Fiesta Restaurant Group, Inc. (FRGI) - mexican dishes for restaurants

United States Securities and Exchange Commission, Washington, DC, 20549 Form 10-
Annual Report of the K year submitted under section 13, 15 (d)
Pursuant to section 1934th or section 15th, the Securities Trading Act or transition report for the fiscal year ended January 3, 2016 (d)
1934 Commission File Number: 001-securities trading law
35373 Carnival Restaurant Group Co. , Ltd. (
The exact name of the registrant specified in the articles of association)Delaware 90-0712224 (
State or other jurisdiction registered or organized)(I. R. S.
Employer identity number)
14800 landmark Avenue, Suite 500 Addison, TX 75254 (
Main executive office address)(Zip Code)
The registrant's telephone number, including the area code :(972)702-
9300 securities registered under article (b)
Title of the act: name of each category: name of each exchange registered: Common stock, face value $.
Nasdaq Global Select Market securities registered under section 12th (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.
Yes x no? Indicate by check mark whether the registrant does not need to submit a report under section 13th or section 15 (d)
The Trading 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.
Whether to indicate by check mark whether the registrant is electronically submitted and posted on their company website (if any), each Interactive Data File submitted and published in accordance with S-Regulation section 405th
12 months before T (
Or in such a short time that the registrant is required to submit and publish these documents).
Whether to disclose the person in arrears under S-regulation item 405th, indicate with a check mark
To the knowledge of the registrant, K is not included in the final proxy or information statement referenced in Part 3 of this Form 10 and will not be included in it
K or any amendments to this form 10K.
Indicate whether the registrant is a large accelerated filer, non-accelerated filer by checking the mark
Or a smaller reporting company.
See the definition of "large accelerated file manager", "accelerated file manager" and "small Reporting Company" in rule 12b
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: Largeacceleratedfiler y acceleratedfiler "don't
Small report Company (accelated filer)
Do not check smaller reporting companies)
Indicate whether the registrant is a shell company by check mark (
Defined in Rule 12b-
2 parts of the transaction law).
As of February 18, 2016, whether Carnival Restaurant Group Co. , Ltd.
It has 26,829,183 shares of common stock in US dollars.
01 face value, prominent.
Total market value of non-held common stock
As of June 28, 2015, affiliates of carnival Restaurant Group Co. , Ltd.
$1,309,838,255.
Documents contained in the reference section of the registrar's final agency statement for Carnival Restaurant Group Co. , Ltd.
2016 annual meeting of shareholders is expected to be submitted under Section 14A within 120 days after the end of carnival Restaurant Group Company
For the fiscal year ended January 3, 2016, references were included in Part III of this year's report.
Catalogue of carnival Restaurant Group Co. , Ltd. FORM 10-
Part I of K as of January 3, 2016 Project 1 business project 1A Risk Factors project 1B unresolved staff comments Project 2 property project 3 Legal Action Project 4 mine safety disclosure Part II Project 5 registrant equity, related shareholder matters and issuer's purchase of equity securities Project 6 Selected Financial Data Project 7 Management's Discussion and Analysis of financial status and operational results and supplementary information project 9 accounting and financial disclosure project 9A control and Procedures project 9B other information Part 3 changes and differences of directors of Project 10, executive and corporate governance project 11 executive compensation project 12 secured ownership and related shareholder matters of certain beneficial owners and management 13 with related party transactions, and director Independence Project 14 main accountant fees and services Part 4 item 15 exhibits and financial statements Table 1 Table of Contents part 1 introduction of information Form 10-
K. we are referring to the carnival restaurant group.
As "Carnival Restaurant Group" or "Carnival" and its merged subsidiaries, as "us", "us" and "us", unless otherwise stated or otherwise required by the context.
We own, operate and franchise two fast
Tropical Leisure restaurants in Pollo®Taco Lodge®Through our
Subsidiaries of Pollo Operations Co. , Ltd.
And its subsidiaries and the Polo franchise, (
Collectively referred to as "tropical Polo ")
Taco Cabana, Inc.
And its subsidiaries (
Collectively referred to as "Taco Cabana ").
Before May 7, 2012, we were indirectly owned by the Carrols Restaurant Group. (“Carrols”).
On that day, Carrols completed a rotation-
Leaving carnival, Carnival became an independent listed company by distributing all outstanding shares of Carnival common stock to Carrols shareholders.
Our common shares are traded in the NASDAQ Global Select Market with the symbol "FRGI.
"We use the fiscal year of 52 or 53 weeks, which ends on Sunday, the closest to December 31.
The fiscal year ended January 1, 2012, December 30, 2012, December 29, 2013 and December 28, 2014 each had 52 weeks.
The fiscal year ended January 3, 2016 was 53 weeks.
Next year is expected to be the fiscal year ending January 3, 2021 for 53 weeks.
In the annual report of this form 10
K, we refer to information, forecasts and statistics about the catering industry.
Unless otherwise stated, Form 10-
K refers to the United States. S.
The catering industry is taken from or based on tecmic, Inc. (“Technomic”)
Report titled "2015 restaurant chain report 500.
"The information, forecasts and statistics we have obtained from the ymmic may reflect the rounding adjustment. Use of Non-
Adjusted EBITDA, Adjusted EBITDA profit margin, restaurant-
Adjusted EBITDA and restaurant-
The adjusted EBITDA deposit is non-
GAAP Financial indicators.
Adjusted EBITDA is defined as pre-interest earnings, loss of debt settlement, income tax, depreciation and amortization, impairment and other lease expenses, stocks
Based on compensation and other income and expenses.
Due to differences in calculation methods, the adjusted EBITDA may not necessarily be comparable to other similar title titles from other companies.
Adjusted EBITDA for each of our Pollo Tropical and Taco Cabana segments includes general and administrative expenses human resource development related to administrative management, information systems and certain accounting, law, administrative support of the supply chain, etc. administrative functions.
The adjusted EBITDA margin represents the Adjusted EBITDA divided by the total revenue. Restaurant-
The Adjusted EBITDA represents the adjusted EBITDA, Excluding the revenue and expenses of the franchise royalties and general and administrative expenses (
Including the company-
General and administrative expenses). Restaurant-
The adjusted EBITDA margin stands for the restaurant-
Adjust the EBITDA rating according to the restaurant sales.
