Bravo Brio Restaurant Group, Inc. (BBRG) - name for italian restaurant serving local dishes crossword

Washington, D. C. Securities and Exchange CommissionC. 20549 FORM 10-
Annual Report submitted under section 13th or 15 (d)
Pursuant to section 1934th or section 15th, the Securities Trading Act or transition report for the fiscal year ended December 31, 2017 (d)
Provisions of the Securities Trading Act No. 1934 on the transition period from 001 to commission files
34920 wonderful BRIO catering group company. (
The exact name of the registrant specified in the articles of association)Ohio 34-1566328 (
State or other jurisdiction registered or organized)(I. R. S.
Employer identity number)
777 Goodale Avenue, Suite 100 Columbus, Ohio 43212 (
Main executive office address)(Zip Code)
Registrant phone number including area code (614)326-
7944 securities registered under article (b)
Title of the act: name of each class of each exchange registered for common stock, no par value per share registered under section 12th Nasdaq Global Select Market Securities (g)
Key points of the bill: no one indicates by check mark whether the registrant is a well or not
Well-known experienced issuers as defined in Rule 405 of the Securities Act.
Whether x indicates by check mark whether the registrant does not need to submit a report under Section 13 or section 15 (d)of the Act.
Whether x indicates whether the registrant (1)
All reports requested in Section 13 or 15 have been submitted (d)
Securities Trading Act of 1934 within the first 12 months (
Or a short period of time required for the registrant to submit such reports), and (2)
This filing requirement has been bound for the last 90 days.
Yes x no indicate by check mark whether the registrant is electronically submitted and posted on his company's website (if any ), each interactive data file submitted and published as required by S-regulation 405thT (§ 232.
This Chapter 405)
Within the first 12 months (
Or in such a short time that the registrant is required to submit and publish these documents).
Yes x no disclosure of persons in arrears under S-regulation item 405th indicate with check markK (§ 229.
This Chapter 405)
As the registrant is aware, it is not included here and will not be included in the final proxy or information statement referenced in Part 3 of this form --
K or any amendments to this form 10K.
Indicate whether the registrant is a large accelerated filer, non-accelerated filer by checking the mark
A smaller reporting company.
See the definition of "accelerated declarant", "large accelerated declarant", "smaller reporting company" and "emerging growth company" in rule 12b
2 of the Trading Act.
Large acceleration file manager x non
"Acceleratedfiler (
Reporting Company)
If an emerging growth company, indicate by check mark whether the registrant chooses not to use the extended transition period to comply with any new or revised financial accounting standards provided under section 13 (a)
The Trading Act.
Indicate whether the registrant is a shell company by check mark (
Defined in Rule 12b-2 of the Act).
As of June 25, 2017, no x (
The last working day of the second fiscal season recently completed by the registrant)
, Total market value of voting shares held by non-registrants
The subsidiary is about $64.
5 million based on the number of shares held as of June 25, 2017 and the last reported sale price of the registrant's common stock as of June 25, 2017.
As of the latest practicable date March 13, 2018, 15,295,015 of the registrant's common stock (no face value per share) has not yet been issued.
1 Directory: Project page forwarding-
State the basis of the statement for Part 1 business 1A.
Risk factors 1B
Unresolved staff comments 2 properties 3 legal procedures 4 coal mine safety disclosure part 2 5 registrant common stock market, related shareholder matters and issuer's purchase of equity securities 6 Selected Financial Data 7 Management's Discussion and Analysis of financial status and operating results 7A.
Quantitative and qualitative disclosure of market risks 8 financial statements and supplementary data 9 changes in accounting and financial disclosure 9A and differences with accountants.
Control and procedure 9B.
Other information Part 3 10 secured ownership of directors, executives and corporate governance 11 executive compensation 12 certain beneficial owners and management and related shareholder matters 13 certain relationships and related transactions, part 4 15 exhibits, schedule 16 of the financial statements Form 10-
K summary Attachment Index signature 2 Forwarding-
Form 10 for this annual report-
K contains forward-
Look at the report.
These statements are related to future events or our future financial performance.
We have tried to make sure.
Include "expectations", "believe", "can", "continue", "can", "estimate", "expectation", "intention", these terms or other similar the term "plan", "potential", "forecast", "should" or "will" or no.
These statements are only predictions, involving known and unknown risks, uncertainties, and other factors, including those discussed under "Risk Factors.
"Among other factors, the following factors may lead to significant differences in our actual results and performance with forward forecasts or implied results and performance
Vision Statement: The success of our existing and new restaurants;
Our ability to develop and expand our business successfully;
Changes in economic conditions, including the continued impact of the recent recession;
Damage our reputation or do not accept our brand;
Economic and other trends and developments in places or areas where our restaurants are concentrated, including bad weather conditions;
The impact of economic factors, including the provision of credit, on the tenants of our landlords and other retail centres;
Changes in the supply or cost of our main foods;
Our labor costs have increased, including due to changes in government regulation;
A shortage of labor or an increase in labor costs;
The competition between the whole catering industry and the catering department of our competitive catering industry is increasingly fierce;
Impairment charges for future assets;
Change of attitude or negative publicity on food safety and health issues;
Potential fluctuations in our quarterly operating results due to new restaurant openings and other factors;
We manage the loss of key members of our team;
Our growth has put pressure on our infrastructure and resources;
The impact of federal, state or local government regulations, as well as the potential impact of litigation related to construction and new restaurants, our existing restaurants, the opening of our employees, sales of alcoholic beverages and sales or preparation of food;
The success of our marketing plan;
We can't get enough insurance;
The impact of our liabilities;
Our lack of liquidity has seriously affected our ability to operate continuously;
Our ability to meet our debt obligations, including the ability to repay existing debt at maturity, and the ability to operate in accordance with our financing agreements;
The impact of opening new restaurants in the same market on existing restaurants;
Security disclosure of confidential guest information;
Inadequate protection of our intellectual property rights;
Failure or failure of our information technology system;
The main nature or person
There was a disaster in our company facilities;
Ability to maintain proper internal control over financial reporting;
Impact of federal, state and local tax rules;
And other factors that are discussed from time to time in the documents we submit to the Securities and Exchange Commission (the “SEC”)
Including factors discussed under the heading "Risk Factors" and "Management's Discussion and Analysis of Financial Position and operational results" in table 10 of this year's reportK.
