Ignite Restaurant Group (IRG) - patio fire pit grill

by:Longzhao BBQ     2020-04-28
Ignite Restaurant Group (IRG)  -  patio fire pit grill
Washington, D.C. Securities and Exchange CommissionC.20549 Form10-K (MarkOne)☒Under Section 201 or 15 (d) of the Securities Trading Act, annual report for the fiscal year ending December 28, 5 or☐Transition reports submitted under section 13th or 15 (d) of the Securities Trading Act.Commission file number 001-35549 IGNITE Restaurant Group LimitedDelaware (state or other jurisdiction registered or organized) 94-3421359 (I.R.S.Employer identity number) 9900 Westpark Avenue, Suite300, Houston, TX (main administrative office address) 77063 (zip code) Tel: (713) 366-7500 securities registered under section 12 (B) of the act: the title of each class name of each exchange registering common stock, $0.01 face value Nasdaq Global Select Market securities registered under section 12 (g) of the act: no check mark is passed to indicate whether the registrant is healthy or notWell-known experienced issuers as defined in Rule 405 of the Securities Act.Yes☐ No☒ .A check mark indicates whether the registrant does not need to submit a report under Section 13 or section 15 (d) of the act.Yes☐ No☒ .Indicate by check mark whether the registrant (1) has submitted all reports required to be submitted by section 13 or section 15 (d) the Securities and Exchange Act 1934 months ago (or for a shorter period, the registrant is required to submit such a report), and (2) has been subject to such filing requirements for the last 90 days.Yes☒ No☐ .Indicate by check mark whether the registrant has electronically submitted and posted on his company's website (if any), each Interactive Data File submitted and posted as required by regulation rule 05 05 --T within the last 12 months (or within a shorter period of time when the registrant is required to submit and publish such documents ).Yes☒ No☐ .If the declaration of arrears is disclosed under section 405th of the regulations, please indicate by check mark-K is not included here and, to the knowledge of the registrant, will not be included in the final proxy or information statement referenced in Part 2 of this Form 10 --K or any amendments to this form 10K.☒Indicate by check mark whether the registrant is a large accelerated file manager, a non-accelerated file managerOr a smaller reporting company.See the definition of "large accelerated file manager", "accelerated file manager" and "small Reporting Company" in Rule12b-2 of the Trading Act.(Check 1): large acceleration file☐Accelerated File☐NonAccelerated File☒Smallerreporting company☐Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b)2 of the Act).Yes☐ No☒ .State the total market value of voting and non-votingVoting Ordinary Shares held by non-shareholdersThe affiliate of the registrant.Total market value of registrant common stock held by non-registrantAs of June 29, 2015 (the last working day of the recently completed second quarter), the affiliates were $38,703,458, calculated on the basis of the closing price of our common stock reported on that date by the NASDAQ Global Select Market.Indicate the number of outstanding shares of each class of common stock of the registrant as of the latest practicable date.As of February 29, 2016, 26,180,689 ordinary shares of the registrant had been issued.The documents incorporated in the reference section of the registrant's proxy statement of the annual general meeting on May 19, 2016 will be submitted to the Securities and Exchange Commission no later than 120 days after December 28, 2015 as a reference for inclusion in the second part of this report.1 item in the first part of the directory page.Business 4 items 1a.13 items 1b of risk factors.30 reviews by unresolved staff.Attribute 30 items 3.32 legal proceedings 4.32 safety disclosure of the fifth mine in Part IIThe registrant's common stock, related shareholder matters and the market for the purchase of equity securities by the issuer are 32 items 6.33 Selected Financial Data 7.Management Discussion and Analysis of Financial Position and operational resultsQuantitative and Qualitative Disclosure of 54 market risks.55 financial statements and supplementary materials 9.Changes and differences with accountants in accounting and financial disclosureControl and procedure item 83 9b.Other information 84 part 3 10.84 directors, executives and corporate governance 11.84 administrative compensation items 12.84 items 13 of the secured ownership of certain beneficial owners and management and related shareholders.Related party transactions, 84 independence of directors 14.Major accounting fees and servicesAnnex, Annex 85 signature 88 item 1 of Part I of the financial statements.BUSINESS.Our company lighting Catering Group Co., Ltd.(Called "Company", "lit", "we" or "ours" here) is a diversified restaurant company that operates a combination of two restaurant brands, joe's Crab Cottage ("Joe's") and Brick House Tavern faucet ("Brick House ").Both of our restaurant brands offer a wide range of highSpecial, casual, premium quality food and drinksEnergy atmosphere, and operate in various markets in the United States and the world.As of December 28, 2015, we operated 30 joe restaurants and 23 Brick House restaurants in 32 states.In October 2015, we opened the first franchise company in Dubai, USA, and joe's first international branch in Dubai.A.E.In 1991, the first Joe restaurant opened in Houston, Texas.In October 13, 2006, in connection with the purchase of JCS Holdings Limited liability company, JCS Holdings Limited liability company was made by J.H.Whitney VI, L.P.Of Joe's 120 restaurants, we changed our name to Joe's Crab House Holdings.At 2008, we developed our second brand, brick house.In July 7, 2009, with the addition of the brick house brand, we changed our name to Ignite Restaurant GroupIn April 9, 2013, we completed the acquisition of Romano Macaroni Grill ("Macaroni Grill.In April 17, 2015, we completed the sale of the Macaroni Grill.Unless specifically stated, all discussions about the Ignite merge operation do not include the Macaroni Grill.J.H.Whitney VI,L.P.Subsidiary of J.H.Whitney Capital Partners Co., Ltd. owns about 66 companies.As of December 28, 2015, we had 3% of our total outstanding common stock.Joe's Crab House Joe's here-as-you-Family Restaurant with comfortable dining environment for guestsCome back, comfortable, fun and energetic.As part of the "I'm relaxing" restaurant experience, an outdoor terrace is available in most places for guests to enjoy their meals and a children's playground.Joe's also has a lot of location at the Waterfront Hotel.Interior design elements include sailing, vacation themes, recalling beach vacations, and a true crab cottage experience.The table top decoration has artistic decoration, which can promote the conversation of dinner, while the terrace and the picnic table inside can help guests feel the relaxed tropical vacation experience.Joe's restaurant is basically free.More than 8,000 seats with an average of 200 square feet.Most Joe's bars are separated from the dining area in order to provide a unique place to have a drink while waiting for the table.Many of our restaurants also include a small gift shop where guests can purchase souvenirs to commemorate their dining experience.Our current restaurant prototype was launched in 2010, keeping authentic crab huts attractive while also syncing many of our key brand elements.Joe's restaurant performs well in the target market, has a high population density, has a preference for seafood, and has a "destination" market