HPP Recap Feb 2023

The continuation of the unexpected rainfall did not stop F&L from providing exciting additions to the tenant community to celebrate Black history month and the lunar new year. F&L showcased an exciting new farmers market partner, Kube vegan ice cream, a black woman-owned ice cream company based in Oakland. In addition to the farmer's market, management implemented a coffee program take over with Red Bay Coffee. To kick off the series of pop-ups for the restaurant, we celebrated the lunar new year by introducing Dumpling Time to the menu. All the new integrations have caused a lot of buzz with the tenants! Though the month's beginning had a slight sales dip, F&L brought the energy back up with another tenant engagement class. Chef Iron and Chef Jorge demonstrated the proper way to butcher a whole salmon, which they turned into a salmon belly crudo to serve tastings to the participating tenants. To wash that down, our bar manager John showed tenants how to make a mojito which paired perfectly with the salmon belly!

FOOD SPECIALS

NICOISE SALAD

sesame crusted tuna, egg, farro, green beans, olives, potato, cherry tomato, mixed greens, balsamic herb vinaigrette

Total sold: 74

GREEN THAI COCONUT CURRY

pandan, vegetables, white rice, harissa, shrimp

Total sold: 172

MUSHROOM BANH MI

soy & sesame marinated maitake mushrooms, sriracha aioli, cucumber, jalapeno, pickled carrots, cilantro, hero roll

Total sold: 83

FOOD SPECIALS

HARISSA

Cauliflower SANDWICH

pumpkin seed romesco caramelized onion, cherry peppers, arugula, ciabatta roll

Total sold: 27

LITTLE GEM SALAD

gem lettuce, apple, fennel, radish, black quinoa, crispy shallots, pistachio green goddess dressing

Total sold: 45

REDBAY COFFEE TAKEOVER

RED VELVET LATTE

featuring Red Bay espresso

Total sold: 35

Red Bay Coffee take over has been very popular!

339 drip coffees sold in February, up from 128 sold in January.

DUMPLING TIME POP UP

Dumpling Time has been a big hit with the tenants with over 240 orders sold!

THE REVIEWS ARE IN!

BEVERAGE SPECIALS

I'M sO gIN TO yOU

gin, passion fruit, grenadine, lemon

Total sold: 110

Pear-fecto

vodka, dark rum, pear, house - made orgeat, lime, apple crisp

Total sold: 95

COVE TENANT CLASS

This quarter's tenant engagement class demonstrated how to butcher whole salmon. The class sold out in just 3 days and attendance was overflowing with more than 30 tenants.

COVE TENANT CLASS

The

cocktail portion of the tenant class paired bright and fruity mojitos to counterpoint the savory salmon belly!

Social media

F&L NOW AT 1531 followers! +30 followers since last month.

foundryandlux

@thecovessf and @foundryandlux Farmers Market is back next Wednesday 2/15! Last month was a hit as always with @simbabsimba @capay_organic , and first time vendors @noodelist and @performforlife . So make sure you’re stopping by for all your organic and local produce and more!

#farmersmarket #localproduce #localvendors #veggies #organic #ssf #sf #bayareafar

foundryandlux

foundryandlux

@foundryandlux and @thecovessf are so happy to be welcoming @kubenicecream as a new vendor for tomorrow’s farmers market! Stop by and grab one before they’re all gone!

@kubenicecream is a woman owned vegan, artisanal, full-fat coconut ice cream womanufacturer in Oakland, California. They believe we deserve ice cream that brings us joy and justice.

#farmersmarket #kubénicecream #icecream #vegan #veganicecream #localvendors #sm

allbusniess #blacksmallbusiness #joyandjustice #bayarea #bayareaicecream #oaklandice cream #thecovessf #FoundryandLux #LoveBonAppetit

foundryandlux

Our winter root vegetable soup with chilies oil drizzle and pumpkin seeds will warm you up on this cold wet afternoon. It’s savory, a little spicy and best of all very comforting. Come try a bowl today!

#foundryandlux #dailysoup #rootvegetables #rootvegetablesoup #newmenuitem #sou

p #soup� #� #rutabega #pepitas #pumpkinseeds #newsoup #covessf

www.foundryandlux.com

Sales: Sales for the four-week period totaled ~$191k with a weekly average of ~$47.7k. F&L has been producing catering for Roblox for two days a week, contributing an estimated $8k in weekly revenue. Weeks 2 & 4 were slow due to the continued impact of winter storms which caused a larger number of tenants to work from home. There was also a drop in larger event groups this month with only a handful of parties over 30 guests looking to book events. Additionally, we are seeing more price sensitivity for event budgets which is causing us to have to offer events at a lower price point.

COGS: Cost of goods was 27.4% against the budgeted 23%. 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, as well as increased costs of paper packaging.

Labor: Management monitored labor closely and made as many reductions as possible without impacting service levels including the closure on Presidents Day which saved over $6k. February labor is came in at ~$145.1k against budgeted ~$162k. Additionally, minimum wage in SSF increased by a dollar to $16.70.

Other Expenses: Total other expenses were ~19.3%, which is slightly higher than budgeted due POS/IT Equipment charges that account for $3K in additional expenses. Management is working on identifying future charges for the POS system. Other expenses included services for the vendors, rentals, culinary garden, catering vehicle expenses, insurance, bank, and armored car services, computer and telephone expenses, and safety equipment.

Bottom Line: Total losses came in at -$43.2k against budgeted losses of ~$27.5k. Closing for the Presidents Day holiday helped reduce total operational costs however, weeks 2 and 4 revenue totaled only ~$85.3k. Weeks 1 and week 3 equaled ~$106.6k. Management is working on new marketing tactics to drive more revenue including adding the Dumpling Time pop station, new farmer’s market partners, and more approachable event pricing to entice more groups to book last minute events with us and capture more revenue.

