Todays Expectations Lets review the agenda: Drive People - - PowerPoint PPT Presentation

Today’s Expectations

 Let’s review the agenda:

• Drive People Capability – Lisa
• Break!
• Execute High Operational Standards - Steve
• Grow Real Sales – Robert
• 2010: The Bonus Plan – Robert
• Wrap-Up!
• Have A Safe Trip Home!!

Meeting Expectations

 Let’s have a good time!  Be engaged!  Participate!

• Breaks

 Be a leader at your table!  Take away and share some your ideas!

• Your managers
• Your team members

 Leave with a common vision!  Go back and make a difference!

A Common Vision The Importance of Vision

Why is it so important for leaders to have a common and clear vision? Because leadership is about going

• somewhere. If you and your people don’t

know where you are going, your leadership doesn’t matter! Let’s talk today about our common vision….

201 010

Another r Year of Growth

Joe Langteau President & Chief Executive Officer

2010 Key Accomplishments

 Comp sales of -.19% despite continued economic challenges & cannibalization  Labor cost reduced from 32.33% to 31.95%  Food cost declined from 21.85% to 21.62%  9 restaurants were remodeled w/ “Momentum” elements  Team member turnover annualized at 90%

2010 Key Accomplishments

 2 new restaurants opened - one under construction  Record OAR scores  Field OPS Team stronger than ever  LRM efforts are having a positive impact  Recognition culture is building

2010 Opportunity Areas

 Growing Real Sales remains challenging  New restaurant performance below targets  Facility challenges resulted in higher than budgeted R&M expense  Must take coaching process to next level  Voice of Guest program has exposed operational weaknesses  We need to build a stronger bench

Comp Sales Trends are Soft

• 4.00%
• 2.00%

0.00% 2.00% 4.00%

P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12

• 2.91%

2.56%

• 1.40%
• 1.28%
• 2.62%

0.78%

• 1.03%

0.86%

• 0.50%

1.06% 0.65% 1.16%

• .19% 2010 YTD

Comp Sales By Market

• 8.00%
• 4.00%

0.00% 4.00% 8.00% 12.00% 16.00%

DFW Austin Houston El Paso Waco Amarillo

0.73%

• 1.57%
• 4.30%

0.22%

• 0.03%

9.88%

• .19% 2010 YTD

2010 Top 10 Scoreboard!

• 1. Kendell Bolden

#1468

• 2. Son Laveau

#3007

• 3. Randall Cook

#1333

• 4. Dave Lucas

#1487

• 5. Ivan Lagunes

#1467

• 6. James Bush

#1392

• 7. Robin Castaneda

#1454

• 8. Marty Huss

#3010

• 9. Staci Robeson

#1939

• 10. Stan Venne

#3025

201 011

The Year Ahead

Joe Langteau President & Chief Executive Officer

2011 Outlook

 Economic environment predicted to improve  Substantial competitive activity at breakfast  IHOP continues to outperform the category  Guest expectations remain high - no tolerance for poor service  Best operated restaurants will widen their lead  Opportunities exist to secure real estate at reasonable prices  Solid marketing calendar in place w/ LRM support

Doubled Market Share in 10 Years

51% 51% 49% 47% 58% 62% 59% 55% 53% 47% 7% 7% 7% 7% 6% 6% 6% 7% 7% 7% 13% 12% 12% 13% 13% 10% 9% 9% 11% 11% 15% 14% 15% 16% 16% 11% 9% 9% 12% 13% 18% 16% 16% 16% 17% 15% 16% 15% 15% 16%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

$14.2B $14.5B $14.6B $14.5B $14.1B $13.9B $13.8B $14.0B $13.9B $14.2B

CREST Family Dining

Family-style Market Share by Brand

Market Share

Independent / Other Chains

Increasing Competitive Pressure from Family Dining, Fast Casual and QSR

$74.0MM $2.6MM $4.2MM

$29.8M M

$3.4MM $17MM $2.2MM $36.7MM $37.9MM $8.3MM $3.0MM $36.6MM

2011 Critical Priorities

 Grow sales by 1.62% w/ traffic increases  Launch RosNet food cost tool  Take LRM efforts to the next level  GLI of 80% through focus on guest service  Improve restaurant cash flow thru focus on labor & food cost control  Effectively manage labor costs  Achieve team member & management turnover targets  Complete 10 remodels & open 2 new restaurants  Recognition acceleration

What Do We Stand For?

