1. 1

2. 2

3. 3

4. 4

5. 5

6. Consumers selected up to 3 concerns from a list of 28
Source: Technomic January 2013 Consumer Survey
(n=1002, Nationwide representative sample) 6

7. Source: Technomic January 2013 Consumer Survey
(n=1002, Nationwide representative sample) 7

8. Source: Technomic January 2013 Consumer Survey
(n=1002, Nationwide representative sample) 8

9. 9

10. LSR
2.0%
FSR
-1.2%
Source: Public Company
Reports, Technomic 10

11. 1 to 5 scale: 1 = not concerned at all; 5 = extremely concerned
Source: January 2013 FSPP Operator Survey
N=855. Nationwide sample – all segments represented 11

12. Commodity 2007 2008 2009 2010 2011 2012
Beef/veal 2.7% 5.2% -7.4% 10.3% 15.1% 9.9%
Pork 4.1 -2.0 -11.5 23.2 12.5 -4.2
Chicken 12.8 3.9 2.1 1.4 -1.4 11.3
Fin fish -4.9 -5.2 1.8 24.3 1.7 -6.7
Eggs 61.2 17.7 -26.4 0.5 16.6 1.4
Cheese 21.8 9.6 -20.1 9.4 14.1 -.5
Wheat 47.2 36.6 -36.5 5.3 37.6 -2.6
Milk 20.0 4.8 -13.4 12.6 11.7 -2.6
Bakery products 4.3 9.6 3.5 -0.4 3.6 3.0
Fresh vegetables 11.3 -1.7 -3.6 14.6 0.7 -23.6
Potatoes 7.9 10.1 16.0 2.1 2.5 7.6
Fresh fruits/melons 11.2 -0.4 -10.2 12.1 -4.9 1.1
Soft drinks 2.4 4.9 3.9 1.2 1.6 2.9
Coffee 6.6 9.3 0.1 6.1 18.1 -2.9
Source: GE Capital Franchise Finance 2012 Chain Restaurant Industry Review 12

13. Average 5% 5% 6% 5% 5% 5% 5%
Increase
Source: Technomic Operator Surveys (2010 - 2013)
N=778-855. Nationwide sample – all segments represented 13

14. 14

15. 15

16. Source: Technomic December 2012 Chain Operator Survey 16

17. Source: Technomic December 2012 Chain Operator Survey 17

18. 18

19. 19

20. 20

21. Brand
identity/
Equipment
Franchisee positioning
capacity and
input
layout
Menu Uniformity/
development/ consistency
testing costs across the system
Menu layout/
Menu Capabilities/skills
design/
Development of unit-level staff
engineering
Sales/menu
Pricing
Launch/ analysis (POS &
strategies
roll out system data)
process
21

22. Product
availability Test
Distributor
marketing
input
considerations
Manufacturer Guest
input requests
Corporate
social Findings from
responsibility guest research
initiatives
Menu
Population Development Industry/
demographic segment
s Nutritional trends
disclosure
Competitive
(including Commodity/ offerings
pending product
legislation) prices
22

23. 23

24. • Opportunity identification
• Guest research
• Consumer research
• Brain storming
• Field research
• Supplier input
• Franchisee input
• Ideation sessions
• Prioritization
• Tweaking
• Pipelining/shelving
24

25. 25

26. 26

27. 27

28. 28

29. Chain
• Chicken Selects
• Chicken Snack Wraps
• Chicken McBites
• Chicken Wings (in test)
• Chicken Parmesan Sandwich
• Italian Basil Chicken Sandwich & Wrap
• Popcorn Chicken
• Garden Salad Wrap with Crispy or Grilled Chicken
• Chicken Nuggets
• Whatachick’n Bites
• Chicken Rings
• Turkey Roaster Sandwich
29

30. 30

31. • The New Product: Dave’s Hot ‘N Juicy Cheeseburger
– Thicker beef patties
– Natural Square Shape (vs. Round/Too Square)
– Extra cheese
– Iceberg Lettuce (vs. Leaf)
– Toasted and buttered buns
– Crinkle-cut pickles (vs. flat)
– Red onions (vs. white)
– No mustard
– Full fat mayonnaise
– Reduced pickles & onions
– Cheese stored at higher temperatures to
make for better melting
– Burgers marked “Handle Like Eggs”
31

32. Contributed 5% to overall sales;
needed to be 10%
Ranks 6th highest in calorie
count behind the 64-ounce
Pepsi, Famous Bowl of Mashed
Potatoes and Gravy, and the
Chicken Pot Pie among others
32

33. *Doritos Locos Tacos
Source: Company Data 33

34. McDonald’s Arch Deluxe
Burger King Burger Bundles Burger King Meat-Normous
34

35. 35

36. 36

37. 37

38. Managing Consultant
312-506-3917
mmandeltort@technomic.com
www.linkedin.com/in/mmandeltort
http:epicureancandidate.wordpress.com
38