RAVE Restaurant Group ICR Finance Conference January 12, 2016 is a - - PowerPoint PPT Presentation

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RAVE Restaurant Group ICR Finance Conference January 12, 2016 is a - - PowerPoint PPT Presentation

Mar 02, 2023 32 likes •212 views

RAVE Restaurant Group ICR Finance Conference January 12, 2016 is a multi-brand restaurant operating company Founded 1958 Created 2011 Primarily buffet pizza concept Leading Fast Casual pizza concept 237 restaurants open U.S.,

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RAVE Restaurant Group

ICR Finance Conference

January 12, 2016

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is a multi-brand restaurant operating company

  • Founded 1958
  • Primarily buffet pizza concept
  • 237 restaurants open U.S., Middle East, Honduras
  • 99% Franchise operation
  • Consistent royalty revenue stream
  • Created 2011
  • Leading Fast Casual pizza concept
  • 400+ restaurants under development
  • Dual development: Company + Franchise
  • Quarterly system wide sales CAGR of 24%
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Sales Contribution and Growth

104,461 103,230 104,170 103,165 105,361 108,147 112,248 118,289 124,242 131,399

  • 20,000

40,000 60,000 80,000 100,000 120,000 140,000 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16

Domestic System-Wide Retail Sales

Pizza Inn Pie Five

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89% 11%

FY14

Pizza Inn Pie Five 70% 30%

2QFY16 (TTM)

Sales Contribution – total retail sales mix

A Fast Changing Company

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Millennial Moms

  • 30 – 40 year-old females
  • Brings kids and other moms
  • Casual environment, easy to park,

can bring the chaos

  • Looks for value, variety, speed &

healthy options

  • Keep the kids happy with less hassle

Hang Out Gang

  • 16-25 year-olds
  • Male driven
  • Individualism is key
  • Casual environment
  • Value & variety
  • Want to feel important/cool

Lunch Crew

  • 25-35 year-olds
  • Male & female
  • Look for value, variety & speed
  • Elevated quality in the food and

environment

  • Expect transparency in ingredients

Our Fans

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Pie Five Restaurant Growth

15 18 19 20 24 31 40 54 68 82

10 20 30 40 50 60 70 80 90 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16

Pie Five Unit Growth

Company Franchise

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now open coming soon not here (yet)

 82 restaurants open  23 states and DC  22 franchisees  6 company markets  Traditional streetside + new non-traditional location tests

  • regional mall
  • Casino
  • major college
  • transit station

1 4 22 2 1 1 1 2 7 1 1 3 2 1 1 2 2 11 2 1 1 7 5 1

as of December 31, 2015

Geographic Growth – U.S.

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Solid Restaurant Level Economics

Res estaurant Le Level Economics*

Annual Unit Sales $750,000 Based on units in 2nd quarter comp base Restaurant Operating Cash Flow 17 – 19% margin Occupancy and fixed operating costs drive variability Allocated Mktg & Adv Expenses 5% of net sales Invest to build brand understanding and trial

Bu Build ild Ou Out In Investm tment*

Size 2,000 – 2,400 s.f. 2,200 is ideal Location Retail strip center end cap Leased space Construction $450,000 – $475,000 Before landlord T.I. allowance and pre-opening expense Payback Targets 1.5:1 – 2:1 sales/investment ratio 3 year cash on cash return target

*targets calibrated on units in comparable store base at end of Q2 FY16. *restaurant operating cash flow represents the pre-tax income earned before: 1) Allocated marketing advertising expenses 2) Depreciation and amortization 3) Pre-opening expenses 4) Operations management and extraordinary expenses; and 5) Deferred rent adjustment (net) and impairment.

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Comp Sales Growth – Quarterly Two Year Trends

17.7 16.6 11.9 19.7 18.5 15.5

  • 5%

0% 5% 10% 15% 20% 25% Q1 2015/14 Q2 2015/14 Q3 2015/14 Q4 2015/14 Q1 2016/15 Q2 2016/15 Prior Year Quarter Current Quarter Two Year Reported Comp Sales Growth*

*comp sales are calculated based on restaurants open 18 months or more in the reported quarter

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Evolution – Increased Throughput

Service Line Efficiency Technology Enablers Reduce Bottlenecks Fresh Salad Speed Station Online Ordering Customer Enabled Checkout Kiosk Test

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Evolution - Food & Service

Rave-able, Crave-able Comeback Quality Food  Addition of Garlic Breadstix

  • and cheesestix
  • and bacon cheesestix

 Bundle Merchandising

  • Pizza bundle
  • Salad bundle
  • Breadstix bundle
  • Kids bundle

 Larger Pizza... Better Value Service So Good it Drives Sales  Recruitment

  • Enhanced screening tool
  • Custom tailored personality

profile

  • Rejecting 40-50% of

applicants BEFORE granting interviews

 Training

  • P FIVE vibe behaviors
  • Six Slices of Service

 Feedback & Reward

  • Mystery shop 2X/week
  • Next AM feedback
  • Quantitative & Qualitative feedback
  • CASH incentives to crews achieving 100% shop
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Investment Highlights

  • Multi-branded Restaurant Company
  • Pizza Inn providing stable earnings contribution
  • Franchise model
  • Experienced, local franchise owners
  • Pie Five pioneering Fast Casual Pizza Segment with significant growth upside
  • Early days for this emerging segment
  • Strong unit economics and new restaurant pipeline
  • Continued concept evolution to maximize success
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Breakouts

11:00 AM Mediterranean – Salon 5 2:30 PM Coquina Ballroom – Room 2

Company Representatives:

  • Randy Gier, CEO
  • Tim Mullany, CFO