with national and regional tourist attractions, both are key features of our site selection strategy.Brick House pub faucet brick house is a trend-Launch the "next generation Bar and Grill" in a charming, comfortable and modern venue that offers a unique guest experience.The interior decoration of the brick room includes custom lighting, dark mahogany woods, open view, HDTV and charming fireplace.The interior design of the brick house includes different seating and gathering areas, and guests can choose a variety of ways to enjoy their experience.In addition to the traditional restaurant and bar area, the brick room offers large public tables and leather recliner located in front of the large hd TV, where guests can enjoy their own TV tray.Every restaurant has a state.of-the-The art entertainment package gives every seat a clear view of the HDTV, and the brick room restaurant is an ideal gathering place for sports enthusiasts.Outdoor seating is available on the terrace or around the open fire pit.Food and drinks are provided by the service staff.The typical brick house restaurant has an area of about 8,500 square feet and an average of about 250 seats, including traditional dining tables and unique seating options.Menu and menu development we focus on improving our highExcellent food and drinks.Born in consumer insight, ourThe house marketing and cooking department is constantly creating new food and beverage products for Joe and Brick house designed to exceed the expectations of guests.A variety of research tools are used to identify opportunities and evaluate current products, including brandsTracking Program, segmentation and core menu research, Brand screen, focus group and in-Restaurant Survey.We use a third-party metrology consulting company to provide statistical analysis of pricing so that we canDecisions based on pricing and menu engineering.Joe's Crab Joe's goal is to provide guests with signed, climbing items.For example, in the past few years, we have changed the menu mix of Joe's restaurant by focusing on crab-specific entrees.Crabs are in the center of our menu through the steamer and barrel of the crab category, highlighting the importance of menu items.Joe's steamer and crab bucket allow guests to choose between the seasonal variety of crabs (Queen, Snow, dungenis and King) and the whole lobster.Our best-selling product-the steamer is filled with tons of crabs, seasoned to the tastes of guests, as well as other seafood, red potatoes, sausages and new corn ears.Our crab buckets allow guests to pair their favorite crabs with several unique spices from BBQ to Chesapeake Style or garlic herbs.Joe used his crab too.Forward the menu with other craveable Crab items including making-From-Crab cake, crab corn flakes and crazyGood Crab Dip.Thanks to this strategy, the main course of Joe's crab is about 46% of total food revenue.We believe this crab.A dedicated menu portfolio helps improve guest satisfaction, comparable restaurant sales, and gross profit.Apart from our core crabThe menu of Joe's is focused and offers a variety of seafood entrees such as stuffed shrimp in the South, grilled salmon in cedar and lobster in red fish, and hand-madeBread traditional platter including East Coast Platter and reel capture.Joe's also offers several "out of water" options such as Island steak and shrimp and Joe's steak deal.In addition, alcoholic beverages have developed significantly with the arrival of the holidays to support the food strategy for AscensionThere are fashionable drinks such as shark bites, hurricane level 5 and Mason can cocktails, which are the first choice for guests.Joe's menu includes more than 19 kinds of foods that are served by lobsters, Queens, snow, dugenis, Bairdi or king crab obtained from government-regulated and sustainable fisheriesWe have 14 appetizers on our current menu, including delicious fire balls, crab corn flakes and crazyThere are more than 50 main courses including a steamer, a bucket of crabs, East Coast Platter and several "water out" options.For the fiscal year 2015, Joe's average check was $25.42. lunch and dinner accounted for 26% and 74% of income, respectively. income was distributed to 86% of food, 13% of alcohol and 1% of retail.The current price is from $7.49 to $48.Items on the 99 Joe menu, including appetizers ordered as main and main courses, are good for more than one person.New menu roll-The outs took place on April/5 and October/November.For all new menu volumes-New product launches are combined with new menu designs and updated prices to reflect the current economic environment, as well as current strategic marketing and creative initiatives.Menu changes usually include the introduction of new menu items and recipe enhancements, while maintaining a balance of about 75 menu items including appetizers.Menu items are added or removed only after thorough testing and analysis, including guest satisfaction feedback.Brick House Tavern click on the brick house dining menu to make the brand feel eager while being inherently approachable.We believe that Brick House's premium menu has "changed the game" for Bar and Grill customers by offering innovative premium food options, as well as over 80 beers and specialty cocktails produced by our bar experts.Brick House provides guests with all kinds of scratchesmade, chef-Inspired by modern pub cuisine.The menu at Brick House includes 13 appetizers, 38 main courses, unique meatballs categories (including Greek, buffalo chicken and drunken pork varieties), seasonal daily specials, brunch,Unique hand-made appetizers include devil eggs, pecans smoked salmon and duck wings.Brickhouse offers a variety of burgers, including buffalo burgers, grilled burgers, Mexican coriander mayonnaise, and candied bacon.Guests can also choose from a variety of homemade entrees such as drunken spareribs, ham wrapped meatloaf, chicken and waffles, our Southern fried chicken sandwich and our brick pizza.The daily featured menu encourages continued innovation, including chicken pies and tips for hand-cut steaks.In addition, Brick House burgers including gun show burgers and Black & Bleu burgers provide guests with a unique experience of traditional burgers.Beverage options at Brick House include imported and domestic beer and craft beerPulled a bucket of beer.Beer is supplied in containers that are unique to our industry, such as signature taps in brick housesat-Beer on your deskAll brick room restaurants have a full bar that supports a variety of alcoholic drinks, wine and beer cocktails such as fiery cider and Shandy, as well as specialty cocktails such as whisky crushing, Moscow Mule and basil.In the fiscal year of 2015, brick houses have four full-day sections, lunch, afternoon, dinner and late night, accounting for 19%, 24%, 40% and 17%, respectively, the income distribution of brick house is about 60% of food and 40% of alcohol.Prices in the brick center range from $7.00 to $20.Includes appetizers served as main courses.Continuous menu innovation is a key strategy for brick houses.We modify the brick house menu twice a year to evaluate the design, pricing and product supply before each menu is implemented.We have introduced new menu products to enhance the difference between appetizers, entrees and beverage products as part of our efforts to deliver exceptional food to our guests.The test of new dishes is-Restaurants before the launch of the new project-wide.Our marketing budget of more than 75% is to invest in advertising through television (National Cable and Union) and digital advertising (including location advertising)Media-basedDemand