GM Validation Flashcards
ROI
Return on investment, the cash flow generated in a year from our initial new store investment.
MPI
Menu Price Index. A factor used to even out the matrix which accounts for higher menu prices across the country.
CAM
Common area maintenance. Occupancy line on p&L, landlord costs, parking fees.
TTM
Trailing 12 Months. Last 12 months of sales for a store
P&L Trend Report
Shows the P&L data by month for the last 13 months
Real Time/Projection P&L
Report that shows the current PandL data for your restaurant and a projection of where you may end the month
COS equation
Sales - food, beverage, paper
PAC
Profit after controllable expenses. Gross profit - total controllable expenses
Cash Flow
PAC - non controllable expenses. Sales minus all expenses for a restaurant.
Accrual
Recording expense for items services or goods in the period incurred if payment wast made
Pass-through
Amount of incremental cash flow resulting from incremental sales. Chipotle expectation is 40%
Exception reports how soon?
24 hours response time
Why 40% pass through?
for every $1 we generate, a food cost of .30 cents and labor cost of .10 cents + other expenses, leaving us with .40 cents of profit. So in order to maximize that .40 cents, our pass through must be 40% (of every dollar)
Advertising % of sales
1.75 allocated from sales
Loss Prevention Ranking reports
Shows where you stand compared to other stores. Identifies stores that need to be audited by loss prevention team. Helps determine opportunities for improvement.