Each of our concepts is built on the idea that they are venues—super desirable venues—first, that also happen to have the amenities of restaurants and bakeries. That notion resonates with our customers. They see us in that light as well. We know that because we see 58% of them every day.
Not only that, but they’re engaging with us on social media and are acting as, what we call, “ambassadors of the physical space.” Our customers bring others with them and give them tours of the space and say, “You have to see this place. You have to book this place. You have to eat here. You have to work here.”
Our unique convening power makes us different. Our strong customer loyalty makes us successful.
Blueprint for the Future
What started in 2013 as an idea to fill Denver’s doughnut void quickly evolved into more of a food hall concept and an organic community. The decision to add Carbon Cafe to the mix came about in large part thanks to our deep understanding of the industry and need to generate more revenue across day parts while offering the neighborhoods a place to start and end their day, plug-in, take meetings, connect, unwind and take dates, as well as a place to end the day. Our first location opened in August 2015. Our sales are approaching $2M at scale and we see 58% of our customers every day.
We already know what happens when you roll up a bar, restaurant, bakery and co-working space into one building—because we’ve done it. Now we’re doing it again, only this time we have a blueprint actioning lessons learned from the original Habit Carbon location. We have our own second-mover advantage with this addition.
We anticipate EBITDA margins greater than 15% at the new location, largely due to the meaningful improvements we’ve made on the cost side. Labor reductions, a more efficient footprint, a shared kitchen, lower rent and improved food costs will all drive increased profitability. Along with improved margins, we’re positioned to draw incremental sales from events and catering capabilities. The unique, 110-year-old space of the new location is ideally designed to accommodate a variety of revenue-generating events.