Media and social media), budget balance for Marketing Research, in-Restaurant advertising, menu and production costs.Our marketing strategy isBuild brand affinity based on consumer insights and drive menu optimization.Our marketing expenditure is 4.7%, 4.5% and 4.Revenue for the fiscal year 2015 was 6% per cent, 2014 per cent and 2013 per cent, respectively.Joe's advertising campaign usually takes place four to six times a year, every year, seasonally and frequentlyKey activities aimed at increasing brand awareness, attracting guests and communicating new dishes through quality-Focus on messages.We had a nationwide cable ad campaign for Joe's and it's been on for 26 weeks now.We complement Joe's national ads with innovative media support, including local TV and radio, social media outreach, location-Based on mobile media and add-value media.Joe's email club currently has more than 900,000 members.Our marketing efforts are designed to keep an eye on the weekend celebrations and create value for working days.An example of our weekday value proposition is the introduction of All-You-Can-Eat crabs on Wednesday.The marketing focus of Brick House is on menu innovation and local marketing initiatives.Local marketing includes activities such as bicycle night and pint night.Digital advertising, social media and public relations have been used to support initiatives around Madge madness, football season, menu launch, brunch, happy hour and late night.Experienced management team our experienced industry veterans team has an average of more than 20 years of experience in restaurants such as Outback Steakhouse, T.G.I.Friday, Darton, Apple Bee, Landry, Hard Rock Cafe, Dunn brand and Yum!Brands.Our management team is led by Robert S.Our chief executive, Merritt, joined us in November 2015.Mr.Merritt's career in the catering industry has lasted for more than 30 years.He is a former president and CEO of Benjamin Moore.Prior to that, he was an original member of the senior management team at Outback Steakhouse (currently Blum brand company)) In He guidance the its first public offering and help expand the company of preliminary action from restaurants in Florida 1990 1,250 more a month of restaurants in the countries dropped out of the company in 2005.Mr.Merritt is currently on the board of directors of Ruth hotel group.The experience of our management team has enabled us to transform Joe's into a market leader in casual catering seafood while developing and launching brick houses.Customer satisfaction we systematically collect, record and analyze key customer data for all of our brands using third-party suppliers.Our marketing research tools include: Attitudes, awareness, and use surveys;Third-party customer satisfaction survey;Annual core menu research;We use insights from market research and data analytics to support strategic and tactical decisions.We accept and rely on market research as a tool to better understand our business and drive improved performance.These market research and data analysis provide us with key guest feedback, guide us to change or improve individual menu items, and implement an operation plan to drive positive results of "Satisfaction, "Possible Return" and "possible recommendation" indicators.Our AAU is also looking at the transformation of marketing and advertising strategies and strategies, guiding us to change our perception and awareness of the brand.We believe that our menu items, restaurants and advertising effects have been improved by understanding the feedback from our guests and making corresponding changes.In mid-2015, we have moved from traditional customer satisfaction surveys to a tool that compiles social listening into real-time analytics to provide us with organic"the-Learn about the experience of our guests.We believe that this customer experience management tool will help us increase brand loyalty and gain new customers.Although our brand has independent on-site operations, we maintain a shared service platform that provides many management functions for Joe and Brick House.The operations department is currently headed by our chief operating officer ("COO") who is responsible for both brands.Reporting to the COO is the head of operations, marketing, cooking and recruitment, training and operations support.We believe that this provides a scalable infrastructure that allows us to adapt effectively as our business changes and improve our profitability.Joe's Crab Shack Joe's business is led by two regional vice presidents.Each regional VP is responsible for overseeing 6 to 7 operations directors who typically manage 8 to 15 restaurants.Restaurant-The level management of Joe's usually includes the general manager, the quality assurance manager, the restaurant manager, and the flex manager.Flex manager is an employee who is properly trained every hour and may be required to take on the management role.Each restaurant has a brand ambassador who coordinates group sales and fundraising activities for members of the local community on behalf of Joe's.Our restaurant manager has a bonus incentive based on sales and restaurants-level profits.Joe's manager training program is designed to train and educate managers at all levels from hourly flex managers to general managers.Based on the trainee's knowledge base and skill level, this integrated program is eight weeks long, including both the classroom and the classroom.the-job based.Our Certified Trainer Training Program is designed to train hourly training specialists resident in restaurants or markets to oversee training programs in the field.To be a certified trainer, the candidate must be a fully validated hourly team member with advice from the general manager and director of operations.Through the training process, every hour and manager will attend class meetings, take exams, watch videos and work with certified trainers or highly recommended individuals, report performance and progress to certified trainer.Because Joe is committed to the responsible service of alcohol, we have developedHousing certification program for Alcohol and Beverage liability service education for our restaurant staff.All team members are required to complete this certification bi-annually.The Brickhouse Tavern excavation Brickhouse team has a regional vice president who oversees four operations directors, each managing six to seven restaurants.Typical restaurant management includes general manager, service manager, executive chef and executive beverage manager.Brick Room restaurant manager has bonus incentive based on sales and restaurant-level profits.Our training program provides eight weeks of training for all salaried managers and one to two weeks of training for all hourly positions.Our training program for new employees by in-House trainer certified by our restaurant chief trainer.At the end of the training, there is a comprehensive test and an online testthe-Job training validation that must be completed before allowing team members to work independently.Because the brick house is committed to the responsible service of alcohol, we have developedEducate our restaurant staff on the House certification program.Shared services our brand is supported by the restaurant Support Center (RSC) located in Houston, Texas.RSC provides support services for brands such as accounting, real estate and development, human resources, law, procurement and information systems.We believe our RSC allows us to take advantage of our scale and share best practices in key functional areas common to all of our brands.Site selection we focus Joe's development