Management believes that from the results of our operations based on GAAP calculations and our reconciliation of the restaurant, this financial measure
Adjusted EBITDA and Adjusted EBITDA to net income (i)
Provide useful information about our operational performance and cycleover-Growth during the period ,(ii)
Provide additional information to help assess the performance of our business operations, and (iii)
Let investors understand the factors and trends that affect our continued profitability, from which capital investment and debt repayment.
However, under GAAP, these measures are not a measure of financial performance or liquidity and, therefore, should not be considered as a substitute for net income or cash flow from operating activities as an indicator of operating performance or liquidity.
In addition, these measures may not be able to be similar to the titles of other companies.
All these non
As an analytical tool, GAAP financial indicators have important limitations.
These limitations include: These financial information do not reflect our capital expenditures, future requirements for capital expenditures or contractual commitments to purchase capital equipment;
This financial information does not reflect interest expense or cash for payment of our senior credit loan;
Although depreciation and amortization are
Cash charges, assets that we currently depreciate and amortized may have to be replaced in the future, and this financial information does not reflect the cash required to fund the replacement;
This financial information does not reflect the impact of income or expenses that our management believes do not indicate the matters of our ongoing business.
However, some of these costs (
Such as impairment and other lease expenses, other income and expenses and inventory-
Based on compensation costs)
There may be recurrence.
See item 6 for catalog 2-
"Selected Financial Data" for restaurant quantitative reconciliation "-
The adjusted EBITDA and Adjusted EBITDA are the most directly comparable GAAP financial performance measures, which we consider net income. Forward-
This 2015 Report on Form 10
K contains "forward-
"Look" at the statements in the revised Section 27a of the Securities Act of 1933 and the revised Section 21e of the Securities Trading Act of 1934. "Forward-
"See report" is any report that is not based on historical information.
Including, but not limited to, statements on our future financial position and results of operations, business strategies, budgets, the projected costs and management plans and objectives for future operations are "moving forward --
Look at the report. " Forward-
Forward-looking statements can usually be identified by using forward-looking
Good looking terms such as "can" change to "will", "Hope", "forecast", "plan", "believe", "seek, "estimate" or "continue" or the negation of these words or changes in these words and similar expressions.
These statements are not a guarantee of future performance, involving certain unpredictable risks, uncertainties and assumptions.
Therefore, the actual results and results may be very different from the results expressed or predicted in this advance --
We cannot guarantee such a forward-looking statement.
These statements have proved correct.
Important factors that may lead to significant differences between actual results and forward-expressed or implied results
Forward-looking statements or "warning statements" include, but are not limited to, an increase in the cost of food and other commodities;
Risks associated with our business expansion, including increased construction costs;
Risks associated with food-borne diseases or other food safety issues, including negative publicity through traditional media and social media;
Ability to manage our growth and successfully implement our business strategy;
Labor and employment benefits costs, including an increase in the federal and state minimum wages, an increase in the level of duty-free status wages, and the impact of health care costs under the Affordable Care Act;
Network security vulnerability;
The overall economic situation, particularly in the retail sector;
Conditions of competition;
Weather conditions;
The service or supply of any of our suppliers or distributors is severely disrupted;
Increased claims for employee injury and general liability;
Changes in consumers' awareness of food health and food safety
Regulatory factors; Fuel prices;
Results of pending or future legal claims or proceedings;
Environmental conditions and regulations;
Our cost of borrowing
Availability and terms of necessary or desirable financing or refinancing and other relevant risks and uncertainties;
The risk of terrorist acts or any rebellion or escalation of armed conflict involving the United States or any other country or international disaster;
Factors that generally affect the catering industry, including product recall, liability for injury caused by our products, disclosure of ingredients, and laws and regulations on labeling;
Project 1A-other factors discussed below
"Risk Factors" and elsewhere.
3 directory item 1.
We own, operate and franchise two companies-
Tropical Leisure restaurants in Pollo®Taco Lodge®With nearly 30 and 40 years of business history and loyal customer base respectively.
Our Tropical Pollo restaurant offers a variety of freshly made Caribbean foods, while our Taco Cabana restaurant offers a variety of handmade foods
Authentic Mexican food made fresh.
We believe that these two brands offer a unique dining experience unlike other restaurants.
Our brand is positioned within value. oriented fast-
Casual dining area.
In addition, almost all of our restaurants offer the convenience of drivingthru windows.
For the fiscal year ended January 3, 2016, the average annual sales per restaurant was about $2.
6 million of our company-
It has a tropical restaurant in polllo for about $1.
9 million of our company-
With Taco Cabana, we think this is one of the highest restaurants in fast food
Leisure fast-
Service segmentation based on technical and economic industry data.
As of January 3, 2016, we owned and operated 155 polllo Tropical restaurants in the south-east and central south of the United States, mainly located in 162 Taco Cabana restaurants in Texas, with a total of 317 restaurants in five states.
We mainly franchise our polllo Tropical restaurants on the international market, as of January 3, 2016 we have 30 licensed polllo Tropical restaurants outside the United States, 5 domestic non-
Traditional licensed places on university campuses.
As of January 3, 2016, we had four Taco Cabana franchise restaurants and two non-
Traditional Taco Cabana restaurant in China.
For the fiscal year ended January 3, 2016, our consolidated income was $687.
Sales of comparable restaurants increased by 3. 4 million.
8%, tropical pineapple and collection.
4% Taco cottage.
Recent developments.
On February 24, 2016, we announced that as our long-term next step
Long-term strategy, we intend to separate the business of Pollo Tropical and Taco Cabana by tax in 2017 or 2018
Effectively allocate 100% of Taco Cabana's shares to Carnival shareholders and rename Carnival to Pollo Tropical.
To facilitate this, we would like to establish two completely independent management teams and gradually invest in the company's infrastructure.
At the same time, we intend to continue to focus on the implementation of our business plan, including the establishment of scale in our new Bolo tropical market to achieve media efficiency as soon as possible, thereby increasing brand awareness and sales volume, and began to speed up the development of new restaurants in taco Kasana.
Over time, we intend to develop more detailed plans for the proposed departure transaction.
