Semper Fit and Exchange Services Division. Food & Beverage Program Update. IMCEA F&B Workshop 16 July Supporting the Mission

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1 Semper Fit and Exchange Services Division Food & Beverage Program Update IMCEA F&B Workshop 16 July 2012

2 AGENDA Program Mission and Organizational Dynamics National Brand Relationships Program Overview Programming and Finances Club System Transformation Healthy Food Alternatives 2

3 Keeping Faith The Food and Hospitality Branch at HQMC is evolving to become a more proactive organization, focused on serving Marines, Sailors and their families New standards and training are taking place to focus on measurement of key metrics, employee onboarding, speed and efficiency of service, facility cleanliness and sanitation and reduction of waste 3

4 Organizational Dynamics The Food and Hospitality Branch at HQMC MR works closely with Local Installation MCCS to support them in a variety of ways. MCCS is a de-centralized organization. HQMC MR oversees the program while the Local MCCS operates the Clubs, restaurants, snack bars, indirect branded restaurants and conference venues. Local Installation Leadership make most decisions on Food and Hospitality deployment, Club support and funding 4

5 Strong Branding Presence Top Grossing Brands on USMC Installations Include: McDonalds ($23.3M) Subway ($13.9M) Domino s Pizza ($11.5M) Wendy s ($8.1M) Burger King ($3.4M) New Branded Development Panda Express MCB Camp Lejeune Dunkin Donuts MCB Camp Pendleton Five Guys Burgers & Fries MCAS Cherry Point Jamba Juice MCAGCC 29 Palms and MCB Quantico Burger King / Taco Bell MCAS Iwakuni 5

6 FY11 Food Service Overview 48 Clubs Officer Club Enlisted Clubs Consolidated Clubs SNCO Clubs Autonomous Clubs 11 ($8.65M) 13 ($6.08M) 16 ($33.25M) 6 ($1.37M) 2 ($493K) 107 Restaurants and Snack bars ($40.15M) rd party Indirectly operated Restaurants primarily Branded ($99.8M) 6

7 Programming Excellence Air Shows at MCAS Miramar, MCAS Iwakuni, MCB Hawaii, MCAS Yuma, MCAS Beaufort, MCAS New River, MCAS Cherry Point impact hundreds of thousands of guests and generate nearly $2 million in food and beverage sales each year World Famous Mud Run MCB Camp Pendleton June 2012 generated $312K in F&B sales F&H Excellence Awards 37 winning activities aboard 13 USMC Installations recognized this year Service Delivery and recovery, financial results, training and programming 7

8 FY11 Financial Talking Points $89.3M in Gross Sales, plus another $18.1M in Commissions, Fees and Charges (+$13.7M YOY) $300K combined increase in revenue streams Ramped up facilities at MCAS Cherry Point, MCB Camp Pendleton and MCB Camp Lejeune Strong sales at Special Events (Air Shows, Mud Runs, etc.) Strong Social Catering Sales Trend of conversion of restaurants from Directly operated non branded to Branded 3 rd Party Operators Combined CGS was 36.2% and Labor & benefits was 45% 18 Clubs and Restaurants grossing sales in excess of $1M Most profitable business activities include Social Catering and Banquet Operations and Special Events 8

9 FY11 Club System Transformation Plan Under formation and discussion for FY 12 / 13 Working Groups to review possible strategies for all Category C MWR activities to self sustain Maintain Honor, Pride and History and Tradition of Marine Corps Focus on CSE, catering sales, banquet operations and efficient business practices Focus on capital improvements and funding for remodels and refurbishments as needed Require Best in Class technology, systems, tools and reporting 9

10 Emphasis on Healthy Alternatives BLITZ Eat to Win Branding of Marine Mart C-store food service Build your own Salads Breakfast offerings are a significant growth area Several selections of 350 calories or less. Identified on the menu as Better for You selections with calorie counts Menu serves all 4 day parts Healthy selections in Grab & Go cases Future relationships with National & Regional Restaurant brands offering a variety of Healthier selections 10

11

12 Thank You! Semper Fi

13

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