strategy on new locations in narrow geographic areas with high population density, high seafood inclination, close to regional and national tourist attractions.Our brick house development strategy is mainly to open new locations in the 50 designated market areas of the country.We have a dedicated development team that analyzes data.The driver approach to choosing a new site is based primarily on, but not limited to, the following criteria: in relation to Joe, the attractiveness of the location from a regional/national and/or "destination market" perspective;Statistics and psychological analysis of local market population;Similar features to our most successful existing restaurant;Regional consumption trends and preferences;Local performance of national brand peers;Vehicle traffic mode, visibility and traffic capacity;Occupancy and other performance data of local hotels and other retail institutions, offices and other institutions that attract restaurant traffic;The area available, the economy of parking and leasing;Local investment and operating costs;Constraints of development and expansion.During the 2015 period, we opened two brick room restaurants, which were converted from the macaroni barbecue restaurant.Capital investment including constructionCost and cash advanceThe opening fee is $8.The restaurant opened in 2015 is 6 million.Factors contributing to fluctuations in capital investment at each location include the size of the property, location, type of building, cost of alcohol and other permits, and offers offered by the landlord.Converting other existing restaurants to Joe's or Brick House usually requires less capital investment than newly developed and built restaurants.In the past three fiscal years, we have transformed five macaroni barbecue restaurants into brick-house restaurants, two brick-house restaurants into Joe's, and two Joe's.We aim for new restaurants in stable condition with an average unit count of about $3.Joe's $9 million.Brick house 2 million.We also plan to develop new restaurants in cash.on-Cash return defined as a restaurant-Level profit per store divided by total constructionCost and cash advanceMore than our cost of capital.For the fiscal year 2016, we aim to open four new restaurants, including three conversion restaurants.Due to various factors, the performance of any new restaurant location will usually be different from its original target performance, and these differences may be material.The new restaurant usually encounters a lot of guest traffic and high sales in the first few months, which may decrease over time.In addition, the average sales volume of our new restaurant is affected by a range of risks and uncertainties beyond our control, including the risks and uncertainties described under the heading "Risk Factors."Sourcing and distributing our dedicated sourcing team resources to negotiate and procure all food, operating supplies and all restaurant equipment, furniture and fixtures.We have established a wide network of suppliers, many of which can be traced back many years ago.We maintain relationships with many suppliers, and if there are more favorable conditions in the market, we have the ability to transfer procurement between suppliers.In addition, we maintain multiple approved suppliers for all key components of the menu to reduce risk and ensure supply.Supplier Selection is based on their ability to provide (I) continuous supply of products that meet all safety and quality specifications, (ii) logistics expertise and freight management, (iii) product innovation, (iv) customer service, (v) transparency of business relationships and (vi) competitive pricing.According to the negotiation contract, the designated products are distributed to all restaurants through the national distribution company.According to the requirements of the restaurant, the dealer provides products directly to our restaurant two or three times a week.Products are purchased locally from an approved supplier network to maximize operational efficiency and ensure freshness and product quality.Historically, our best-selling menu is based on Queen crab, snow crab, Dungeness crab, king crab, whole lobster and shrimp, for the last financial year, this proportion accounts for about 45% to 50% of our total food purchases.We have built it.Long term relationship with major seafood suppliers, usually obtaining products directly from producers, with favorable product access at the most competitive price.Where market conditions permit, we can use these relationships to lock forward pricing for 6 to 18 months.Enter into pricing agreements for the lowest number of products and build around current and historical prices as well as the expected menu mix.We have hired a team at RSC that is specifically responsible for actively managing these contracts, which are often rolled in a row.In addition to using a fixed price contract, our Joe menu provides the inherent flexibility to help manage food costs.The crab was deliberately placed in the center of the stage as a decisive project for Joe's experience.Joe's steamer and crab bucket allow guests to choose between four types of crabs (Queen, Snow, dungenis and King) and lobster.Each of these species has multiple fisheries and seasons.In addition to being able to guide guests to other crab varieties, Steampots, the best-selling item on the menu, offers additional product flexibility.The steamer is a variety of shellfish and non-shellfishSeafood food is placed in a stew with separate ingredients that can be adjusted according to the current market price and overall input.We believe that this strategy greatly reduces our dependence on personal input and is largely opaque to our guests.Also, if the input price goes up, we have the ability to adjust the menu price very quickly, even within a few days, if appropriate.Crabs are harvested during the season according to regulations determined by various regulators.The main dealer meets restaurant orders by delivering crabs, and our restaurant stores crabs all the time until it is ready for guest service.We believe in our strong supplier relationship, coupled with the inherent flexibility of our menu, minimizing our risk in the shortage of seafood supply chains and rising market prices.Sales costs as a percentage of revenue for the fiscal year 2015 were 2014 and 2013, respectively.4%, 32.5% and 30.8% respectively.In the fiscal year 2015, our top three suppliers accounted for about 33% of our total food purchases.Food safety we have food safety and quality assurance programs designed to ensure proper food handling technical training for our restaurant team members and managers.Our restaurant operates in different cities, which requires us to establish a system that meets local standards.In order to achieve industry leadership in the field of food safety and hygiene in restaurants, we have implemented a national operating standard, including a comprehensive unannounced inspection by a third-party service provider.The restaurant manager receives feedback and guidance as an integral part of the semi-restaurantVisit every restaurant every year.We require all of our suppliers to comply with strict hazard analysis and critical control points, namely HACCP, quality control and environmental standards, in the development, harvesting, capture and production of food.To meet safety and quality requirements, we require chemical, physical and microbial testing of seafood and other commodities.All potential suppliers must meet the minimum standards set by us in order to obtain an approved supplier status for the Ignite system.Information