Despite our belief, the expectations reflected in the future
Forward-looking statements are reasonable based on our current understanding of the business and operations, and we cannot guarantee future results, activity levels, performance or achievements.
You shouldn't rely too much on these advances.
Outlook report, applicable only on the date of this year's report to Form 10-K.
We have no obligation to provide revisions for any forward
If the situation changes, look at the report.
3 show the basics we use a typical restaurantor 53-
The fiscal year of the week ending on the last Sunday of the calendar year.
This annual report determines the fiscal year based on the calendar year ending in the fiscal year.
For example, the reference to "2017", "Fiscal 2017", "Fiscal 2017" or similar reference refers to the fiscal year as of December 31, 2017, the year of 53 weeks.
4 Part 1 used in this Annual Report on Form 10-
K, unless otherwise stated in the context, the reference to "our company", "we" and "our" refer to the Bravo Brio Restaurant Group, the company.
With subsidiaries. Item1. Business.
We are the owner and operator of two different Italian restaurant brands, BRAVO!
Cucina Italiana (“BRAVO! ”)
And BRIO Tuscan Grille (“BRIO”).
We position our brand as a multi-faceted culinary destination, providing a value that is often provided in casual dining places reminiscent of the atmosphere, design elements and food quality of the premium restaurant, known as a combination of upscale affordable dining areas.
Each of our brands offers guests an exquisite dining experience and value, offering guests affordable dishes made using fresh, delicious ingredients and authentic Italian cooking methods, and active with an attractive atmosphere.
We strive to be the best Italian restaurant company in the United States and are committed to providing our guests with an exceptional dining experience through the consistency of execution.
Bravo Brio catering group.
Founded in July 1987, it is a company in Ohio named Belden Village Venture, Inc.
The name of Cucina has been changed to Bravo, Inc.
September 1995, to Bravo Development Co. , Ltd.
December 1998 and Bravo Brio Restaurant Group Limitedin June 2010.
The first one is great!
The restaurant opened in 1992 and the first BRIO Restaurant opened in 1999, each in Columbus, Ohio.
We completed the initial public offering of common stock on October 2010.
As of December 31, 2017, we have operated 113 restaurants in 32 states.
In addition, a BRIO Restaurant is operated under the franchise agreement.
The mission of the Bravo Brio Restaurant Group is to become the best Italian restaurant company in the United States by providing the best food and service to each guest. . . at each meal. . .
Every day. BRAVO!
Cucina Italiana cheers!
Cucina Italiana is a complete
Service, high-end Italian restaurant with rich fresh menu
Classic Italian food in a lively, highly prepared
Great energy environment.
The subtitle "Cucina Italiana" means "Italian Kitchen" is appropriate as all cooking is done within the sight of the guests, creating the energy of live dramaBRAVO!
A wide range of pasta, steaks, chicken, seafood and pizza with fresh, homemade emphasisto-
A la carte and authentic recipes provide exceptional value to guests. BRAVO!
Creative seasonal specials, rich wine lists, carry-on
Dining out.
The general query is great!
Fiscal 2017 was $21.
$57 per guest with an average lunch check of $17.
10 per guest, an average of $24 for dinner check. 39 per guest. At BRAVO!
In 2017, lunch and dinner accounted for 30% and 70% of operating income, respectively, and liquor sales accounted for about 18% of restaurant sales.
Our average annual income is comparable to that of BRAVO!
The restaurant is $2.
9 million fiscal year 2017.
We owned and operated 49 BRAVO as of December 31, 2017!
Restaurants in 23 states.
BRIO Tuscan mid-net intake grille is a high-end affordable Italian restaurant
Prepare in the atmosphere of the Tuscan villa, authentic Northern Italian cuisine.
BRIO, which means "lively" or "full of life" in Italian, is inspired by Tuscany's cherished philosophy of "eating well is living well.
"BRIO's dishes are made with fresh ingredients and high quality execution standards, with a focus on steaks, ribs, fresh seafood and homemade --to-order pastas.
BRIO also offers creative seasonal specials, rich wine lists, and carry-on
Out-of-town and banquet facilities are available at specific locations.
In fiscal 2017, BRIO's average check was $26.
83 per guest with an average lunch check of $20.
21 per guest, an average of $31 for dinner check. 54 per guest.
In 2017, BRIO's lunch and dinner revenues accounted for 31% and 69% of total revenue, respectively, and alcohol sales accounted for about 22% of restaurant sales.
The average annual income of the BRIO Restaurant is $4.
Fiscal 2017.
As of December 31, 2017, we have operated 64 BRIO restaurants in 21 states, all of which charge management fees, except for one restaurant we operate under the management agreement.
In addition, a BRIO Restaurant is operated under the franchise agreement.
We operate a complete
Premium American service at affordable prices
The French bistro restaurant in Columbus, Ohio is branded "Bon Vie ".
"Our Bon Vie Restaurant is included in the BRIO operations and financial data listed in this annual report.
As of December 31, 2017, we have leased 109 business locations with three locations, of which 100 are located near lifestyle center and/or shopping center and 12 are free of charge
Strategic position at high altitudeTraffic Area 5.
The average size of our restaurant ranges from 6,000 to 9,000 square feet.
Most of our leases offer a minimum annual rent and include a percentage-of-
Sales rent provisions for minimum rent apply.
A large part of our rental also provides for a regular upgrade of the minimum annual rent.
Normally our lease is up to 10 or 15 years with 2 or 5 years
Year extension option.
See Part 1, Item 2 "properties.