The separation plan, including transaction structure, time schedule, senior management personnel composition, capital structure and other matters, must be approved and supervised by our board of directors, among other things.
Further details will be disclosed later as we plan to develop. Our Brands.
Our restaurant is very fast.
Leisure Restaurant, combined with the convenience and value of the Express restaurant
The atmosphere of the service restaurant is attractive, the menu is varied, the use of fresh ingredients, the quality of food and the decoration of more typical leisure restaurants, the table service is limited, the price is competitive. Pollo Tropical.
Our Tropical Pollo restaurant offers Caribbean-inspired menu items including our bones
Marinate a proprietary mixture of tropical juices in the chicken and grill on open fire.
Our menu also includes a range of tropical cuisine®(
Make your own casserole bowl with grilled chicken breast, roast pork or grilled vegetables, or in some markets, brown or yellow rice and red or black beans on white beef, all kinds of fresh toppings
Sauce and salt
A variety of sandwiches, packaging, and salads, paired with a selection of Caribbean stylesfrom-
Scratch dishes including black beans and rice, fried Yuka and sweet plantains, as well as more traditional menu items such as waffles, Caesar salad and corn.
We also provide a self.
Service "Saucing Island" with multiple optionsfrom-
Our guests can make further customization on sauce, sauces, jalapeno, coriander, onion and other items as per guest's request.
Our restaurant serves the most popular Caribbean desserts such as flan and tres leches.
Drinks we offer include soft drinks and fruit from the fountain
We offer rum in some places-
Drinks and beer.
Each of our restaurants prepares most menu items every day, which are characterized by large open cookingflame grills.
We serve personal and family meals.
The size section enables us to provide a family meal replacement for our guests.
We also provide catering services for parties and corporate events.
Our Tropical Pollo restaurant has a dining area designed to create a warm, festive and tropical atmosphere.
We also offer options for our guests
Including the ability to order-
Line up early and almost all of our restaurants offer the convenience of drivingthru windows.
Delivery is available in some places.
Our polllo tropical restaurant usually serves lunch, dinner and late night seven days a week.
As of January 3, 2016, most of our company's employees
The tropical restaurant Pollo is a separate building.
Our typical independent polllo tropical restaurant ranges from 2,800 square feet to 3,700 square feet, providing in-house seating for approximately 70 to 90 guests.
Average sales transactions in our company as of January 3, 2016
The catalogue of tropical restaurants in Pollo is $10.
Dinner represents the biggest daypart at 53. 2% .
For the year ended January 3, 2016, our total revenue for the polllo tropical brand was $366.
7 million, the Adjusted EBITDA is $59.
3 million, including pre-
Opening costs $4. 3 million (
Including the expenses incurred before the opening of the new restaurant, including the salary and related expenses of the restaurant staff, travel expenses, recruitment, training, promotion fees related to the opening of the restaurant and rent, including any non-
Cash rental fee confirmed during construction).
Pollo Tropical opened its first restaurant in Miami, Florida, in 1988.
As of January 3, 2016, we had a total of 155 Pollo Tropical restaurants, of which 117 were in Florida, 23 were in Texas, 11 were in Georgia, and 4 were in Tennessee.
In 2014, we launched a new architectural design in Texas, and we believe that while continuing to take advantage of elevated buildings, better differentiate our polllo tropical brands since 2009, we have provided limited table service and menu formats in certain locations outside the core market in South Florida.
We believe that the upgraded format and the new design better position the brand for wider target audience and growth outside of Florida.
In addition, in 2015, we started a re-imaging project, starting with the restaurant located in the Orlando and Nashville markets, to align the selected existing Pollo Tropical restaurant with the new architectural design.
As of January 3, 2016, we have redecorated 17 Tropical Pollo restaurants.
We mainly franchise our polllo Tropical restaurants at the international level and as of January 3, 2016 we are in Puerto Rico, Honduras, Trinidad and Tobago, Bahamas, Venezuela, Panama and Guatemala, and five non-
Traditional Licensing sites on the University of Florida campus.
We have reached an agreement on continuing to develop licensed polllo Tropical restaurants in some of our existing franchise markets and have committed to increasing non-
Traditional locations in the United StatesS.
The market we currently operate in. Taco Cabana.
Our Taco Cabana restaurant serves fresh and authentic Mexican cuisine
Food with inspiration, including flames
Grilled steak and chicken fajitas with iron pan, tacos, hands
Burrito, burrito
Flour tortillas made to customize the salad in our cottage Bowl®And our popular breakfast tortillas.
We also provide a self.
Various selection of salsa bars available-from-
Scratch salt, sauces, nachos, chopped coriander, chopped onions and other items allow our guests to further customize their orders.
The drinks we offer include fountain soft drinks, our signature frozen margar Tower wine and beer, and bottled Mexican cola and Fanta orange soda made of real sucrose.
Most menu items are fresh
Prepare in each restaurant every day.
Taco Cabana restaurant offers open display cooking that allows guests to observe fajitas cooking on open grill, Taco machine press and barbecue fresh flour tortillas, and fresh from other menu items
In addition to a semi-open restaurant, our Taco Cabana restaurant provides an indoor dining area
The hotel has a closed outdoor terrace with vibrant modern decorations and a relaxed atmosphere.
In addition, we offer a choice for our guests
Including the ability to order-
Queuing in advance and the convenience of driving --
Dining through windows.
Our typical independent Taco Cabana restaurant has an average area of approximately 3,500 square feet (
Outside dining area)
Seats are also provided for approximately 80 guests and additional outdoor terrace seating is provided for approximately 50 guests.
As of January 3, 2016, most of our company's employees
The Taco Cabana restaurant is a separate building.
Taco Cabana pioneered the concept of a Mexican Terrace Cafe, opening its first restaurant in San Antonio, Texas in 1978.
As of January 3, 2016, we have owned and operated 162 Taco Cabana restaurants, of which 161 are located in Texas and 1 is located in oakrama.
As of January 3, 2016, we also have 4 Taco Cabana franchise restaurants and 2 non-s in New Mexico
Traditional taco Lodge in Texas.
Most of our Taco Cabana restaurant is open 24 hours, generating a balance of guest traffic and restaurant sales over multiple daysparts.