Systems and restaurant reporting all of our restaurants use computerized management information systems designed to improve operational efficiency, timely access to financial and operational data for restaurant and RSC management, reduce management time and expenses.Our integrated management information system platform isHouse and outsourcing system.Each major management information system is divided by function: Restaurant point-of-sale;Restaurant-of-house;financial;Salary/human resources;Internal operations report.All our restaurants are equipped with computer points.of-Sales (or "POS") and back officeof-house systems.We use a third-Party supplier for POS system in our restaurant.We have the ability to generate weekly and period-to-Date of business performance of the company-wide, brand-A broad base of regional and/or individual restaurants.This allows us to closely monitor sales, food and beverage costs and labor and operating costs for each of our restaurants.Our POS system is notProprietary hardware with open architecture, intuitive touch screen interface and integrated credit card and gift card processing.Our back-of-Almost all of our restaurants have a kitchen display system.These back-of-The house system is also running in Africa.Proprietary hardware for open architecture.Our accounting department uses the standard integrated reporting system to prepare the periodand year-to-Date P & L statements, providing a detailed analysis of sales and costs, and comparing with the budget and the lead time.Also, we outsource certain payroll features and use the third oneThe party's human resources information system.The system supports the standard payroll function as well as recruitment, promotion and benefit management.Enhancing the security of our financial data and other personal information remains a high priority for us.We are constantly innovating to modernize our technical infrastructure to improve efficiency, control and security.Our ability to accept credit cards as restaurant payments and online gift card orders depends on our compliance with the standards set by the PCI Security Standards Committee ("PCI.The standards set by PCI contain compliance guidelines and standards on our security around the physical and electronic storage, processing and transmission of personal cardholder data.We maintain security measures designed to protect and prevent unauthorized access to such information.As of December 28, 2015, we employ approximately 8,800 employees, of which approximately 130 are RSC, executive management, and manyAbout 530 catering management personnel in the unitLevel management, and the rest are hourly restaurant personnel.In 2015, the total number of employees ranged from 10,000 in the summer season to 7,000 in the winter.None of our employees have a collective bargaining agreement and we believe we have a good relationship with our employees.Competition in the restaurant industry is fragmented and competitive.We believe that guests will choose meals based on a variety of factors such as menu, taste, quality and price, perceived value, service, atmosphere, location and overall dining experience.Our competitive landscape includes:Brand chain restaurants, as well as regional and local restaurant operators.For Joe, our main competitors in the field of casual seafood include Red Lobster, Bonefish Grill, Landry's Seafood and Bubba Gump Shrimp Company.Joe's house is the only national Crab House in the United States.Red Lobster is our only big lobster.Competitors of national seafood brands.Brick House competes with brands such as BJ's Restaurant and Brewery, Buffalo Wild Wings and Yard House in the bar and BBQ area.The two brands also compete with a wider range of other casual dining restaurant brands such as Cheesecake Factory, Applebee's, Chili's, T.G.I.Texas Road house and inland steakhouse on Friday.Seasonal Joe's business has a seasonal factor that usually peaks in the summer (June, July and August) and slows in the winter (November, December, January.Because of the seasonality of our systemFrom a broad business perspective, the results of any fiscal quarter do not necessarily indicate the possible results of the future fiscal quarter or the entire fiscal year.Our registered trademarks and service trademarks include Joe's Crab Shack.®Logo design and Brick House Tavern faucet®Logo design.We have or intend to use all of the above marks relating to our restaurant and franchise premises.We believe that our trademarks and service marks are of great value and are very important to our brand.Efforts and identity and marketing to build our restaurant brand.On January 2015, we signed Joe's international development agreement. as of December 28, 2015, we have a franchise location in Dubai, USA.A.E.We expect future franchise arrangements to provide us with revenue through initial franchise fees, ongoing franchise fees and marketing fees, and all start-up feesFees paid by franchisees.Our license agreement also requires that any future agreement requires the franchisee to operate the restaurant in accordance with certain prescribed operating procedures, to comply with our established menu, to meet the applicable quality, service, hygiene and cleaning standards.We believe that international franchises offer an opportunity to provide a higher return on investment while significantly reducing the capital and infrastructure needed to own and operate international restaurants.Our international franchise program provides us with the ability to further expand the international market through the brand.We seek to have sufficient funds, the ability to build the market, the establishment of franchise partners for our customersFace the interface and record of successful brand management and awareness.We are bound by various federal, state and local laws.Each of our restaurants is licensed, licensed and regulated by a number of government authorities, involving alcohol drink control, health, safety, hygiene, construction and fire regulations, including compliance with applicable zoning, land use and environmental laws and regulations.Difficulties in obtaining or failing to obtain the required license or approval may delay or prevent the development of new restaurants in a specific area.The alcoholic beverage control regulations require each of our restaurants to apply to the state authorities, and in some places, the county or city authorities that normally have to renew the permit each year, and may be revoked or suspended at any time for reasons.Alcohol and Beverage Control regulations affect many aspects of restaurant operations, including the minimum age of customers and employees, hours of business, advertising, trade practices, wholesale procurement, inventory control and handling, storage and distribution of alcoholic beverages.We are subject to the "dram shop" regulations in certain states, which usually gives a person injured by a drunken person the right to receive damages from the agency that provides the drunk with the wrong alcoholic drink.As part of our comprehensive general liability insurance policy, we offer liability insurance for alcohol.Our restaurant operations are also subject to federal and state employment laws (including the Fair Labor Standards Act of 1938 and the Immigration Reform and Control Act of 1986) minimum hourly wage, unemployment rate, sales tax and other related matters.The salaries of our large number of services, food preparation and others are related to the federal minimum wage, which is currently $7.25 per hour.Tip credit allowance is the amount the employer allows