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

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

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

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Source: Public CompanyReports, Technomic

LSR2.0%

FSR-1.2%

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

Commodity 2007 2008 2009 2010 2011 2012Beef/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

Source: Technomic Operator Surveys (2010 - 2013)N=778-855. Nationwide sample – all segments represented

AverageIncrease

5% 5% 6% 5% 5% 5% 5%

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Source: Technomic December 2012 Chain Operator Survey 16

Source: Technomic December 2012 Chain Operator Survey 17

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MenuDevelopment

Brandidentity/

positioningEquipment

capacity andlayout

Uniformity/consistency

across the system

Capabilities/skillsof unit-level staff

Sales/menuanalysis (POS &

system data)Launch/roll outprocess

Pricingstrategies

Menu layout/design/

engineering

Menudevelopment/testing costs

Franchiseeinput

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MenuDevelopment

Productavailability Test

marketingconsiderations

Guestrequests

Findings fromguest research

Industry/segmenttrends

CompetitiveofferingsCommodity/

productprices

Nutritionaldisclosure(includingpending

legislation)

Populationdemographic

s

Corporatesocial

responsibilityinitiatives

Manufacturerinput

Distributorinput

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• Opportunity identification

• Guest research

• Consumer research

• Brain storming

• Field research

• Supplier input

• Franchisee input

• Ideation sessions

• Prioritization

• Tweaking

• Pipelining/shelving

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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

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• 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 tomake for better melting

– Burgers marked “Handle Like Eggs”

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Contributed 5% to overall sales;needed to be 10%

Ranks 6th highest in caloriecount behind the 64-ounce

Pepsi, Famous Bowl of MashedPotatoes and Gravy, and the

Chicken Pot Pie among others

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*Doritos Locos TacosSource: Company Data 33

Burger King Burger Bundles Burger King Meat-Normous

McDonald’s Arch Deluxe

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Managing Consultant

312-506-3917

mmandeltort@technomic.comwww.linkedin.com/in/mmandeltort

http:epicureancandidate.wordpress.com

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