Jamba Juice 2014 Annual Report Download - page 46

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Fiscal Year 2014 to Fiscal Year 2013
As a percentage of Company Store revenue, cost of sales increased to 26.3% in fiscal 2014, compared to 24.5% in fiscal 2013. The increase of cost of sales
as a percentage of Company Store revenue was primarily due to product mix shift (approximately 1.4%) due to the introduction of our freshly squeezed juices
and bowl offerings and increases in commodity costs (approximately 0.6%). Cost of sales for fiscal 2014 was $52.2 million, flat compared to $52.2 million for
fiscal 2013.
Fiscal Year 2013 to Fiscal Year 2012
As a percentage of Company Store revenue, cost of sales increased to 24.5% in fiscal 2013 compared to 23.3% in fiscal 2012. The increase of cost of sales
as a percentage of Company Store revenue was primarily due to a reduction in price points resulting from promotional tactics (approximately 0.6%), increases
in commodity costs (approximately 0.1%) and fees related to supply chain optimization project (approximately 0.5%). Cost of sales in fiscal 2013 was $52.2
million, an increase of $2.0 million, or 4.0%, compared to $50.2 million in fiscal 2012. The increase in cost of sales was primarily due to additional costs
associated with the work performed to optimize supply chain efficiencies (approximately $1.1 million) and increased costs associated with the roll-out of the
more environmentally friendly double-walled paper cups (approximately $0.9 million).
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Labor costs are comprised of store management salaries and bonuses, hourly team member payroll, training costs and other associated fringe benefits.
Fiscal Year 2014 to Fiscal Year 2013
As a percentage of Company Store revenue, labor costs increased to 31.1% in fiscal 2014, compared to 29.1% in fiscal 2013. The increase was primarily
attributable to increases in payroll expenses, related to the California minimum wage rate increase to $9.00/hour effective July 1, 2014 (approximately 0.9%)
and an increase related to additional staffing needs required to maintain speed of service while supporting the expanded fresh juice and bowls programs
(approximately 0.4%). Additionally, labor increased due to an increase in benefit claims (approximately 0.3%). Labor costs for fiscal 2014 were $61.7
million, a decrease of $0.3 million compared to $62.0 million for fiscal 2013, primarily due to a decrease in the number of Company Stores and a decrease in
related labor costs and expenses to operate, manage, and support these locations. The reduction in expense was partially offset by the increased labor costs to
support the increased sales at existing Company Stores and increased staffing utilized for the roll-out of the new product platforms.
Fiscal Year 2013 to Fiscal Year 2012
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. The decrease was primarily due to a decrease in the number of
Company Stores and the related labor costs and expenses to operate, manage, and support these locations, which was partially offset by the increased labor
costs to support increased sales.
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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.
Fiscal Year 2014 to Fiscal Year 2013
As a percentage of Company Store revenue, occupancy costs was relatively flat, 13.9% in fiscal 2014, compared to 13.8% in fiscal 2013. Occupancy costs
for fiscal 2014 were $27.6 million, a decrease of $1.7 million, or 5.9%, compared to $29.4 million for fiscal 2013. The decrease in the number of Company
Stores year over year resulted in a decrease in the related occupancy costs and expenses to operate, manage, and support these locations.
Fiscal Year 2013 to Fiscal Year 2012
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. The decrease in the number of Company Stores year over year resulted in a decrease in the related occupancy costs and expenses to operate, manage,
and support locations, which was partially offset by increased occupancy costs to support the increased sales and increased common area maintenance
charges.
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