HPP Recap March 2023

F&L is gearing up for an exciting spring season with revamped food items and new pop-up partners! The F&L culinary team has combined fresh and enticing flavors onto favorite menu staples to create unique experiences for current and new tenants. March featured a pop-up from Dumpling Time which took over the sauté station and offered amazing dumplings to the tenants as an unexpected menu surprise. Although the unexpected weather impacted business with heavy losses overall, week 4 generated plenty of revenue to bring us over with profits through an increased number of events. F&L is also partnering with Bayleaf Tea to provide the tenants with exciting fruit teas and salted cream drinks in the café.

FOOD SPECIALS

mortadella, salami, olive & pepper relish, provolone, ciabatta

turkey, pesto, pea shoots, tomato, havarti, dutch crunch

FOOD SPECIALS

shaved carrots, beets, roasted cauliflower, pepitas, sunflower seeds, tahini lemon vinaigrette

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

BEVERAGE SPECIALS

gin, raspberry, lemon, egg white

rum, coconut, mint, lime

tequila, aperol, elderflower, lemon, prosecco

BAYLEAF TEA POP-UP

espresso, brown sugar, milk, sea salt sweet cream, honeycomb

oolong tea, lychee, peach, aloe vera, mint, lime

THE REVIEWS ARE IN!

ONSITE CATERING & EVENTS

OFFSITE CATERING

ROBLOX Scoop & Serve Lunch

Tuesday – Thursday, Weekly

Harpoon Therapeutics

3/9 - Breakfast Pick-up

BioMed Realty

3/21 –Boxed Lunch Dropoff

AbbVie

3/23 – Reception Catering Dropoff

F&L NOW AT 1540 followers! +10 followers since last month.

foundryandlux Our monthly farmers market is just around the corner, and we're excited to announce a new partner. @crumbleandwhisk is an incredible local baker specializing in delicious cheesecakes, breakfast pastries, and sweet treats. Stop by between 10:30 am-12:30 pm on March 15th to snap up these before they're gone.

#crumbleandwhisk #localbaker #buylocal #eatlocal #bayarea #cheesecake #foundryandlux #thecovessf

#goodeatsf #goodeatssf #bayareabaker #bayareacheesecake #jawdroppingdessert

foundryandlux It’s National Pi Day, and we’re celebrating with a new amatriciana pizza. Topped with pancetta, onion, chili flakes parmesan and mozzarella. Simple as 3.14592… and so tasty you’ll wish you had a slice sooner.

#nationalpiday #nationalpiday2023 #piday #piday2023 #foundryandlux #thecovessf #goodeatssf #pizzapi e #pizzatoday #happyhour #happyhourpizza #happyhourbites #amatriciana #amatricianapizza #pancetta #pancettapizza

foundryandlux Foundry & Lux is opening a new project soon and is hiring baristas and cashiers. If you’re interested in joining an amazing team with health, dental and vision benefits apply today www.bit.ly/FLBarista

#foundryandlux #barista #hiringbaristas #craftcoffee #coffeestar #werehiring #coffeeprogram #coffees hop #joinourteam #latte #cappuccino #coffeeart #teamplayer

foundryandlux It’s the first day of spring and our culinary garden couldn’t be happier. We use elements from the garden in many of our dishes and the amazing @farmscape works directly with our chefs to plant and harvest seasonal vegetables, herbs and fruits.

#foundryandlux #foundryandluxgarden #culinarygarden #onsitegarden #farmscape #firstdayofspring #s pring2023

Sales: Sales for the four-week period totaled ~$262k with a weekly average of ~$52.4k. F&L has been producing catering for Roblox for three days a week, contributing an estimated $12k in weekly revenue. Weeks 1-3 were slow due to the continued impact of winter storms which caused many tenants to work from home or order delivery for their teams. The first few weeks also were slow without any larger event bookings. We are still seeing price sensitivity from event clients and many groups re-scheduled or canceled events due to the impact of the weather.

COGS: Cost of goods was 24.3% against the budgeted 22%. 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, and the increased costs of paper packaging.

Labor: Management monitored labor closely and made as many reductions as possible without impacting service levels. March labor came in at ~$187.2k against budgeted ~$210.3k. Additionally to retain culinary employees we needed to implement several cost-of-living wage increases long standing BOH employees who were being paid below market rate.

Other Expenses: Total other expenses were ~21.3%, which is slightly higher than budgeted due to the increased expense to purchase from Dumpling Time for the pop-up which totaled over $4.4K, as well as POS equipment maintenance costs of $2K for . 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 -$44.8k against budgeted losses of ~$21.4k. While we did well in weeks 4 and 5 the average weekly sales in weeks 1-3 was only 48.6K which was under the budgeted sales largely due to the decrease in event revenue from the first 3 weeks of the period. Management is working on new marketing tactics to drive more revenue including adding new pop-up concepts Bini’s and BayLeaf, 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:

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 and week 3. Week 4 has been closed off and reserved for HP board of directors which will impact sales that week with the loss of event spaces and there will be added expenses for the specialty wine requests during the events. 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.

JUNE: Five – week period business is expected to be slower due to the tenant population dip that occurs during the summer months, but we are anticipating higher event revenue in W3 with a weekend buyout.

CHANDLERY RECAP March 2023

Chandlery forged ahead this month with exciting specials and an impressive lineup of non-alcoholic beverage options. The team is taking advantage of the spring season by utilizing ingredients from the garden to bolster the menu. The kitchen continues to produce a variety of globally-inspired cuisine to entice the tenants. In addition, Chef Santos released new grab-and-go food selections in the café. While the extreme weather negatively impacted the revenue, management used the slower time to focus on improving services and offerings to the tenants. We are actively promoting the venue on wedding platforms and social media to attract new business opportunities.