"Landlords and developers are looking for our concept to be the restaurant anchor for their development as they complement national retailers, attracting an average of about 2,700-
For fiscal 4,500, there are 2017 guests per restaurant per week.
Due to the importance of our brand to our retail center, we are usually able to negotiate a prime location and favorable real estate terms within one center and choose between our two brands, to determine which position is most suitable.
This helps to create attractive returns for our investments and bring positive capital returns to our shareholders.
On average, restaurants require about $1 net cash investment. 5 to $2. 5 million.
Part of our growth strategy in the site selection process is to develop a nationwide restaurant system.
We have developed a disciplined on-site acquisition and qualification review process that includes management experience and extensive data collection, analysis and interpretation.
We are actively developing BRAVO!
In the new and existing market, BRIO Restaurant, we will continue to expand the main metropolitan area in the United States.
Management closely analyzed the modes of transport, demographic features, population density, level of affluence and consumer attitudes or preferences.
In addition, management has carefully assessed current or expected cooperation
Retail and restaurant tenants to accurately assess the attractiveness of the identified area. BRAVO!
BRIO is highly sought after by owners and developers of premium shopping centers and mixed-use projects.
Therefore, we usually realize new developments and opportunities very early in their selection process.
In addition to our network of Realtors and brokers actively looking for locations, we also conduct on-site screening of projects brought to our attention during the planning phase. Design BRAVO!
BRIO Restaurant integrates the key design elements of each brand while making each restaurant unique.
Each design has to consider combining the architecture of the center with other regional design elements while maintaining certain key features that help identify our brand.
Although our interior design is timeless and charming, it is integrated into the current trend and gives our restaurant a delicate and classic feeling.
The flexibility of this design allows us to build a restaurant on one and two floors and place restaurants in a variety of different places, including ground location, interior
Line location and conversion of office, retail and restaurant space.
Our brand maintains a number of common qualities, including design elements such as chandeliers, marble and granite countertops that help reduce construction and construction costs and create consistency for our guests.
We share the best practices of both brands in terms of service, preparation and food quality.
In addition, we share services such as real estate development, procurement, human resources, marketing and advertising, information technology, finance and accounting, enabling us to maximize efficiency across the company.
The flexibility of our concept allows us to open restaurants in a variety of places, including high
Intensive residential areas, shopping centers, lifestyle centers, etc.
Traffic location.
From identifying a specific location to opening the door, we need an average of 12 to 18 months.
In order to maintain the consistency of the restaurant's food, guest service and atmosphere, we have established procedures and schedules for the opening of all restaurants to ensure that they stay as scheduled.
The identification and development of new sites is the responsibility of the company's real estate development group.
Our project manager is responsible for the construction of the restaurant and our staff is responsible for procurement, project management, budget, scheduling and other administrative functions.
The senior management reviewed the comprehensive research provided by the real estate development group to determine which areas should be pursued before any new restaurant development.
In fiscal 2015, we signed the first franchise agreement with an experienced restaurant owner and operator in San Juan, Puerto Rico under this provision, our franchise partners will pay US royalties on the use of our BRIO brand name, menu and design elements.
Currently, we have no plans to further franchise any of our brands.
However, we intend to evaluate all similar opportunities in the future, and if we believe this is in the best interests of the company and shareholders, we may expand this initial franchise location.
6 restaurant operations we have a group of regional partners who report to the regional vice president or coo.
The regional vice president reports to our COO, who reports to our President and CEO.
Each restaurant area partner usually supervises the operation of six to nine restaurants in their respective geographic areas and often contacts each location.
In addition, we have two corporate executive chefs, one for each brand.
The staff in our restaurant is usually composed of a general manager, two to three assistant managers, an executive chef and one to three chefs.
In addition, our restaurant usually employs between 60 and 150 employees per hour.
Our business philosophy is to offer Italian food and wine.
We seek to associate ourselves with many others.
The location restaurant offers affordable food prepared using fresh ingredients and authentic Italian cooking methods.
To ensure that the menu is always prepared to our high standards, we have developed a comprehensive eight-week management training program.
As part of their skill preparation, all of our executive chefs do cooking demonstrations.
This enables our company executive chef to evaluate the skills of the candidate.
All executive chefs are required to complete 8 weeks of kitchen training, including mastering all stations, ordering, receiving, inventory control, etc.
Due to the high number of our average units, the executive chef was trained within eight weeks to ensure that their food was always prepared in a timely manner.
In addition, all executive chefs are trained in product and labor management programs to achieve maximum efficiency.
Both tools reinforce our commitment to training employees to run their business from a profit and loss perspective and from a culinary perspective. We offer made-to-
Order menu items prepared using traditional Italian cooking techniques with a focus on fresh ingredients and authentic recipes.
Our food menu comes with wine lists that offer both a familiar variety and wines that are unique to our restaurant.
The attention to detail, culinary expertise and focused execution reflect our chefs --driven culture.
The menu of each brand has its own unique flavor, BRAVO!
Enjoy more classic Italian cuisine, including a variety of pasta and pizza, and BRIO likes more quality steaks, ribs, seafood, bread, Brussels bread and pasta.
All of our new menu items were developed by our company executive chef through a six-month concept process designed to meet our high quality standards and exceed the expectations of our guests.
Excellent service for guests.
We are committed to providing quality service to every guest every meal and every day.
Considerable time and resources have been spent in developing and implementing our training programs, providing a comprehensive service system for hourly service personnel and management.
We provide prompt, friendly and efficient service to our guests, and keep the waiters on call. to-
The dining table ratio is high, and each restaurant is equipped with an experienced "on the floor" management team to ensure consistent and thoughtful guest service.
We hire waiters to ensure that fresh dishes are served in a timely manner at the appropriate temperature, allowing the waiters to focus on the overall satisfaction of the guests.
All service staff are trained in the specific taste of each dish.
By learning about our menu, the server can help guests select menu items that complement their personal preferences.
Only trained, experienced chefs and culinary staff are employed and allowed to operate in the kitchen. Best-in-
First-class service standards are designed to ensure guest satisfaction and attract new and repetitive guest traffic.