to assume that the employee receives the tip when calculating the employee's hourly salary to meet the minimum wage standard.An increase in the federal or state minimum wage, either directly or through a reduction in the amount of tip credit or an increase in the amount of tip credit is not sufficient to match the increase in the federal minimum wage, will increase our labor costsIn addition, our restaurant must comply with the applicable requirements of the ADA and related state accessibility regulations.In accordance with ADA and the relevant state laws, we must provide the same services for the disabled and provide reasonable accommodation for their employment, and when building or carrying out a major renovation of our restaurant, we must make these facilities accessible.We are also subject to laws and regulations implemented by the FDA relating to nutrition content, nutrition labeling, product safety, menu labeling and other regulations, including the Food Safety Modernization Act.Regulations related to nutrition labeling may lead to increased operational complexity and costs and may affect our sales.Occasional litigation, we are defendants or otherwise involved in litigation arising from the normal course of our business, including claims arising from "slip" accidents, "dram shop" claims, construction accidentsEmployment related disputes-Guest or employee claims and claims related to illness, injury or other food quality, health or operational issues.When potential liability can be estimated and loss is considered possible, we record the estimated loss.Due to the uncertainty of litigation and claim resolution, the final result may be different from our estimate.As of the date of publication of this report, we do not believe that the potential risks of these pending proceedings and claims can have a significant adverse effect on our consolidated financial position, the results of operations or cash flows.For additional disclosure, see "legal procedures" in item 3 ".We maintain a website with www address.Igniterestaurants.com .On our website, we provide our annual report on Form10 for freeQuarterly Report on Form10Q: Latest report on Form8K, all amendments to these reports, as well as our proxy statement, to be submitted as soon as reasonably practicable after these materials have been submitted to or provided to the SEC.Our documents can also be found on the website of SEC.sec.gov .The public can read and copy any material we submit to the SEC in the SEC public information room, NE 100F Street, DC.C.20549.The public can also get information about the operation of the public data room by calling SEC 1-1800-SEC-0330.The content of our website is not included in this form by reference 10-K.Item 1A.RISK FACTORS.You should carefully consider the following factors that may have a significant impact on our business, financial position or operational results.You should read these risk factors in conjunction with "Management's Discussion and Analysis of Financial Position and operational results" in Item 7 and consolidated financial statements and related instructions in Item 8.Risks related to our business you should not rely on the historical results of our restaurant sales or our average number of units to represent our future operational results as they may fluctuate greatly.Historically, many factors have and will continue to affect our restaurant sales and average number of units, including: our ability to effectively execute our business strategy;The initial sales performance of the new restaurant was extremely strong;competition;Consumer trends and confidence;Introduction of new dishes;Regional and national macroeconomic conditions.Our restaurant sales and average number of units may not grow at the pace of the previous fiscal year, or may be lower than in recent years.Changes in our restaurant sales and the average number of units may lead to significant fluctuations in the price of our common stock.Macroeconomic conditions may adversely affect our ability to increase or maintain sales and profits for existing restaurants or to open new ones.Although the global economy has shown signs of recovery in the past few years, economic activity in the United States may continue to be affected.The economic cycle of recession, higher fuel and other energy costs, lower house prices, lower consumer confidence, inflation, higher commodity prices, higher interest rates, higher unemployment, and higher levels of consumer debt, other changes in higher tax rates and tax laws or other economic factors that may affect free consumption may adversely affect our income and profit margins and make it more difficult to open new restaurants.Our guests' disposable income may be reduced and the frequency of out-of-town meals may be reduced.This can lead to a decrease in guest traffic, a decrease in average checks, or a limit on the price we can charge for menu items, any of which may reduce our sales and profit margins.In addition, many of our Joe's restaurants are located in the area we consider to be a tourist or holiday destination.So in these places, we rely heavily on holiday tourists who regularly visit Joe's restaurants, and during the recession, visitors to these destinations are usually reduced, so that potential guests can visit our restaurant.In addition, due to macroeconomic trends, businesses near the shopping where some of our restaurants are located may encounter difficulties or stop operating, which in turn may further affect the flow of guests in our restaurants.All of these factors can have a significant adverse impact on our operational results and growth strategies.If we are not able to execute our growth strategy, it depends in part on our ability to open new and profitable restaurants, and our business may be affected.Historically, one of the key means to achieve our growth strategy is to open new restaurants and run them on a profitable basis.We expect that this will continue to be an important factor in our future growth.In the fiscal year 2016, we aim to open four new restaurants.The competition for gold lots is very fierce, and the prices of these lots are still very high.There is no guarantee that there will be a sufficient number of locations in the ideal area or under the conditions we can accept to achieve our growth plan.Delays or failures in opening new restaurants, or sales of new restaurants that are less than expected, can have a significant adverse impact on our growth strategy.Once we have identified the right restaurant location, our ability to successfully open a new restaurant and our projected development schedule will also depend on many other factors, some of these factors are beyond our control in other projects and we have the ability to ensure the right new restaurant site;Our ability to control the time and cost of building and developing new restaurants;Our ability to negotiate suitable lease terms;We are able to obtain the required government approvals and permits in a timely manner, as well as any changes in local, state or federal laws and regulations that adversely affect our costs or our ability to open a new restaurant;Cost and availability of funds to finance construction costs and pre-Opening expenses;Consumer recognition of our new restaurantAnd the limitations of our current and future credit mechanisms.Although our goal is to specify the average number of units per unit of new restaurants, cash returns and brand capital investments, new restaurants may not be able to meet these goals.Any restaurant we open may not be profitable or achieve similar results as existing