richard p. mueller, jr. founder rpm pizza, llcdominosdfa.com/files/file_4a9360af8b3da982809.pdf ·...
TRANSCRIPT
09/23/08T:\BIO's and Nomination Ltrs\RPM BIO9-04.doc
Richard P. Mueller, Jr. Founder RPM Pizza, LLC
In 2007, Richard became owner of 20% of RPMPLLC and began working part-time as a consultant. In March 2008, with the finalization of Castle Farms restoration, Richard decided to return to RPMPLLC full-time to head up the marketing department and work closely with Calvin Barcomb on marketing efforts. In July Richard became a 30% owner of RPMPLLC. He is excited to return to the company and work with the team again – we knew he couldn’t stay away for too long. Richard P. Mueller, Jr. started with Domino’s Pizza in 1967 while a student at the University of Michigan. He drove for a year before beginning to work inside the store. Richard would sometimes give the Founder of Domino’s Pizza, Inc., Mr. Tom Monaghan suggestions on how to make the store better. Richard walked into DPI in 1970 and asked to franchise and received 49 percent of a store. In 1971 Richard sold the 49 percent to DPI for 49.9 percent of a store to service students at Ohio State University located north of the campus. In 1972 Richard opened a second store south of the campus to better serve the students. With DPI he then formed Ohio Pizza Enterprises and owned 49.9 percent. Ohio Pizza Enterprises grew to 60 stores within the states of Ohio, Kentucky and Tennessee by 1978. In 1978, Richard traded his interest in Ohio Pizza Enterprises to DPI for 10 percent of Domino’s Pizza, Inc. stock. He became Vice President of Operations for DPI. In three years as Vice President of Operations, the number of stores went from 180 to 440. In 1981, Richard sold his stock in Domino’s Pizza, Inc. for $1 million, 5 operating stores, and the franchise development rights to Mississippi and Louisiana. Richard asked his brother Glenn Mueller to join the RPM Pizza, Inc. team and Glenn came on board and eventually became President of RPM Pizza, Inc. In 2002, RPM Pizza, Inc. owned and operated 158 stores and the company employed over 3,000 Team Members. Innovations that RPM Pizza, Inc. has pioneered include: The heated Heatwave Hotbag System, Portable 3-sided Cartop Sign, Cutter for Fresh Bread Side Products, the Domino’s Pizza Free Standing Buildings, Buildings with Drive Thru, and Express Stores. On a personal note, Richard ran the Baton Rouge Marathon in 1981. Mr. Monaghan had made a bet with Richard that he would not be able to run a marathon within a year of the bet. Richard earned $50,000 from Mr. Monaghan for running the marathon. The money was used to open the first store in Lafayette, LA. Richard lost 100 pounds -- from 275 to 175 – to get in condition for the run. From 1981-2003, Richard resided, along with his wife Linda, in Long Beach, Mississippi. They have four children, the oldest being Richard Mueller, III, who is the Chief Operating Officer at RPMLLC. In 2003, Richard decided to retire from Domino’s Pizza. His brother, Glenn Mueller, became the Chairman of the Board, and his son, Richard Mueller III, became the Chief Operating Officer. Linda purchased Castle Farms in 2001 and restored Castle Farms to its current status as one of Michigan’s Top Wedding Destinations. Richard returned 10% ownership of RPMPLLC and did light consulting. Richard joined his wife, Linda, at Castle Farms to expedite restoration. Check out the website at www.castlefarms.com. Of special interest, he is a Bridge Life Master and a collector of vintage pull toys of which he has a website, AntiqueToyArchive.com which is a free resource for collectors everywhere.
Overview of Market Trends
1990 – 1992
•Recession (Iraq War)
1993-2005 Sales High
(riding the wave)
2008
•Recession •Recession (Iraq War)
•PH Delivery
(riding the wave)
•Economy Improved (peace)
• Little Caesar's Strong , PH & PJ Improving
•Stores getting tired
•Menu Pizza and Cokes•93-99 Menu Expansion
•94 National Systems
• Old Computer Technology
• Limited Menu
•No Computers
•Domino’s high debt
94 National Systems Computers
•98 – 2002 Re-Image i ( i i )
• Store Image – some 10 yrs old- Signs (old)- Inside (O.K.)