Take advantage of our partner management philosophy.
A key factor in our expansion and success is the development of our partnership management philosophy based on positive and sustained economic engagement (
Plan by bonus)
The general manager, executive chef, assistant manager and deputy chef of each restaurantterm success.
The purpose of this structure is to attract and retain an experienced management team, motivate the team to execute our strategy and objectives, and provide stability to the operations management team.
All restaurant managers can participate in this event.
This provides an economic incentive for our management team to develop talent, build life-long guests, and operate restaurants according to our standards.
We constantly research and evaluate products, purchase and supply to ensure the highest quality menu ingredients, raw materials and other supplies.
We have advantages in the distribution market ("DMA")
A cooperative of multiple food distributors all over the country, responsible for the extensive distribution of most of our food products.
DMA is a company with which we negotiate and engage with third party food distributors and suppliers.
DMA distributors provide us with about 70% of our food supply.
We use the distributor Gordon Food Service (“GFS”), Ben E. Keith Company (“BEK”)
Shashi food (“Shamrock”)
Nicholas Company (“Nicholas”)
Under the DMA arrangement.
At the end of fiscal 2017, GFS, BEK, Shamrock and Nicholas distributed approximately 81%, 8%, 6% and 5% of food distributed through our DMA arrangements, respectively.
We negotiate price and quantity terms directly with certain of our suppliers and distributors or through DMA.
Currently, we have pricing agreements of different length with several of our distributors and suppliers, including our poultry, certain seafood, dairy products, soups and sauces, baked goods and certain meat products.
Our restaurant places orders directly with distributors and maintains a regular distribution schedule.
Our purchase contract basically covers all our requirements for a particular product.
Our contracts usually provide fixed or variable pricing based on agreed costs
And ask our suppliers to supply directly to our distributors.
In addition to our extensive distribution arrangements, we have direct distribution of several products, including some of our meat, most of our fresh seafood, agricultural products and alcoholic beverages.
We also contract with third party suppliers to supply, maintain and remove our cooking shortening and oil systems.
All of our product categories have a procurement strategy that includes contingency plans for key products, ingredients, and supplies.
These plans include selecting suppliers who can meet our requirements for alternative production facilities or, in some cases, approving secondary suppliers or alternative products.
We are confident that our sourcing strategy will enable us to obtain sufficient quantity of products from other sources at competitive prices.
Food safety providing a safe, clean dining experience for our guests is essential to our mission statement.
We have taken steps to reduce food quality and safety risks, including designing and implementing a training program focused on food safety and quality assurance for our chefs, hourly attendants and managers.
In addition, we include food safety standards and procedures in every recipe of the chef.
We also consider food safety and quality assurance when choosing dealers and suppliers.
Our suppliers are inspected by federal, state and local regulators or other reputable, qualified inspection services that help ensure that they comply with all applicable food safety and quality guidelines.
Target audience for BRAVO marketing and advertising!
And BRIO is mainly a university.
Trained education of professional people
65 years old and family members who often go out to dine on social or special occasions.
Our marketing strategy aims to increase brand awareness and enhance brand awareness. to-order, chef-
Establish a continuous relationship with these guests to increase the frequency of meals and promote similar restaurant sales.
We seek to connect with consumers and businesses in the local community to create awareness, experience and loyalty.
Each local restaurant management team attracts guests and potential guests inside and outside the restaurant, creating loyal followers for our brand.
Advertising our goal is to create relevant and compelling programs designed to attract new guests while increasing the frequency of core guests.
For each key marketing promotion, we create a fully integrated campaign that typically includes
Sales of goods in stores, e-commerce
Mail, social media, public relations, paid search and digital display ads, and marketing support for local stores.
Part of our marketing budget is spent on point-of-
Sell materials and effectively communicate key brand initiatives to guests as they dine in our restaurant.
These procedures include
About sales and value plans, seasonal menu changes, holiday promotions, limited time offers, bar promotions, private parties and banquets.
We also spend a part of our marketing budget on target digital media, which allows us to generate awareness and try in a geographical location
The target area around our restaurant is the most efficient.
The opening of the new restaurant we use the opening opportunities of the new restaurant to access various media channels and local communities.
Keep the local PR company to assist BRAVO!
BRIO is exposed on radio and television cooking programs, building relationships with local charities and getting coverage in local newspapers and magazines.
We use a variety of marketing techniques to promote new vacancies with press releases, direct mail, email
Marketing, Blog promotion and other local restaurant marketing activities including concierge parties, training lunch and dinner with local residents, media, community leaders and businesses.
In addition, we usually work with and hold events with local charities during the first month of grand opening. 8 E-
Marketing and social media one of our goals is to give guests the opportunity to engage with us, so we prioritize giving them access to us through a variety of digital channels, including our website, email and social networks.
We are active in various communication channels, including social media (
Facebook, Twitter and Instagram)
And our MyBravo mail and MyBrio E-Clubs.
Each channel has a unique purpose that allows us to reach a large number of people in a timely and targeted manner at a fraction of the cost of traditional media.
We will continue to allocate a portion of our marketing budget for this fast growing region.
In the 2015 awards program, both brands are beginning to provide incentives to increase the frequency of core guests.
Every five. 5)
Visit, members receive redemption rewards on their next visit.
The reward program called "MyBRAVO Rewards" and "MyBRIO Rewards" is designed to reward guests for continuous dining at our restaurant.
Guests can download a MyBRAVO/MyBRIO!
Reward the mobile app and sign up for their card in BRAVO!
And BRIO's location or at www. myBRAVOReward. com or www. myBRIOReward. com.
Guests who join can receive exclusive offers, special event information and other announcements on their account via email
Mail all year round.
The program also serves as a high-impact communication tool to inform members of exciting new marketing initiatives for each brand.
Training and Staff planning we conduct a comprehensive training program for our management, hourly staff and company staff.
