Miracle Restaurant Group, LLC AREA DIRECTOR BONUS PLAN EFFECTIVE January 1, 2007

Transcription

1 Miracle Restaurant Group, LLC AREA DIRECTOR BONUS PLAN EFFECTIVE January 1, 2007 I have read and understand the Miracle Restaurant Group s Area Directors Bonus Plan. The Director of Operations or a Senior Leadership Team member has explained it to me. Print Name Signature Date Supervisor s Signature

2 MRG s Area Director BONUS PLAN January 1, 2007 BONUS PLAN OBJECTIVE As a company and as leaders, we must get three things right: We must hire the best people, train them well, and keep them with us. We must provide our guests with a great experience so that they come back again and again. (Secret Shops) We must create profitability for the company by flowing our increased sales to the bottom line in ways that do not rob our guests or our associates of the experience they deserve. These three things are linked. By getting them right and in the right order, we can create a recipe for success for ourselves and for the company. It starts with having good well-trained associates in our restaurants you and they together are the key to providing our guests a great experience time after time; If we provide our guests a great experience greeting them, preparing and serving them good food at the right temperature in the appropriate amount of time, and providing them with attentive service throughout their meal they will come back again and again and our sales will build. If we control what we can control food waste, scheduling, and managing our other controllable costs we ll drop those increased sales to the bottom line. More profit for MRG means more bonus for you. This bonus plan is designed to reward Directors who are creating a recipe for success by focusing on associates, guests, and the financials. Outlined on the following pages are the details of the plan which begins January 1, Of course, the provisions of the plan may change in the future as our business focus changes. This plan is designed to make that easy for you and for us when that time comes. 2

3 ELIGIBLE AREA DIRECTORS All Area Directors are eligible to participate in the bonus plan as long as they meet all eligibility requirements as set forth by this plan. DEFINITION OF TERMS This bonus plan measures three things: Performance Measure Sales Bonusable UCI (Unit Controllable Income) Number of Restaurants 8+ Rest. $1,500 +$1,500 7 Rest. $1,200 +$1,200 6 Rest. $1,000 +$1,000 5 Rest. $800 + $800 Definition Total Budgeted Sales Sales, COS, Labor, Franchise Expenses and Advertising, All Controllable expenses Flow-thru on Sales Above Budget Secret Shops (Actual Controllable Profit Budgeted Controllable Profit) divided by (Actual Sales Budgeted Sales). Both must be greater than 0 and Flow-Thru must be at least 38% or more to qualify. Bonus will be prorated based on number of shops passed divided by number of total conducted(both for Monthly and Annual) How the Plan Works 3

4 Quarterly Bonus Sales and UCI Threshold: 95% of Both Sales and UCI Budget Payout $1500 Target: 100% of Both Sales and UCI Budget Payout $1500 Multiplied by your performance rating Individual Modifier Rating O 1.2 S+ 1.1 S 1.0 S-.80 NI & U 0 Annual Bonus Sales over Budget, x Position x Flow-Through Sales $ Above Budget x Position Percentage (10%) x Flow-Through Mod) % Modifier 57% % % %.50 < 38% 0 Example: 8 Restaurants Quarterly: You hit 95% of both sales and UCI *YOU GET $1500 You hit 100% of both sales and UCI *YOU GET ANOTHER $1500 You scored an Outstanding on your last Performance Review: 1.2 Modifier *YOU GET ANOTHER $600 TOTAL PAYOUT: $3,600 Example: Annual: You took in an additional $50,000 above budgeted sales. Your Position multiplier is at 10%. You were able to flow 57% or more: 50,000 x 10% x 1.20 = $6,000 TOTAL Bi-Annual PAYOUT: $6,000 Quarterly: Performance Rating Multiplier The multiplier is based on your performance rating in Jan 07 and will run through the end of June 07. New Ratings will go into effect July 07 December 07. New ADs will be placed in Middle 60%. Annual: Position Multiplier Individual Modifier Rating O 1.2 S+ 1.1 S 1.0 S-.80 NI & U 0 Used to determine the payout by position. The position multipliers have been set so that the opportunity to payout under the plan is competitive for each of the positions in the restaurant. The position multiplier table is listed below. Position Position Multiplier Annual Area Director 10.0% 4

5 Accounting Errors and Adjustments Occasionally, accounting errors may occur on the P&L. For this reason, it is very important that the Area Directors review the First Pass P&L very carefully for accuracy. Errors that occur during first pass which are noted by the AD before the final pass deadline will be corrected. However, accounting errors not identified and corrected during first pass will not be considered for a bonus exception. Instead, they will be corrected in the following period. After final pass, only accounting errors that occur between first and final pass will be corrected to affect the current bonus period. Bonus Exceptions All bonus exception requests must be submitted by the DO for review. He/she will forward the exception request on to the Director of HR to be researched and reviewed with the Vice President of Operations for final approval. Any bonus exceptions not sent through the Director of HR will not be researched and reviewed for approval. Area Director Tracking The bonus calculation and bonus payout will be based on the Area Director s position and location on the first day of the quarter. If the Area Director is transferred to another District, is promoted, or is demoted at any point during the remainder of the quarter, the bonus calculation for that quarter will not be affected (It may be prorated). This means that the Area Director s bonus will be based entirely on the results of the restaurants that he/she oversaw on day one. New Area Directors starting after the first day of the quarter will not be eligible for a bonus until the following quarter. Leave of Absence If an Area Director is on a Leave of Absence on day one of the quarter, the Area Director will not be eligible for that quarter s full bonus payout (pro-rated for months in position). The Annual Bonus will also be pro-rated for the number of actual months functioning in position. Transfer/Promotion to a Non-Operations Position If an Area Director leaves his/her district to take a position in a non-company operations position at the corporate level (i.e. Support Center or Field Staff), that AD would receive a bonus review based on his/her financial performance up to that point, but no bonus payout is guaranteed (bonus payout will be pro-rated for time in position). Bonus Eligibility Requirements Only associates currently employed and in good standing at the date of check distribution qualify to receive earned bonus. Area Directors who have restaurants that fail the Service component of an Arby s Corporate Audit will have both Quarterly and Annual Bonus pro-rated (number passed divided by total conducted). Associate must be in good standing. Associates who are suspended or who receive a written warning may forfeit the bonus for the quarter in question. Associates on an action plan will forfeit bonus for the quarter(s) covered by the action plan. Bonus pertaining to any quarter or quarters may be forfeited due to neglect by Area Director to comply with any administrative duty, responsibility or policy where the profitability of MRG may be adversely affected. Intentional manipulation that may affect any of the measurements in the bonus program is grounds for immediate termination. This bonus program will be reviewed on a periodic basis, at the sole discretion of MRG in light of changes in law and/or changes in Company policies, procedures or management philosophies and/or any other changes. 5