F&L May '22 Recap

FOUNDRY & LUX MAY ‘22 RECAP Click to add text

May was an incredibly profitable month with $402k in sales! F&L hosted a farmer’s market, tenant cooking class, cocktail class, incorporated drink specials and food specials, and executed over 40 caterings! The team is actively working on marketing goals to capture more market share and increase brand awareness.

F&L remains the flagship destination as the hang-out spot in the biotech community.

FOOD SPECIALS Broccoli & Brie Sandwich Total sold: 62

Chicken Chile Verde Posole Total sold: 104

Grapefruit Jicama Salad Total sold: 72

BEVERAGE SPECIALS Berried Treasure: 76 total sold Gin, strawberry, aperol, grapefruit

El Elotero: 99 total sold Choice of tequila or mezcal, elote liqueur, chile liqueur, lime, jalapeno

Piñita: 95 total sold Tequila, pineapple, agave, lime, egg white

CINCO DE MAYO TENANT COCKTAIL & COOKING CLASS

F&L hosted a Cinco de Mayo tenant cooking class and cocktail class with a total of 25 tenants. Chef Jorge showcased Shrimp Aguachile. Pascual and John showed the tenants how to make a margarita like a pro!

FARMER’S MARKETS

With weather getting nicer we were able to move the monthly farmer's market outside next to the culinary garden

Foundry & Lux partnered with Feed Sonoma to provide produce boxes directly to the tenants.

ONSITE CATERING & EVENTS

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Genentech x 4 Verily Life Sciences x 2 Kitchell CEM ATP meet & greet Twist Bioscience (ARE) TheriniBio (ARE) Whatsapp dinner Sangamo reception Aimmune Therapeutics Catalent Pharma Solutions BioBreak forum

• ReocFrontier Casual HH • AstraZeneca Wine Tasting HH • The Shore Tenant Happy Hour Social Events • Bat Mitzvah Party (Saturday) • Venkus Graduation Party

• NanoString Technologies Marketing Demo • ACC SFBA (Association of Corporate Counsel)

OFFSITE CATERING ALTOS VENTURES ANNUAL CEO & INVESTOR MEETING + RECEPTION, May 25th @ Franklin Templeton / ROBLOX Annexon Lunch & Happy Hour Team Building @ Chandlery Tenants of The Shore Tenant Happy Hour Premier @ Chandlery

Foundry & Lux is providing hot Weekly Grab & Go Boxed Lunches for ROBLOX, every Tuesday, Wednesday, & Thursday. Averaging at 200 boxes per day!

Social media

Foundry & Lux had a lot to share! National Bee day and several Cinco de Mayo themed food and beverage specials.

new users: 28

#soup #pozole #chickenverde #lunchtime #lunchspe cial #soupoftheday #thecovessf #foundryandlux #Lo veBonAppetit

#cocktail #happyhour #bar #gin #refre shing #fiveoclocksomewhere #thecove ssf #foundryandlux #LoveBonAppetit

#foundryandlux #cincodemayo #craftcocktails #te quilacocktails #mezcalcocktails #aguafresca #the cove #drinkme #signaturecocktails #loungecocktai l #barlounge

#worldbeeday #beesactuaries #spri ngisforthebees #thecovessf #foundr yandlux #LoveBonAppetit

www.foundryandlux.com

Sales: Sales for the four-week period totaled ~$402k with a weekly average of ~$100.5k. F&L and Chandlery had several buyouts, one of which was on a Saturday in week 2. Foundry executed a large-scale, high-end, offsite event in San Mateo on the 25th, contributing ~$80k to sales. Additionally, F&L has been producing catering three days every week to ROBLOX, totaling an estimated $35k to revenue.

COGS: Cost of goods is at 19.8% against 24.2% from the last period. Cost of goods continues to be a moving target due to distribution challenges. The team has been 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. May labor was significantly reduced to 41% against revenue compared to April labor at 53%. 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 20.6%. 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: This is the second month in a row where we have been in the black! Total profit for May was an incredible ~$72.8k! This is the highest Foundry & Lux has been in the black in its history! This period puts total losses at ~$23k YTD.

THE ROLLING 3

JUNE: June is typically a slower month and a five-week period.

F&L will still be doing ROBLOX catering three times a week in addition to 15 events on books, one being a buyout on Saturday at F&L. JULY: July, historically, has been one of the lowest revenue months of the year. Typically, participation significantly decreases along with catering and events. Total forecasted losses are ~$5k after considerably reducing labor to the lowest possible model. Foundry will potentially be executing a carnival-themed tenant event for the Cove.

AUGUST: Forecasting to be slightly busier than what was initially budgeted due to ROBLOX. Foundry currently has one buyout event for Saturday, 8/6.

CHANDLERY Chandlery hosted its first tenant event for the Shore, which showcased a variety of specialty cocktails, wine, beer, and the Chandlery Happy Hour menu. The free tenant event was an excellent opportunity for us to gauge the level of participation from the Shore for Chandlery. The sponsored tenant event beverage total was about $1200 in sales, roughly 90 covers. Tenants are inquiring about future happy hour events and are incredibly excited about the venue opening. We have received great feedback about the scenery, food, and beverages.

THE CHANDLERY

The month of May had total sales of ~$10.2k. 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.

Losses were ~$25.2k against budgeted losses of ~$25k.

The next step is to open the bar once a week and offering an abbreviated menu.

THE CHANDLERY ROLLING 3

ASSUMPTIONS: JUNE - G&G and coffee bar continues with the same hours of operation. June is also a 5 week period.

JULY - Slow services for W1 with the July 4th holiday. Added bar service once a week with hours of operations exteding to 8:00am to 6:00pm.

AUGUST- Events pick up slightly with weekly happy hours continuing. Tenant population still low.

JUNE 25 SATURDAY BUY OUT EXTENDING HOURS AT FOUNDRY FOR NBA FINALS JULY COVE TENANT EVENT CHANDLERY WEEKLY HAPPY HOURS BEGINNING LATE JULY GROWING FARMER’S MARKET