Recognition Coaching Guest Service

Recognition

 Must become a part of how we do business  Praise progress  Build strong systems  Recognition is a great accelerator  Personalize to fit your team  What gets recognized gets repeated

Coaching

 Feedback is the breakfast of champions  Define the performance breakthrough  Structured coaching sessions matter  Taking advantage of coaching moments  Managing the difficult conversations  Keep score of progress  Active listening can be eye-opening

Our Passion to Serve

 “Outstanding Guest Service is the Only Long-Term Sustainable Competitive Advantage”  Guest perception really matters  Create an environment where team members are rewarded for exceeding guest needs  Eliminate barriers that negatively impact guest service  Hire the smile & attitude  Reward guest service role models

2011 2011 The Year Ahead ad

Thank ank You! !

201 011

Optimize ze Restaurant rant Profitab tabil ilit ity

Doug Shaw Chief Financial Officer

2010 Achievements

 Project 10 was implemented and achieved!

• We budgeted over $900K in improvements

 For the first time in ACG history, we will end the year with 10% Margins!

• Projected Sales of $110M and EBITDA of $11M

 All General Managers have been trained by Darylann on the P&L Review Process.

• You now have the tools to more effectively manage your

P&L’s

 Micros 4.8 was successfully rolled out to every restaurant

• We were once again the pacesetter in the IHOP System

2011 Initiatives

 Launching a 4 restaurant test with RosNet (Food Cost & Reporting Tool)  Implementation of Restaurant Financial Audit Process  Continue to focus on unprofitable & questionable discounting  Test the RosNet Labor solution in the second half of the year

RosNet Food Cost Solution

 Launching a 4 restaurant test with RosNet (Food Cost & Reporting Tool)

• This is our project, not IHOP’s project
• RosNet is a proven food cost and reporting tool in the Applebee’s

system

 RosNet will provide us with…

• Actual vs. Theoretical food cost down to the ingredient level
• Actual vs. Budget Weekly P&L
• Full suite of reports on Sales, Food Cost, Labor and P&L

Performance

• No more package logs, no more e-mailing of product transfers, no

more 9 numbers files…

 The test should last a couple of periods then we will start training & rolling

Restaurant Financial Audits

 Darylann has created a Restaurant Audit Document  The intent of the audit is to coach and teach

• Goal is to have consistently applied processes across the system
• Focuses on Cash Handling, Inventory, Accounts Payable,

Discounts, etc.

 The Restaurant Audit will be a graded audit so you will know where you stand  Results will be communicated to you, the Area Director and the RDO

Reduce Discounts

 Every 1% In Discounts equates to $1.0M In Restaurant Cash Flow!  Focus on the Outlier Restaurants

• Daily Reporting of Server Sales & Discount %
• Identify Patterns of Behavior
• Execute Server Checkouts with Excellence!

 We did this in 2008 and achieved an $800,000 P&L Impact  Every time we focus on this we make an impact. Let’s make it permanent!

2011 Budget Assumptions

 Annual Adjusted EBITDA Goal is $11.9M  Comp Sales Growth = 1.62%  Open 3 New Restaurants; 1 in January and 2 mid- year  Remodel 10 Restaurants  Base Business Restaurant Cash Flow Growth of $866,000

201 011

Enhance e Facility y Base

Phil Slyby Director of Construction & Real Estate

 Christina Castillo

• Facility Manager – North Region

 Dan Parada

• Facility Manager – South Region

 Mari Martinez

• Real Estate & Facilities Project Coordinator

 R&M@acgtexas.com

• Hotline to communicate all facility issues
• Goes to all Facility Managers mailboxes

Enhance Facility Base

 3 NRO’s in 2010:

• IHOP #3023 Mesquite
• 6-12-10
• IHOP #3027 North Park
• 11-10-10
• IHOP #3026 Arlington
• 1-15-11

