Welcome to Blue Room's Weekend Update. Each week, we're sharing what companies we're researching and the what, the who and the how that we think makes the companies interesting and unique. This roundup is brought to you weekly by a group of interns, creative minds, artists and investors who believe that through best in class investing along with the democratization of financial education we can do great things together. Enjoy, Explore and Share.

Markets were largely flat on the week as incoming economic data provided an uncertain outlook for the economy and future potential rate hikes.

Headline CPI came in at 3.7% Y/Y, slightly hotter than economist’s expectations due to a surge in energy prices, while core CPI continued to decline to 4.3% from 4.7% in the month prior. WIth energy prices expected to continue higher, it leaves the door open for the Fed to propose additional rate hikes.

PPI also came in higher than expected with headline PPI at 1.6% Y/Y, the second monthly increase in a row. The last time headline Y/Y PPI increased sequentially was over a year ago in June of 2022.

Preliminary data from the Univ. of Michigan showed consumer sentiment fell to 67.7, the second monthly decline in a row, by more-than-expected as consumers showed more concern for current economic conditions. However, inflation expectations fell sharply

NFIB Small Business Optimism Index decreased 0.6 points in August to 91.3, below survey estimates of 91.5, driven primarily by a seven point decline in owners’ expectations for better business conditions which is now at a net negative 37%.

In company news, the United Auto Workers union chose to strike over labor disputes with GM, Ford and Stellantis. The strike is the first time the union has taken action against all three manufacturers at the same time. So far, 12,700 workers walked out on a Ford Motor Co. plant in Michigan, a General Motors Co. factory in Missouri and a Stellantis NV plant in Ohio. The union strategically chose plants that produce higher-profit vehicles while minimizing the impact on the UAW’s strike fund. Depending on the length of the strike, the impact could have broader implications to the economy and other industries like semiconductors. Some of the major demands from the UAW include a 36% pay increase for hourly workers over four years and a reduction in the work week from 40 hours to 32 hours. Reports have stated that the manufacturers and union are not even close to an agreement which could lead to significant losses for the companies. A 40-day strike against GM in 2019 cost the company roughly $3.6 billion.

Weekly Performance

S&P 500 4,456.02 -0.03%

Dow Jones 34,630.59 +0.16%

Nasdaq 13,699.53 -0.44%

Key Economic Readouts This Week

MBA Mortgage Applications — Actual: -0.8%; Prior: -2.9%

NFIB Small Business Optimism Index — Actual: 91.3; Estimate: 91.5; Prior: 91.9

Retail Sales Advance M/M — Actual: 0.6%; Estimate: 0.1%; Prior: 0.5%

Consumer Price Index Y/Y — Actual: 3.7%; Estimate: 3.6%; Prior: 3.2%

Producer Price Index Y/Y — Actual: 1.6%; Estimate: 1.3%; Prior: 0.8%

Initial Jobless Claims — Actual: 220k; Estimate: 225k; Prior: 217k

Continuing Claims — Actual: 1,688k; Estimate: 1,690k; Prior: 1,684k

Thank you Blue Room Analyst NICK PEART.

THIS WEEKEND’S UPDATE IS A TRIBUTE TO CHEF KELLY WHITAKER, ID EST HOSPITALITY AND TO EVERYONE WHO HAS TOUCHED THE RESTAURANTS AND DRY STORAGE.

To those in tune with the vibrant restaurant and hospitality scene ,
it is no surprise to see chef Kelly Whitaker recognized by
Michelin as a linchpin in the Colorado culinary scene.

— AS OF 09 12 23 —

AND THE WINNERS ARE

Q&A with Caroline Clark

What are you drinking these days?

Fresh, red wines from the most thoughtfully farmed vineyard sites! Lately I can’t get enough of the young producers from the Central Coast of California like Amevive, Outward, Emme, and Margins. I also love exploring small production distillates of Mexico while being mindful of the sustainability challenges in the region.

Favorite non-alcoholic drink?

Dry Storage in Boulder makes a thyme lime espresso tonic that I cannot quit—no better afternoon pick-me-up! I am also a big fan of the movement towards flavorful adaptogenic beverages like the CBD line from Dram Apothecary or functional herbal blends for mixed beverage use, like 3 Spirit.

How have your cocktail tastes changed over the years?

I don’t fear sugar content like I used to. Where once I desired only high octane, no-nonsense cocktails that were the purest expressions of spirits, I currently find myself more focused on seasonal produce, ferments, and other scratch ingredients to create balanced and food-friendly cocktails. That being said, I'll always veer towards higher acidity beverages when it comes to personal preference.

What’s the biggest misconception about mixology or cocktails in general?

Making drinks is a flavor and hospitality act first, but I think many people are distanced from the significance of cocktail ingredients as agricultural products. I believe recognizing that is crucial, as it links spirits to broader environmental, historical, and social contexts. The production of spirits involves farming practices, land use, ecosystems and biodiversity, labor, and local communities of people. In global history, the industry has caused harm in many regions. While I want us all to enjoy the earthly pleasure of sipping on a delicious and excellently crafted cocktail, I also hope to encourage folks to explore the world of craft beverages and all of its nuances with a curious, critical, and open mind. The choice of products selected for the back bar can have a major impact when vetted intentionally for social and environmental footprint.

What’s your ideal meal and pairing?

I’ll never stop dreaming of yakitori right off the charcoal grill with a hip bottle of savory, mineral-smacked Jura white like Overnoy-Crinquand Old Vine Chardonnay or Labet “Les Champs Rouges”. Yum!

“Through cooking, I’m telling the stories of my travels and influences and those of the people who work here. We’re having a conversation with the world.”

