulia Teas hosted a special holiday tea party for the tenants of The Cove, showcasing how the teas can be used in untraditional ways such as mocktails or cocktails!

F&L also hosted a campus wide holiday party for the tenants which had the highest turnout of all prior years with over 500 tenants in attendance. The event highlighted beverage vendors, F&L snacks, ornament decorating, holiday carolers, DJ, doughnuts made onsite, photobooth, and even live reindeer! Although the first weeks of December had high revenue, F&L adjusted hours and services weeks 4 and 5 to mitigate losses as most tenant offices were closed.

COVEVILLE

This year's annual Cove-ville tenant event was a huge success! F&L expanded the offerings by involving more activities, vendors, and marketing. Tenants were able to enjoy a DJ, photo booth, farmer's market, Hookt doughnuts, ugly sweater contest, carolers and live reindeer! F&L was also able to incorporate their own festive cocktails and appetizers for guests to enjoy. Over 500 guests were in attendance throughout the event. You could truly feel the holiday cheer! This will be difficult to top next year!

SSF CITY WORKERS EVENT

FOUNDRY & LUX

Sales: Sales for the five-week period totaled ~$308.5k with a weekly average of ~$61.7. F&L has been producing catering two days every week to ROBLOX, totaling an estimated $6k to weekly revenue. ROBLOX was closed after December 16th. Week 4 was expected to be extremely slow due to the holidays, but total revenue for the week finished at ~$43k.

COGS: Cost of goods is at 18.7% against budgeted 29%. Cost of goods continues to be a moving target due to distribution and vendor challenges. The team has been actively targeting to reduce cost of goods to make up for the rising cost of labor.

Labor: Management monitored labor closely and made as many reductions as possible without impacting service levels. December labor is at 56% against revenue.

Other Expenses: Total other expenses were at ~18.8%, which is higher than budgeted due to the tenant event. 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 profit came in at ~$20k! F&L was extremely busy week 1 – 3 and slightly tapered off week 4. Additionally, what helped to the success of the restaurant was closing week 5. This year was the first year F&L closed completely which saved the operation ~$30k in losses. YTD total losses are ~$299.3.3k against budgeted losses of ~$274.2k.

FOUNDRY & LUX Rolling 3

ASSUMPTIONS FOR FOUNDRY & LUX:

JANUARY: Four–week period and business is expected to be slow and currently has no major events for P1. Week 1 will be extremely slow coming back from the holidays. Management is considering abbreviated services the Friday before MLK day and closing for MLK day. Roblox anticipated catering 2 times a week.

FEBRUARY: Four–week period and business is expected to be slow and currently has no major events for P2. Management is considering closing February 20 and running abbreviated services February 17 to mitigate losses. Roblox anticipated catering 2 times a week.

MARCH: Five-week period and business is expected to be slow. Currently no major events scheduled for P3. Roblox anticipated catering 2 times a week.

Chandlery

December was a festive month at Chandlery. We hosted multiple tenant meetings, events, and happy hours. The highlight of the month was hosting the Shore tenant appreciation event. The team crafted festive cocktails and unique food specials to wow the tenants. Chandlery’s vendors were able to showcase their products for an added treat for the attendees.

Online ordering has gone live for added convenience to the tenants. Chandlery stayed open throughout the month to gain valuable historical data on tenant engagement during the holiday. Chandlery saw higher losses this period due to lower tenant engagement in the week 4 and week 5 of December.

SHORE TENANT EVENT

Chandlery hosted the Shore's first holiday tenant event on Thursday December 8th. The event included a variety of unique small bites using hyper purveyors, festive cocktails, as well as a build own hot chocolate station.

Tenants were welcomed to the event with a gift bag featuring a Shore branded water bottle, lanyard, reusable canvas bag, and a ½ bottle of “The Shore and Healthpeak” branded wine.

Tenants engaged in festivities including a photo booth, churro truck, taco stand, and specialty beer, wine and spirit tastings.

Chandlery team

Talavera tacos

Tenant

CHANDLERY

Sales: Sales for the five-week period totaled ~$112.7k with a weekly average of ~$22.5. Week 5, Chandlery remained open to gain crucial data for following years. Chandlery is unable to maximize on revenue with space rentals due to the constructions caused by the BMS construction. Chandlery lost out on over $10kin space rental revenue because we had to refund Day 1 Bio and had to discount the remainder of the meetings booked.

COGS: Cost of goods came in at 17.9% against budgeted 27%. Management actively targets lowering COGs in order to address the rising cost of labor and other expenses.

Labor: Labor is high because of the hourly temp labor. Finding qualified employees for the budgeted payrates is more challenging than ever with additional competing businesses in the area. Currently, Chandlery has one chef and one manager dedicated to the unit to minimize cost. Because this unit is lacking salaried labor, management has activated F&L’s management to help move the program forward.

Other Expenses: Total other expenses were at 32.8% against revenue. Other expenses included vendors, rentals, holiday décor, POS equipment, software, licenses, insurance, and culinary garden maintenance. Other expenses are higher than budgeted largely due to the the tenant event.

Total Losses: Total losses were ~$43.6 k against budgeted losses of ~$32k. Total losses YTD is at ~$352.2k against budgeted losses of ~$295.7k.

CHANDLERY ROLLING 3

ASSUMPTIONS FOR CHANDLERY:

JANUARY– Four-week period and beginning of Q1. Business is expected to be slow but management is actively targeting marketing opportunities to increase revenue for the anticipated slow season and is expecting to produce better results than budgeted. W1 will be slow ramping back up from the holidays. Additionally, Friday 1/13 and Monday 1/16 is expected to be slow due to MLK day. Space rentals have been waived for all meeting spaces in the AM due to disruptions caused by construction noise. Additionally, J&J tenants have a $15 stipend and are asking Chandlery for lower priced menu items, which will raise COGs perecentage. Management is diligently working on integrating this request on to the menu to increase tenant satisfaction.

FEBRUARY – Four–week period and business is expected to be slow and currently has no major events for P2. Management is considering closing February 20 and running abbreviated services February 17 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.