FAST FORWARD FALL 2020
Optimism in the Face of Change
By Jeff Brands, ATJF President
A newsletter from the Association of Taco John’s Franchisees
In our previous newsletter, I talked about 2019 initiatives from both ATJF and TJI that pointed towards positive momentum in early 2020. There was optimism that the Full Up Menu would be the beginning of an above-normal trend for sales and transaction growth for the chain. There were signs in late February/early March that this was true. And then…March rapidly changed into something less desirable with significant sales declines, closed dining rooms and a full-fledged national pandemic. Since March, we’ve all experienced the stress, challenges and craziness the pandemic brought with it. We have also been able to take advantage of the Continue on page 2
Our Annual Operating Profit Study wrapped up for year-ending 2019, allowing us to measure trends and identify opportunities for profit improvement for those stores participating in the study. Below is a high-level summary of some key metrics: • Average revenue decreased from $1,087,104 in 2018 to $1,077,244 in 2019. • Food cost (net of beverage rebates) stayed consistent at 26.5% of sales in 2018 and 26.6% in 2019. • Labor costs increased from 31.0% of sales in 2018 to 32.2% of sales in 2019. • Average hourly wage was virtually unchanged at $11.24 in 2018 and $11.23 in 2019. • Operating profit dropped from 22.3% of sales in 2018 to 20.8% of sales in 2019.
If you participated in the Profit Study this year, you should have received an individual custom report for each of your locations comparing that location’s results to the appropriate volume tier benchmark results. You also have access to a free iBLeague™ subscription which allows you to reference and manage your data online at any time. Please note that any submitted financial information is completely confidential. If you have questions or have not received a copy of your 2019 Profit Study Report, please contact Jody Schindler at jody.a.schindler@ gmail.com.
Profit Study Summary
By Jody Schindler, Executive Director
OUR MISSION “To provide our membership an environment for increasing long-term profitability in support of improved business value and brand equity.”