Dinner sales were the biggest day of the year ended January 3, 2016part at 25.
4% average sales transactions with our company
The price of Taco Cabana is $9. 16 .
For the year ended January 3, 2016, the total revenue of our Taco Cabana brand was $320.
7 million, the Adjusted EBITDA is $39.
7 million, including pre-
Open opening for $0. 3 million .
In 2010, we started initiatives to strengthen architectural design and decoration, service and menu services with the goal of providing guests with fast-moving services
Leisure experience, better positioning of the brand, to achieve sustainable development.
As of January 3, 2016, basically all planned Taco Cabana renovations have been completed.
As of January 3, 2016, we have 4 licensed Taco Cabana restaurants and 2 non-s in New Mexico
Traditional taco Lodge in Texas.
5 catalogue our competitive advantage we believe that the success of our brand of Pollo Tropical and Taco Cabana is the result of the following key attributes: in a favorable position in the rapid growth of fast growthCasual Segment.
We own, operate and franchise 358 fast as of January 3, 2016-
The Leisure restaurants under the brand Pollo Tropical and Taco Cabana have a business history of nearly 30 years and 40 years respectively.
According to tecmic, fast
Leisure market segment is the fastest growing segment of the catering industry, with sales growth of 13.
1% faster than 2013 in 2014
Compared with 4, the leisure chain in the top 500 chain restaurants of the dommic.
Overall, the top 0% chain restaurants grew by 500.
Another $2.
$6 million and $1.
The average annual sales of Pollo Tropical and Taco Cabana were 9 million, respectively, fast-and quick-
According to the leisure section of dommic.
However, as we open restaurants in newer markets, the average annual sales of our polllo Tropical restaurants may decline as the annual sales per restaurant are lower than our mature market.
We believe that our brand will continue to benefit from the rapid growth of consumer demand.
Because of our high quality, fresh casual restaurant-
The value and difference of the prepared food and flavor.
In addition, we believe that our brand promotion program and re-imaging program enhance our Pollo Tropical and Taco Cabana in certain existing and new markets by providing fast service for our guests to upgrade
Better position our brand for successful and sustainable future growth.
Two leading, differentiated brands offer fresh, high-quality food with a wide range of appeal and compelling value proposition.
Our brand of Pollo Tropical and Taco Cabana, unlike other dining options, offers a unique flavor and a healthy menu selection at an affordable price, we believe that these brands have a wide range of consumer appeal to provide guests with attractive value proposition, attract a more diverse customer base, and increase the frequency and loyalty of customers.
Pineapple tropical and Tucker Cottage is dedicated to service-from-
Fresh scratches
Cooked food made with quality ingredients-to-
Order and customize for each guest.
Both of our brands offer a wide range of menu products, including regional taste profiles and family meal alternatives, which are rich in weight and affordable and attract a wide customer base.
Our open kitchen allows guests to see and experience our fresh food
Prepare and cook according to order.
The pineapple tropical menu is inspired by the entire Caribbean region, including our signature bones
The chicken is marinated with a proprietary mixture of spices and tropical juices and grilled on open fire.
The menu of Taco Cabana offers the most popular food such as hot fajitas and other authentic Mexican dishes on the iron pan.
In order to provide our guests with a wide range of foods and to address changes in consumer preferences, we often enhance our menu with seasonal foods at the Pollo Tropical and Taco Cabana restaurants.
We also selectively use promotions and time-limited offers to reinforce our value proposition and introduce new products.
In addition, our menu includes many options to address the growing consumer focus on a healthy diet, and we offer driving services to our guests
With the services of most of our restaurants, quick and convenient options are available, including family dining and family dining.
Great potential for accelerated development. Since our spin-
In 2012, we focused our strategy on the growth of both brands, although Pollo Tropical was our main growth tool. Our long-
Regular business model based on 8% to 10% companies-
The restaurant is growing every year.
We opened 34 new companies in 2015.
There are 32 tropical polllo restaurants and two Taco Cabana restaurants.
2016. we plan to open 36 to 40 new companies.
Tropical restaurant with polllo and up to four new companies
The Taco Cabana restaurant is available in the existing market.
Our growth in 2016 is planned to focus on the existing market to increase our restaurant penetration outside the core market in South Florida.
In each market, we strive to achieve the penetration rate of the restaurant, which will support the establishment of brand awareness and sales growth in the broadcasting media.
A compelling business model and strong financial performance.
Due to the high market penetration rate of the company, we have gained significant brand recognition
Having a restaurant in our core market provides our guests with operational, marketing and distribution efficiency, convenience, and the ability to effectively manage and increase brand awareness.
Due to this brand recognition and the above three factors, we believe that both of our brands have strong financial performance, which strengthens our compelling business model.
Both of our brands enjoy market segments
As mentioned above, the average annual sales of restaurants are leading
Adjusted EBITDA profit level.
Our growth strategy mainly includes the development of new restaurants inside and outside the existing market.
We believe that in the existing major markets in Florida and Texas, we have a great opportunity to develop more polllo tropical and Taco Cabana restaurants, as well as expansion opportunities in other parts of the United States, these opportunities are in line with our target population and site selection criteria initially including the southeastern market.
We expect Pollo Tropical to be our main growth tool.
We believe that as we continue to move the polllo tropical brand from Florida to the West, both brands can operate successfully in the same market, thereby leveraging the existing real estate knowledge and operational base in Texas
Our current goal is to open new restaurants in high-profile areas of target household income and population density.
In 2014, Pollo Tropical developed a new format that we believe will better make it a general market concept with a broad target audience.
This form includes a new look design and a more upscale decoration, which we believe better distinguishes our brand from a more Caribbean-style look;
New menu products including rum
Drinks and beer in some places;
As well as many other enhancements, while continuing to take advantage of elevated, limited table service platforms and formats established in certain places since 2009.
The new model is the one for Pollo Tropical to expand outside the core market in South Florida.
Our goal is to set up an independent company.
Restaurant for driving service
Through service, this is an important convenience and sales component of our brand.
Depending on the restaurant penetration rate, brand awareness and the cost of the media in the market and the location of the restaurant, the results may vary from market to market.
Although the new company
Private restaurants in the new market that have not yet achieved media efficiency usually sell less than restaurants opened in the existing media.
