Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Will Hamilton – SMH Capital
Will Hamilton – SMH Capital
I was wondering if you could comment a little bit more on the culinary service business, that did quite well this quarter up about 74% year-over-year and that’s obviously ahead of what you’re sort of suggesting for the full year, was there anything one-time or are you being maybe conservative on the full year guidance.
Scott Gray
Yes, I think that’s really it because again, these are, we’re in talks all the time with potential clients and we don’t have enough experience yet to base how these are going to come in online and so that’s why the guidance is the 20% to 30% for the year.
Will Hamilton – SMH Capital
Okay so was it in this particular quarter new contracts that drove it or was it maybe the [Bailor] Hospital seeing more traffic then usual or something.
Scott Gray
Well we had one additional contract that was added in as well as increases at some of the existing ones. That’s exactly right.
Will Hamilton – SMH Capital
Is that, when you include the G&A expenses to that, or associated with that business is that now break-even?
Scott Gray
We’re still not where we want to be on it, we’re still working to improve the net on that. So again we’re still committed. We think this is a good business line to leverage our brand. But its positive but again we haven’t reached our goal percentage yet but again this business from a capital standpoint, capital expenditures investment is much lower, and has a lot more upside on returns on an ROI basis so but we have the team in place and now is the time to just add the new clients to leverage the existing infrastructure we built.
Will Hamilton – SMH Capital
On the cost side for the restaurant business obviously difficult environment but overall the margin for the restaurant business was a little bit better and saw some sequential improvement versus Q4, I was wondering if during the quarter or if more recently you’ve seen any marginal improvement with some of your food, utility, fuel surcharge costs, any color on that would be helpful.
Scott Gray
After finishing just the first quarter we really, we don’t really see us changing our outlook for the full year.
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