Our training department provides a series of well-developed training modules used throughout the company, including leadership training, team building, food safety certification, alcohol safety program, guest service concept training, sexual harassment training, etc. E-
In our eight-week management training program, learning is used in several management training modules, which culminates in three days of classroom certification and testing.
We took advantage of a specific training process for the opening of the new restaurant, which was supervised by regional trainers who conducted service and kitchen training and were on site two weeks before the opening.
The regional trainer supports and introduces our standards and culture to the new team.
We believe that hiring the best team members and working on their training during the opening of the restaurant helps to maintain a high retention rate.
We have a training and staff development program called the Bravo Brio Restaurant Group University (BBRGU).
The "Rising show" Project, created under BBRGU's umbrella, aims to train aspiring hourly team members into assistant managers and chefs, which is our training and
The key element of the Nova program is to provide upward mobility within the organization, using the restaurant's existing labor time to conduct centralized training for the most promising employees.
As a result of this program, many of our general managers and executive chefs have secured positions through in-house promotions.
In addition, we have designed the assistant general manager and executive deputy Chef program to identify and develop our future general manager and executive chef from our existing staff group.
This project not only reduces the cost of finding and training these positions, but also provides a specific career path that we can market and promote in the current management team.
Management Information Systems financial and accounting controls at the restaurant level are handled through one pointof-sale (“POS”)
Every restaurant that communicates with our company's headquarters has a cash register system and a computer network.
The POS system is also used to authorize and transfer credit card sales transactions.
Our restaurant communication consists of cable, DSL, partial T1 and T1 lines.
Our restaurant uses back-
Office applications that manage business and control food and labor costs.
Food Control software helps improve profitability by identifying inefficiencies in the kitchen or bar, as well as through menu engineering functions, helping to reduce food and beverage costs.
The Labor control software provides the ability to arrange labor and manage labor costs, including clock governance that does not allow employees to "punch" more than the specified time before scheduled shifts.
We use the Enterprise report package ("ERP")
Systems that include general ledger, accounts payable, fixed asset accounting, payroll and HR subsystems.
The data extracted from the restaurant is integrated into the ERP system and the data warehouse.
This data allows us to analyze our business better.
We continue to take advantage of our in-house website called PASTAnet, which gives us the ability to collaborate, communicate, train and share information between restaurants and corporate offices. 9 Both BRAVO!
BRIO has mobile apps in both Apple and Google app stores.
These mobile apps allow our guests to view our menus, find locations and get directions.
We also have two online orders from BRAVO!
And BRIO.
Guests can order BRAVO online at the same time!
Through our mobile app or website.
We also continue to support wireless access points in all restaurants to provide wireless Internet services to our guests.
We are bound by many federal, state and local laws that affect our business.
Each of our restaurants is licensed and regulated by some government authorities, it includes Alcohol and Beverage Control, nutrition information disclosure, product safety, health, hygiene, environment, zoning and public safety agencies in the state or city where the restaurant is located.
Difficulties in obtaining or failing to obtain the required license or approval may delay or prevent the development and opening of new restaurants, or may disrupt the operation of existing restaurants.
We believe that we have complied with all applicable government regulations in all material respects, and so far, in terms of obtaining the permits or approvals required to operate or operate any of our restaurants, we have not encountered any unusual difficulties or delays.
During fiscal 2017, about 20% of our restaurant sales came from alcoholic beverages.
The alcoholic beverage control regulations require each of our restaurants to apply for a permit from the state authorities and in certain places, counties and municipalities for a permit to sell alcoholic beverages in that premises.
Normally, the license must be updated once a year and may be subject to penalties, temporary suspension or revocation for reasons at any time.
The failure of a restaurant to obtain its permit, permit or other approval, or to suspend such permit, permit or other approval, will adversely affect the operation and profitability of the restaurant, and may adversely affect our ability to obtain these licenses, licenses and approvals elsewhere.
The alcoholic beverage control regulations affect many aspects of our restaurant's daily operations, including: the minimum age at which customers and staff consume or supply these beverages;
Training and certification requirements for alcoholic beverages for employees;
Operation time; advertising;
Wholesale purchase and inventory control of these beverages;
Seating and food supply for minors in our bar area;
Special menus and activities such as happy hour;
And the storage and distribution of alcoholic beverages.
State and local authorities in many jurisdictions regularly monitor compliance with laws on alcoholic beverages.
In most of the states we operate in, we are also bound by the "dram shop" regulations, this usually gives a person who is injured by a drunken person the right to receive damages from an institution that provides a wrong alcoholic drink to a drunken person and then causes harm to himself or a third party.
We train our employees on how to provide alcohol services, and as part of our comprehensive general liability insurance, we provide alcohol liability insurance.
We have never been nominated as defendants in proceedings involving the "dram shop" regulation.
Various federal and state labor laws govern our operations and our relationship with our employees, including minimum wage, meals and breaks, overtime, tips, additional benefits, family leave, etc, safety, working conditions, union, citizenship or work authorization requirements and recruitment and employment practices.
We are also bound by increasingly complex federal and state immigration laws and regulations, including those in the United States. S.
Citizen and Immigration Services and the United StatesS.
Immigration and Customs Enforcement.
In addition, some of the states we operate have passed the immigration Employment Act, imposing additional conditions on employers.
Even if we operate our restaurants in strict compliance with the laws, regulations and regulations of these federal and state agencies, some of our staff may not meet federal citizenship or residency requirements, or there may be a lack of proper work authorization, which may result in the interruption of our labor force.
We are also subject to federal and state child labor laws that, among other things, prohibit staff under the age of 18 from using certain "hazardous equipment ".
Important government
Increase the minimum wage, paid or unpaid leave, sick leave and statutory health benefits, or increase the tax reporting, assessment or payment requirements related to the staff we receive the remuneration, it may be bad for the profitability of our restaurant.
In recent years, the increase in the minimum wage at the federal level and the state we operate in has affected the profitability of our restaurants and led to a rise in menu prices.
