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Related Party
9 Months Ended
Oct. 02, 2018
Related Party Transactions [Abstract]  
Related Party

5.  RELATED PARTY

James Dal Pozzo, the Chairman of the Board of the Jacmar Companies (“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 distributor of food, beverage, paper products and supplies. In 2006, we began using DMA to deliver the majority of our food products to our restaurants. In July 2017, after conducting a market evaluation, we entered into a new five-year agreement with DMA. The new agreement expires 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

 

 

For the Thirty-Nine Weeks Ended

 

 

 

October 2, 2018

 

 

October 3, 2017

 

 

October 2, 2018

 

 

October 3, 2017

 

Cost of sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third party suppliers

 

$

47,553

 

 

 

69.3

%

 

$

45,066

 

 

 

68.7

%

 

$

145,969

 

 

 

69.3

%

 

$

138,089

 

 

 

68.9

%

Jacmar

 

 

21,047

 

 

 

30.7

 

 

 

20,487

 

 

 

31.3

 

 

 

64,628

 

 

 

30.7

 

 

 

62,376

 

 

 

31.1

 

Total cost of sales

 

$

68,600

 

 

 

100.0

%

 

$

65,553

 

 

 

100.0

%

 

$

210,597

 

 

 

100.0

%

 

$

200,465

 

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Occupancy and operating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third party suppliers

 

$

58,709

 

 

 

96.1

%

 

$

52,913

 

 

 

95.8

%

 

$

170,350

 

 

 

95.9

%

 

$

157,186

 

 

 

95.8

%

Jacmar

 

 

2,393

 

 

 

3.9

 

 

 

2,325

 

 

 

4.2

 

 

 

7,328

 

 

 

4.1

 

 

 

6,868

 

 

 

4.2

 

Total occupancy and operating

 

$

61,102

 

 

 

100.0

%

 

$

55,238

 

 

 

100.0

%

 

$

177,678

 

 

 

100.0

%

 

$

164,054

 

 

 

100.0

%

 

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

 

 

 

October 2, 2018

 

 

January 2, 2018

 

Third party suppliers

 

$

17,994

 

 

$

18,738

 

Jacmar

 

 

3,866

 

 

 

6,537

 

Total accounts payable

 

$

21,860

 

 

$

25,275