Restaurant Update

This Board has continued to be transparent and provide information to the shareholders. This Board is committed to;

1. Maintaining a Strong financial position

2. Maintaining assessments as low and affordable as we can

3. Protecting/improving our assets and infrastructure

Assessments are based on the cost of doing business. The higher the cost and inability to increase income will result in higher assessments. During 2027 budget preparation we have looked at Restaurant Operations with our Restaurant Management Staff and made decisions that we believe will reduce cost of goods sold, expenses and increase income. The current economy has directly impacted the food industry. You are seeing this at the grocery stores and restaurants throughout Central Florida. Our actions, we hope our temporary, are necessary to address the issues that have impacted this industry (number of national restaurants that have filed bankruptcy this year) and result in keeping our assessment as low as possible. One thing we are proud of is keeping our menu prices as low as possible compared to our peers throughout Central Florida. We recently (October 1, 2026) saw a mandated minimum pay increase.

Actions being taken;

1. Temporarily suspend the 10% Shareholder Appreciation discount which currently has cost the restaurant $30,000+ of revenue from January -July. Based on income projections we will be looking at other cost saving marketing ideas going into 2027.

2. Portion control on food. Over this past year we have received several comments from residents that the portions were more than they can eat at one sitting. Our year to date financial have shown a 10% increase in food costs. This will help us with controlling our inventory costs and reducing our food costs.

3. The two Specials offered daily have been extremely costly from an inventory perspective. Reducing the Specials will result in a significant food cost control we need. The food purchases for our Specials are higher than menu meals as the food is not purchased in bulk resulting in higher cost and little to sometimes no profit per special. Our Goal is to provide (1) one Special a week and keep the Steak Dinners on Friday.

   
   

   As always we appreciate your comments and suggestions and bear with us as we deal with this, hopefully, temporary situation.

Joe Snell