restaurants.We may not be able to respond in a timely manner to all the changing needs that our planned expansion will cause to management and existing infrastructure, or be able to hire or retain the necessary management and operations personnel.Our existing restaurant management system, financial and management controls, and information systems may not be enough to support our planned expansion.Our ability to effectively manage growth will require us to continue to strengthen these systems, procedures and controls and to find, hire, train and retain management and operations personnel.It is also possible that some of our new restaurants are located near our existing restaurants, thus reducing the income of these existing restaurants.Our success depends on our ability to compete with many other restaurants.The competition in the catering industry is fierce, and we compete with many excellent restaurants.A restaurant company was established based on food taste, product price, guest service, atmosphere, location and overall guest experience.Our competitors include chain restaurants and individual restaurants, from independent local operatorsNational and regional restaurant companies.Our Joe restaurant competes with other casual seafood restaurants, including national and regional chains and local seafood restaurants, as well as casual restaurants offering different types of food.Our brick house restaurant competes with the leisure restaurants in the bar and barbecue area and the restaurants in the leisure dining area.Some of our competitors have a lot more money and other resources than us, which may allow them to better cope with the changes in the catering industry than we do.Other competitors are local restaurants, which in some cases have a loyal guest base and strong brand awareness in a specific geographic market.As our competitors expand their business or as new competitors enter the industry, we expect the competition to intensify.If our competitors increase their spending on advertising and promotions, we may lose guest traffic due to our competitors.In addition, if our advertising and promotions become less effective than our competitors, we may have a significant adverse effect on the results of our operations.We also compete with other chain restaurants and other retail businesses for quality on-site location, management and hourly staff.If we fail to establish and maintain effective internal control over financial reporting and disclosure controls and procedures, there may be material misstatements in our financial statements and we may not be able to report financial results in a timely manner.As a listed company, the documents we need and the testing of our internal financial control report the OHS Act 404thThe Oakley Act of 2002 or the Sabans actThe Oxley Act so that our management can demonstrate the effectiveness of our internal controls on financial reporting.However, our independent CPA firm will not need to formally demonstrate the effectiveness of our internal controls on financial reporting under section 404th, until we are no longer a "emerging growth company" as defined in the Employment Act, if we continue to take advantage of the exemptions contained in the Employment Act.We expect that until the last day of the fiscal year after (I) the fifth anniversary of the IPO, we will continue to be an "emerging growth company ";(Ii) on the last day of our fiscal year, our total annual revenue is $1.More than 0 billion;(Iii) the date of our first three periods-Over $1 issued during the year.In non-billionConvertible debt;And (iv) the date on which we are treated as a "large accelerated declarant" that will take place at the time we have (1) the global total market value of common stock securities held by unlisted companiesAs of the last working day of the second fiscal quarter that we have recently completed, $0.7 billion or more affiliates are required to submit their annual documents, quarterly and current reports submitted under the revised 1934 Trading Act or the trading act for a period of at least 12 calendar months and (3) at least one annual report was submitted under the Transaction Act.As a result, we may not be eligible to become an "emerging growth company" until May 10, 2017 ".At this point, our independent CPA firm may issue a report that will be adverse if it is not satisfied with our control record, design or operational level.There is no guarantee that internal control defects will not be found in the future.Any future failure under our control may result in us failing to meet our reporting obligations or in misreporting of our accounts and disclosures, thus leading to statements that our annual or mid-term consolidated financial material misstatements will not be blocked or detected in future periods.If our financial statements are not timely and accurate, then, in addition to the above risks, investors may lose confidence in the information we report and our ability to prevent fraud, we may be delisted by Nasdaq and lose our ability to enter the capital market.Changes in food and supply costs, including the cost of crabs, may adversely affect our operating results.Our profitability depends to a certain extent on our ability to anticipate and respond to changes in food and supply costs.The operating profit of our restaurant may be subject to changes in food prices and supply including crabs, shrimp, lobster and other seafood.In the fiscal year 2015, crabs, lobsters and shrimps accounted for about 45% of our total food purchases.Any increase in food prices, especially those foods, may adversely affect our operating results.In addition, due to factors beyond our control, such as weather conditions (including Hurricanes), oil spills, fishermen strikes, food safety issues, we are vulnerable to increased food costs, cost of distribution, product recall and government regulations.In addition, imposing or changing tariffs on seafood (such as imported crabs, shrimp or other foods) may increase our costs and may affect the supply of these products.We cannot predict whether we can anticipate and respond to changing food costs by adjusting our purchasing practices, menu items and prices, and if not, may result in our operational resultsAlso, due to the moderate price of our menu, we may not seek or be able to pass on the price increase to our guests.If we adjust the price, we cannot guarantee that we will achieve the full benefits of any adjustments due to the guest menu item selection and changes in guest traffic.Brick houses are an updated and still developing brand, and our plan to expand brick houses may not be successful.While Joe and Brick House are affected by the risks and uncertainties described in this article, the levels of risk and uncertainty associated with the expansion of our recently developed brand Brick House have improved.Although the brick house has grown to 23 locations as of 2008 since its establishment in December 28, 2015, it is still developing and has not yet proved its long-termLong-term growth potential.Initially, we opened Brick House restaurants in a wide geographic area with the aim of optimizing the brand before continuing to build.While we continue to add key insights to our new restaurant promotion program, we believe the brand is now ready to expand.However, there is no guarantee that the enhancements we intend to implement will succeed as part of the brand optimization process, or that additional new restaurant growth will occur.Any emerging restaurant brand will face risks and uncertainties.If brick houses cannot be expanded and/or continue