We still believe that investing in these new markets is an important part of our growth strategy.
We believe that the location of the restaurant is a key factor in the success of each restaurant.
We evaluate potential new sites based on a number of key criteria, including accessibility, visibility, cost, surrounding traffic patterns, competition, and demographic features.
Our senior management team determines the acceptability of all new websites based on the analysis prepared by our real estate company, finance and operations professionals and third-party suppliers who use proprietary location research technology and conduct on-site assessments on our behalf.
Historically, this process often leads to a long-term
Term lease of land, or acquisition of land to a lesser extent, in both cases use cash generated by our operations or borrowing under our senior credit facility to build the building.
If we acquire land, we may consider incorporating land and buildings into the sales and leaseback arrangements as a form of financing in order to reinvest the proceeds in other restaurants.
The following table includes the most recent historical initial internal costs (
Including internal expenses such as equipment, seats, signs, etc)
A typical new or remodeled independent restaurant, as well as historical external costs (
Including improvements in buildings and venues)
If land is obtained.
The internal costs and signage costs of the Tropical Taco Cabana at Pollo are $600,000 to $900,000, and the external costs are $500,000 to $600,000. Between $7 million and $1. 4 million $1. Between $2 million and $1.
$0 for 3 million soil. Between $9 million and $1.
4 million N/A ensuring that the cost of real estate, construction and equipment of new restaurants can vary significantly depending on many factors, including local economic conditions, geographical considerations and features of specific sites.
Therefore, the cost of opening a new restaurant in the future may be very different from the historical cost of opening a new restaurant in the past.
Increase restaurant sales.
We intend to continue to increase sales in comparable restaurants by attracting new customers and increasing the frequency of guests through the following strategies: focus on operational consistency and food quality: we believe in quality, the consistency and accuracy of our operations bring a pleasant guest experience, thus driving the frequency of guests.
We will continue to refine our menu, supply chain and food preparation processes to ensure the high quality, freshness and consistency of our food, which we believe is a key component of our brand's continued success.
New Product Innovation: in both brands, our menu is centered on fresh, high quality foods that we believe are both broadly attractive and of daily value.
Both Pollo Tropical and Taco Cabana have independent team of product development professionals that enable us to continuously improve menu products and develop new products.
Maintaining a strong product Channel is essential to keep our products eye-catching, and we intend to introduce innovative new products and enhancements to existing menu favorites throughout the year to drive more guest traffic and
In addition, portable menu items such as packaging, sandwiches, bowls and salads have been added, and in addition to home meal replacement and home meal, the two brands will continue to be a key focus, because we want to capture more dining opportunities for those out there.
Focus on effective advertising and highlight our day-to-day value proposition: Pollo Tropical and Taco Cabana take advantage of the many integrated
Including horizontal marketing methods for regular chains
Extensive promotion, direct mail, outdoor marketing including billboards
Store promotion, local store marketing, social media marketing and online marketing
Including the use and limited use of radio and television commercials-
Menu item promotions are provided.
The type, mix and quantity of advertising expenses are severely affected by the number of restaurants in each market, so in the new market, we reached a certain restaurant before launching more expensive and wider restaurants
Based on radio and television advertising.
We plan to continue to improve our advertising and media strategy and continue to strengthen the key attributes of our brand, including high quality, fresh
Prepared food, enhanced guest experience and daily value.
We have been successful in highlighting the attractive price of the menu at 7 catalog points.
In addition, as part of our initiative, we updated the sites of Pollo Tropical and Taco Cabana to enhance our brand positioning at all guest touch points and seek to leverage social media marketing.
Through our website, we now offer our guests the opportunity to register their respective eClubs to keep abreast of the products and promotions.
The proportion of pineapple tropical restaurant sales, pineapple tropical advertising spending month. 6% in 2015, 2.
5% and 2 in 2014. 2% in 2013.
Taco Cabana's advertising expenditure as a percentage of Taco Cabana's restaurant sales was 3. 8% in 2015, 3.
9% and 3 in 2014. 9% in 2013.
At 2016, we plan to pilot and launch a loyalty program in both brands to further connect with our repeat customers.
Expand our off-site sales: while both Pollo Tropical and Taco Cabana offer home dining, we believe there is a great opportunity for both brands to expand off-site sales.
In addition to launching a redesigned website, enhanced
We also offer online ordering features and smartphone apps that offer trial service in certain markets.
Continue our brand promotion and remodeling program: We believe that by aligning our image and service with our high quality food, our elevated brand status continues to resonate with our guests, to improve the quality of our restaurant guests experience.
We continue to implement the restaurant enhancement program to enhance the dining experience of the restaurants of Pollo Tropical and Taco Cabana in some markets.
We believe these improvements have improved our brand in fast-
Part of leisure while attracting a wider population.
Our restaurant enhancements create an updated contemporary look that we believe is more relevant to today's consumers and changes the inside and outside of the restaurant by adding new tables and chairs, the salsa bar was upgraded to add photos and murals to create a more engaging feel and highlight our fresh ingredients.
We also have limited table service, wireless network, in the tropical and Tucker cabin upgrade format
Fi and new menu items as well as hands
Menu and real plates and silverware held in certain places.
We believe that the restaurants of Pollo Tropical and Taco Cabana will continue to differentiate us from our competitors.
Also, as we update and upgrade the entire system, we plan to continue our restaurant re-imaging work.
As of January 3, 2016, we have basically completed more than one
Taco Cabana's annual re-imaging program is the second-year re-imaging program for Pollo Tropical.
As of January 3, 2016, we have restored 17 Tropical Pollo restaurants and plan to continue to reshape the image of more Tropical Pollo restaurants, we believe this will further enable our polllo tropical brand to help us maintain a quality restaurant environment and further drive sales and profitability.
Improve profitability and optimize infrastructure.
We believe in our restaurant.
The adjusted EBITDA profit margin is 24.
8%, pineapple tropical 19.
The price of Taco Cabana is 0%, which is fast-and quick-Leisure market segments
However, with the development of new restaurants, the growth of comparable restaurant sales and the growth of franchise revenue, we are confident that we will further develop our restaurants --
Adjusted EBITDA and related profits.
