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Related Party
3 Months Ended
Apr. 04, 2017
Related Party Transactions [Abstract]  
Related Party

4.  RELATED PARTY

The Jacmar Companies and their affiliates (collectively referred to herein as “Jacmar”) is one of our shareholders and James Dal Pozzo, the Chief Executive Officer of Jacmar, is a member of our Board of Directors. Jacmar, through its affiliation with Distribution Market Advantage (“DMA”), a consortium of large, regional food distributors located throughout the United States, is currently our largest supplier of food, beverage, paper products and supplies. In July 2006, we began using DMA to deliver the majority of our food products to our restaurants. In July 2012, we finalized a new five-year agreement with DMA, after conducting another extensive competitive bidding process. We are currently in the final stages of renewing our existing agreement with DMA to extend our program an additional five years so as to expire in June 2022.

Jacmar services our restaurants in California and Nevada, while other DMA distributors service our restaurants in all other states. Under the terms of our agreement with DMA, Jacmar is required to sell products to us at the same prices as the other DMA distributors. Jacmar does not provide us with any produce, liquor, wine or beer products, all of which are provided by other third party vendors and are included in “Cost of sales” on the Consolidated Statements of Income.

The cost of food, beverage, paper products and supplies provided by Jacmar included within cost of sales and occupancy and operating expenses consisted of the following (in thousands):

 

     For The Thirteen Weeks Ended  
             April 4, 2017                       March 29, 2016        

Cost of Sales:

           

 Third party suppliers

             $45,318         69.3%          $40,521       66.8%   

 Jacmar

     20,077         30.7              20,119       33.2       
  

 

 

     

 

 

 

Total Cost of Sales

     $65,395         100.0%          $60,640       100.0%   
  

 

 

     

 

 

 

Occupancy and Operating:

           

Third party suppliers

     $51,665         95.8%          $46,914       95.6%   

 Jacmar

     2,279         4.2              2,159       4.4       
  

 

 

     

 

 

 

Total Occupancy and Operating

     $53,944         100.0%          $49,073       100.0%   
  

 

 

     

 

 

 

The amounts included in trade payables related to Jacmar consisted of the following (in thousands):

 

           April 4,      
2017
        January 3,    
2017
 

Third party suppliers

     $28,139        $25,363   

Jacmar

     4,202        5,782   
  

 

 

   

 

 

 

Total Accounts Payable

     $32,341        $31,145