- Signs (Positive ROI)-Inside (Poor ROI)
( )
•Domino’s Pizza has a lot of debt
• Commodity Increase
The 3rd Wave!1
Co od ty c ease
DeliveryPizza
Dinner
The 3rd Wave!2
Domino’s Pizza Goal +5% in SalesDomino s Pizza Goal +5% in Sales
2002 2003 2004 2005 2006 2007
Pizza Transactions -1 -1 0 -2 0 -4.5
Dinner Sales 2 2 1 0 4Dinner Sales 2 2 1 0 -4
DeliverySales % 19 19 18 17 16
PizzaDinnerCurrent Market Sales Percents (%)Team Wash +6.0%
DeliveryPapa John’s 1.7%Team USA -2.4%Franchisee’s -5.5%
MenuDay Part
The 3rd Wave!3
RPM Pizza -3% Place
Ticket Price vs Orders Ticket Price vs. Orders
2005 2008800 Orders $10.002005
650 Orders$8.20
The 3rd Wave!4
Cost Per PersonCost Per Person
$10 00$10 00
$8.20
$10.00
$8.00
$10.00
$5.72$6.57
$4.20$4.76
$4 00
$6.00
$4.20
$2.00
$4.00
2003 2007
Delivery Carry-out QSR
2003 2007
The 3rd Wave!5
Change in Eating Habitsg g
Low Medium Highg
Dominos
Little CaesarsRally’s
Applebee’sSubway Cheesecake
FactoryRally s McDonalds
Burger KingPapa Johns
Outback
The 3rd Wave!6
Change in Eating HabitsLow Price Full Meal Customers
$4 10”$4 104-4-4
$5 55 Med; 3 MedSandwiches Feast Pizzas$5.55 Med; 3 Med
$6 Large New Pan Pizza
The 3rd Wave!7
Riding the Wave Riding the Wave
1st Wave 1970’s – 1980’s
T bl
2nd Wave 1990’s - 2006
T bl
3rd Wave 2008 - 2009
Trouble 1992
Trouble 2007 – 2008
The 3rd Wave!
The “Perfect” Storm The Perfect Storm
• Competition = new products & increased sales • Competition = new products & increased sales
• DPZ = behind plan & limited menu
• Restaurant Industry = record high cost increases
• RPM Pizza LLC• RPM Pizza, LLC
- Distracted w/ Pulse roll out
- Down in sales, GM comp., Customer focus and execution
The 3rd Wave!
DPZ Moving Faster Than EverDPZ Moving Faster Than Ever
• Record new product roll-outs Record new product roll outs
- Home Meal Replacements vs. LTO – limited Time Offers Time Offers
• New better and more TV Advertising
The 3rd Wave!
Pizza Industry Changes Pizza Industry Changes
• As costs increases smaller chains sufferAs costs increases, smaller chains suffer
• Store Closings (Starbucks closed 600 stores)
F I i • Fewer Intrusions
The chains that are the largest and execute the best will win
The 3rd Wave!
RPM Pizza, LLC Pl I S l /GM BPlans to Improve Sales/GM Bonuses
LSM PlanPotential
GM Bonus Increase• New Value coupon pricing (Chip Burr)
• Effective LSM: Call’EM all, BTB Promo, Email
GM Bonus Increase1,248
6 240, ,Blast, Store LSM Scheduled activities
• Food – controlling waste – go to under .5% of
6,240
2,002ideal
• Labor scheduler that works 2,496
1 872• Tiger / Guardian reports
• New products starting in August
l l
1,872
9,360
23 218
The 3rd Wave!
Annual Total 23,218
LSM Objectives $5% Sales Increase ($900 wk)
100% Lit CTS’s100% Lit CTS s
100 P d M k i C l d i ll 100% Posted Marketing Calendar in all stores (Who, What, When and Where)
LSM Execution
How to measure Return on Effort?
