ADMP Draft

ADMP Investment Proposal (Everytable)

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TO: Clark Hansen, CEO

FROM: Matthew Hui, Research and Development

DATE: March 5, 2024

SUBJECT: Everytable Investment Proposal

Hello Mr. Hansen,

I hope you have been well. I have done some research in regards to this growing company known as Everytable and after analyzing their data and investigating their values, I believe it would be a company worth investing on AMDP's end. Through this memo, I will try my best to summarize my research.

The contents of the memo is as follows:

• Descriptions of foundational concepts that align with AMDP and this memo
• Summary of Everytable and the alignment of its mission to AMDP's values
• Financial metric data summary and projected growth
• Expert opinions on Everytable
• Final recommendation on whether or not to invest in Everytable

What makes up a socially conscious investment?

Descriptions of foundational concepts that align with AMDP and this memo

In a socially conscious investment (like the ones done by AMDP), it is first important to get the understanding of these following concepts:

Triple Bottom Line (TBL):

The Triple Bottom Line (TBL) is a framework that evaluates a company's performance based on three dimensions: people, planet, and profit. Instead of solely focusing on financial outcomes (profit), TBL considers social and environmental impacts as equally important factors in measuring success. According to Dr. Kelsey Miller, from her article from Harvard Business School Online, businesses viewed by its triple bottom line is "rather than solely focusing on generating profit, or the standard 'bottom line'", reviewed on their social and environmental impact. This approach encourages businesses to consider the broader implications of their operations beyond just financial gain. 

Corporate Social Responsibility (CSR):

Corporate Social Responsibility (CSR) refers to a company's commitment to operating ethically and responsibly, while also contributing positively to society and the environment. CSR initiatives can include philanthropy, ethical labor practices, environmental sustainability efforts, community engagement, and more. "CSR initiatives inherently force business leaders to examine hiring and management practices, where and how they source products or components, and the steps they take to deliver value to customers" (Stobierski). The goal of CSR is to ensure that businesses not only prioritize profit but also consider their impact on stakeholders and the world at large. 

Social Enterprise:

Simply stated by the Annie E. Casey Foundation: "Social enter­pris­es are rev­enue-gen­er­at­ing busi­ness­es with a mis­sion." A social enterprise is a business entity that prioritizes social or environmental goals alongside financial sustainability. Unlike traditional for-profit businesses, social enterprises prioritize the pursuit of a social or environmental mission over maximizing profits for shareholders. Social enterprises may reinvest profits into their mission, operate with ethical business practices, and measure success based on their impact on society or the environment.

Carbon Footprint:

A carbon footprint is the total amount of greenhouse gases, primarily carbon dioxide (CO2), emitted directly or indirectly by an individual, organization, event, or product over a specific period of time. Stated by University of Michigan's Center of Sustainable Systems: "carbon footprint is the total greenhouse gas (GHG) emissions caused directly and indirectly by an individual, organization, event or product." Greenhouse gas emissions contribute to climate change by trapping heat in the Earth's atmosphere. Carbon footprints are typically measured in equivalent tons of CO2 and can include emissions from various sources such as transportation, energy consumption, manufacturing, and waste disposal.

• Measurement: Carbon footprints are measured using established methodologies and emission factors to quantify the amount of greenhouse gases emitted by an entity. This measurement involves assessing emissions from various activities, such as energy consumption, transportation, and waste generation, and converting them into CO2 equivalents.

• Importance of Reduction: It is important to reduce carbon footprints to mitigate climate change and its adverse effects on the environment, society, and the economy. By reducing emissions, individuals, organizations, and governments can minimize their contribution to global warming, conserve natural resources, improve air quality, and promote sustainability. Additionally, reducing carbon footprints can help businesses enhance their reputation, reduce operating costs, comply with regulations, and adapt to a changing market driven by environmental concerns. 

What is Everytable and why should AMDP care?

