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Case Exhibit 1

Restaurant Industry Turnover Rates

2006 2008
Salaried Hourly Salaried
Full-Service Restaurants (All) 40% 92% 37%
Full-Service Restaurants (Company-Owned) 55% 80% 50%
Full-Service Restaurants (Private Corporation) 50% 91% 33%
Full-Service Restaurants (Average Check $10-$14.99) 40% 91% 50%
Limited Service Restaurants (All) 52% 107% 33%
Limited Service Restaurants (Company-Owned) 50% 75% 33%
Limited Service Restaurants (Private Corporation) --- 99% 33%
Limited Service Restaurants (Average Check $6.50/7.50+) --- 94% ---

WrapItUp 54% 102% 44%

Source: National Restaurant Association and Deloitte


Exhibit 1
stry Turnover Rates

2008 2010
Hourly Salaried Hourly
89% 33% 71%
91% 33% 92%
88% 27% 67%
89% 25% 69%
113% --- ---
141% --- ---
94% --- ---
82% --- ---

150% 41% 90%


Case Exhibit 2
WrapItUp Manager Compensation
1,500 square foot store

Guaranteed Weekly Additional Weekly Total Weekly


Base Salary Pay(1) Pay
Store Manager, Both Stores (Pre ShareIt) $675 $225 $900
Store Manager, Santa Monica (During ShareIt) $675 $1,013 $1,688
Store Manager, Costa Mesa (During ShareIt) $675 $878 $1,553
Industry Benchmark $825 $275 $1,100

Associate Manager, Both Stores (Pre ShareIt) $506 $169 $675


Associate Manager, Santa Monica (During ShareIt) $500 $440 $940
Associate Manager, Costa Mesa (During ShareIt) $500 $325 $825
Industry Benchmark $638 $213 $851

Notes:
(1) Pre-ShareIt, WrapItUp weekly variable pay was guaranteed and based on volume; the industry benchmark was an incentive-based paym
on quantified metrics. Post-ShareIt, this amount is the profit distribution.
Total Annual
Pay
$46,800
$87,776
$80,756
$57,200

$35,100
$48,880
$42,900
$44,252

benchmark was an incentive-based payment based


Case Exhbit 3a
Common-Sized Income Statement - Santa Monica Store

Pre-Share It
Income Month 1 Month 2 Month 3 Month 4
Retail Sales 100 100 100 100

Expenses
Manager Salaries 9.1 9.8 11.7 11.4
Crew Salaries 15.1 14.3 14.9 13.8
Benefits 2.6 3.0 2.9 4.1
Total Labor Expenses 26.8 27.1 29.5 29.3

Ingredients 29.4 30.1 31.1 30.0


Cutlery/Paper 1.8 1.2 1.4 1.2
Controllables (incl. Marketing) 1.5 1.4 1.1 2.0
Utilities 1.9 2.8 2.3 2.3
Total Variable Expenses 34.6 35.5 35.9 35.5

Controllable Profit 38.6 37.4 34.6 35.2

Fixed Expenses 3.4 3.6 3.5 3.4


Occupancy 9.3 9.5 9.6 9.5
Total Fixed Expenses 12.7 13.1 13.1 12.9

Store Profit 25.9 24.3 21.5 22.3

During Share It (vs. same period prior year ago)


Income Month 1 Month 2 Month 3 Month 4
Retail Sales 100.0 104.0 106.0 108.0
Wholesale Sales (Catering) 1.0 2.4 2.8 3.4
Total Revenues 101.0 106.4 108.8 111.4

Expenses
Manager Salaries 9.1 9.6 11.1 10.7
Crew Salaries 15.4 14.6 15.2 14.1
Benefits 2.7 3.1 3.0 4.2
Total Labor Expenses 27.2 27.3 29.3 29.0

Ingredients 31.8 31.9 33.3 32.4


Cutlery/Paper 1.9 1.2 1.5 1.2
Controllables (incl. Marketing) 4.0 4.2 3.5 3.6
Utilities 2.1 3.1 2.5 2.5
Total Variable Expenses 39.7 40.4 40.8 39.8
Controllable Profit 34.2 38.7 38.8 42.6

