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08-01-2013 Village Tavern Restaurant Analysis s i ..�, ' ►. �T / I ll /y sew 1 What we hope to accomplish this evening 1) Provide an analysis of the Village Tavern's revenues and expenses 2) Provide options to increase revenues and reduce expenses r � d z - ice; x �o�NTRY G��4, Assumptions : 0 22% of personnel expenses were attributed to banquets 0 34% of the expenses for utilities, janitorial, licensing & fees, china, glass & silverware, solid waste disposal, and credit card fees were attributed to banquets 1 yALII Al TRV Village Tavern Restaurant Analysis May,June,July 2012 Aug,Sept,Oct 2012 Nov&Dec 2012,Jan 2013 Feb,Mar,Apr 2013 TOTAL of total %of total %of total %of total %of total Quarter sales Quarter sales Quarter sales Quarter sales May'12-Apr'13 sales Sales Food&Beverage 95,038.69 66% 69,876.92 66% 121,937.21 68% 117,905.50 66% 404,758.32 67% Liquor 48,764.69 34% 36,100.69 34% 56,160.52 31% 60,578.84 34% 201,604.74 33% Miscellaneous Revenue 2.88 0% (10.43) 0% 402.26 0% (4.05) 0% 390.66 0% Total Sales 143,806.26 100% 105,967.18 100% 178,499.99 1000/ 178,480.29 100% 606,753.72 100% Banquet Revenue Adjustment F&B Banquets 34,094.65 34,198.18 56,166.38 47,442.85 171,902.06 Liquor Banquets 4,916.12 4,719.50 14,471.27 11,884.75 35,991.64 Total Banquet Sales 39,010.77 27% 38,917.68 37% 70,637.65 40% 59,327.60 33% 207,893.70 34% Beverage Cart Revenue Adjustment Beverage Cart-Food 3,914.14 2,956.31 3,522.23 4,191.12 14,583.80 Beverage Cart-Liquor 5,555.05 3,928.05 4,880.50 5,139.10 19,502.70 Total Beverage Cart Sales 9,469.19 7% 6,884.36 6% 8,402.73 50/0 9,330.22 50/0 34,086.50 6% Snack Bar Revenue Adjustment Snack Bar-Food 12,220.50 2,781.83 15,002.33 Total Snack Bar Sales 12,220.50 8% 2,781.83 3% - 15,002.33 2% Total Restaurant Sales 83,105.80 58% 57,383.31 54% 99,459.61 56% 109,822.47 62% 349,771.19 58% Expenses: Cost of Goods Sold-Liquor 14,787.48 10% 10,359.89 10% 17,550.07 10% 18,161.85 10% 60,859.29 10% Cost of Goods Sold-F&B 36,496.46 25% 30,410.67 29% 48,896.31 27% 45,533.73 26% 161,337.17 27% Personnel 78,499.94 55% 69,045.66 65% 95,079.90 53% 84,322.54 47% 326,948.04 54% Other operating 31,301.04 22% 54,453.73 51% 35,391.50 20% 37,883.14 21% 159,029.41 26% Capital 0% - 0% 2,250.00 1% 2,927.47 2% 5,177.47 1% Total Expenses 161,084.92 112% 164,269.95 1550/. 199,167.78 112% 188,828.73 106% 713,351.38 118% Banquet Expense Adjustment F&B Banquets 12,718.49 14,875.07 22,658.22 17,989.60 68,241.38 Liquor Banquets 1,502.95 1,352.61 4,498.88 3,494.73 10,849.17 Personnel(wages,taxes,benefits) 17,269.99 15,190.05 20,917.58 18,550.96 71,928.57 Other Operating-Linens 1,970.14 2,133.31 3,243.02 3,072.59 10,419.06 Utilities,Janitorial,Dumpster,License, 7,828.36 7,828.36 7,828.36 7,828.36 31,313.43 Total Banquet Expenses 41,289.93 41,379.39 59,146.06 50,936.24 192,751.62 32% Beverage Cart Expense Adjustment Beverage Cart-Food 1,509.30 1,279.32 1,399.29 1,628.26 5,816.18 Beverage Cart-Liquor 1,667.42 1,137.29 1,490.74 1,548.41 5,843.86 Personnel(wages,taxes,w/c) 4,108.32 4,108.32 4,108.32 3,974.35 16,299.29 Total Beverage Cart Expenses 7,285.04 6,524.93 6,998.35 7,151.02 27,959.34 5% Snack Bar Expense Adjustment Snack Bar-Food 5,019.93 1,255.81 - - 6,275.74 Personnel(wages,taxes,w/c) 2,127.71 1,054.00 3,181.71 Operating-Paper Goods 515.06 105.21 620.27 Total Snack Bar Expenses 7,662.70 2,415.02 - - 10,077.72 2% Cost of Goods Sold-Liquor 11,617.11 7,869.99 11,560.44 13,118.71 44,166.25 Cost of Goods Sold-F&B 17,248.73 13,000.48 24,838.80 25,915.87 81,003.87 Personnel 54,993.93 48,693.30 70,054.01 61,797.23 235,538.47 Other operating 20,987.48 44,386.85 