“Supporting the Mission”

Semper Fit and Exchange

Services Division

Food & Beverage Program

Update

IMCEA F&B Workshop 16 July 2012

“Supporting the Mission”

Program Mission and Organizational

Dynamics

National Brand Relationships

Program Overview

Programming and Finances

Club System Transformation

Healthy Food Alternatives

2

AGENDA

“Supporting the Mission”

The Food and Hospitality Branch at HQMC is

evolving to become a more proactive

organization, focused on serving Marines,

Sailors and their families

New standards and training are taking place

to focus on measurement of key metrics,

employee onboarding, speed and efficiency of

service, facility cleanliness and sanitation and

reduction of waste

3

Keeping Faith

“Supporting the Mission”

The Food and Hospitality Branch at HQMC MR works

closely with Local Installation MCCS to support them

in a variety of ways.

MCCS is a de-centralized organization. HQMC MR

oversees the program while the Local MCCS

operates the Clubs, restaurants, snack bars, indirect

branded restaurants and conference venues.

Local Installation Leadership make most decisions on

Food and Hospitality deployment, Club support and

funding

4

Organizational Dynamics

“Supporting the Mission”

Top Grossing Brands on USMC Installations Include:

McDonalds ($23.3M)

Subway ($13.9M)

Domino’s Pizza ($11.5M)

Wendy’s ($8.1M)

Burger King ($3.4M)

New Branded Development

Panda Express – MCB Camp Lejeune

Dunkin Donuts – MCB Camp Pendleton

Five Guys Burgers & Fries – MCAS Cherry Point

Jamba Juice – MCAGCC 29 Palms and MCB Quantico

Burger King / Taco Bell – MCAS Iwakuni

5

Strong Branding Presence

“Supporting the Mission”

• 48 Clubs • Officer Club 11 ($8.65M)

• Enlisted Clubs 13 ($6.08M)

• Consolidated Clubs 16 ($33.25M)

• SNCO Clubs 6 ($1.37M)

• Autonomous Clubs 2 ($493K)

• 107 Restaurants and Snack bars ($40.15M)

• 110 3rd party Indirectly – operated

Restaurants – primarily Branded ($99.8M)

6

FY11 Food Service Overview

“Supporting the Mission”

Air Shows at MCAS Miramar, MCAS Iwakuni, MCB

Hawaii, MCAS Yuma, MCAS Beaufort, MCAS New

River, MCAS Cherry Point impact hundreds of

thousands of guests and generate nearly $2 million in

food and beverage sales each year

World Famous Mud Run – MCB Camp Pendleton –

June 2012 – generated $312K in F&B sales

F&H Excellence Awards

37 winning activities aboard 13 USMC Installations

recognized this year

Service Delivery and recovery, financial results, training and

programming

7

Programming Excellence

“Supporting the Mission”

• $89.3M in Gross Sales, plus another $18.1M in

Commissions, Fees and Charges (+$13.7M YOY)

• $300K combined increase in revenue streams

Ramped up facilities at MCAS Cherry Point, MCB Camp Pendleton and

MCB Camp Lejeune

Strong sales at Special Events (Air Shows, Mud Runs, etc.)

Strong Social Catering Sales

Trend of conversion of restaurants from Directly operated non –

branded to Branded 3rd Party Operators

• Combined CGS was 36.2% and Labor & benefits was 45%

• 18 Clubs and Restaurants grossing sales in excess of $1M

• Most profitable business activities include Social Catering and

Banquet Operations and Special Events

8

FY11 Financial Talking Points

“Supporting the Mission”

• Under formation and discussion for FY 12 / 13

• Working Groups to review possible strategies for

all Category C MWR activities to self sustain

• Maintain Honor, Pride and History and Tradition of

Marine Corps

• Focus on CSE, catering sales, banquet operations

and efficient business practices

• Focus on capital improvements and funding for

remodels and refurbishments as needed

• Require “Best in Class” technology, systems, tools

and reporting

9

FY11 Club System Transformation Plan

“Supporting the Mission”

• BLITZ Eat to Win Branding of Marine Mart C-store

food service

Build your own Salads

Breakfast offerings are a significant growth area

Several selections of 350 calories or less. Identified on

the menu as “Better for You” selections with calorie

counts

Menu serves all 4 day parts

• Healthy selections in Grab & Go cases

• Future relationships with National & Regional

Restaurant brands offering a variety of Healthier

selections

10

Emphasis on Healthy Alternatives

“Supporting the Mission”

Thank You!

Semper Fi

“Supporting the Mission”