to be profitable, our operating performance may be affected.We may incur charges for violating the security of confidential guest information related to our electronic processing of credit and debit card transactions.Most of the sales in our restaurant are credit or debit cards.Recently, some other retailers, including other chain restaurants, have experienced security holes in the theft of credit and debit card information.Although we transmit confidential information using a secure dedicated network, third parties may have the technology or knowledgeHow to undermine the security of the transmission of guest information related to the sale of credit and debit cards, security measures from us and technical suppliers may not effectively prohibit other people from improperly accessing this information.If a person is able to circumvent these security measures, he or she may destroy or steal valuable information or disrupt our actions.We may be claimed for fraudulent transactions in the future due to actual or alleged theft of credit or debit card information, and we may also be subject to litigation or other litigation in connection with such incidents.Any such claim or action may result in significant unplanned expenses incurred by us, which may adversely affect our financial position, operating results and cash flow.In addition, the adverse publicity caused by these allegations may seriously damage our reputation and may have a significant adverse effect on us and our restaurants.Food safety and food safetyConcerns about disease can have a negative impact on our business.Food safety is a top priority. We invest a lot of resources to ensure that guests enjoy safe and high-quality food.However, food-Diseases such as salmonellaE. coli, hepatitis A, spin problems or "mad cow disease" and food safety problems have occurred in the past food industry and may occur in the future.In addition, the promotion of certain diseases and pollution related to seafood, including high levels of mercury or other carcinogens, oil pollution, it is possible that the mycobacteria and Norwalk virus will affect consumer preferences and consumption of seafood.Any report or publicity that links us to foodDisease or other food safety issues including food tampering or contamination may adversely affect our brand and reputation as well as our income and profits.Even examples of foodDisease, food tampering or food contamination that only happens in our competitor's restaurant can lead to negative publicity for the food service industry or seafood restaurants and adversely affect our sales.In addition, weParty food suppliers and distributors increase the risk of foodFactors beyond our control can lead to disease events and multiple locations can be affected rather than a restaurant.Although when the food is delivered to us, we will check them, we cannot guarantee that all the food is properly maintained during the transportation of the entire supply chain, our staff will identify all products that may be destroyed that should not be in our restaurantIn the future, there may be new diseases that resist any preventive measures, or there may be diseases with a long incubation period, such as "mad cow disease", which may result in retroactive claims or charges.In addition, our industry has long been threatened by tampering with food from suppliers, employees or guests, such as adding foreign objects to the food we sell.Whether or not it is true to report the past, the damage caused by food tampering has seriously damaged the reputation and brand of chain restaurants in the field of fast service restaurants and may affect us in the future.If our guests get sick because of foodWe may also be forced to close some restaurants for the time being.In addition, under the Food and Drug Administration Food Safety Modernization Act, any situation of food contamination, whether in our restaurant or not, may result in a recall of us or our suppliers.Changes in consumer preferences can hurt our performance.In many product or retail concepts, consumer preferences often change rapidly without warning, moving from one trend to another.We also rely on trends on the road.from-home dining.Consumer preference for awayfrom-Family dining or certain foods may change due to health problems or dietary trends related to the cholesterol, carbohydrates, fat and salt content of certain foods, including crabs or other seafood foods, good food that is considered healthier.Changes in consumer preferences can have a significant adverse impact on our business.Negative publicity of the health aspects of these foods may adversely affect the needs of our menu items and may lead to a decline in guest traffic, sales and operational results.If we cannot continue to develop and maintain our restaurant brand, our business may be affected.We believe that maintaining and developing our restaurant brand is critical to our success and growth strategy, and the importance of brand recognition is very important because competitors offer products similar to our products.We spend a lot of marketing on creating and maintaining brand loyalty and increasing brand awareness.If our brand-The establishment of the strategy is unsuccessful and these costs may never be recovered, we may not be able to increase future sales or implement our business strategy.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.The impact of the new restaurant may lead to fluctuations in our financial performance.As mentioned earlier, in the fiscal year 2016, our goal is to open 4 new restaurants, including the renovation of 3 existing restaurants.Before the normalization of sales levels and operating margins, new restaurants usually go through a period of adjustment.When our new restaurant opens, they usually run into startup costs, but also a lot of guest traffic, so sales are high in the first few months.However, over time, guest traffic and sales at these new restaurants may decline compared to the opening month.As a result, the sales of new or converted restaurants may not represent future business results.In addition, due to the above factors, the results of any one fiscal quarter do not necessarily indicate the results of any other fiscal quarter or the entire fiscal year.We rely heavily on certain suppliers, suppliers, and distributors, which may adversely affect our business.Our ability to maintain consistent prices and quality throughout the restaurant depends to a certain extent on our ability to obtain a sufficient number of specific foods and supplies, especially in shellfish such as crabs.While our seafood products are usually caught from government-regulated fisheries, crabs and other fish are caught in the wild, which can lead to fluctuations in supply.In some cases, we may only have one supplier or a limited number of suppliers for specific foods.Due to our inability to control the supplier's business, we cannot guarantee the continuous supply of food.In addition, these foods are prone to rot and we cannot guarantee that they will be delivered by a third party on appropriate conditions for sale in our restaurant.In addition, we rely on a major distributor to provide products to our restaurants.If any of these suppliers, our other suppliers or distributors are unable to meet their obligations, or if supply or service is interrupted and we are unable to find alternative suppliers, we may encounter a supply shortage, paying a higher cost in order to get adequate supply will cause significant damage to our business.In addition, we use a variety of third
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