Jamba Juice 2013 Annual Report Download - page 47

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TABLE OF CONTENTS
Fiscal Year 2012 to Fiscal Year 2011
As a percentage of Company Store revenue, cost of sales increased to 23.3% in fiscal 2012, compared to 23.0% in fiscal 2011. The
increase of cost of sales as a percentage of Company Store revenue was primarily due to increases in commodity costs (approximately
0.6%), partially offset by a net favorable product mix shift (approximately 0.3%). Cost of sales for fiscal 2012 was $50.2 million, an
increase of $0.7 million, or 1.4%, compared to $49.5 million for fiscal 2011. The increase in cost of sales was primarily due to an increase
in sales.
Labor
Fiscal Year 2013 to Fiscal Year 2012
Labor costs are comprised of store management salaries and bonuses, hourly team member payroll, training costs and other associated
fringe benefits. As a percentage of Company Store revenue, labor costs were 29.1% in fiscal 2013 compared to 29.3% for fiscal 2012. Labor
costs in fiscal 2013 were $62.0 million a decrease of $1.1 million or 1.7%, compared to $63.1 million in fiscal 2012. Our refranchising
strategy has resulted in a decrease in the number of Company Stores and the related labor costs and expenses to operate, manage, and
support these refranchised Company Stores, which was partially offset by the increased labor costs to support the increased sales.
Fiscal Year 2012 to Fiscal Year 2011
As a percentage of Company Store revenue, labor costs decreased to 29.3% in fiscal 2012, compared to 31.6% in fiscal 2011. The 2.3%
decrease of labor costs as a percentage of Company Store revenue was primarily due to labor efficiencies, improved sales volumes and more
effective wage management achieved through a smaller, more geographically concentrated Company Store base. Labor costs for fiscal 2012
were $63.1 million, a decrease of $4.8 million, or 7.0%, compared to $67.9 million for fiscal 2011. Our refranchising initiative resulted in
a decrease in the number of Company Stores and the related labor costs and expenses to operate, manage, and support these refranchised
Company Stores. In addition, the change from a 53 week fiscal 2011 to a 52 week fiscal 2012 resulted in a decrease in Company Stores
labor costs attributed to the period.
Occupancy
Fiscal Year 2013 to Fiscal Year 2012
Occupancy costs include both fixed and variable portions of rent, common area maintenance charges, property taxes, licenses and
property insurance for all Company Store locations. As a percentage of Company Store revenue, occupancy costs increased to 13.8% in
fiscal 2013, compared to 13.7% in fiscal 2012 primarily due to higher pro-rated tenancy costs in various traditional and mall locations.
Occupancy costs in fiscal 2013 were $29.4 million, compared to $29.5 million in fiscal 2012. Our refranchising strategy has resulted in a
decrease in the number of Company Stores and the related occupancy costs and expenses to operate, manage, and support these refranchised
Company Stores, which was partially offset by increased occupancy costs to support the increased sales and increased common area
maintenance charges.
Fiscal Year 2012 to Fiscal Year 2011
As a percentage of Company Store revenue, occupancy costs decreased to 13.7% in fiscal 2012, compared to 14.5% in fiscal 2011. The
decrease in occupancy costs as a percentage of Company Store revenue was primarily due to the impact of leverage as a result of the increase
in Company Store comparable sales (approximately 0.8%). Occupancy costs for fiscal 2012 were $29.5 million, a decrease of $1.6
million, or 5.2%, compared to $31.1 million for fiscal 2011. Our refranchising initiative resulted in a decrease in the number of Company
Stores and the related occupancy costs and expenses to operate, manage, and support these refranchised Company Stores. In addition, the
change from a 53 week fiscal 2011 to 52 week fiscal 2012 resulted in a decrease in Company Stores occupancy costs attributed to the
period.
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