ASSUMPTIONS FOR FOUNDRY & LUX:

MARCH: Five–week period and business is expected to be greater than February with larger events planed for Week 1, 4 & 5. Roblox catering will increase catering to a 3 days a week which will greatly benefit the operation.

APRIL: Four-week period and business is expected to be a higher revenue generating month with the Cove Earth Week event. Budget slightly reduced from 2022 – revenue will not be as high as anticipated. An increased number of event booking in Week 1. Week 4 has been closed off and reserved for HP board of directors. Top line revenue will reflect sales, however, will not improve the bottom line, profit margin will be a wash for the internal events and will be executed at cost.

MAY: Four-week period and business is expected to be close to targe with budget. Wednesday, May 17, 100 person Lifescience Conference for HPP conducted at cost. 100 person buyout on the weekend in W4. Week 4 will be a 5 day operating week with closure on Monday, Memorial day, 5/29.

Chandlery saw an upswing in business in January. There was an increase in events, and the tenants are becoming more comfortable using the technology integrations of online ordering and QR code table ordering. To gain greater exposure for the restaurant, the team has begun using DoorDash. Using DoorDash will help awareness and brand recognition by encouraging more business beyond Sierra Point.

While business has increased, Graphite Bio & J&J have begun laying off their staff, so there was a decrease in walk-in business in the 3rd and 4th weeks of the month.

The kitchen has remained busy producing new weekly lunch specials to meet the tenant demand for globally inspired cuisines at $13 or less. Chandlery has also begun cross-promoting the specials as part of J&J's weekly staff newsletter to keep the tenants excited and engaged to come hungry each week.

Chandlery is excited to introduce the new mocktail options to be more inclusive. Chandlery is also moving towards having more of a hand-crafted cocktail program to keep more variety for happy hour.

CHANDLERY SPECIALS

Peruvian style beef tri tip, onions, tomato, fries, tamari, jasmine rice, aji amarillo crema

Sold: 101

BBQ Pork Ribs $13

St. Louis-style pork spareribs, macaroni salad, crunchy slaw

Sold: 60

Chicken Teriyaki $13

halal chicken thigh, jasmine rice, veggies, pineapple slaw

Sold: 67

Thai Chicken Lettuce Bowl $13

halal chicken thigh, mushrooms, peppers, onion, tamari glaze, peanuts jasmine rice, lettuce, sesame seeds

Sold: 99

CHANDLERY SPECIALS

Cassoulet $13

classic French pork stew, celery, onion, carrots, yukon gold mashed potato

Sold: 59

Indian Chicken Curry

Bowl $13

braised chicken, spiced tomato sauce, raita, turmeric rice, naan

Sold: 75

CHANDLERY SPECIALS

Torta de Conchinita Pibil $12

Yucatecan braised pork, pickled red onion, cabbage slaw, charred habanero salsa, sesame seed bun

Sold: 32

Sour Cheer - ie Mule $8

lime, simple, ginger beer, sour cherry jam

Sold: 21

Social media

Chandlery is now live on social media, helping promote the restaurant, show off weekly specials and all the unique features of the space.

Warm and delicious hearth flatbreads using only the best seasonal ingredients. Available Thursdays for happy hour.

Chandlery at the Shore offers a unique and inviting space for everyone. Our menu features locally grown produce, freshly caught fish, and sustainably raised meats. Open for breakfast and lunch Monday - Friday and Happy Hour Tuesday - Thursday.

Nothing says celebration like champagne. If you're looking for stunning bayfront water views, you can't go wrong with a glass of bubbles on our heated patio. See you for happy hour!

Come and enjoy one of Chandlery's new weekly specials. The Mediterranean Bowl, served on grilled pita, topped with tabouleh salad, roasted pepper hummus, tzatziki sauce, and house-made falafel. Available online or in person. Stop by before they're gone for good.

www.chandleryattheshore.com

Sales: Sales for the four-week period totaled ~$64.2k with a weekly average of ~$16K. We are still being impacted by the cold and rainy weather we experienced in week 2 & week 4. Chandlery is still unable to maximize on revenue with space rentals due to the construction caused by the BMS remodel. Losses this period totaled approximately ~$6K 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 26.5% against the budgeted 22%. This was largely due to the low sales and dip in tenant numbers in week 3 & 4 with the Graphite Bio & JNJ lay offs. 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: Management has continued to aggressively cut labor whenever possible while still offering all services to the tenants. Additionally, we only need to have one position staffed with temp labor as all other positions have been filled. 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 26.6% of revenue. The high percentage is due to the lower sales, as well as 1k in marketing charges to advertise Chandlery on the Knot and Wedding Wire for a wedding venue. Other expenses included vendors, POS equipment, software, licenses, insurance, and culinary garden maintenance.

Total Losses: Total losses were ~$45.4k against budgeted losses of ~$10k. The largest contributing factor is the missed revenue that the meeting room is not capturing. Additionally, there is now a second restaurant open in the Towers which caused a drop in revenue as tenants try out their offerings. Week 4, we closed for Presidents Day which saved approximately $3.5K in total losses.

ASSUMPTIONS FOR CHANDLERY:

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.

MARCH

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.

MAY

Four

week period and business is expected to increase with more event business booking as weather gets warmer and tenants want to enjoy happy hour on the patio more frequently.

ST PATRICK'S DAY SPECIALS

EXTENDING PM HOURS AT F&L

BINI’S KITCHEN POP UP at F&L

NEW FARMER’S MARKET PARTNERS

NEW FOOD AND BEVERAGE SPECIALS

ANNUAL EARTH WEEK CELEBRATION

BOBA POP UP