Chandlery hosted a class focusing on pasta making and classic whiskey cocktails. The response was incredibly positive, and the class was completely booked within the first hour of its announcement!

CHANDLERY SPECIALS

Huli-Huli Chicken Bowl

grilled chicken, huli-huli sauce, pineapple scallion fried rice

$13

Sold:121

Beef Lasagna

house-made arugula pasta, ground beef, marinara, mozzarella

$13

Sold:69

Falafel & Pita Bowl

handmade falafel, hummus, tabouleh salad, grilled pita, tzatziki

$12

Sold:89

Tallarin Saltado

peruvian linguini & shrimp stir fry, red onion, roma tomato, scallions, tamari soy sauce, aji amarillo crema

$14

Sold:87

CHANDLERY SPECIALS

Chicken Tinga Tostadas

adobo braised chicken, onion, lettuce, refried black beans, pico de gallo, lime crema, queso fresco, corn tostada

$13

Sold:93

BLT Sandwich

house-made rosemary focaccia, bacon, lettuce, roma tomato, avocado aioli

$12

Sold:78

Loco Moco

grilled wagyu beef patty, mushroom gravy, fried egg, jasmine rice, scallions

$14

Sold:89

Butter Chicken Bowl

braised chicken thighs, creamy tomato sauce, raita, jasmine rice, naan

$13

Sold:125

CHANDLERY SPECIALS

Whitecap vodka, lemon, lavender, butterfly pea, aquafaba

$14

Berry Matcha

Latte berry coulis, matcha tea, choice of milk

$7

Aged Copper scotch, averna, absinthe, orange bitters

$14

NEW MOCKTAIL MENU

Guests can add spirits to these delicious mocktails for just $4

lime, berry coulis, ginger beer$8

coconut, orange, pineapple $8

lemon, lavender, butterfly pea, soda water $8

Spring's

lemon, cucumber, passionfruit $8

Verry-Berry Mule

Lavender Lemonade

Passion

Paradise at The Shore

TENANT ENGAGEMENT

During the cooking and cocktail class, tenants from JNJ, Annexon and BMS made fresh pasta with Chef Santos and several unique handcrafted cocktails with Pascual. These engagement opportunities have been incredibly successful, and management is reviewing the potential demand to offer monthly classes as an ongoing perk to the tenant community.

lemon, aperol, montenegro amaro, bourbon

passionfruit, campari, bourbon, rum, orgeat, balsamic-amaro

MaiKinda Daze

Paperplane

TENANT ENGAGEMENT

Fresh Pasta Made from Scratch!

The tenants gladly volunteered to have hands on experience making fresh pasta for the first time.

Looking for a delicious lunch to be delivered to your home or office? Look no further now that we’re live on @doordash and @caviar order today on the App or visit our website www.chandleryattheshore.com and click the Order Delivery link.

Have some fun in the sun on our fantastic waterfront patio. Beers, bites, and buddies are best enjoyed with a great view and fresh air in your hair. Open for lunch Monday-Friday, 11 am - 2 pm, and Happy Hour Tuesday-Thursday.

Relax and unwind after a hard day at work with one of our free amenities like shuffleboard. Whether you're going around the hanger, or riding the rail this game is perfect to relax while having drinks with friends and some tasty food to nosh on during the game. Stop by soon for your turn to score!

Looking for a unique and vibrant space to host your wedding? We've got you covered. Our spacious restaurant has beautiful bay views, and we offer complimentary shuffleboard, pool table, putting green and horseshoes for great activities to pair with your special day.

www.chandleryattheshore.com

ONSITE CATERING & EVENTS

The National Kidney Foundation returned to Chandlery to host a kick-off breakfast meeting for their annual walk-a-thon fundraising event. We also introduced two new Genentech groups to Chandlery at the Shore.

Sales: Sales for the four-week period totaled ~$71.8k with a weekly average of ~$14.4K. We are still being impacted by the cold and rainy weather we experienced in week 1-3. The tenants are still strongly gravitating to the new weekly specials due to the added variety and lower price point, and we are continuing to see reduced numbers from JNJ and Graphite Bio due to their layoffs in February and March. We are still unable to maximize on revenue for meeting room bookings due to the construction noise caused by the BMS remodel. Estimated losses in space rental revenue this period is approximately ~$7K in revenue.

COGS: Cost of goods came in at 28.4% against the budgeted 24%. This was largely due to the low sales and dip in tenant numbers in week 1-3 due to the extreme weather. While the Cost of Goods percentage was higher than forecasted, the operation spent $11K less than was budgeted. Management worked to reduce purchases where possible to reduce COGs where possible.

Labor: Labor came in $22.8K under budget this period. Management has continued to aggressively cut labor whenever possible while still offering all services to the tenants. Currently Chandlery has one chef and one manager dedicated to the unit to minimize cost.

Other Expenses: Total other expenses were 28.2% of revenue, but $5k under what was budgeted. 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 ~$67.4k against budgeted losses of ~$43.7k. The largest contributing factor is the missed revenue that the meeting room is not capturing. The extreme weather caused us to close for happy hour 3 days this month which saved approximately $1.5K in labor.

CHANDLERY ROLLING 3

ASSUMPTIONS FOR CHANDLERY:

APRIL – Four – week period and business is expected to be slow but pick up from March with extended hours for happy hour and the preparations for additional move ins from more Shore 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.

JUNE – five – week period and business is expected to slow down with the beginning of summer holidays for the tenants.

ANNUAL EARTH WEEK TENANT EVENT

BINI'S KITCHEN POP-UP AT F&L

EARTH DAY INSPIRED

TENANT CLASS AT F&L

HPP BOARD OF DIRECTOR'S EVENT

SEASONAL ROTATING MENU SPECIALS

THE OPENING OF NEXUS!