Summary of Everytable and the alignment of its mission to AMDP's values

Everytable is a social enterprise that aims to provide nutritious and affordable food to underserved communities. Everytable is committed to addressing food inequality by offering healthy meals at various price points based on the income level of the communities they serve. Their main goal is "to transform the food system to make fresh, nutritious food accessible to everyone, everywhere" (Everytable).

Started by Sam Polk in 2013, the hedge fund trader turned restaurateur, founded Everytable (then known as Feast) to address food-related issues that he saw were prevalent in South LA. Developing a new model of sale and food preparation, Polk hopes to use Everytable as a mean to solve the issues of "food deserts" like those present in South LA due to its residents' socioeconomic accessiblility. 

Following AMDP's mission statement of "We invest in companies that are committed to doing business in a socially responsible, environmentally sustainable, and profitable manner", I believe Everytable aligns with these values as follows:

• Social Responsibility: Everytable is committed to addressing social issues such as food inequality by providing affordable, nutritious meals to underserved communities. Their focus on accessibility and community impact reflects a strong commitment to social responsibility.

• Environmental Sustainability: While Everytable's primary focus is on food accessibility and nutrition, they also emphasize sustainability practices such as responsibly sourcing ingredients and minimizing waste. By prioritizing fresh, locally sourced ingredients and implementing eco-friendly packaging and waste reduction strategies, Everytable demonstrates alignment with environmental sustainability goals.

• Profitability: Everytable operates as a social enterprise, aiming to achieve profitability while also fulfilling their mission of addressing food inequality. Their business model involves offering meals at various price points based on income levels, ensuring that they can sustainably serve communities in need while remaining financially viable.

Is Everytable growing? What are some evidence of its growth?

Financial metric data summary and projected growth

Ever since Everytable's inception in 2013, it has evolved and expanded in ways that show enhanced growth. With its deep-rooted message, the company was able to get many rounds of funding and not just from private investors and companies "looking for a quick flip". For example, from Earl Lui's article on the California Wellness Foundation's (Cal Wellness) website, as the program leader of the philanthropic institution, he was ecstatic to report that their "board approved [their] largest program-related investment (PRI) to date, a $1.5 million low-interest loan to Everytable". According to the article, this is the first time Cal Wellness made a PRI for a for-profit company (Lui). They did this due to the company's "outstanding example of a social enterprise" and the foundation was impressed by the generous amount of work and change Everytable was able to create.

Following data found through Growjo's database--an online index of the estimated financial data of startups and fast growing companies, I was able to find the estimated revenue and funding of Everytable. The data is as follows:

• Estimated Annual Revenue: $49.6M per year
• Estimated Revenue per Employee: $290,250
• Total Funding: $32.3M

Right away we can see that Everytable makes a significant amount of estimated annual revenue in comparison to its total funding. This shows that not only will this pose low risk for AMDP as there is enough leverage for Everytable to pay back investors, but that it shows growth potential. This is further emphasized with their revenue per employee. 

According to Klipfolio, a business analytics software company, for a company earning $50 million or more of total revenue, around $230,000 revenue per employee is a good benchmark of a growing company (Finmark). Not only does Everytable meet this benchmark but it exceeds it! In addition, to being slightly under of the lower end of the benchmark's target company. 

What do other people think about Everytable? What is the general consensus on their impact?

Expert opinions on Everytable

Having making its first major public appearance on the hit TV-show "Shark Tank", Everytable has quickly expanded its operations. Just three years after founding its first location, Everytable expanded to five locations outside of South LA. In the year 2022 alone, Everytable saw the opening of 40 new locations. This exponential growth is just one of the many pieces of evidence of the public's positive stance towards Everytable and its mission. 