Real Estate, Construction & Facilities

 Sites under contract:

• Harker Heights
• Suburb of Killeen
• Estimated opening P7, 2011

Real Estate, Construction & Facilities

 Sites being negotiated:

• Abilene
• Webb Chapel – Dallas
• Freedom Crossing – Fort Bliss
• Kyle Crossing – Kyle, Texas

Real Estate, Construction & Facilities

 Cities being searched:

• Tyler
• Lindale
• Stephenville
• Cleburne
• Houston
• Lakeway (Austin)

Real Estate, Construction & Facilities

Real Estate, Construction & Facilities

Real Estate, Construction & Facilities

#3027 Northpark in Dallas

Real Estate, Construction & Facilities

#3026 Arlington

Real Estate, Construction & Facilities

 2011 Remodels

• IHOP #1437 - The Woodlands
• 1/9 – 1/12
• IHOP #1459 - Uvalde
• 2/6 – 2/9
• IHOP #1450 – Cedar Hill
• 3/27 – 3/30
• IHOP # 1937 - Decatur
• 4/17 – 4/20
• IHOP # 1404 - Garland
• 5/15 – 5/18

Real Estate, Construction & Facilities

 2011 Remodels

• IHOP #1413 - Plano
• 6/5 – 6/8
• IHOP #1929 – The Colony
• 7/10 – 7/13
• IHOP #1438 - Lewisville
• 8/21 – 8/24
• IHOP # 1439 - Austin
• 9/25 – 9/28
• IHOP # 1934 – El Paso
• 10/16 – 10/19

Real Estate, Construction & Facilities

Real Estate, Construction & Facilities

Real Estate, Construction & Facilities

Real Estate, Construction & Facilities

Real Estate, Construction & Facilities

http://www.acgtexas.com/acgintranet/intranet.php?id=1

Real Estate, Construction & Facilities

201 011

Grow Real Sales

Mike Grady Regional Director of Operations South Region

Grow Real Sales

 Properly Implement the Pancake Revolution Internet Marketing Plan  Establish and Execute IHOP Nights in Every Restaurant  Drive Improved Execution at the Front Door & Host Areas

Grow Real Sales

 Properly Implement the Pancake Revolution Internet Marketing Plan

• Q1 Milestones
• Plan and implement comprehensive program

to drive overall E-Club membership to at least 100,000 members by April 1, 2011.

• Create and implement E-Club marketing

program to supplement current IHOP Corporate LTO and marketing campaigns.

Grow Real Sales

 Establish And Execute IHOP Nights in Every Restaurant

• Q1 Milestones
• Implement specific training guidelines

including:  Internal restaurant guest connect practices  Proper use of available marketing and support materials

 Proper IHOP Night operational implementation

Grow Real Sales

 Drive Improved Execution at the Front Door & Host Areas

• Q1 Milestones
• Enhance front door execution to achieve a

minimum 80% “Greeting” VOG Score thru the following:  Verify proper scheduling procedures in all restaurants  Readdress hospitality expectations  Re-train guest timing procedures  Re-train wait lists/times

IHOP P National ional Pancake cake Day 2011

Mike Grady & W Wendell Patterson

IHOP National Pancake Day 2011

 Who are the Shriners?

• Key focus areas
• International fraternity of approximately 375,000

members (volunteers) from 191 temples throughout the US, Canada and Mexico.

• They support a one of a kind international health care

system of 22 hospitals dedicated to improving the lives

• f children.
• These hospitals provide care for children up to 18

years of age free of charge:

 Orthopedics  Burns  Spinal cord injuries

• It costs approximately $2M a day to operate their 22

hospitals.

IHOP National Pancake Day 2010 – The Review!

 What happened last year?

• Last year, we once again focused an entire

month to drive a company-wide initiative to raise funds for The Shriner’s Hospitals.

• Overall, it was an unbelievable success!
• Business was great!
• Donations were at an all time high!
• Great job to everyone!

IHOP National Pancake Day 2010 – The Review!

Four Year History of Shriner’s Donations

IHOP National Pancake Day 2011

 What’s the plan this year?

• Another aggressive 3 ½ week window
• Raise more money again this year by sticking to our

plan!