In addition, insurance and medical expenses have risen significantly over the past few years and are expected to continue to increase.
National health reform legislation, the Patient Protection and Affordable Health Care Act, promulgated in March 23, 2010 (the “PPACA”)
Increased the cost of our health benefits.
Our requirement to provide health insurance benefits to staff or additional employers pay employment tax on the income earned by our employees, which may adversely affect our operating results and financial position
Our dealers and suppliers may also be affected by higher minimum wage and welfare standards, which may lead to an increase in the cost of goods and services provided to us.
Although we have employment practice insurance covering a wide range of Labor
The relevant liability claim, settlement or judgment against us, if there is no insurance or exceeds our insurance limit, may have a significant adverse effect on our operating results, liquidity or financial position.
We are subject to various federal and state environmental regulations, including various laws on the treatment, storage and disposal of hazardous materials, such as cleaning solvents, restaurant Operations in sensitive areas may affect all aspects of our operations.
We expect to comply with federal, state and local regulations that regulate the discharge of materials to the environment, or regulations related to the protection of the environment, will have a significant adverse effect on our capital expenditure, income or competitive position.
Our facilities must comply with the applicable requirements of the US Disabled Persons Act of 1990 (“ADA”)
And related federal and state regulations.
ADA prohibits discrimination based on disability in public accommodation and employment.
Under ADA and relevant federal and state laws, we have to make it easy for people with disabilities to access our new or significantly remodeled restaurants.
We must also provide reasonable convenience for the employment of persons with disabilities.
We are also subject to laws and regulations related to information security, privacy, cashless payments, gift cards and consumer credit, protection and fraud, any failure to comply with these laws and regulations or deemed not to comply with them may damage our reputation or lead to litigation, which may adversely affect our financial situation.
We have a fair number of hourly restaurant staff who earn money from tips.
We choose to volunteer to report the tip of the alternative commitment (“TRAC”)
Agreement with the IRS (“IRS”).
By complying with the education and other requirements of the TRAC agreement, we reduce the possibility of potential employers
Only FICA tax assessments that are not reported or that are not reported.
However, we rely on our employees to accurately disclose the full amount of their tip income, as well as our report on the disclosure provided to us by these tip employees.
For a discussion of risks related to federal, state and local regulation of our business, see Item 1a "Risk Factors ".
Intellectual property we currently have ten separate registrations related to restaurant services by the US Patent and Trademark Office, with the following trademarks: Bravo Brio Restaurant Group®Great! ® , BRAVO!
Azalea, Italy®Hello, Cucina!
Italy®Great!
Italian Kitchen®Brio®Brio Tuscan intake grille™Bon Vie®Brio Coast Bar & Kitchen®And Brio, Del, March. ®.
Our registration gives US federal recognized exclusive rights to use these trademarks in the United States, and we can prevent other restaurants that do not have superior common law rights in specific markets from adopting confusing similar trademarks.
An important part of our intellectual property strategy is to monitor and implement our rights in the restaurant market that currently exists or in the market we intend to enter in the future.
We also monitor trademark registration to oppose the registration of confusing similar trademarks or to limit the expansion of existing trademarks with superior common law rights.
We have implemented our rights in a number of ways, including issuing a ceasefire agreement. and-
Cease letters or file claims for infringement in federal courts.
If our efforts to protect intellectual property are insufficient, or if any third party has embezzled or violated our intellectual property rights, the value of our brand may be compromised, this may have a significant adverse effect on our business and may prevent our brand from gaining or maintaining market acceptance.
Seasonal our business is sensitive to seasonal fluctuations. the percentage of operating income in the first and fourth quarters is higher than in other quarters, part of the reason is that our stores in the southern part of the United States have increased their restaurant sales during the winter months in the United States and that year-
The holiday is over.
Competition restaurant business is highly competitive in food quality and price
The value relationship, environment, service and location are affected by many factors, including changes in consumer taste and free consumption patterns, macroeconomic conditions, demographic trends, weather conditions, costs and availability of raw materials, labor and energy, and government regulations.
Any changes in these or other related factors may adversely affect our restaurant operations.
The main competitors of our brand are other operators of mid.
Reasonable price, all-round service concept
Location, upscale affordable dining area, where we compete most directly for real estate location and guests, including the Cheesecake Factory in MaggianoF.
Regular restaurant and BJ restaurant.
We also compete to a lesser extent with nationally recognized Italian Leisure restaurants such as Romano's Macaroni Grill, Kalaba's Italian Grill and Olive Garden, and local high quality
Italian restaurant owned and operated.
There are several wells-
Established competitors with much bigger finance, marketing, people and other resources than we do.
In addition, many of our competitors have established a good foundation in the market where our business is located or may be located.
While we believe our restaurants are different in design and operation, other companies may develop restaurants with similar ideas.
In addition, with the improvement of fast casual restaurant products, fast
Serving restaurants and grocery stores, consumers may choose these alternatives, which may also have a negative impact on our financial results.
We have about 9,500 employees as of December 31, 2017, of which about 100 are company management and staff, about 600 are restaurant managers or trainees, and about 8,800 are non-company employees
Management restaurant position
None of our employees have joined the Union or collective bargaining agreement.
We maintain a website on www. bbrg. com.
On the investor section's website, we provide the Annual Report on Form 10 for free
Quarterly Report on table 10
Q: Current Report of Form 8
K, all amendments to these reports, and our submission of our proxy statement as soon as reasonably practicable after filing or providing these materials electronically to the SEC.
Our documents can also be found on the website of SEC. sec. gov.
In addition, we provide our business conduct and ethics free of charge on our website;
Nomination of the board of directors and articles of association of the corporate governance committee;
Articles of Association of the remuneration committee of our board of directors;
And the charter of our Board of Directors Audit Committee.
Our website and its contained or related information should not be considered to be included in this year's report. Item1A. Risk Factors.