-Chef Kelly Whitaker

—HERE IS TO IE HOSPITALITY’S WILL TO MAKE IT THROUGH COVID—

ALL HANDS ON DECK + THE PIVOT

A few moments through the eyes of Blue Room Founder and Id Est Hospitality Partner,

MINYOUNG SOHN.

***Celebration at Free Market: September 12, 2023***

Golden Week

by Blue Room Partner John Fenley

Each year, my wife, Kathy, and I celebrate our Golden Week of birthdays and our anniversary, which all occur between August 21-27. This year, we did in style, booking a Trifecta of Colorado’s first Michelin recognized restaurants: The Wolf’s Tailor, Bruto and Hey Kiddo. In addition to the heavenly food, drinks and world class service, we had an opportunity to spend time with both Chef Kelly Whitiker and Chef Michael Diaz de Leon (now, each Michelin Star chefs!). There is nothing more special than watching an artist create their masterpieces. The food simply tastes better when you witness how much time, focus and love that they pour into each dish. C’est délicieux!

***Our anniversary at The Wolf’s Tailor***

***Chef Michael Diaz de Leon - creating his magic at BRUTØ***

***At Hey Kiddo when it’s your birthday, you get to “Full send it!”! Yes, I shared.***

Congratulations Kelly for getting several Michelin awards attributed to your restaurants and for garnering Michelin stars for The Wolf’s Tailor, Basta and Bruto. Absolutely incredible!

I have to express sincere appreciation for Kelly and the incredible experience he provided the BLUE ROOM team and I during my first professional pitch way back in October 2020. His warm hospitality, along with the inviting atmosphere created by his dedicated team, played a huge role in easing my nerves and ensuring a successful pitch to our early investors. This sense of relaxation is not unique, and carries throughout all of his five restaurants. Whether consciously or not, Kelly has supported my professional journey and I look forward to continuing to go to all of his exceptional restaurants.

Kelly, thank you for making dining an art and for the positive impact you've had on so many lives.

-Ian Carter, Blue Room Analyst

Experiencing Denver

by Blue Room Analyst Nick Peart

Eating at Kelly’s restaurants was one of the first experiences I had when Blue Room welcomed me to Denver. I could not get over the quality of the food as Kelly artfully blended flavors from various regions around the world, paired with healthy and locally sourced ingredients. In addition to the amazing food, what stuck out to me was Id Est’s focus on experiences. At BRUTØ and The Wolf’s Tailor, the IE team carefully crafts seasonal menus and took you on a journey through multiple courses along with drink pairings. Basta and Hey Kiddo put interesting twists on familiar foods. Across all restaurants, I continue to be impressed by the commitment to sustainability and regenerative farming, showcasing the power of having the right ingredients. The Michelin recognition that Kelly and team have received is well deserved and I have no doubt they will continue to collect more achievements and recognition of their flawless execution and storytelling through food.

The Recommendation

by Blue Room Analyst Spencer Wootten

Kelly’s restaurants are the only places I send people when asking for food recs in Denver. When talking to other locals about the Denver food scene, it is funny how often we are able to bond over the quality of the id est brand. It is truly the paragon of Colorado food.

CONGRATULATIONS ID EST!

Vision & Storytelling

by Blue Room Analyst Jared Fenley

Since my first Blue Room meeting, all the way back in May 2020 on Blue Room Meeting #003, Kelly Whitaker’s vision and storytelling are the two aspects that always have stood out to me as what separates him and Id Est from others in such a competitive field. Back at that time, he shared the innovation and pivots he was leaning into as the whole world stopped during COVID lockdowns, finding new ways to bring people into the brand and keep them engaged in a new environment. The piece that stuck with me is that Kelly described himself as a “fixer” seeking out opportunities in problems and “going where there is a need”. Over a decade since he embarked on that journey to fulfill his vision for Id Est and after three years of innovation and pivots through the pandemic, leaning into problem-solving and breaking barriers has clearly resulted in something remarkable. Sharing some pictures of the dishes I’ve been lucky enough to enjoy at Id Est restaurants, nothing compares to sitting in The Wolf’s Tailor or BRUTØ as the team brings each guest into that beautiful narrative and tasteful innovation with every bite. As Kelly has been among the first and biggest supporters of the Blue Room vision to reimagine the impact an investment firm can achieve, we are all so happy to celebrate Kelly and Id Est as they achieve international recognition for the result of leaning into problem-solving and innovation.

TENACIOUS CREATIVITY

by Blue Room Co-founder and Creative Partner Emily Philpott

Working side-by-side with Chef Kelly and the Id Est team throughout so many inspired challenges over the past few years has been a creative highlight for me professionally and personally. Kelly is one of the most tenacious people I have ever met and welcomes every obstacle dynamically with innovation and supreme intention. There really are no words, so I will share in pictures. Thank you, Chef, for lighting the fire in all of us and in everyone around you.

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VISIT TOGETHERISM

10% OF ALL BLUE ROOM REVENUES GO DIRECTLY TO FUND OUR NON PROFIT TOGETHERISM.
WE CAN ACCOMPLISH ANYTHING TOGETHER.

These materials do not purport to be all-inclusive or to contain all the information that a prospective investor may desire in considering an investment. These materials are intended merely for preliminary discussion only and may not be relied upon for making any investment decision. Any discussion or information contained in this presentation does not serve as a receipt of, or as a substitute for, personalized investment advice from Blueroom or your advisor.

This publication does not constitute an offer to sell or a solicitation to buy any securities in any fund, market sector, strategy or any other product. Investing is speculative and involves substantial risks (including, the risk of loss of the investor’s entire investment). Past performance is not indicative of future results, and there can be no assurance that the future performance of any specific investment, investment strategy, or product will be profitable.

For more information about us and our general disclosures contact us directly.

Weekend Update #144