We also believe that our large restaurant base, skilled management team, operating systems, and training and development programs support our strategy to expand the restaurant base while improving the operational efficiency of existing restaurants.
We continue to focus on maximizing cost efficiency, including the implementation of profit enhancement programs focused on food and labor costs, and taking advantage of our scale, and enhance our supply chain expertise by reducing costs and improving food quality, consistency and output.
In addition, as our restaurant base continues to expand, we are confident that we will be able to make further use of our scale and reap certain benefits from economies of scale.
But because of our company
The sales of its own restaurants in the new market are lower than our company
Restaurants in the market that have achieved media efficiency, we need to establish a regional support structure before the new company is established
As we open a new company, the opening of our owned restaurant, the average annual sales of each of our restaurants and the adjusted EBITDA profit margin including general and administrative costs have been and may continue to be affected
Own restaurant in New Market.
The competitive restaurant industry is highly competitive in terms of price, service, location and food quality.
In each of our markets, our restaurants compete with a large number of national and regional chain restaurants and local-owned restaurants offering medium and low-end restaurantspriced fare.
We also compete with convenience stores, delicatessens and prepared food counters for supermarkets, grocery stores, buffet restaurants and other food suppliers with moderate prices and quick preparation.
We believe: the quality and taste of the product;
Brand difference and recognition;
Convenient location;
Speed of service;
8 directory menu varieties;
Perception of value; ambiance; cleanliness;
Hotel service is one of the most important competitive factors in rapid development.
Our two concepts compete effectively in this category.
Pollo Tropical's competitors include chicken from the country and region
Based on concepts, and other types of fast
Service and fast
Leisure Restaurant.
Taco Cabana's restaurants compete with Mexican concepts, including those in the fast track
Casual dining and other fast food services
Leisure Restaurant.
The restaurant operation data of the restaurant operation data of our two restaurant concepts are selected as follows: the year ended January 3, 2016, December 28, 2014, December 29, 2013, Pollo Tropical: average annual sales per company-
Own restaurant (in thousands)(1)
$2,585 $2,720 $2,666 monthly average sales transaction $. 76 $ 10. 26 $ 10. 03 Drive-
The percentage of sales to total sales is 45. 7 % 45. 3 % 44. 7 % Day-
Percentage of sales: lunch 46. 8 % 46. 5 % 46.
6% dinner and late night 53. 2 % 53. 5 % 53.
4% Taco Cabana: average annual sales per company-
Own restaurant (in thousands)(1)
$1,920 $1,831 $1,783 monthly average sales transaction $. 16 $ 8. 75 $ 8. 50 Drive-
Sales accounted for 54 of total sales. 7 % 53. 9 % 52. 8 % Day-
Percentage of partial sales: Breakfast 20. 8 % 19. 8 % 18. 8 % Lunch 22. 4 % 22. 5 % 22. 6 % Dinner 25. 4 % 25. 8 % 26. Late night 1% (Nine o'clock P. M. to midnight)12. 1 % 12. 4 % 12. 6 % Afternoon (2pm to 5pm)12. 7 % 12. 5 % 12. 4 % Overnight (Midnight to six o'clock A. M)6. 6 % 7. 0 % 7. 5 % (1)
Average annual sales of the company
The owned restaurant is obtained by dividing the sales of the applicable part of the restaurant by the average number of the company
Restaurant for the year.
Calculate average annual sales per company for comparison purposes
The restaurant is based on 52-
Fiscal year week
Additional week of restaurant sales data for the fiscal year ended January 3, 2016 were excluded for calculating average annual sales per company
There is a restaurant.
Our business is seasonal due to regional weather conditions.
Our restaurants in southern and central Florida usually have higher sales in winter than in summer, while those in northern Florida, Texas, are higher than in summer, prices in Nashville and Atlanta are generally higher in the summer than in the winter.
Therefore, we believe that this seasonal impact is not important to our overall business due to the seasonal offset of our concept.
9 directory operations management structure we perform essentially all of our marketing and operations support functions from the polllo tropical division headquarters in Miami, Florida and the Taco Cabana division headquarters in San Antonio, Texas
Pollo Tropical's management structure consists of Danny Meisenheimer, our chief operating officer, and two vice presidents of operations who have over 25 years of experience in the catering industry with 24 district managers, 5 assistant district manager.
Taco Cabana's management structure consists of our COO, Todd Coerver, and two vice presidents of operations supported by regional directors, who has over 20 years of experience in the catering industry, 3 senior district managers, there are 24 district managers and 2 district manager assistants.
Two COO reports to our CEO and president and is supported by a number of departments and company executives responsible for operations, marketing, product development, procurement, HR, training, real estate and finance.
For each of our brands, the Regional Manager is responsible for the direct supervision of the day-to-
On average, about 7 restaurants are open on a daily basis.
Usually, the area manager used to be a restaurant manager in one of our restaurants.
The regional director, regional manager and restaurant manager receive a fixed salary plus incentive bonus based on the performance of the restaurant under their supervision.
Normally, our restaurant has hourly staff who are supervised by a paid restaurant or general manager and two or three salaried assistant managers.
Our executive management functions are primarily the responsibility of our corporate headquarters in Addison, Texas.
Our management team is led by Timothy P.
Taft, our chief executive and president.
Lynn Schweinfurth is Joseph A, our chief financial officer and treasurer.
Zirkman is our general counsel and secretary, and John Todd is our chief development officer, Joseph W.
Our chief purchasing officer is Brink.
Training we maintain a comprehensive training and development plan for all restaurant staff and provide classroom and in-house training
Restaurant training for our paid and hourly staff.
Program emphasis system-
Each concept has a wide range of operating procedures, food preparation methods, and guest service standards.
The first six months of the new manager were initially trained under close supervision and limited control.
This phase includes basic shift control, team member supervision, procedures and technical skills, and management development.
The eight weeks were spent under the direct supervision of a dedicated on-site training manager.
In the following four months, we conducted intensive classroom training, focusing on skills development.
The next stage is to strengthen yourself.
Paced's ongoing development project is designed to prepare participants for the next phase of management.
Over the past five years, our new restaurant opening training process has evolved as we expand into new areas.
Dedicated trainer, newly opened restaurant support team and
Record training and logistics processes to help us ensure brand standards are implemented at the time of opening.
