snōw white laundry

281 Water Street, St. John's, NL — Investor Update, February 26, 2026

Cash in Bank

$414K

QuickBooks Feb 26, 2026

Total Spent

$243K

All invoices settled

Construction Quote

$905K

Moss Development, pre-HST

Funding Gap

$1.20M

vs. total potential cost (incl. HST, contingency, patio)

Y1 Pre-Tax Profit

$464K

2026 partial year (32.2%)

Target Open

July 2026

Patio season

Executive Summary

This document provides a candid assessment of where snōw white laundry stands relative to the original $600,000 investment. Construction bids have come in higher than the original budget anticipated, but we now have a detailed construction schedule from Moss Development targeting project closeout by June 30, 2026. This briefing gives full transparency on what has been spent, what remains, projected operating economics, and a realistic timeline to opening day.

What's Working

  • •Kitchen equipment is substantially purchased and on hand (~$68K of $100K deployed). Ready to install.
  • •Detailed construction schedule from Moss with specific milestone dates.
  • •Liquor license registered, building permit expected March 2.
  • •Early revenue from pop-ups and events (~$10K Square) shows genuine community interest in the concept.
  • •All outstanding supplier invoices settled. No unpaid commitments remain.
  • •P&L model shows $463K pre-tax profit in Year 1 (partial year) and $602K in Year 2. Payback in approximately 2 years.
  • •We’ve started building a team that will adapt quickly and who are committed to the vision—especially our key players.

What's Concerning

  • •Construction cost significantly exceeds the original budget. The initial estimate was not based on contractor quotes.
  • •The $600K investment will not be sufficient to complete the project. Additional capital of ~$1.2M is required (includes HST, contingency, and patio build).
  • •Payroll is running pre-open (~$12–20K/month for salaried staff before revenue ramps).
  • •Legal fees exceeded budget by 4x ($10.5K vs. $2.5K). JAC marketing contract was terminated (they fired us).
  • •A $68K cash withdrawal on Jan 19 (AGD) was used for kitchen equipment purchases.

Bottom Line

The restaurant concept and operating model are sound. The P&L projections show a highly profitable business — $602K pre-tax profit in Year 2 on $1.94M revenue (31.0% margin). However, the capital budget was materially underestimated around construction. The total project cost is approximately $1.39M before HST and contingency (now including a 40-seat semi-permanent wood deck patio + speed bar at $61.6K), with a total potential cost of $1.62M including HST and change orders — creating a funding shortfall of approximately $1.2M. The positive development is a real construction schedule with milestone dates. If the building permit comes through March 2 as expected, the Moss schedule has us at project closeout by June 30, with a realistic soft opening in early-to-mid July — right at the start of patio season.