The 3rd Wave!13
How to measure Return on Effort?
High Impact LSMg p
Hotel Partnerships (Palfrey Polk) $200-1 000/wkHotel Partnerships (Palfrey Polk) $200-1,000/wk
Group Door-hanging $300-500/wk
(Mike Barber & Larry Gaughf)
School Parties (Bill Stafford) $400-900/wkSchool Parties (Bill Stafford) $400 900/wk
School Tours (Cornelius Thomas) $100-1,200/wk
School Nights/Fundraisers (Mike Barber) $400-900/wk
The 3rd Wave!14
LSM ExecutionM b 100Must be 100%
100%
90%
95%
100%
80%
85%
Compliance
70%
75%Compliance
60%
65%
Per 3 Per 4 Per 5 Per 6 Per 7
The 3rd Wave!15
Email BlastsPlan
Act Do1 Off E ilEmail Blasts
• In April we generated sales of about $68 per week per Pulse store through email offers
Study1-Offer Email
g
• Learning: a 7-offer email template generates 50% more revenue than a 1 offer
7-Offer Email
revenue than a 1-offer template.
• RPM Pizza now uses the 7-offer template.
• Learning: We have a list of the top 15 coupons redeemed Top 15 Email Offerstop 15 coupons redeemed.
• We are using this list to improve response in June.
Code Delivery Description Rate
2004 573 Carry Out Special: One full size 10-inch One Topping Pizza for only $4 0.52%9132 218 Three full size 10-inch Pizzas with Unlimited Toppings for $5.55 each 0.46%9100 894 555 Deal, 3 Medium 1 Topping Pizzas for $5 each 0.34%9118 1,444 3 or more Large 1 Topping Pizzas for $7.77 each 0.28%9005 1,981 2 Large 2 Topping Pizzas, 1 Bread side item, 1 Chicken side item and a 2-liter of Coca-Cola(R) 0.25%8310 1,360 Make it a Meal: Your choice of Any Large Pizza, Any 1 Chicken Side and Any 1 Bread Side 0.22%9004 947 2 Large 1 Topping Pizzas and your choice of 1 Chicken side item and a 2-liter of Coca-Cola® 0.21%9002 10,947 2 Medium 2 Topping Pizzas and your choice of 1 Bread side 0.18%9057 1,665 1 Large 1 Topping Pizza with your choice of 1 Chicken side and 2 20 oz. of Coca-Cola(R) 0.18%
The 3rd Wave!16
p p8345 569 1 Medium 1 Topping Crispy Melt Pizza 0.18%5792 1,759 1 Large Any Topping Pizza, your choice of 1 Chicken side item and any 1 Bread side 0.17%9011 1,339 1 Large 1 Topping Pizza 0.15%9000 13,830 2xTuesday 0.14%9119 98,520 1 Medium 2 Topping Pizza and 2 20 ounce Coca-Cola(R) products 0.14%9130 82,569 3 Full Size 10-inch 1 Topping Pizzas and 3 20-ounce Coca-Cola(R) products 0.14%
On-Line Ordering Works!Plan
Act DoOn Line Ordering Works!Study
If we build to 20% online orders and improve coupon response rate by 50%, Email blasts will generate $510 sales revenue per store per week.