The authenticity and knowledge of the menu, the passion for our food and the culture of caring for others is our advantage in the traditional market.
Our open process helps instill these ideas into our team in new markets.
Management information system our management information system provides us with the ability to manage restaurants efficiently and ensure that operational control is applied consistently in our restaurants.
In all companies
We use computerized management information systems to support our future development plans. We use touch-screen point-of-sale (POS)
Designed for the restaurant industry, the system is convenient for users to receive orders accurately and quickly
Friendly, limited cashier training required to improve speedof-
Provide services by using session order
Technology.
POS system integration with above
Storage Enterprise applications designed to facilitate financial and management control of our restaurant operations.
All products sold in our company and related prices-
Our central support office has incorporated its own restaurant into the system. We provide in-
Enterprise systems that help with manual scheduling and food cost management allow stores to enter
Reduce management time for managers.
The key information obtained from these systems is almost true.
This is the time for our restaurant manager who should respond quickly to the trends or circumstances of the restaurant.
Our regional manager also received something close to real.
Time information for all restaurants under its control and access to key operational data remotely.
From restaurant managers to senior management, managers at all levels use key restaurant performance indicators to manage our business.
These enterprise systems provide daily tracking and reporting of traffic counts, menu item sales, labor and food data (including costs), and other key operational information for each restaurant.
These systems also provide the ability to monitor labor utilization and sales trends in real time
Time base for each restaurant and provide analysis, reporting and tools to enable extensive review by management at all levels
Scope of financial, portfolio and operational data.
10 catalog we use the integrated digital ordering system integrated with our POS system in each restaurant.
Transfer to restaurants electronically on our website, mobile app or through personal, group or catering orders under our call center to provide our guests with seamless ordering, payment and
We expect to continue to invest heavily in technology to drive sales and transaction growth by increasing customer engagement and customer satisfaction
Deliver prerequisite services through our core enterprise system, improve the effectiveness of labor and inventory management and improve efficiency.
Suppliers and distributors for our pineapple tropical and Tucker Lodge hotel, we negotiate directly with local and national suppliers to purchase food and beverage products and supplies to ensure consistent quality and freshness, and get competitive prices.
Both brands of food and supplies are ordered from approved suppliers and shipped to restaurants through distributors.
Both brands are responsible for monitoring quality control, supervising these suppliers and conducting inspections, observing the readiness and ensuring the quality of the products purchased.
We had a long time for our polllo tropical restaurant and Taco Cabana restaurant
Long term service agreement with our main distributor of food and paper products.
In 2014, we integrated our food distribution with Performance food Group, Inc.
, Under the distribution services agreement due in July 26, 2019, the company is now the main distributor of food and beverage products and supplies for our Pollo Tropical and Taco Cabana restaurants.
For our restaurant in the South East, Kelly Food service is our main chicken dealer and the agreement will expire on December 31, 2017.
According to the agreement due in December 31, 2016, we also currently rely on six chicken suppliers to provide chicken for our polllo tropical restaurant.
Quality assurance Pollo Tropical and Taco Cabana are committed to obtaining high quality raw materials and creatingfrom-
Fresh scratches
Prepare food in a safe way.
In addition to operating in accordance with the quality assurance and health standards set by federal, state and local government laws and regulations on minimum cooking time and temperature, maintain the maximum time standard for preparing food, among other things, we also set our own internal quality control standards.
We require our suppliers to comply with our high quality control standards, and we regularly check their products as well as production and distribution facilities to ensure they meet them.
In addition, we have implemented a number of procedures to ensure a safe, quality meal for our guests.
As an example, we use
Recognized service safety program to provide correct technical training for food handling and preparation for our kitchen staff and managers.
In addition, our quality assurance team conducts irregular inspections of our restaurants, and restaurant managers conduct regular internal inspections of taste, quality, cleanliness and food safety.
In addition to food safety, the operational focus of each of our concepts in both concepts is closely monitored to achieve a high level of guest satisfaction through service speed, order accuracy and service quality.
Our senior management and restaurant management are primarily responsible for ensuring compliance with our operating policies.
We have uniform operating standards and specifications related to the quality of restaurant and staff behavior, preparation and selection of menu items, maintenance and cleaning.
To maintain compliance with these operating standards and specifications, we distributed detailed reports to our restaurant operations management team to measure compliance with a wide range of guest service standards and objectives, including direct access from guests
Guest feedback is monitored by independent agencies and US, including an assessment of service speed, service quality, quality of our menu items and other operational objectives, including cleanliness of our restaurant.
We have our own.
A family guest service representative who handles guest inquiries and feedback.
We believe that our trademarks, service marks, trademarks, logos and other proprietary intellectual property rights are critical to our success.
We have registered major polllo Tropical and Taco Cabana logos and designs in the USS.
The main Registered Patent and Trademark Office is the service mark of our restaurant service.
We have also obtained or applied for state and federal registrations for several other advertising or promotional logos, including changes to the main logos of Pollo Tropical and Taco Cabana, as well as changes related to our core menu products.
Regarding our current and potential international franchise activities, we have applied for or obtained the registration of the main trademarks of Pollo Tropical and Taco Cabana and several others in foreign countries.
In addition to the trademarks of Pollo Tropical and Taco Cabana and the logos and trademarks of the carnival restaurant group (
Internet domain name and address included)
Ownership related to some of our core menu products, we do not have proprietary intellectual property rights.
Government regulations various federal, state and local laws affect our business, including a wide range of health, hygiene, fire and safety standards.
Restaurants to be built or renovated are subject to state and local building codes and zoning requirements.
With regard to the development and re-imaging of our restaurants, we may bear the costs of meeting certain federal, state and local regulations, including those enacted under the US Disabled Persons Act.
We will comply with the federal Fair Labor Standards Act and other federal and state laws governing employment matters.
While we pay on average higher than the federal minimum wage and, where applicable, the state minimum wage, in the past, the increase in these minimum wages has increased the rate of pay in our restaurants, the future will affect our labor costs.
In addition, changes in the wage levels used to determine exempt status effective at the end of 2016 may increase our labor costs.
In addition, certain provisions of the federal Comprehensive Medical Reform Act, enacted in 2010, entered into force on 2015.
