CC PACKET 06021998 - Laserfiche WebLink

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19 • To: Michael Morrison, City Manager From: Michael L. Larson, Liquor Operations Manager Subject: Profit Analysis Date: 5/27/98 1 have provided for your review the profit plans for the Liquor Operations. With the profit analysis, I would like to give you a brief summary regarding the state of the Liquor Operations. Off-Sale Stores 1998 has started with brisk sales. A warm winter and new store at Apache has produced increased sales. Store #1 has increased profits for the first quarter $2,952.00 over last year. Store #2 has increased profits from a loss of$9,878.00 to a profit of$14,394.00, a turn around of$24,272.00. 1 expect this trend to continue. We continue to examine our operation for ways to increase sales, reduce expenses and improve efficiency and accuracy. The Silver Lake Bridge construction project is set to begin in the near future. We are concerned as to what effect that project will have on the Off-Sale operations. I am reviewing promotions and advertising to counter the possible negative impact that traffic congestion may have. The construction could effect the profits of Store #2. Improvements to Store #1 will need to be made within the next year. Wall shelving, lighting, and painting and new point of sale counters are some of the items that need replacing. We anticipate the new look will increase sales and create a nicer shopping environment for our customers. On-Sale 1998 has started strong. Again, the weather may be a factor. Food sales are increasing and assisting in profit levels. The Stonehouse is where the majority of our work remains. Exterior and interior improvements need to be made. Policies and procedures need careful review for changes. A continued effort to reduce expenses and increase profit margins is needed. Our goal is to change our image by completing the improvements and restructuring personnel and their respective job descriptions. The future for On-Sale establishments is unknown. Legislation to pass .08 Blood Alcohol Content is presented every year. It is my opinion that the bill will eventually become law. The trend in the industry seems to show that more people are consuming alcoholic beverages at home instead of bars and restaurants.