Newtown

Mid Wales

Drive-Thru

Gastronomy Foods UK Ltd

17th August 2012

APPROVAL

Expansion Criteria

Quarter 1

Quarter 2

Quarter 3

Quarter 4

84.3% 81.8% 74.7%

83% 84% 81%

Yes Yes Yes

Yes Yes Yes

CER Results

CMS Results

Royalty Payments/Fees Up To Date

Supplier Payments Up To Date

Franchise People SlideFranchise DC Summary and Management Update 2012

                                             

  Franchise Name: Gastronomy Foods UK Ltd Total Number of Stores 11  

   

 Optimum Management Current Management Variance In Training

Variance to Optimum

Leavers in Q2 2012 

   

  Above Store Capability  

   

  Ops Manager 1 Ops Manager 1 Ops Manager 0 Ops Manager 0 0 Ops Manager 0  

  Area Coach 2 Area Coach 2 Area Coach 0 Area Coach 0 1 Area Coach 0  

  Trainers 1 Trainers 1 Trainers 0 Trainers 0 0 Trainers 0  

   

  Store level Capability  

   

  RGM 11 RGM 11 RGM 0 Internal RGM 1 1 RGM 0  

  ARGM 7 ARGM 8 ARGM 1 External RGM 0   ARGM 0  

  TL 25 TL 43 TL 18 TARGM 1 2 TL 10  

  TTL 12 30 TRGM 0  

  TARGM 0  

  TTL 3  

   

  Reason if Optimum RGM Number does not equal Number of Stores  

 

 

 

   

   

  Progress and Key Milestones in Q2 2012 Plans for Q3 2012  

  13 new DC candidates finished books and are running shifts shadowed by existing managers. All to be skilled assessed and signed off by end P7. LZ rolled out for all RGms, will be continuing when recertification comes back online. TPWY rolled out to RGMs. Training Manager qualified as first Aid Instructor. Cleaning and Accountability workshops held in 4 stores with opportunities identified by CER, providing better TL knowledge and capability, and enabling Performance management to be carried out for further issues.

TRGM to be confirmed RGM by end P8. New TRGM to be confirmed if successful by end Q3. RGMs to cascade LZ to ARGMs, TLs by end P7. Recertification of managers starts P7, starting with long term managers. TPWY will follw Recertification. First Aid courses will be held for all management, scheduled in, and will be completed by end P7. New DC Course to be initiated after the Roll out 19th June

 

   

   

   

   

   

   

   

Regional Context Map of Site Location

Potential Sites Existing FranchiseeExisting GFUK Rest.Proposed Site

Trade Zone Map/ Market Plan

Area Map of Site Location

Area Map of Site Location with Proposed By-Pass

Aerial Shot of Site Location

Scheme Layout Plan

Site Layout Plan

The Proposed Site

Proposed Development.KFC unit to sit where Co-

Op building is

The Proposed Site

Proposed Development.KFC unit to sit where Co-

Op building is

The Proposed SiteProposed Development.

KFC unit to sit where Co-Op building is

McDonalds Car Park

The Proposed SiteProposed Development.

KFC unit to sit where Co-Op building is

The Proposed SiteView from KFC Car Park

McDonalds

Overlaps

Drive Times

Traffic Flows

Target Acorn Groups

Site Assessment Form

Category

1 Demographics

2 Demographics

3 Demographics

4 Demographics

5 Overlaps

Variable Site Actual Average Variable Site Actual Average Variable Site Actual Average

Ethnicity 1% 8% Car Ownership 71% 65% Population 11,838 66,441

Muslim % 4% Students 335 3,319

Walk Population 1,607 1,329 Target Acorn 11-39 20% 39%

Traffic 16,268 24,936

Walk Workers 815 1,220

Workers 6,746 31,591

3 1 6

Store No Asset Type Overlap % Distance (miles)UC% (52 week

avg)CER (52 week

avg)

KFC Site Assessment - Newtown Pool Rd (page 1 of 1) CM / SG

OwnershipStore Name

20% ABOVE AVERAGE AVERAGE

MARKET PLANNING SUMMARY POINTS

No Overlaps

Target Acorn% is significantly below average

Traffic is below average

Population is significantly below average

4 out of 10 points above average or average

Comments

Core DTIdeal Asset:

Proposed Asset: Core DT (Non-London)KFC Site Assessment - Newtown Pool Rd

DEMOGRAPHICS (based on 8 minute drive time)

Issue Date: 22/08/2012

Site Name: Newtown Pool Rd

SAF Completed/Requested By:

20% BELOW AVERAGE

COUNT COUNT COUNT

This SAF is being provided to the Franchisee on the strict understanding that KFC (GB) is giving no representations or guarantees in respect of the performance of the proposed site, or the accuracy of any assumptions used, and on the condition that neither KFC (GB) nor any of its affiliated companies shall have any liability whatsoever for the contents of, or for any estimates, projections, errors or omissions contained in or produced pursuant to this SAF. If this information is used directly by the Franchisee to indicate possible performance of the proposed site, the Franchisee must recognise that it takes sole responsibility for such use of this information and should obtain independent verification thereof. This information will not be the sole factor relevant to the performance of the site and other issues, such as operational performance, a changing market place or competitor activity, will all have a significant effect on the performance of a site. Without limiting the foregoing, any approval from KFC (GB) of the development of the site by the Franchisee will not be deemed to be any endorsement or representation by KFC (GB) in relation to the performance of the site and neither KFC (GB) nor any of its affiliated companies shall have any liability in connection with any such approval.

OVERLAPS

52 week WPSA (latest 12 week)

Summary

Proposed unit Core DT (260)

Does proposed unit conform to Market Plan?

Yes

Main generators Traffic, Population from a 20min Drive Time. Through road to Mid & West Wales from the Midlands.

Competition •McDonalds

•Opposite Proposed KFC unit

•2012 PSA £33,000

Nearest KFC’s •KFC Shrewsbury

•No Overlap

•£17,000

Deal Summary

Rent per square foot and/ or total annual rent or freehold deal

£22 per sq. ft. Annual Rent of £57,772.

12 months rent free period.

Length of lease 20 Years. 5 yearly reviews with a 15 tenant only Break-Clause

Service charge TBD

Conditionality 6 months rent to be held as a deposit with Landlords for 3 years.

Forecast Breakeven £ £18,000 Breakeven.

Predicted PSA sales £ £22,000

Forecast opening date October 2013

Projected Timelines.

Dates

Site legally secured date October 2012

Planning submitted date November 2012

Construction start date June 2013

Store Opening Prediction October 2013

Any qualifying comments on above These are conservative timelines as the Developers have already had discussions with the planners and a positive response was received.

Notes - Newtown

• There is a By-Pass proposed which has been on the cards since 1970. Since the Tesco was built, a few years ago, the traffic is extremely congested and slow moving. The By-Pass has been listed as a priority now by the Welsh Assembly. They are hoping to get construction underway in 2014.

• I have looked at the detailed traffic movement predictions produced by the Welsh Assembly and they are available if anyone chooses to see them.

• In my view, this By-Pass will only help our Drive-Thru as it can take up to 1 hour just to get through the town during peak times.