1983-09-13 - Laserfiche WebLink

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I I I City of New Brighton September 13, 1983 Page Ten The Finance Director reviewed the financial statements for the Liquor Department. The Liquor Director reviewed notes regarding the financial statements. Councilmember Schmidt stated people had told him they were no longer shopping at Palmer Drive because the prices were too high; people that were coming aren't coming now so he found the figures surprising. Peter Marinaro, Assistant Liquor Manager, said it was not possible to compete with warehouse liquor stores because they sell lost leader items, and invest large amounts of money on inventory. The Liquor Director stated that New Brighton's drop in sales was much less than St. Anthony, and that they could not afford to stock the huge inventories required to be a budget store and that it was more in keeping with the image of Brandywine to market wines, liquors, and cordials. Councilmember Blomquist questioned where expenses could be cut to make up the loss by the end of the year. The Liquor Director stated there was no room, in his opinion to make any further cuts in costs, personnel or otherwise, and that only by increases in sales could they operate with a profit by the end of the year. Mayor Harcus questioned whether there were figures to show the ratio of advertising costs to sales. Councilmember Janecek questioned whether the food area was analyzed as far as profitability goes. The Liquor Director responded that food sales go up in the Fall and Winter, and for every point increase in food you increase wine sales. He further stated that waste must be watched. Councilmember Benke stated that the plan originally was to keep the menu light and promote it as a quiet place (Brandywine) place for a meeting and lunch. He then questioned whether that philosophy should be kept and promoted. The Liquor Director stated that the North Room is being used for luncheon as well as evening meetings. Review of Liquor Financial State- ments - Report # 83-237