Fixed Expenses 3.4 3.5 3.5 3.2


Occupancy 9.5 9.6 9.6 9.3
Total Fixed Expenses 12.9 13.1 13.1 12.5

Store Profit 21.3 25.6 25.6 30.1


ore

Month 5 Month 6
100 100

7.8 9.0
14.1 14.4
3.1 1.6
25.0 25.0

30.5 30.2
2.0 1.4
2.1 1.8
1.8 2.1
36.4 35.5

38.6 39.5

3.0 3.1
12.3 10.3
15.3 13.4

23.3 26.1

Month 5 Month 6
110.0 111.0
5.8 7.0
115.8 118.0

7.3 8.5
14.4 14.7
3.2 1.6
24.8 24.8

32.3 31.7
2.1 1.5
4.2 4.2
2.0 2.3
40.6 39.7
50.4 53.5

2.9 2.9
12.1 10.1
15.0 13.1

35.4 40.5
Case Exhbit 3b
Common-Sized Income Statement - Costa Mesa Store

Pre-Share It
Income Month 1 Month 2 Month 3
Sales 100 100 100

Expenses
Manager Salaries 9.1 9.8 11.7
Crew Salaries 15.1 14.3 14.9
Benefits 2.6 3.0 2.9
Total Labor Expenses 26.8 27.1 29.5

Ingredients 29.4 30.1 31.1


Cutlery/Paper 1.8 1.2 1.4
Controllables (incl. Marketing) 1.5 1.4 1.1
Utilities 1.9 2.8 2.3
Total Variable Expenses 34.6 35.5 35.9

Controllable Profit 38.6 37.4 34.6

Fixed Expenses 3.4 3.6 3.5


Occupancy 9.3 9.5 9.6
Total Fixed Expenses 12.7 13.1 13.1

Store Profit 25.9 24.3 21.5

During Share It (vs. same period prior year ago)


Income Month 1 Month 2 Month 3
Sales 99.7 99.4 98.5

Expenses
Manager Salaries 8.9 9.5 11.1
Crew Salaries 13.6 12.7 13.0
Benefits 2.3 2.6 2.5
Total Labor Expenses 24.8 24.8 26.5

Ingredients 27.6 27.1 27.1


Cutlery/Paper 1.7 1.6 1.5
Controllables (incl. Marketing) 1.5 1.4 1.1
Utilities 2.1 3.0 2.5
Total Variable Expenses 32.9 33.1 32.1

Controllable Profit 42.0 41.5 39.9


Fixed Expenses 3.3 3.5 3.4
Occupancy 9.1 9.4 9.7
Total Fixed Expenses 12.4 12.9 13.1

Store Profit 29.6 28.6 26.8


Mesa Store

Month 4 Month 5 Month 6


100 100 100

11.4 7.8 9.0


13.8 14.1 14.4
4.1 3.1 1.6
29.3 25.0 25.0

30.0 30.5 30.2


1.2 2.0 1.4
2.0 2.1 1.8
2.3 1.8 2.1
35.5 36.4 35.5

35.2 38.6 39.5

3.4 3.0 3.1


9.5 12.3 10.3
12.9 15.3 13.4

22.3 23.3 26.1

Month 4 Month 5 Month 6


97.3 97.9 98.5

10.7 6.9 8.2


11.9 11.8 11.5
3.4 2.5 1.2
26.0 21.3 20.9

26.4 26.2 26.3


1.5 1.5 1.5
1.9 2.0 1.7
2.5 1.9 2.3
32.3 31.6 31.8

39.0 45.0 45.8


3.3 2.9 3.0
9.1 12.2 9.7
12.4 15.1 12.7

26.6 29.9 33.1


Case Exhibit 4
Results from Internet-based Customer Surveys
(Answers on a scale of 1-5,with one being poor and five excellent))

Santa Monica, CA Store Costa Mesa, CA Store


July 2009 July 2010 July 2011 July 2009
Promptness of greeting 4.3 4.1 4.1 4.2
Freshness of food 4.6 4.4 4.7 4.8
Variety of menu choices 4.1 3.8 4.6 4.1
Feeling valued as a customer 3.4 3.2 4.7 3.5
Value for the money 3.9 3.7 3.2 3.7
Commitment to the environment 4.3 3.8 4.1 4.4
A good addition to our community 4.4 4.6 4.7 4.4
Wait time for food 4.2 3.9 3.5 4.1
Likely to return 4.4 4.1 4.7 4.3
Likely to recommend 4.3 4.1 4.6 4.2
Costa Mesa, CA Store
July 2010 July 2011
4.1 3.6
4.6 4.1
4.2 3.9
3.2 2.8
3.5 3.2
4.3 4.6
4.5 4.4
3.8 3.1
4.2 3.9
3.9 3.5

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