• Again this year, the RSC will be included!
• Promotion begins on Friday, January 31, 2010.
• Culminates with NPD – March 1, 2011
• Christy will be in the lead this year!
• Daily reporting!
• 2011 Goal - $250,000.00!!
• $5.00 per server – per shift!!!

IHOP National Pancake Day 2011

 What are the specific components?

• Wall plaques for donations
• Yellow Wall Tags - $1.00 donation
• Red Wall Tags - $5.00 donation

 $5.00 donation comes with a complimentary $5.00 Bounce Back Card.

• $5.00 Bounce Back Card is for use on NEXT visit.
• In-restaurant POP materials
• Christy will supply everyone with specific details in the coming

weeks.

• Remember – it’s for the kids! Let’s do it again this year!

201 011

Execute te High Operati tional

• nal Standard

rds

Wendell Patterson Regional Director of Operations North Region

Execute High Operational Standards  Provide a Consistently Superior Guest Experience - Measured by the VOG, Complaint Reductions and A/B Operator Targets  Ensure that Managers are On the Floor Touching Tables & Connecting w/Community  Exceed Food Safety & Sanitation Targets

Execute High Operational Standards

 Provide a Consistently Superior Guest Experience - Measured by the VOG, Complaint Reductions and A/B Operator Targets

• Milestones
• Enhance operational execution to achieve a minimum

80% “Speed” and “Food Quality” Scores thru:

 Daily monitoring of table turn times via B-50  Focus on outlier approach with servers in areas of table turns and VOG scores  Re-train and enhance expo and food running performances  Re-train and enhance server table service performances

• Area Directors to target underperforming restaurants.

Execute High Operational Standards

 Ensure that Managers are On the Floor Touching Tables & Connecting w/Community

• Milestones
• Enhance manager’s operational execution of shift

management, guest interaction, and guest connections by rolling out specific training guidelines including:

 Focus on outlier approach using restaurant’s VOG scores  Re-focus on shift management and guest interaction expectations during MIT training  Re-train shift management expectations to all members of management

• Area Directors to target underperforming restaurants.

Execute High Operational Standards

 Exceed Food Safety & Sanitation Targets

• Milestones
• Implement enhanced Green Book.
• Area Directors to implement enhanced

Visitation Report

• Enhance higher level of accountability in each

restaurant.

201 011

Drive People Capabilit ity

Lisa Hammond Senior Director Human Resources

Drive People Capability

 Hire Right – 2010 Year In Review

• Management turnover
• 2009 – Manager turnover was 31%
• 2010 – Manager turnover was 27%
• 2011 – goal is 25%
• Team member turnover
• 2008 TM turnover was 152%
• 2009 TM turnover was 95%
• 2010 TM turnover goal is 95% and we finished the year

at 86%!!!

Drive People Capability

 2010 Retention Awards

• First Place
• Erin Blackmon - IHOP #3019

10%

• Second Place
• Jon Knoke – IHOP #1439

23%

• Third Place
• Jon Dyess – IHOP #1486

36%

• Fourth Place
• Walter Steele – IHOP #1487

37%

• Area Director
• Scot Thomas

51%

Drive People Capability

• Most Improved
• Jeff Holman – IHOP #3003

 2009 – 263% to 147% in 2010

• Dodd Berendt – IHOP #3017

 2009-157% to 63% in 2010

Drive People Capability

 Hire Right!

• Through the Implementation of Click and Hire,

Enhance the Selection Process, resulting in Best in Class Retention  Train Right!

• Through enhancements to the coaching

process, ensure all employees receive timely, productive feedback  Treat Right!

• Through the implementation of the Pour It On!

Program, continue building a recognition and retention culture at all levels of the organization.

Drive People Capability

 Progression Reports

• Team members will be completed in February.
• GM & Managers will be completed in March
• Raises will be effective Week 1 of P4.
• Progression report forms
• Available for download on the Netchex web

site.

Drive People Capability

“Setting a goal is not the main thing. It is deciding how you will go about achieving it and staying with that plan.” Knute Rockne

Mission Statement - 2011

 Missio ion Statement

• This

is statement is a very y brief statement of our

• rganiz

izatio ional l goal.

