Let the

Profits

Roll

K i m S m i t h

C h i e f F i n a n c i a l O ff i c e r

PRIVATE & CONFIDENTIAL

“Funance” Team

• Kim Smith, Chief Financial Officer

• Scott Putman, Controller

• Anthony Guzman, Sr. Financial

Analyst

We are here to help you!PRIVATE & CONFIDENTIAL

Impressive AUVs

• Growth driven by ticket increases

• Ticket increase a combination of

price, units per transaction, and

product mix

$528,801

$558,190

$577,273

2015 2016 2017Franchisee P&Ls, franchised stores ex RMU open full year

PRIVATE & CONFIDENTIAL

Manage Your

Business by the

Metrics PRIVATE & CONFIDENTIAL

It’s all about

the data

• Analyze Treatware reports regularly to

find opportunity

• Pricing is critical

• Ensure Master Cashiering is followed

• Know your mall

PRIVATE & CONFIDENTIAL

Price is a lever that can drive sales

• Higher priced locations

had higher average

check and better same

store sales

• AND they got these

results without

decreasing unit sales

Original Bitzprice

Avg checkSame-store

salesOriginal Bitz

units

>4.99 $7.81 1.2% 53.9

<4.99 $6.97 0.8% 48.3

Difference +$0.84 +0.4% +5.5

Based on franchisees who submitted P&Ls in 2017, mall graded properties. Results may vary based on location.

PRIVATE & CONFIDENTIAL

Across mall grades, higher price

performed better

• Consistently higher

average check and Bitz

units sold

• On average, better same

store sales too

Difference: Store Bitz prices $4.99+ vs. less than $4.99

Mall GradeAvg check difference

Same-store sales

difference

Original Bitzunits

difference

A $0.86 0.5% 0.2

B $0.76 0.0% 10.0

C $1.21 (0.7%) 4.2

Based on franchisees who submitted P&Ls in 2017, mall graded properties. Results may vary based on location.

PRIVATE & CONFIDENTIAL

• Pizza Bitz earn $1.23 more

in sales and $1.17 more in

profit vs. Pepperoni Twist

• Warming unit stocking

important to have right

product at right time so you

can sell more Pizza Bitz

• Upsell!!

Manage mix, price and COGS

PRIVATE & CONFIDENTIAL

Turnover Trends

• As the labor market tightens, turnover

increases

• 150% turnover range is common,

restaurants employing 20 individuals

should expect to hire 30 each year1

• Employee turnover rates in restaurants

are at an all-time high in 20181

139%

145%149%

2016 2017 2018**Based on Wetzel’s Corporate Locations, 2018 annualized based on trend1Per Business Insider

PRIVATE & CONFIDENTIAL

• Each employee that turns over is a sunk

cost of ~$800

• Corporate stores lost on average 19

associates per location which is

~$15,000/year per store

• By reducing your turnover just 10% or

~2 people you will earn $1500 more

Turnover is

costly

PRIVATE & CONFIDENTIAL

Turnover is

highest in the

first 3 months

• Most likely to lose team members early on

• If you improve, you will increase your profitability

*Based on Wetzel’s Corporate Locations, TTM

PRIVATE & CONFIDENTIAL

Loss Prevention

Update

Loss Prevention is another way to save $s

• Built new dashboard to identify opportunity

• Multiple metrics including dough yield, P&L

and Treatware

• Quarterly Review

PRIVATE & CONFIDENTIAL

But wait, there’s more finance updates……..PRIVATE & CONFIDENTIAL

Wins with

credit card

processing!

• Negotiated better rates with First Data

• They can implement EMV and

minimize or stop your chargebacks

• Savings on average over $1200/store

annually!*

• First Data is here to sign you up

• Successful test at Willowbrook

• EMV equipment stocked at First Data

*Based on signing up for processing and Smart Routing, assume AUV of $650k, 56% card tender, $7.70 average ticket. Comparison to B of A baseline.

PRIVATE & CONFIDENTIAL

Mini Dogs

Cost of Goods

• Negotiated a $0.50/case discount

effective in August

• Continue to evaluate volume for

pricing opportunity

PRIVATE & CONFIDENTIAL

Profit

protection

Loss

prevention

Turnover

management

Procurement

efforts

EMV &

Credit Card

Processing

Minimize or stop

chargebacks and

save on

processing

Pricing

Be planful in

application

and measure

results

A better return is in your

hands, we are here to help

PRIVATE & CONFIDENTIAL

thank you!

PRIVATE & CONFIDENTIAL