SNAKES & LATTES INC. (OTC: FUNN) is pleased to report a 112% increase in year over year Q2FY22 revenue at $1,613,826, up from $721,907 for Q2FY21, with gross profits up from $566,178 to $1,223,002. The large increase in gross profits is due to numerous operational efficiencies gained over the past year. We continuously look for ways to increase this metric and are
pleased with the result thus far.
Cash on hand at the end of the quarter was $41,771 with total assets of $3,978,593 over total
liabilities of $8,837,167. The total outstanding common share count of the company is
746,374,343 as of December 31st, 2021. A significant increase in liabilities was due to the
requirement of booking the subsidy loans from the government. About half a million will be
forgiven and removed within this fiscal year.
The healthy increase in comparative year over year revenues for the quarter (Q2FY21
compared to Q2FY22) was anticipated as we began the road back to normal operations. We are
quite satisfied after a long period of full pandemic related restrictions with the current trend.
While we remain very optimistic going forward, the company has still had a number of
challenges to manage due to Covid.
The October to December quarter is seasonally our best quarter with extra holiday sales (games
and gift cards) and additional revenues from company events. General patronage is also higher,
but given the pandemic it is a bit more variable than ‘normal’ years. The good news is, our
customer base is very strong and we continue to see higher and higher attendance rates at all
our locations for the capacity they allow. Even with setbacks, this positive trend has continued
into Q3 as evidenced by the surge in patronage as soon as we reopened our Ontario locations
post the most recent mandated covid closure.
During Q2, we had 5 locations either partially closed or operating at a reduced capacity. At this
time, our locations are operating at a capped 50% total capacity. Canada locations are open 5
hours on weeknights and 12 hours on weekends. This is far from our standard 13 / 16.
Fortunately, the impact is limited due to the size of our venues. We exercise covid protocols:
Guests must present a valid Vaccination Pass, along with an ID, and we request stay seated at
all times with a mask on when not eating. Other restrictions include we cannot facilitate groups
over 10 guests. Reservations for a set period of 3 hours has had an impact on our bottom line,
as we lose flexibility making seating arrangement sub-optimal. We expect some if not all
restrictions to be lifted toward the end of month.
We also saw an increase in labor costs in our Ontario locations. This was anticipated as an
increased cost, and part of doing business in the service / hospitality industry. The increases for
Canadian locations were:
● Server minimum wage increased from $12.55 to $15.00.
● Kitchen staff wages increased by approximately $2-$3 per hour due to scarcity / labor
shortages.
Despite the healthy positive trajectory and trend overall, we were just shy of our quarterly
internal objective. This has been attributed to a lower than average year end close due to a
large surge in covid cases. The last 10 days of December were not as lucrative as historic /
pre-covid years.
With the newest Snakes & Lattes Inc. location Guelpth officially opening up during Q2, Snakes
& Lattes has 7 fully operational locations. (within current covid restrictions) We also added to our
key resources with the addition of our Marketing Director to handle location localization and
social media. Connecting with our customers is paramount to success as we continue to build
on our brand strength.
Tempe continues to lead the way as the exemplar location. After a record Q1, Tempe confirmed
its good health in Q2 with revenue +4% and stable labor. Admission represents less than 15%
of overall revenue for the location, while Food is almost at 50%. Changes in the Guest Average
Spending are mainly due to menu price increases. Initiatives headed by Susan and her team
have been working to introduce more localized food offerings, which have also had a positive
effect of Average Customer Spend. Tempe’s revenue continues to be strong and consistent.
Looking forward to significant social events such as March Madness and popular local farmers’
markets should continue to bring in high traffic to the location.
There are particular indicators important to the health of our locations, individual and aggregate.
Currently, most of our indicators are in the Green. The trend is definitely positive and heading in
the right direction as we emerge from the pandemic and look forward to its continuation.
Key Performance Indicators (KPIs):
● CANADA Locations: 40% of total Revenue
● USA Locations: 51% of total Revenue
● Overall Revenue: Increase +34% between Q1 and Q2 FY22.
● Gross Profit: Increased from 69% to 76% from the previous quarter.