• l. It should

ld be easy sy to remember and meanin ingful l to emplo loye yees and guests s alike.

By serving high quality food in a clean, friendly environment, we ensure that each guest leaves knowing “This is MY IHOP”.

Guiding Principles - 2011

 Guidin ing Princip iple les

• These

se phrases should ld be concise ise and limited in

• number. It should drive home “what is important to

us and what we stand for”

 We create great memories for our guests, employees, local communities and each

• ther.

 We are committed to recognizing the contributions

• f every member of the team.

 Individual accountability and execution is the foundation of our team’s success.

Guiding Principles - 2011

 Guidin ing Princip iple les

• These

se phrases should ld be concise ise and limited in

• number. It should drive home “what is important to

us and what we stand for”

 We coach to give people the development they need to achieve their goals.  We conduct ourselves with honesty, integrity, and the highest business ethics.  We value the diversity of our team, guests and suppliers; demonstrating respect for the individual.

Operati rations

• ns Award

rds

Robert Tomlinson Senior Vice President – Operation

• ns

Operations Awards

 90-90-90 Club Awards

• IHOP #1375 College Station
• Shannon Sabur
• IHOP #1396 Austin
• Leo Gaertner
• IHOP #1404 Garland
• Janelle Thompson
• IHOP #1421 Austin
• Masoud Madji
• IHOP #1477 Austin
• Mary Touchton

Operations Awards

 90-90-90 Club Awards

• IHOP #1487 Pflugerville
• Dave Lucas
• IHOP #1934 El Paso
• Richard Cannarsa
• IHOP #1954 Gainesville
• Daren Mills
• IHOP #3000 Slaughter Lane - Austin
• Chris Montana
• IHOP #3004 Ennis
• Christina Dodson

Operations Awards

 90-90-90 Club Awards

• IHOP #3019 Highland Village
• Erin Blackmon
• IHOP #3023 Mesquite
• Julio Dominguez

Operations Awards  Double Digit Awards

• IHOP #1468 Irving
• Kendell Bolden
• 11.52%
• IHOP #1337 Amarillo
• Roger King
• 23.32%

ACG Texas Ring of Honor

ACG Texas Ring of Honor  Ring of Honor Winners

• 2009 – 14
• 2010…………

ACG Texas Ring of Honor  2010

• IHOP #1337 Amarillo
• Roger King
• IHOP #1404 Garland
• Janelle Thompson
• IHOP #1413 Plano
• Farooq Ahmad
• IHOP #1421 Austin
• Masoud Madji
• IHOP #1486 Hillsboro
• Jonathan Dyess

ACG Texas Ring of Honor  2010

• IHOP #1487 Pflugerville
• Dave Lucas
• IHOP #1498 Southlake
• Susana Cruz
• IHOP #1499 Main Street - Lewisville
• Godwin Uba
• IHOP #3006 Allen
• Al Lyell
• IHOP #3011 Terrell
• David Robbins

ACG Texas Ring of Honor  2010

• IHOP #3012 El Paso
• Hector Diaz
• IHOP #3017 North Frisco
• Dodd Berendt
• IHOP #3018 Euless
• John Flanagan
• IHOP #3020 El Paso
• Ray Caro

ACG Texas Ring of Honor  2010 – Double Winners!

• IHOP #1408 Abrams - Dallas
• Ava Hardin
• IHOP #1450 Cedar Hill
• Estella Gallegos
• IHOP #1476 Austin
• David Henson
• IHOP #3009 Lancaster
• Clifton Davis
• IHOP #3024 Bryan
• Chuey Cabrera

ACG Texas Ring of Honor

2010 – Annual 100% Winner!

• IHOP #3004 Ennis
• Christina Dodson

201 011

Choices!

• ices!

Robert Tomlinson Senior Vice President – Operations ACG Texas

Who is the Competition?

2011 - Tomlinson Top 7

 VOG!  IHOP Nights  E-Club  The HOSPITALITY Gene!  Coaching  Recognition  Accountability

It’s not what happens to you…..

