ESTIMATE YORKTOWN GRILL LOST ABOUT $40,000 IN FEBRUARY, NOT $18,400 AS CLAIMED.

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ESTIMATE YORKTOWN GRILL LOST ABOUT $40,000 IN FEBRUARY, NOT $18,400 AS CLAIMED.

Home Forums Anthem Voices ESTIMATE YORKTOWN GRILL LOST ABOUT $40,000 IN FEBRUARY, NOT $18,400 AS CLAIMED.

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  • #8876
    Rana Goodman
    Keymaster

    By Forrest Quinn

    I ESTIMATE YORKTOWN GRILL LOST ABOUT $40,000 IN FEBRUARY,

    NOT $18,400 AS CLAIMED.

    There was much fanfare when Yorktown Grill reported it “only lost $18,400” in February rather than the normal $50,000 loss. However, this loss reduction is based on dubious and improbable accounting, which I will discuss below. After informing them of the situation, SCA’s Board and Management have not disputed my observations. So that residents are not misled about YG during a board election, I asked Management to retract YG’s February financial statements. However, management has not done so at the time of this posting.

    SPREADING MISINFORMATION

    At a Tuesday, March 19 campaign event, Steve Anderson leaked that YG only lost $18,400 in February instead of the typical $50,000. This result was released before SCA’s Board or SCA’s Finance Committee was informed. Disclosing this information helped defuse Steve’s primary campaign liability. Without insider access to YG’s financial statements, other Board candidates could not dispute the claim. Unfortunately, the misleading information had spread throughout the community before Management posted YG’s financials on Saturday, five days later.

    David Berman is SCA’s most-read blogger, with about 3,000 subscribers. On Thursday, March 21, David Berman posted:

    “FACT: Keeping promises counts for something. When Steve (Anderson) ran for reelection two years ago, he promised to do everything in his power to give us back a restaurant in Anthem Center. It happened! And though we’ve been told it could take up to five years to bring Yorktown Grill to at least break-even, AREN’T YOU ENCOURAGED TO LEARN THAT A LOSS OF $50,000 IN JANUARY WAS CUT TO ABOUT $18,500 IN FEBRUARY?” (CAPS added).

    Based on this encouraging but false information, how many people might now vote for Steve? Additionally, Board members touted this significant but false financial improvement at last Tuesday’s public YG workshop.

    THE ACTUAL LOSS IS ABOUT $40,000, AND THIS IS WHY

    Revenues increased by $20,552 from January to February, which inconceivably generated $31,841 greater profit than in January.

    SELF-DEALING BANQUETS

    Banquet meals increased from 624 in January to 999 in February. Approximately 300 of those meals were for SCA’s Volunteer Luncheon. At $32 per meal, that’s about $9,600 of reported revenue, plus another $2,200 for service charges. However, SCA selling meals to itself is just moving its money from one SCA bank account to another SCA bank account. There is no net gain in this transaction. As GAAP accounting does not allow self-dealing transactions to be recorded as revenue, I removed this revenue from the adjusted income statement table below.

    FOOD COSTS – Yorktown Grill’s Food and beverage revenues increased by $17,606 from January to February, but the food cost for those additional sales only increased by $509. Applying January’s 36.2% food cost ratio to February, I added $4,215 to February’s food cost. 

    SPOILAGE/INVENTORY— Food spoilage costs declined by $2,800 in February. However, food inventory keeps growing, from $16,000 in August (15 days on hand) to nearly $35,000 in February (30 days on hand). Does this mean more spoilage write-offs are likely? Or does it mean an insufficient food inventory was expensed, as discussed above?

    LABOR COST – While the total number of February meals increased by 6.2%, labor costs fell by 12.6%, or $11,457. To estimate February’s labor expense, I use January’s labor cost, adjusted for fewer days in January, but for more meals served. 

    IS MANAGEMENT INTERFERING WITH THE ELECTION?

    Historically, about 50% of the returned Board election ballots are returned within 7-10 days of their initial mailing. As time is of the essence, I asked Management to expediently correct the financials and to inform residents of the issues in last Monday’s Eblast. My request was ignored. Why shouldn’t residents be given this information to make an informed vote?

    Is it because only a correcting YG’s income statement preferred Candidate benefits from NOT WITHOUT ANY MANAGEMENT FEEDBACK, THE TABLE IS MY BEST ESTIMATE OF YG’S ADJUSTED FEBRUARY INCOME STATEMENT

    #8881
    Elizabeth Breier
    Participant

    Forrest: thank you for the truth!

    #8888
    Martin Winger
    Participant

    If you think all of this is unbearable, just consider the cost if the “METERS FOR GAS AND ELECTRIC were installed!  Again, if any of this is true (and I have no doubt it is) whether you the homeowner ever does go to YT you are still paying for the privilege of making a choice to only go to YT.  And that is minimizing the fact that you have close to 45 restaurants in the area, not including the new ones opening soon like Husongs, Waba, Block9, and Broken Yolk.  WOW!

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