● Number of Customer Receipts: Increase +120% venue frequentation.
● Guest Average Spending: Increase +17% compared to the same period. (Note as a
trend, the first week of Feb. 2022 has yielded +51% compared to the same period 2
years ago.)
● SPLH - Revenue per labor hour: The ratio is stable; training and onboarding of 20+
Staff members in Q2 had a large impact on labour.
% admission of total revenue (service charge of customers coming in to play
games): Our ideal number is under 30% of total sales (excluding Retail, i.e. customers
are spending more on food and beverage than only paying the boardgame fee.). We saw
an overall decrease of 4% to 28%. This is well under the objective.
● Revenue per Sq Ft: This indicator is important for a measure of operational efficiency.
Despite the limited capacity and hours of operations, it is trending up. Q2 is +90%
quarter over quarter.
As previously communicated, the company is working on a number of promising initiatives,
which in turn is expected to continue to impact positively on the yearly aggregated growth. With
the return to a more normal state of operations, we anticipate continued and consistent year
over year growth as we continue to expand operations and increase revenue / improve
efficiency in existing locations. Details will be released over the coming weeks on several
projects.
A big thank you to all our supporters and loyal customers, we continue to serve in honor to
create the best possible experience for our patrons. We have been humbled by the outpouring
of support from our shareholders, staff, customers and local communities through the past 22
months since the beginning of the pandemic. In turn we have been able to and continue to
serve, to grow, and at all times we keep the mission of ‘Snakes and Lattes locations coast in
coast’ at the forefront of our strategy.
See you at Snakes & Lattes!
About Snakes & Lattes Inc.
For further updates from Snakes & Lattes and its parent company Amfil Technologies Inc., please follow us on Twitter @AmfilTech
For more information regarding the company and its related subsidiaries please visit the following websites:
Amfil Technologies Inc. www.amfiltech.com
Snakes & Lattes Inc. www.snakesandlattes.com
Interloc-Kings Inc. http://www.interloc-kings.com
Amfil Technologies Inc. is the parent company to two wholly owned subsidiaries:
1). Snakes & Lagers Inc. holds the trade name and is the owner of Snakes & Lattes Inc. which currently operates 4 tabletop gaming bars and cafes located in Ontario, Canada. 2 in Arizona (Tempe, Tucson) and 1 in Chicago, Illinois. The company is in the process of expanding throughout North America. Snakes & Lattes Inc. was the first board game bar and cafe in North America, and is believed to be the largest in the world. Our board game cafes have the largest circulating public library of board games in North America for customers to choose from. For more information on Snakes & Lattes Inc., please visit the website at www.snakesandlattes.com.
2). Interloc-Kings Inc. is a hardscape construction company servicing the Greater Toronto Area. This subsidiary is an authorized Unilock installer. Unilock is North America’s premier manufacturer of concrete interlocking paving stones and segmental wall products. Interloc-Kings Inc. has an A+ Rating with the Better Business Bureau (BBB) and a 10/10 rating on homestars.com. Specializing in stone and wood installations between $5,000 and $150,000 per project, Interloc-Kings Inc. has become a top, high quality installation company of outdoor living areas in the Greater Toronto Area. More information on this subsidiary can be found at the website www.interloc-kings.com.
Safe Harbor Statement
This news release contains statements that involve expectations, plans or intentions (such as those relating to future business or financial results, new features or services, or management strategies) and other factors discussed from time to time in the Company's OTC Market or Securities and Exchange Commission filings. These statements are forward-looking and are subject to risks and uncertainties, so actual results may vary materially. You can identify these forward-looking statements by words such as "may," "should,", "will", "expect," "anticipate," "believe," "estimate," "confident," "intend," "plan" and other similar expressions. Our actual results, such as the Company's ability to finance, complete and consolidate acquisition of IP, assets and operating companies, could differ materially from those anticipated in these forward-looking statements as a result of certain factors not within the control of the company such as a result of various factors, including future economic, competitive, regulatory, and market conditions. The company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
Contact:
Ben Castanie
Founder, Snakes & Lattes
Snakes & Lattes Inc.
Telephone: (416) 500-2911
Email: ben@snakesandlattes.com