Voice of the Guest

 Critical to our growth and is a key piece of

• ur A/B ranking.

 Currently, the IHOP system is at 76%.  We – on the other hand – are at 73%.  Remember, these comments come directly from our guests – and some are troubling!

Voice of the Guest

 Here are the details:

• Overall GLI

73%

• Overall Satisfaction

67.9%

• Likely to Return

79.9%

• Likely Recommend

71.3%

• Accuracy

93.1%

• Greeting

65.9%

• Friendly

77.1%

• Speed

64.6%

• Attentive

70.8%

Voice of the Guest

 Here are the details:

• Food Quality

67.9%

• Staff Appearance

75.5%

• Clean

68.2%

• % Alerts

15.7%

• Number of Surveys

1,312

• High

YTD – 49

• Low

YTD – 4

• What will you choose to do?

IHOP Nights

 Outstanding and proven way to drive top line sales!  Our goal is to have one IHOP Night per restaurant per week during 2011.  Why has this been a struggle to get off the ground?

• Culture?
• Commitment?
• Proven?

 What will you choose to do?

E-Club

 Due to your hard work, ACG Texas leads the IHOP brand.

• IHOP

591,000 (1500 restaurants)

• Southwest Region

151,000

• ACG Texas (4%)

84,304 (14.3%)

E-Club

 Six of the Top Ten performers!  The Top Performers!

• 6. IHOP #3020

2,683 Members #8

• 5. IHOP #3012

2,795 Members #7

• 4. IHOP #1413

2,845 Members #6

• 3. IHOP #3025

3,546 Members #5

• 2. IHOP #1437

3.998 Members #4

• 1. IHOP #1487

7,613 Members #1

E-Club

 Fish Bowl is a restaurant industry “Best Demonstrated Practice” and proven way to drive top line sales!  Why has this been a struggle for some restaurants to get off the ground?  Two per server – per shift!  New goal of 120,000 Members!

• 100,000 by end of P3!
• 120,000 by end of P6!

 What will you choose to do?

The HOSPITALITY Gene!

 What are our guests saying?  What about your team?  Do you have the gene?  How do we identify it? (Hire Right)  How do we train it? (Train Right)  How do we nurture its growth? (Treat Right)  The BAD examples!  How do we change our culture?

 What will you choose to do?

Coaching!

 It’s not a form!  It’s not a checklist!  It is about connection!  It is about commitment!  It’s time for us to get this right!  Honest and open feedback is an opportunity!  Here is another BAD example!

 What will you choose to do?

Recognition!

 Review our commitment in 2010.  How far have we come?  Where are our opportunities?  We need your help!  Recognition is something we are – not something we do!

 What will you choose to do?

Accountability!

 Is our society is all about blame?  How hard is it?  What are the benefits?  We need to move forward!

 What will you choose to do?

2011 - Tomlinson Top 7

 VOG!  IHOP Nights  E-Club  The HOSPITALITY Gene!  Coaching  Recognition  Accountability

Choices!

 Today, we begin our new journey in 2011………TOG TOGETH ETHER! ER!  We must change who we are!

• If it’s going to be – it’s up to me!

 Commitment vs. Compliance!  Go back and make an impact!

• Be the “Ambassador of Change”!
• Make a difference!
• Take care of the guests – and each other!

Choices!

Who’s With Me?

201 011

Quarterly rly VOG Incenti tives ves

Robert Tomlinson Senior Vice President - Operations

Quarterly VOG Incentive

 2011 Quarterly Sales Incentive

• Drive For Five!
• This is the key to success!
• The only criteria is the GLI score!!
• Highest GLI scores during each quarter
• First Place – GM earns $1,000.00
• Second Place – GM earns $500.00
• Third Place – GM earns $250.00
• Most Improved – GM earns $250.00

 One North and One South!

• All restaurants participate.

Quarterly VOG Incentive

 2011 Quarterly Sales Incentive

• Drive For Five!
• Areas
• Highest server GLI score in each AD area = $100.00!
• One server per Area Director per period.
• Restaurants
• Highest server GLI score in each restaurant = $25.00
• One server per restaurant per period.

 Servers must have a minimum of 5 surveys to participate.