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<br />Operations: our review of the Cabarrus facility and the F&B operations has revealed many areas <br />that we feel we can improve upon"SMG Food and Beverage has the resources and operational <br />experience of similar facilities and understands how to use our resources to maximize facilities <br />revenue and efficiencies. We recommend the following areas as an immediate focus for <br />improvement: <br /> <br />· Equipment inventory and maintenance assessment <br />· Alcoholic beverage sales with a proper Awareness and Service program <br />· Product selection and offerings <br />· Product Display <br />. Pricing and cost analysis <br />· Staffing review <br />· Labor market assessment <br />· Catering operations taken in-house <br />· Sanitation and Food Safety Standards implemented <br />. Inventory controls and cash handling procedures implemented <br /> <br />We believe that an operational "overhaul" is required. The operational adjustments and a <br />concerted sales effort will place the food and beverage operation back on track in a 6-12 month <br />period. <br /> <br />SMG is confident we can improve the food and beverage operation. We are proposing terms that <br />will allow us to be paid for our efforts and rewarded for our success. We invite you to examine <br />our proposal and review our credentials. We are prepared to implement our operations upon the <br />termination of Eurest Dining Services according to their contract. <br /> <br />Sincerely, <br /> <br />~- <br /> <br />Martin Thorson <br /> <br />MTlbac <br /> <br />G.~ <br />