Panera Bread 2015 Annual Report Download - page 38

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28
Labor
The following table summarizes labor expense for the periods indicated (dollars in thousands):
For the fiscal year ended
December 29,
2015
December 30,
2014
December 31,
2013
% Change
in 2015
% Change
in 2014
Labor expense . . . . . . . . . . . . . . . . . . . . . . . . . $ 754,646 $ 685,576 $ 625,457 10.1% 9.6%
As a percentage of bakery-cafe sales, net . . . . 32.0% 30.7% 29.7%
The increase in labor expense in fiscal 2015 as a percentage of net bakery-cafe sales was primarily a result of increased labor
supporting ongoing operational initiatives and wage inflation.
The increase in labor expense in fiscal 2014 as a percentage of net bakery-cafe sales was primarily a result of adding additional
labor hours, as well as employees, in the bakery-cafes and related training costs, both to support ongoing operational initiatives,
partially offset by lower manager bonus expense.
Occupancy
The following table summarizes occupancy cost for the periods indicated (dollars in thousands):
For the fiscal year ended
December 29,
2015
December 30,
2014
December 31,
2013
% Change
in 2015
% Change
in 2014
Occupancy. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 169,998 $ 159,794 $ 148,816 6.4% 7.4%
As a percentage of bakery-cafe sales, net . . . . 7.2% 7.2% 7.1%
Occupancy costs in fiscal 2015 as a percentage of net bakery-cafe sales remained consistent compared to fiscal 2014 as modestly
higher common area maintenance costs were offset by improved leverage from higher comparable net bakery-cafe sales.
The increase in occupancy costs in fiscal 2014 as a percentage of net bakery-cafe sales was primarily a result of modestly higher
average occupancy costs in new bakery-cafes and higher real estate taxes.
Other operating expenses
The following table summarizes other operating expenses for the periods indicated (dollars in thousands):
For the fiscal year ended
December 29,
2015
December 30,
2014
December 31,
2013
% Change
in 2015
% Change
in 2014
Other operating expenses . . . . . . . . . . . . . . . . $ 334,635 $ 314,879 $ 295,539 6.3% 6.5%
As a percentage of bakery-cafe sales, net . . . . 14.2% 14.1% 14.0%
The increase in other operating expenses in fiscal 2015 as a percentage of net bakery-cafe sales was primarily the result of increased
credit card processing expenses, partially offset by a recovery received from a vendor.
The increase in other operating expenses in fiscal 2014 as a percentage of net bakery-cafe sales was primarily the result of increased
marketing expense, partially offset by lower controllable expenses.