Cracker Barrel 2014 Annual Report Download - page 21

Other Store Operating Expenses
Other store operating expenses include all store-level
operating costs, the major components of which are utilities,
operating supplies, repairs and maintenance, depreciation and
amortization, advertising, rent, credit card fees, real and
personal property taxes and general insurance. e following
table highlights other store operating expenses as a percent-
age of total revenue for the past three years:
2014 2013 2012
Other store operating expenses 18.9% 18.2% 18.0%
e year-to-year percentage change from 2013 to 2014
resulted primarily from the following:
2013 to 2014
Increase as a Percentage
of Total Revenue
Utilities 0.1%
Advertising 0.1%
Store manager conference expense 0.1%
Maintenance 0.1%
e increase in utilities expense from 2013 to 2014 resulted
primarily from higher heating costs due to unseasonably cold
weather experienced at many of our store locations during the
winter months in 2014.
e increase in advertising expense from 2013 to 2014
resulted primarily from higher media spending. We plan to
spend approximately 2.5% of our total revenue on advertising
in 2015 compared to 2.4% of total revenue in 2014.
In the rst quarter of 2014, we held a general manager
conference which was aended by our store operations manage-
ment team. e last such conference was held during the
rst quarter of 2012 and the next conference is scheduled to
be held in the rst quarter of 2016.
Higher maintenance expenses resulted primarily from
increases in lighting replacement costs, snow removal, kitchen
equipment repairs and national inspection and repair programs.
e year-to-year percentage change from 2012 to 2013
resulted from the following:
2012 to 2013
Increase (Decrease) as a
Percentage of Total Revenue
Advertising 0.1%
Maintenance 0.1%
Litigation selement received in 2012 0.1%
Utilities (0.1%)
e increase in advertising expense from 2012 to 2013
resulted primarily from higher media spending. Higher mainte-
nance expenses resulted primarily from planned increases
in nationally managed repair and preventative maintenance
programs. Lower utilities expense resulted primarily from
lower electricity costs.
General and Administrative Expenses
e following table highlights general and administrative
expenses as a percentage of total revenue for the past three years:
2014 2013 2012
General and administrative expenses 4.8% 5.4% 5.7%
e year-to-year percentage change from 2013 to 2014
resulted primarily from lower incentive compensation.
Lower incentive compensation in 2014 as compared to 2013
resulted primarily from lower performance against nancial
objectives as compared to the prior year and a decrease in the
price of our common stock in 2014.
e year-to-year percentage change from 2012 to 2013
resulted from the following:
2012 to 2013
(Decrease) as a Percentage
of Total Revenue
Payroll and related expenses (0.2%)
Manager conference expense (0.1%)
Lower payroll and related expenses in 2013 as compared to
2012 resulted primarily from fewer store managers in training
due to lower turnover and our opening fewer stores in 2013 as
compared to 2012. e decrease in general and administrative
expenses in 2013 as compared to 2012 also resulted from the
non-recurrence of expenses associated with a biannual manager
conference which was held in the rst quarter of 2012.
Interest Expense
e following table highlights interest expense for the past
three years:
2014 2013 2012
Interest expense $ 17,557 $ 35,742 $ 44,687
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