According to Lisa Jennings, a veteran restaurant industry reporter, "in 2024, Everytable expects to move into Philadelphia, Washington, D.C., possibly Boston and Phoenix, and maybe also Chicago and Texas". In her article, she goes on to list the many various social justice actions that Everytable has taken including providing meals for low-income seniors, partnerships with healthcare facilities, the company's Pay It Forward program (leading to over 20,000 meal donations), and its Social Equity Franchising program (bringing more women and people of color as talent for future franchises). Through her article, Jennings states that Everytable's commitment to its values is a correlation to its genuine growth and positive community impact.

Now expanding outside of its home state of California, Everytable has opened 10 new locations on the East Coast. This shows just how influential health eating spurred by "impact investing" is and the growth potential that Everytable possesses.

Through interviews by Columbia University's School of International and Public Affairs and summaries by the Global Impact Investing Network (GIIN), Everytable "highlights a tremendous success for impact investing." This is not just shown in expert opinions on showing how big of an impact Everytable has made but on the consumer-level as well. Ernie Gutierrez is a health-conscious consumer who is from Compton, California. According to the GIIN article, "Gutierrez is convinced that Everytable is part of “a solution” to Compton’s food desert problem and the serious health consequences associated with it."

Everytable would be a great investment for AMDP.

Final recommendation on whether or not to invest in Everytable

Through my research I have discovered an almost endless amount of reasons to invest in Everytable. I truly believe it would be in the interest of AMDP to make the investment towards this decently young social enterprise, especially when it is experiencing such growth and expansion.

Not only does the company align with AMDP's values and mission statement they also show growth through its financial data and has been exponentially expanding its operations with commitments to social change. All of these show how genuine Everytable is and how it plans on solving the overarching problem of food deserts and making sure everyone has access to fresh and healthy food. This generosity and "sticking to its values" has allowed communities to view Everytable in a positive light, leading to their expressed support, and leading to the company's expanded growth--which in turn allows them to make an even larger impact through social projects and greater reach.

Is this not what AMDP stands for? To "invest in companies that are committed to doing business in a socially responsible, environmentally sustainable, and profitable manner." I believe that Everytable does just that and deserves an investment which would not only be profitable for AMDP but allow us to invest in something that will bring great positive change to communities in need.

Works Cited

"Acumen and Everytable: Bringing Good Health into Reach." Global Impact Investing Network, thegiin.org/acumen-and-everytable-bringing-good-health-into-reach/.

Everytable. "About Everytable." Everytable, everytable.com/about.

Annie E. Casey Foundation. "What Is a Social Enterprise?" Annie E. Casey Foundation Blog, www.aecf.org/blog/what-is-a-social-enterprise.

FinMark. "Revenue per Employee." FinMark, finmark.com/glossary/revenue-per-employee/#:~:text=According%20to%20Klipfolio%2C%20a%20good,or%20more%20of%20total%20revenue.

Growjo. "Everytable." Growjo, growjo.com/company/Everytable.

Jennings, Lisa. "After Tripling Unit Count in 2022, Everytable Plans to Pick Up the Pace." Restaurant Business, 20 Dec. 2022, www.restaurantbusinessonline.com/operations/after-tripling-unit-count-2022-everytable-plans-pick-pace.

Miller, Kelsey. "What Is the Triple Bottom Line?" Harvard Business School Online Blog, Harvard Business School Online, 8 Dec. 2020, online.hbs.edu/blog/post/what-is-the-triple-bottom-line.

Lui, Earl. "Everytable's Revolutionary Food Model." California Wellness Foundation, 2020, www.calwellness.org/stories/everytable/#:~:text=Everytable's%20business%20model%20is%20very,located%20in%20the%20affluent%20neighborhoods.

Stobierski, Tim. "Types of Corporate Social Responsibility." Harvard Business School Online Blog, Harvard Business School Online, 8 Apr. 2021, online.hbs.edu/blog/post/types-of-corporate-social-responsibility.

University of Michigan Center for Sustainable Systems. "Carbon Footprint Factsheet." University of Michigan Center for Sustainable Systems, css.umich.edu/publications/factsheets/sustainability-indicators/carbon-footprint-factsheet.