Page 521 - Onboarding May 2017

Summary of Obsolete Inventory
Q1 2017 vs. Estimated Q2 2017
Q1-2017 Estimated Q1-2017 Variance & Mitigation
Potential Potential
System Potential Potential Max. System Potential Potential Max. Min.
Obsolete Company Franchise Company Obsolete Company Franchise Company Company
Category Event Product Description Exposure Liability Liability Exposure Actual Exposure Exposure Liability Liability Exposure Exposure Mitigation/Comments
Shorty Shake sold significantly under forecast. Forecasted to sell 4.1, sold .8. Q3 initial
estimate reduced from 30k to 15k (vendor agreed we are not liable for remaining inventory at
DC Obsolete C2-2016 Salted Caramel $ 15,755 $ 15,755 $ 10,277 their facilities).
Min. Company Exposure ($1,458) at mainline DCs. Max. Company Exposure ($6,009)
represents product at Ed Don and Mainline DCs. CSCS working to mitigate Ed Don exposure.
After guidance was given to vendor for depletion, sales decreased 31% from 45 cs to 31 cs
DC Obsolete C4 2015 Ruby Red Syrup $ 6,009 $ 6,009 $ 2,299 per week.
Min. Company Exposure ($1,179) at mainline DCs. Max. Company Exposure ($6,246)
DC Obsolete C2-2016 Mason Jars $ 6,246 $ 6,246 $ 1,261 represents product at Ed Don and Mainline DCs. CSCS working to mitigate Ed Don exposure.
Unique remaining RAW inventory exposure for Bacon Vinaigrette when we transitioned to
Supplier Obsolete C2-2016 Imitation Bacon Bits $ 12,000 $ 12,000 $ 9,503 BOH Vinaigrette base
Inventory was purchased while we were waiting on count of stores actually needing. # of
Supplier Obsolete C4-2016 Oak Smoke $ 1,303 $ 2,000 $ 3,714 stores using continues to decrease.
Requested final obsolete numbers from the DCs; will respond back with update as soon as I
Supplier Obsolete C8-2016 Rice Noodles $ 20,000 $ 20,000 $ 15,643 receive responses from all of the DCs
Total $ 61,313.00 $ 62,010.00 $ 42,695.71
Shelf life extension and picture add to menu completely mitigated finished goods inventory
exposure for Cornbread crouton. However, supplier still has 15k in unique raw materials which
they brought in to support the C5 launch in 2016.
Supplier Obsolete C5-2016 Cornbread Crouton $ 110,000 $ 110,000 Carry over to Q2 $ 15,052 $ 15,052 $ 15,052
Total $ 110,000.00 $ - $ 110,000.00 $ - $ 15,052.00 $ - $ 15,052.00 $ 15,052.00
This was the remaining balance for the unique RAW ingredients. There were 4 unique
Supplier Obsolete C2-2017 Smoky Chipotle Sauce $ 3,800 $ 3,800 $ 3,800 ingredients for this item.
Total $ 3,800 $ - $ 3,800 $ 3,800
GRAND TOTAL