Joon Choo

L/S- consumer + TMT — Start up founder

[Joon Choo @cornerstone_cap]

@karpathy What I’ve found to be helpful to producing these wikis is NoteBookLM. it can ingest 200MB of files, articles, YouTube links per notebook and produce markdown files with shocking levels of granularity and coverage without hallucination. A “lower tech” way to produce these en masse

[Joon Choo @cornerstone_cap]

@orrdavid Happened on this tweet while revising my position - was wondering if people were still short since IKs hit 7-10%+ RLM in Naperville and management want to retrofit to 25-50% stores, and 18-20% unit growth until 2030 seems pretty steep to me

[Joon Choo @cornerstone_cap]

7/ If you then add the cost of contractors, architects and subcontractors (according to HNGRY) is around $140K cash per store. What are people’s thoughts on the economics here?

[Joon Choo @cornerstone_cap]

Been looking into $SG and was wondering what people think.

1/ I understand that there seems to be a lot of interest in EBITDA margin expansion on a cost covered basis with IKs but what about the opportunity cost and cash conversion from opening new stores?

[Joon Choo @cornerstone_cap]

3/ Had chat with hyphen/$CMG investors who say it contributes to the notion of significantly overstated throughput – higher throughput/capacity unlocks flywheel of lower wait times → increased demand during peak hours → higher utilization of fixed labor costs.

[Joon Choo @cornerstone_cap]

6/ Add retrofit costs and the lost profit of a store closure to the IK’s $500K product cost. If an NYC store does $3.5M in sales, the opportunity cost of the retrofit is ~$53K per month ($3.5M/12 x 18%).

[Joon Choo @cornerstone_cap]

6) Quoted from HNGRY "Take the new Penn Plaza location, (assuming management’s 10% margin boost and $450K-550K reported CAPEX)" that means that infinite kitchen payback at the first two $2.6mm AUV suburban locations is about two years. How about retrofitting urban stores in NYC?

[Joon Choo @cornerstone_cap]

5/ thoughts on street models? SG priced to near perfection – street DCFs incorporate 2/3rds of sweetgreen’s with IKs after hitting 1k locations with $3.8mm AUVs by 2036. Limited proof of concept and high opportunity cost of retrofitting. Breaking down numbers next thread.

[Joon Choo @cornerstone_cap]

4/ Read a HNGRY article cannel check says 1 employee processes ~1 bowl/30 seconds --> 120 bowls per hour within the Infinite Kitchen (so 240/hour for 2 employees). Around 31% lower than Spyce’s original statement of 350 bowls per hour in its own retail locations

[Joon Choo @cornerstone_cap]

@techinvestoor @NEWBUHO 2/ Seems that $CMG with Hyphen and 1.5 years proof of concept with $SG + IKs has ended debate about automation, most street models bake in 7-10%+ margins. Hearing that most investors care more about the revenue story (so SSS + unit growth) was wondering what your thoughts were

[Joon Choo @cornerstone_cap]

@techinvestoor @NEWBUHO 1/ I understand that there seems to be a lot of interest in EBITDA margin expansion on a cost covered basis but what about the opportunity cost and cash conversion from opening new stores?