24,320.12 26,982.19 116,676.65 Capital - - 2,250.00 2,927.47 5,177.47 Total Restaurant Expenses 104,847.25 113 950.62 133,023.37 130,741.47 482,562.71 800/0 BANQUET NET PROFIT/LOSS (2,279.16) (2,461.71) 11,491.59 8,391.36 15,14208 2.5% BEVERAGE CART NET PROFIT/LOSS 2,184.15 359.43 1,404.38 2,179.20 6,127.16 1.0% SNACK BAR NET PROFIT/LOSS 4,557.80 366.81 - - 4,924.61 0.8% RESTAURANT NET PROFIT/LOSS (21,741.45) (56,567.31) (33,563.76) (20,919.00) (132,791.52) -21.9% NET PROFIT/LOSS (17,278.66) (58,302.77) —(20,667.79) (10,348.441 (106,597.661 -17.6% Estimated Revenue Required to Break-Even o Assumptions: 1) Personnel & Operating Expense would remain the same 2) Cost of Merchandise would increase at the same percentage as the current year trend Restaurant Revenue Estimated Net Profit $ 775,000 Break-Even $ 800,000 $ 15,500 $ 900,000 $ 79,000 $1,000,000 $142,500 o 'V:"`''f � yr. z - CpOn TRY G F Scenario 1 -Village Tavern Pricing Increase Revenue a Food & Liquor Price Increases- salads, premium sandwiches, premium sides, or reduce portion sizes a Breakfast at lunch a Inventory Reduction - limited food and bar selections a Country Club - Membership Food Minimum Scenario 2 - Customer Base Increase Increase Revenue a Signage on US 1 - Larger & more striking (in accordance with Village code) a Free Lunch Card - Buy 10 lunches with a beverage receive 11th lunch free a Advertise Daily/ Wee I Specials - example: free drink with purchase of 2 entrees a Marketing - Golf Shop, Golf Carts, Tennis Shop, Pool Area, Library, Village Newsletter, Community Center, Parks, Electronic Media °", ,- Scenario 3 - Banquets Increase Revenue a Increase the number of banquets through advertising - examples: electronic media, banquet trade shows, referral-complimentary lunch for 4 with a signed and executed banquet a Consistent pricing on weekly/ monthly events utilizing current fee structure Z 1967, v �� y Scenario 4 - Service Availability Reduce Expenses Z Hours of Operation Adjustment Limit kitchen staff during the hours of 3 pm - 6 pm daily Z Limit menu items to prepared salads & sandwiches during the hours of 3pm - 6pm Scenario 5 - Restaurant Lease Other Restaurant Costs May 2012 - Apr 2013 Contractual Services (Janitorial) 22,888.04 Lease Options: Electricity 26,381.06 Water&Sewer 11,691.81 1) Monthly rent is charged with the Village Gas 8,339.64 absorbing expenses such as utilities, R&M, and Solid Waste Disposal 6,646.20 janitorial services R&M Building&Grounds 5,018.52 R&M Carpet/Tile 12,367.60 2) Monthly rent is charged and Leaseholder is R&M Machinery& Equipment 7,062.56 responsible for rent and the inherent expenses to R&M Burglar/Fire Alarm 1,275.05 operate a restaurant Building Maintenance Supplies 284.80 Custodial Supplies 5,114.17 3) A combination of option 1 & 2 R&M Facility Safety Compliance 1,637.45 $108,706.90 MONTHLY RENT #OF MONTHS ANNUAL INCOME GAIN/LOSS - 12 - (108,000.00) 2,500.00 12 30,000.00 (78,000.00) 5,000.00 12 60,000.00 (48,000.00) (Ir 7,500.00 12 90,000.00 (18,000.00) � 9,000.00 12 108,000.00 Break Even 10,000.00 12 120,000.00 12,000.00 1r^ ' Scenario 6 Increase Revenue ` Expenses 11 � 0 Combination 1 Scenarios , . i I • Recommendation: o Scenario 6 - a combination of scenarios 1 through 4 will be the best option to accomplish our objective of reducing/eliminating fiscal year losses • Scenario 1 - Increase Village Tavern Revenue • Scenario 2 - Increase customer base by improving signage and marketing techniques • Scenario 3 - Increase the number of banquets through advertising • Scenario 4 - Reduce service availability between 3 pm & 6 pm daily r. fl<l Questions & Answers ? o coG iw,; y c t-1 e�n NTRY �