In addition to the factors discussed elsewhere in table 10 of this year's report --
K, the following are important factors that may result in a significant difference between the actual result or event and the result or event contained in any forwarding
Forward-looking statements made by or on behalf of us.
We operate in a competitive and dynamic environment, so we cannot predict the impact of these or any other factors on us, nor the extent of the impact of any one factor, it may adversely affect our results.
Risks associated with our business and industry our financial results depend largely on the success of our existing and new restaurants.
Future revenue and profit growth will depend on our ability to grow sales and effectively manage costs in existing and new restaurants.
As of December 31, 2017, we have operated 49 BRAVO!
The restaurant and 64 BRIO restaurants, one of which opened in the past 12 months.
The results of this restaurant may not indicate a longer period of time --
Performance or potential market acceptance of restaurants elsewhere.
In particular, the success of our restaurant mainly depends on the flow of guests and the average check per guest.
Important factors that may adversely affect our guest traffic levels and average guest inspections include, but are not limited to: a decline in economic conditions, including a downturn in the housing market, an increase in unemployment, lower disposable income and consumer confidence, as well as other events or factors that adversely affect consumer spending in the markets we serve;
Increased competition (
Whether it's in high-end, affordable dining, or in other areas of the catering industry);
Changes in consumer preferences;
Budget restrictions for guests, which may result in certain heights they did not order-
Security items such as desserts and beverages (
Alcohol and non-alcoholalcoholic);
Guests fail to accept the menu price we may increase to offset the increase in key operating expenses;
Bad weather and weather
Close the restaurant;
Our reputation in quality, price, value and service and the consumer's view of our concept products;
Dining at our restaurant is a guest experience.
Our restaurants are also vulnerable to certain increases in key operating costs that are completely or partially beyond our control, including but not limited to: Cost of food and other raw materials, we may not be able or able to effectively hedge many of these risks;
Labor costs including wages, workers' remuneration, health care and other benefits;
Rental fees for our new and existing restaurants and other expenses under the lease;
Costs of energy, water and other utilities;
Insurance costs (
Including property, liability and compensation for workers);
Information technology and other logistics costs;
And the costs incurred by bringing a lawsuit against us.
Failure to operate our existing or new restaurants as expected could have a significant negative impact on our financial position and results of operations.
For example, we confirm the impairment fee of $11.
2 million is related to 6 restaurants, and 5 more restaurants were closed in 2017.
Our financial position and results of operations are very little affected by the success of the franchisees.
However, our franchisees are an independent operator and we have no control over the many factors that affect the profitability of their restaurants.
During 2017, the performance of the franchise location was negatively affected by Hurricane Maria.
If we consider joining additional franchise arrangements, the risks associated with our limited control over franchisees may increase in the future. Our long-
Long-term success depends largely on our ability to successfully develop and expand our business.
We intend to develop new restaurants in the existing market and selectively enter the new market.
We have expanded from 48 BRAVO since early 2013!
Go to the restaurant of 49 BRAVO and 55 BRIO restaurants!
The restaurant and 64 BRIO restaurants as of December 31, 2017.
The number and time of new restaurants actually opened in any given period, and their related contributions to our financial position and results of operations, may be negatively affected by a number of factors, including, but not limited to: we are unable to obtain sufficient funds from operations or to obtain favorable financing to support our development;
Identify and provide high-quality locations and compete with them that will continue to drive high levels of sales in units;
Acceptable rental arrangements, including adequate tenant allowances and construction costs;
The financial viability of our landlord, including financing the landlord;
Cost management of construction and development;
Deliver the rental house to us from the landlord in time and start building on time-
Construction activities outside;
Due to the highly customized nature of our restaurant concept and the complex design, construction and pre-
An open process for each new location;
Obtain all necessary government permits and permits in a timely manner to build and operate our restaurants;
Competition in new markets
Unforeseen engineering or environmental problems of leased houses;
Bad weather conditions during construction;
Unexpected commercial, residential and infrastructure developments near our new restaurant;
Recruit qualified management personnel, chefs and other key operators;
And other unexpected increases in costs, any of which may result in delays or cost overruns.
If any, we may not be able to open up our planned new restaurants in a timely manner, which may not be profitable if opened.
In addition, our revised credit agreement sets restrictions on new restaurant rentals until they are leased
The adjusted leverage ratio reaches a certain threshold.
See Part 2, Item 7 "management discussion and analysis of financial position and results of operations --
Liquidity "and" Management's Discussion and Analysis of the financial situation and results of operations --
Capital Resources.
"We have experienced delays in the opening of the restaurant and would like to continue to experience such delays.
Such delays may limit our chances of growth.
We cannot assure you that we will be able to successfully expand or gain key market share for our brand in the new geographic market, as we may encounter the following situations:
An established competitor with a lot of money.
We may not be able to find attractive locations, gain visibility, successfully market our brand and attract new guests.
The competitive environment and consumer features of new market segments and new geographic markets may be very different from those of our experienced market segments and geographic markets.
If we are unable to expand or penetrate new markets in existing markets, our ability to increase revenue and profitability can be compromised.
Changes in the state of the economy, including the continued impact of the recent recession, may have a significant impact on our business, our financial position and our operating results.
Like other members of the catering industry, we rely on the free consumption of consumers.
The recent recession has affected consumer spending power and willingness.
The economic situation may remain volatile, and consumer confidence and discretionary spending may be suppressed in the short term.
If our guests choose not to dine out frequently, or reduce the cost of meals when dining out, the transportation of the guests may be adversely affected.
In addition, the decline in corporate travel and entertainment spending may lead to a decrease in the flow of business travelers in our restaurants.
If restaurant sales decline, our profitability may decline as we spread fixed costs to lower sales.
Asset impairment fees, potential restaurant closures and a reduction in the number of employees are the result of long-term negative restaurant sales and may also be the result of long-term negative restaurant sales.
We confirmed the impairment fee of $11.
2 million was linked to six restaurants and five others were closed in 2017.
Damaging our reputation or not accepting our brand in existing and new markets can have a negative impact on our business, financial position and operational results.