We believe that the combination of labor management, cost reduction programs, technology and menu price increases can offset the potential increased costs associated with these regulations in 2016.
Taco Cabana and Pollo Tropical are subject to the regulations on the control of alcoholic beverages that require state, county or municipal licenses or permits to sell alcoholic beverages in every restaurant where alcoholic beverages are sold.
Normally, the license must be updated once a year and can be revoked or suspended at any time for reasons.
Licensed entities authorized by law enforcement may issue violations and conduct audits and investigations of restaurant records and procedures.
The alcoholic beverage control regulations cover many aspects of the day-to-day operation of our Taco Cabana restaurants and our polllo Tropical restaurants, including minimum age of consumption, employee certification requirements, operating hours, advertising, wholesale procurement, inventory control and handling, storage and distribution of alcoholic beverages.
These regulations also provide for certain necessary banking and accounting practices related to the sale and purchase of alcohol.
Our Taco Cabana restaurant and some of the polllo Tropical restaurants have "dram-shop” laws. Dram-
Store law provides that a person injured by a drunken person has the right to receive damages from an institution that provides a wrong alcoholic drink to a drunk or underage customer.
We have specific insurance covering claims generated under dramshop laws.
However, we cannot ensure that such insurance is sufficient to cover any claims that may be made against us.
As of January 3, 2016, we had employed approximately 11,550 people, approximately 200 of whom were corporate and administrative staff, and about 11,350 were restaurant operators and other supervisors.
None of our employees have a collective bargaining agreement.
We believe the overall relationship with our employees is good.
We submit annual, quarterly and current reports and availability of other information to the Securities and Exchange Commission (the “SEC”).
The public can read and copy any material we submit to SEC in the public information room at 100 N Street, SEC. E. Washington, D. C. C. 20549.
The public can call SEC 1 800-for information about the operation of the public data roomSEC-0330.
The SEC also maintains an Internet site that contains reports, agency and information statements and other information about issuers who submit documents electronically to the SEC.
The address of the website is provided by us through our Internet website (www. frgi. com)
Our Annual Report on Form 10
Quarterly Report on table 10
Q: Current Report of Form 8
K and amendments to reports submitted or provided under section 13 (a)or 15(d)
After submitting such materials electronically to SEC, sign the Transaction Act as soon as reasonably practicable.
A reference to our website address is just a text reference, which means that it does not constitute a combination by referring to the information contained on the website and should not be considered as part of this document.
In addition, on our website, you can also obtain free copies of our corporate governance materials, including copies of the articles of association of our Board of Directors Committee and various corporate policies, including our code of business ethics and conduct, the code of ethics for executives and our whistleblower policy. ITEM 1A.
Risk factors you should carefully consider the risks described below, as well as other information and data contained in this annual report on table 10K.
Any of the following risks, and additional risks and uncertainties that we do not currently know, may have a significant adverse impact on our business, the consolidated financial position or operating results, it may also adversely affect the transaction price of our common stock.
12 directory risk related to our business the intense competition in the catering industry may make our business expansion more difficult, if the guests favor our competitors, it may also be possible to produce results for our operations or we are forced to change our pricing and other marketing strategies.
Fierce competition in the catering industry.
In each of our markets, our restaurants compete with a large number of national and regional chain restaurants and local-owned restaurants offering medium and low-end restaurantspriced fare.
We also compete with convenience stores, supermarkets, buffet restaurants and other convenience stores, delicatessens and prepared food counters of food suppliers with moderate prices and quick preparation.
Pollo Tropical's competitors include chicken from the country and region
Fast based on concepts and other types
Service and fast
Leisure Restaurant.
Our Taco Cabana restaurant competes with Mexican ideas, including those in the fast trackservice, fast-
Dining areas for leisure and leisure.
In order to remain competitive, we and some other major fast
Leisure chains are increasingly offering selected foods and combined meals at discounted prices.
These pricing and other marketing strategies have and may have a negative impact on our sales and revenue in the future.
Factors for fast-
Casual dining may adversely affect our operating performance, which may lead to a decline in income and income. The fast-
The competition in the leisure catering market is fierce and is adversely affected by many factors, including: changes in the economic situation of the local, regional or national;
Changes in population trends;
Changes in consumer taste;
Changes in traffic patterns;
Increase in fuel prices and utility costs;
Consumer concerns about health, diet and nutrition;
Examples of food
Disease or other food safety issues;
The number of competing restaurants and the increase in specific locations;
Changes in free consumption expenditure; inflation;
Supply of key commodities such as beef, chicken, eggs and agricultural products;
Increase in the cost of key commodities such as beef, chicken, eggs and agricultural products, and increase in the cost of paper goods and packaging;
Increased labor costs, including unemployment insurance, minimum wage and overtime requirements, and increased costs for providing health care, including the impact of the Affordable Care Act;
Cost related to the new technology of our restaurant to remain competitive and up to date, such as on-
Quota ordering and credit card security;
Experienced management and hourly availabilitypaid employees;
Weather conditions in the area.
Whether we can continue to grow depends on whether we can open and operate new restaurants profitably, and it depends on whether we can continue to receive funds. Newly developed restaurants may not run as we expected, and there is no guarantee that our growth and development plans will be achieved.
Our continued growth depends on our ability to develop more Pollo Tropical and Taco Cabana restaurants.
Development involves significant risks, including the inability to finance development;
Development expenses exceeding the budget amount;
Delay in completion of construction;
All necessary zoning and building permits cannot be obtained;
It is not possible to identify or not use the appropriate website in accordance with the acceptable lease or purchase terms;
13 catalogue of developing restaurants that do not meet expected income or cash flow levels or other operational and performance targets after opening;
If the development project is abandoned before completion, or if the new restaurant is closed due to poor financial performance, there will be a lot of unrecoverable costs;
Unable to recruit and retain managers and other staff required for each new restaurant employee;
Change or implementation of government rules and regulations;
Changes in the economic and business environment.
We cannot ensure that our growth and development plans are met. Our long-
Additional management, business and financial resources are required for the long-term development plan.
For example, we will be asked to recruit managers and others for each new restaurant.
We cannot ensure that we manage our expanding business effectivel