FCA 2009 Education Slides Texas Restaurant Show

Fast Casual Changing the way consumers eat

FAST CASUAL FACTS • Fast casual restaurants will generate roughly $20 billion in sales in 2009 • The fast casual segment grew 11% in 2008 • 2009 is estimated to grow over 10% in 2009 • The top three chains ranked by sales are Panera Bread, Chipotle and Panda Express • Fast casual is the most dynamic and exciting segment in the foodservice industry today Copyright 2009 Fast Casual Alliance

Number of Fast Casual Brands 0 175 350 525 700 1996 80 60% 2000 245 Growth like this 2004 can result in a 389 slowing segment 2008 2012 620 700 Source - Fast Casual magazine Copyright 2009 Fast Casual Alliance

Fast Casual Universe Italian/Pizza Ethnic 2% Coffee Fresh Mex Sandwich 19% 7% Asian Bakery Cafe 3% Burger/BBQ Steak Soup Salad Soup Salad Italian/Pizza 12% 7% Fresh Mex Ethnic Burger/BBQ Steak Coffee 9% Asian Sandwich 18% Bakery Cafe 23% Source - Fast Casual magazine Copyright 2009 Fast Casual Alliance

What consumer’s want in their menu Fine Dine Casual 5% 11% Quick Consumer eating habits 32% • Percentage of food expenditures weekly Fast Casual 53% Food Action Group - Consumer Survey, fast casual - 2008 Copyright 2009 Fast Casual Alliance

What consumer’s want in their menu 27% Quality Taste 33% Variety Different / Creative New Flavors 20% Fine Dine 14% Casual 5% 6% 11% Quick Consumer eating habits 32% • Percentage of food expenditures weekly Fast Casual 53% Food Action Group - Consumer Survey, fast casual - 2008 Copyright 2009 Fast Casual Alliance

Age demographics These people eat at fast casual at least once per week 62 - up16-24 4% 8% 25-34 16-24 25-34 50-62 12% 35-49 50-62 31% 62 - up 35-49 45% Source - Food Action Group 2008 Copyright 2009 Fast Casual Alliance

Age demographics These people eat at fast casual at least once per week 62 - up16-24 4% 8% 25-34 16-24 25-34 50-62 12% 35-49 50-62 31% 62 - up 35-49 45% 7% 12-25K 101-125K 7% 4% 26-50K 11% 76-100K Income demographics 29% fast casual consumers 12-25K 26-50K 51-75K 51-75K 76-100K 42% 101-125K 126K Up Source - Food Action Group 2008 Copyright 2009 Fast Casual Alliance

Most active consumers in Fast Casual Based on gender & profession - qualifier data: knows fast casual and visits at least twice per week Source - Food Action Group 2008 Copyright 2009 Fast Casual Alliance

Most active consumers in Fast Casual Based on gender & profession - qualifier data: knows fast casual and visits at least twice per week 0 7.5 15.0 22.5 30.0 Male Professional 18 Male Non-Professional 5 Female Professional Female - Homemaker 25 College Student 15 High School Student 12 2 Female Non-Professional 8 Retired Male 7 Retired Female 8 Source - Food Action Group 2008 Copyright 2009 Fast Casual Alliance

WHAT IS FAST CASUAL Fresh Fair Price Pay First Full View Full Grown Preparation Appeal Fast Casual Flexible Fine Offerings Ingredients Fast Service First Rate Source - Technomic Copyright 2009 Fast Casual Alliance

WHAT IS FAST CASUAL Fresh Fair Price Pay First Full View Full Grown Preparation Appeal Fast Casual Flexible Fine Offerings Ingredients Friendly Fast Service Employees First Rate Source - Technomic Copyright 2009 Fast Casual Alliance

Five Star Value Proposition A Competitive Advantage The Five Star Value Proposition executed daily becomes your competitive advantage P + F + S + A + E = V Passion: Brand spirit, values and leadership resides here Food: Fresh, quality food that’s creative Service: Attentive to all customer needs Ambiance: Immaculately clean, décor, restaurant vibe Execution: Leadership drives all four elements Value: Brand experience Copyright 2009 Fast Casual Alliance

Passion - Spirit, Values and Leadership Resides Here TEAM • Vision • Values - They should answer the question; What to do? • Team needs to believe they are part of something bigger than themselves • Charged Up and Ready Everyday Copyright 2009 Fast Casual Alliance

Service - Memorable From Beginning to End • It’s a People business – your crew and customers • Make an emotional connection • Individualize the customer experience • Learn to anticipate your customers needs • Stay true to your brand – you will never please everybody • Bring your values to the community Copyright 2009 Fast Casual Alliance

Ambiance - The Visual Elements RETAILTAILMENT – The “WOW” Factor • Sensorial Experiences theater vs. kitchen, cast members vs. employees, stage vs. Front-of-the house • Relating & Engaging interactive lighting, enticing seating zones, tell YOUR story Copyright 2009 Fast Casual Alliance

Value - The End Result • Customer driven – becoming “sales driven and profit smart” • Create Memorable Experiences - We sell more than just food • Tells a friend – The new POWER of Social Media • High frequency • Advocate for the brand Copyright 2009 Fast Casual Alliance

The Operator’s Challenge The operator’s challenge is to lead your entire organization to engage at the following levels: • Body - Every detail matters, standardize all business practices and measure results • Mind - Engaged, attentive, present • Spirit - Choose your attitude and guiding values Copyright 2009 Fast Casual Alliance

Body - It’s in the Details • Creating the ownership mentality (you are building the brand) • What to measure must align with brand promise - Your commitment to quality • Systematize to replicate success - Quality of your people may dictate level of detail • Systems that can be executed and held accountable • Enforce your standards, but empower your people Copyright 2009 Fast Casual Alliance

Fast Casual In Review • Fast Casual is fastest-growing segment in our industry • Branded experiences are memorable • Five Star Value Proposition is a sustainable road map for success • All levels of the organization must be fully engaged Copyright 2009 Fast Casual Alliance

Fast Casual In Review • Key Trends Healthy Menu Launches - Camille’s - Low-cal Slim Smoothies - Cosi - New Lighten Up menu - Noodles & Co - You are what you eat ad campaign Snack-sized Menu Items - Einstein - Snackout menu - Au Bon Pain - Low Cal “portions menu - Chipotle - smaller portions - lower price option (in test) Natural, Organic Local and Sustainable - Organic To Go - Certified Organic Retailer - Wichcraft - cruelty and hormone free practices - Chipotle - Locally sourced in-season produce Copyright 2009 Fast Casual Alliance

Q&A for the Panelists • Our panelists are available for questions from the audience • For more information about joining the Fast Casual Alliance go to www.fastcasualalliance.com • To get this slide deck please visit the FCA website Thank you Copyright 2009 Fast Casual Alliance

FCA 2009 Education Slides Texas Restaurant Show

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