We believe we have built a good reputation for the quality and breadth of our menus and restaurants, and we must protect and develop the value of our BRAVO!
The brand will continue to be successful in the future.
Any event that harms the appeal of consumers to our brand can significantly reduce their respective values and harm our business.
If the guest believes or experiences a reduction in the quality of the food, service or atmosphere, or in any way believes that we have not been able to provide an ongoing positive experience, our brand value may be affected, our business may be adversely affected.
Our corporate reputation or brand may also be compromised by actions taken by our franchisees beyond our control.
We cannot assure you that our franchisees will successfully participate in our strategic plans or run their restaurants in a manner that meets our concepts and standards.
Our franchisee is an independent contractor and its employees are not our employees.
We provide training and support to franchisees and monitor their operations, but the quality of their restaurants may be reduced by any factor beyond our control.
As a result, our franchisees may not be able to successfully run their restaurants in a manner that meets our high standards and requirements, and our franchisees may not hire and train qualified managers and other restaurant personnel.
Any operational defects in our licensed BRIO restaurant may be attributed to our entire brand by the consumer, thereby damaging our corporate brand and reputation and potentially adversely affecting our business, results of operational and financial conditions.
If we make additional franchise arrangements in the future, the risks described in this paragraph will increase the importance to our business, financial position and operational results. A multi-
Location restaurant business like ours may be adversely affected by negative publicity or news coverage, whether accurate or not, these reports relate to food quality issues, public health issues, disease, safety, harm to or government or industry about our restaurants, restaurants operated by other food service providers or others in the food industry supply chain findings.
Negative publicity on E
E. coli related to consumption of beef and other meat products, "H1N1" or "swine flu" related to pork products, "Bird Flu" related to poultry products, and government publications, academic or industry survey results on health issues related to menu items offered by our restaurant may affect consumer food preferences.
Sales of food and cooked food products also involve unauthorized third-party tampering or contamination or deterioration of the product at the risk of injury or illness to our guests, includes the presence of foreign bodies, substances, chemicals, other reagents or residues introduced during the growth, storage, treatment and transportation stages.
These types of health problems and negative publicity of our food can have a negative impact on our food needs and have a negative impact on our business and operational results.
While we take steps to reduce food quality, public health and other food services --
Related risks, these types of health problems or negative publicity cannot be completely eliminated or mitigated, can cause significant harm to our operational results and cause damage to our brand.
In addition, our ability to successfully develop new restaurants in new markets may be adversely affected by the lack of awareness or acceptance of our brand by these new markets.
If we are unable to develop brand awareness and affinity in the new market, our new restaurants may not perform as expected and our growth may be significantly delayed or impaired.
Since many of our restaurants are concentrated in the local area or region, we are vulnerable to economic and other trends and developments, including bad weather conditions, in these areas.
Our financial performance depends largely on our restaurants in Ohio, Florida, Michigan, Pennsylvania and Texas, which account for about 50% of our total restaurants.
Thus, adverse economic conditions in these regions may have a significant adverse effect on our overall operational results.
In recent years, some of these states have been more negatively affected by falling housing markets, high unemployment and the overall economic crisis than other geographic regions.
In addition, given our geographical concentration, negative publicity of any restaurant in these 14 regions may have a significant adverse impact on our business and operations, other regional events such as local strikes, terrorist attacks, rising energy prices, bad weather conditions, hurricanes, droughts or other natural or human activities may also occur --made disasters.
In particular, bad weather conditions can affect the guest traffic in our restaurant, resulting in a temporary shortage of outdoor terrace seating, and in more serious cases, sometimes causing the restaurant to be temporarily closed, sometimes
About 37% of our restaurants in total are located in Ohio, Michigan, Pennsylvania, New York, Connecticut and New Jersey, which are especially prone to snow, and 22% of our restaurants are located in Florida, Louis Anna and Texas, these places are vulnerable to hurricanes.
Our business is affected by seasonal fluctuations and in some months, such as December, sales at restaurants are usually higher.
During our most favorable month or period, adverse weather conditions may exacerbate the impact of adverse weather on guest traffic and may cause fluctuations in our operating results for the fourth quarterto-
Quarter in a fiscal year
For example, Hurricanes Irma and Harvey affected the southern coastal areas in August and September 2017 with extremely strong winds, heavy rainfall and floods, which led to a decrease in guest traffic in some of our restaurants and even closure.
In addition, most of our restaurants have outdoor terrace seating and may be affected by some weatherRelated factors.
We were not able to make the most of the restaurant's seating as planned, which could have a negative impact on our income and results of operations.
The impact of negative economic factors, including the availability of credit, on our landlords and other retail center tenants may have a negative impact on our financial results.
Due to the lack of access to credit and other adverse economic factors, the negative impact on our existing and potential landlords, in turn, may adversely affect our business and operational results.
If our landlords are unable to obtain financing or maintain a good reputation under their existing financing arrangements, they may not be able to provide us with building contributions or meet other lease covenants for our benefit.
Also, if our landlords are not able to get enough credit to continue to manage their retail sites properly, we may experience a decline in the quality level of this retail center.
The development of our new restaurant may also be adversely affected by the negative financial situation of developers and potential landlords.
In addition, several other tenants in the retail center where we are or perform the lease have stopped operating or, in some cases, have delayed opening or failed to open after committing to do so.
These failures may result in reduced guest traffic in the retail center where our restaurant is located and may result in reduced guest traffic in our restaurant.
Changes in food supply and costs may adversely affect our operational results.
Our profitability and operating profit depend to a certain extent on our ability to predict and respond to changes in food costs.
We rely on local, regional and national distributors and suppliers to provide our products, beef, poultry, seafood and other ingredients.
We have extensive distribution contracts with DMA for most food products.
Apart from a portion of our items, which are purchased locally by each restaurant, we rely on GFS, BEK, Shamrock and Nicholas as our main distributor for most of our ingredients.
Through our protocol with DMA, we have a non-