Leslies Burgers operates and franchises fast-food restaurants specializing in grilled hamburgers and chicken sandwiches. The 2015 and 2016 income statements are as follows (in $000s):

	Year Ended
	December 31, 2016			December 31, 2015
Total revenues	$41,001			$40,183
Expenses
Cost of restaurant sales	11,125			11,066
Restaurant operating expenses	16,898			16,726
General and administrative	6,818			5,280
Advertising	2,547			2,652
Depreciation and amortization	2,206			2,096
Impairment of long-lived assets	986			0
Total expenses	40,580			37,820
Operating income	$421			$2,363

(b) One obvious reason that operating income dropped significantly in 2016 is the impairment of long-lived assets. What other operating issues do you believe contributed to the decline in operating income?