Tin Building financials from 2022 and 2023. Other operating costs of $11.7m? 1H 24 was better than 1H 23, which likely means rev. was up 20-30% in 2Q. Before you get to labor, this building loses money, and labor is the largest expense. The building loses money even if it grows revenue by 50% and cuts labor/SG&A by 50%. Note the lease is part variable tied to revenue (6.2% of sales). I did not think it would be this bad. Buying food in bulk/jointly maybe saves a few hundred thousand. The building is overstaffed. You can't raise prices as this is already a higher end establishment. As I mentioned in the initial writeup, the manager of the Oyster bar stated the restaurant is busy Thursday-Sunday. I'm not sure the space is running at a utilization rate significantly below 100%. Maybe it's 75-80% (not sure), and likely closer to 90% on Thursday-Sunday. Is there really significant excess capacity to generate significantly more traffic?
In Columbus, OH, they have Budd Dairy. (https://buddairyfoodhall.com/bars-at-budd-dairy-food-hall/). This place is always packed Thursday through Sunday. Similar to the Tin Building, it has 10 restaurants (all quick service) and 3 floors, but the space is predominantly seating/bars, allowing for more traffic. This concept makes far more sense to me than what the Tin Building currently is.
https://www.sec.gov/Archives/edgar/data/2009684/000162828024032621/exhibit991-form10a5.htm
Exhibit F-68
Tin Building financials from 2022 and 2023. Other operating costs of $11.7m? 1H 24 was better than 1H 23, which likely means rev. was up 20-30% in 2Q. Before you get to labor, this building loses money, and labor is the largest expense. The building loses money even if it grows revenue by 50% and cuts labor/SG&A by 50%. Note the lease is part variable tied to revenue (6.2% of sales). I did not think it would be this bad. Buying food in bulk/jointly maybe saves a few hundred thousand. The building is overstaffed. You can't raise prices as this is already a higher end establishment. As I mentioned in the initial writeup, the manager of the Oyster bar stated the restaurant is busy Thursday-Sunday. I'm not sure the space is running at a utilization rate significantly below 100%. Maybe it's 75-80% (not sure), and likely closer to 90% on Thursday-Sunday. Is there really significant excess capacity to generate significantly more traffic?
In Columbus, OH, they have Budd Dairy. (https://buddairyfoodhall.com/bars-at-budd-dairy-food-hall/). This place is always packed Thursday through Sunday. Similar to the Tin Building, it has 10 restaurants (all quick service) and 3 floors, but the space is predominantly seating/bars, allowing for more traffic. This concept makes far more sense to me than what the Tin Building currently is.