FDD Talk Daily: Average Labor Cost, Controllable Operating Expenses, and Management Training Expenses for T.G.I. Friday’s Restaurants

Highlights of T.G.I. Friday’s Item 19 Financial Performance Representations (2012 FDD) – Part 2

Statement of Labor Cost, Controllable Operating Expenses, and Management Training Expenses  – Average for 52 Weeks Ended December 26, 2011

• All figures are rounded off to the nearest thousand dollars.

Labor Cost:  $1,064,000 (33%)

• Labor Cost includes employee training expenses (excluding management training expenses described below), employee salaries and wages, benefits and taxes, and management salaries, benefits, and bonuses.

• The cost of providing group medical and dental insurance for employees will vary depending on many factors, including the extent and amount of coverage provided and the loss experience of the group. Franchisees with a smaller total employee base may encounter higher relative costs than the company does in providing comparable health benefits.

• Other benefits which you elect to provide to your employees, such as the amount of vacation time and vacation pay, are factors which will affect total labor and operating costs.