It’s been a week since our last update -- and what a week!
But as the subject line suggested, it’s Tuesday, and like most Tuesdays at Honeybee, that means you get 2 for 1!
First, some business updates!
As we near $700k raised and over 900 investors, I must first say THANK YOU to each and every one of you -- from the investors at our minimum, to the Queen Bees, and everyone in-between! For many, a $240 investment may be their first investment of this type, and may be their first investment of any type. It is an honor and privilege to have earned your faith!
Perks: we are still finalizing the hoodie design, and will likely not use the “Eat Mor” graphic that has adorned the store in Silver Lake and Los Feliz since day 1. It’s satirical, but it definitely causes some confusion with Chick-fil-A, which we want to avoid!
Fear not - we have some great ideas and will be in production soon! Despite the logistical challenges of shipping and such, we’d really like to see you rocking your HB swag as soon as possible!
As for the food credits, they will go live once we get our new POS system online, which should be in May.
La Brea: construction is in progress and we are aiming for an opening this spring. Great timing, as LA has entered the ORANGE tier, allowing full outdoor dining and less-limited in-door dining!
New stores: we have executed 2 LOI’s (Letters of Intent) for 2 new locations, though there is no assurance that they will result in successful leases. That said, we are very selective, and we do not sign them lightly. Stay tuned.
With regard to our planned second cloud location: we are delaying this location as newer, more attractive cloud locations are coming on line this year that we were not previously aware of. Sometimes waiting is the best business strategy.
Now for the 2 for 1 part! With each update, I try to provide some insight into how we run our business, which I hope will help in your evaluation of Honeybee as a potential investment.
If you didn’t know, Honeybee has been running a 2 for Tuesday promotion every week, almost since our inception. The promotion is a BOGO -- Buy One Get One free, and applies to our sliders, and more recently, our full size Honeybees. Occasionally, we’ll run it on our Sea Bee as well (the kelp patty). It is always very popular.
There are many reasons why we run this Tuesday promotion, some more subtle than others. Obviously, customers love the value proposition! Given our relatively high prices, the 2-for-1 encourages more budget-sensitive customers to try our food at discounted prices. Admittedly, there are customers who only order from us on Tuesdays, and I am totally fine with that. We’d rather have them eat with us than at McD’s or even In N Out!
We are also always on the lookout for ways to boost revenue during otherwise slower periods. Across the industry, Monday - Wednesday are slow days, so we’ll do whatever we can to capture the fewer available dining dollars on those days. It is definitely working for us, as Tuesday is one of our top 3 busiest days, routinely battling with Friday for 3rd place!
We are also aware that our competitors are not running any promos on these days, which helps win some “stomach” share that we might otherwise lose to another plant based burger place.
The big question that you may be asking yourself is: Does Honeybee make money offering 2 for 1, or is the promo a loss-leader? We ask ourselves this question on every promo, and on Tuesdays in particular. Here is my thinking: First, it is a competitive differentiator, and that’s crucial in today’s market. Second, it encourages more purchases of sides and shakes (which are very good margin items), so if we need to break even on a burger to make 2x on sides, then that’s a good trade. Finally, and to me the most compelling reason to keep the promo alive, is that buying the 2 for 1, especially on the full size Honeybee (which outsells the sliders), typically means that the customer is either sharing with someone else (that’s another happy, potential new full price customer), or they are eating a Honeybee for lunch and dinner! In both of these scenarios, the Honeybee brand is getting more, extended exposure with the customer than if they had bought just one burger.
We realize that many of our Yelp complaints happen on Tuesdays, typically around rush hours, when the same number of customers are ordering 2x the number of burgers. So we have increased staffing, doubled-down on messaging, and frankly, we’ve gotten faster!
Thank you for your time, and have a BOGO day! Cheers, Adam