let the profits roll & confidential...it’s all about the data • analyze treatware reports...
TRANSCRIPT
Let the
Profits
Roll
K i m S m i t h
C h i e f F i n a n c i a l O ff i c e r
PRIVATE & CONFIDENTIAL
“Funance” Team
• Kim Smith, Chief Financial Officer
• Scott Putman, Controller
• Anthony Guzman, Sr. Financial
Analyst
We are here to help you!PRIVATE & CONFIDENTIAL
Impressive AUVs
• Growth driven by ticket increases
• Ticket increase a combination of
price, units per transaction, and
product mix
$528,801
$558,190
$577,273
2015 2016 2017Franchisee P&Ls, franchised stores ex RMU open full year
PRIVATE & CONFIDENTIAL
Manage Your
Business by the
Metrics PRIVATE & CONFIDENTIAL
It’s all about
the data
• Analyze Treatware reports regularly to
find opportunity
• Pricing is critical
• Ensure Master Cashiering is followed
• Know your mall
PRIVATE & CONFIDENTIAL
Price is a lever that can drive sales
• Higher priced locations
had higher average
check and better same
store sales
• AND they got these
results without
decreasing unit sales
Original Bitzprice
Avg checkSame-store
salesOriginal Bitz
units
>4.99 $7.81 1.2% 53.9
<4.99 $6.97 0.8% 48.3
Difference +$0.84 +0.4% +5.5
Based on franchisees who submitted P&Ls in 2017, mall graded properties. Results may vary based on location.
PRIVATE & CONFIDENTIAL
Across mall grades, higher price
performed better
• Consistently higher
average check and Bitz
units sold
• On average, better same
store sales too
Difference: Store Bitz prices $4.99+ vs. less than $4.99
Mall GradeAvg check difference
Same-store sales
difference
Original Bitzunits
difference
A $0.86 0.5% 0.2
B $0.76 0.0% 10.0
C $1.21 (0.7%) 4.2
Based on franchisees who submitted P&Ls in 2017, mall graded properties. Results may vary based on location.
PRIVATE & CONFIDENTIAL
• Pizza Bitz earn $1.23 more
in sales and $1.17 more in
profit vs. Pepperoni Twist
• Warming unit stocking
important to have right
product at right time so you
can sell more Pizza Bitz
• Upsell!!
Manage mix, price and COGS
PRIVATE & CONFIDENTIAL
Turnover Trends
• As the labor market tightens, turnover
increases
• 150% turnover range is common,
restaurants employing 20 individuals
should expect to hire 30 each year1
• Employee turnover rates in restaurants
are at an all-time high in 20181
139%
145%149%
2016 2017 2018**Based on Wetzel’s Corporate Locations, 2018 annualized based on trend1Per Business Insider
PRIVATE & CONFIDENTIAL
• Each employee that turns over is a sunk
cost of ~$800
• Corporate stores lost on average 19
associates per location which is
~$15,000/year per store
• By reducing your turnover just 10% or
~2 people you will earn $1500 more
Turnover is
costly
PRIVATE & CONFIDENTIAL
Turnover is
highest in the
first 3 months
• Most likely to lose team members early on
• If you improve, you will increase your profitability
*Based on Wetzel’s Corporate Locations, TTM
PRIVATE & CONFIDENTIAL
Loss Prevention
Update
Loss Prevention is another way to save $s
• Built new dashboard to identify opportunity
• Multiple metrics including dough yield, P&L
and Treatware
• Quarterly Review
PRIVATE & CONFIDENTIAL
But wait, there’s more finance updates……..PRIVATE & CONFIDENTIAL
Wins with
credit card
processing!
• Negotiated better rates with First Data
• They can implement EMV and
minimize or stop your chargebacks
• Savings on average over $1200/store
annually!*
• First Data is here to sign you up
• Successful test at Willowbrook
• EMV equipment stocked at First Data
*Based on signing up for processing and Smart Routing, assume AUV of $650k, 56% card tender, $7.70 average ticket. Comparison to B of A baseline.
PRIVATE & CONFIDENTIAL
Mini Dogs
Cost of Goods
• Negotiated a $0.50/case discount
effective in August
• Continue to evaluate volume for
pricing opportunity
PRIVATE & CONFIDENTIAL
Profit
protection
Loss
prevention
Turnover
management
Procurement
efforts
EMV &
Credit Card
Processing
Minimize or stop
chargebacks and
save on
processing
Pricing
Be planful in
application
and measure
results
A better return is in your
hands, we are here to help
PRIVATE & CONFIDENTIAL
thank you!
PRIVATE & CONFIDENTIAL