$510/wk
20% OLO,
$68/wk4% OLO
20% OLO, Improved coupon selection
The 3rd Wave!17
4% OLO
PD 9 8/11/08>9/07/08SIZE/# TOPPINGS 14" (1) 14" (2-3) 14" (4+) 12" (1) 12" (2-3) 12" (4+) 10" (1) 10" (2-3) 10" (4+) 16" (1) 16" (2-3) 16" (4+)
COST COST COST COST COST COST COST COST COST COST COSTHAND (CHEESE ONLY +2oz) 1.38 2.89HAND (CHEESE STANDARD OZ) 1.13 2.64PEPPERONI 2.53 (PREV PD=$2.44) 1.85 1.36 3.26DOUGH 0.39 0.94CHEESE 1.15 0.89 0.70 0.45 1.40 1.15EXTRA CHEESE 0.57 0.45 0.35 0.70THIN (CHEESE) 2.43PEPPERONI 2.36 1.82 1.32 2.79DOUGH 0.48CHEESE 1.15 0.89 0.70 1.40 1.15EXTRA CHEESE 0.57 0.45 0.35 0.70 0.57DEEP DISH (CHEESE)PEPPERONI 3.68 2.71DOUGHCHEESE 1.15EXTRA CHEESE 0.57
14" (1) 14" (2-3) 14" (4+) 12" (1) 12" (2-3) 12" (4+) 10" (1) 10" (2-3) 10" (4+) 16" (1) 16" (2-3) 10" (4+)PEPPERONI 0.46 0.25 0.34 0.21 0.24 0.14 0.62 0.38HAM 0.57 0.45 0.29 0.42 0.31 0.25 0.29 0.23 0.19 0.74 0.57 0.42BEEF 0.76 0.53 0.34 0.53 0.38 0.30 0.38 0.23 0.15 0.91 0.68 0.45SAUSAGE 0.48 0.34 0.22 0.34 0.24 0.19 0.24 0.14 0.10 0.57 0.43 0.29MUSHROOMS 0.58 0.41 0.23 0.41 0.29 0.18 0.29 0.18 0.15 0.73 0.41 0.32GREEN PEPPER 0.44 0.29 0.18 0.33 0.22 0.15 0.26 0.15 0.11 0.51 0.37 0.29BLACK OLIVES 0.46 0.31 0.19 0.35 0.23 0.15 0.27 0.15 0.12 0.58 0.42 0.31ONIONS 0.34 0.23 0.14 0.26 0.17 0.11 0.20 0.20 0.11 0.40 0.28 0.23PINEAPPLE 0.24 0.17 0.11 0.15 0.12 0.10 0.12 0.08 0.06 0.30 0.19 0.17BACON 0.82 0.60 0.38 0.54 0.38 0.27 0.38 0.27 0.22 1.03 0.76 0.49SPECIALTY PIZZAS 14" 12" 10"
Topping HAND THIN DD HAND THIN DD HAND THIN HAND9 TOPPING EXTRAVAGANZA POMGHSBOC 4.37 4.19 5.52 3.37 3.34 4.23 2.41 2.37 5.90DELUXE FEAST POMSG 3.10 2.92 4.25 2.34 2.31 3.21 1.73 1.69 4.15MEATZZA PIZZA PBSHC 4.06 3.44 4.77 3.10 2.75 3.65 1.93 2.11 5.32ALL AMERICAN FEAST PMSC 3.66 3.49 4.81 2.72 2.69 3.58 1.96 1.91 4.77PEPPERONI FEAST PPC 3.88 3.70 5.03 2.83 2.80 3.69 2.05 2.00 5.02HAWAIIAN FEAST HNC 2.92 2.74 4.07 2.17 2.14 3.04 1.55 1.51 3.79GARDEN FRESH VEGI FEAST MOGRC 3.84 3.54 5.00 2.73 2.70 3.72 2.06 2.01 4.93BACON CHEESEBURGER FEAST KBE 3.18 3.01 4.34 2.39 2.36 3.26 1.69 1.65 4.13TOP 5 TOPPING PIE PSBHM 3.25 3.08 4.40 2.43 2.40 3.29 1.79 1.74BROOKLYN XL PEPPERONI YW 2.44 3.17BROOKLYN XL SAUSAGE YZ 2.41 3.17Gotham City Pizza P =72 2.39
WINGS with RANCH DRESSINGTYPEv SIZE> 10 F.C. % 20 F.C. % 50 100 10 F.C. % 20 F.C. % 10 F.C. % 20 F.C. %
PLAIN 2.90 41.5% 5.81 52.8% 14.52 29.04 2.70 38.6% 5.40 49.1% 3.15 45.0% 6.30 57.3%BBQ 3.01 43.0% 6.02 54.8% 15.04 30.09 2.80 40.1% 5.61 51.0% 3.25 46.5% 6.51 59.2%MILD 2.96 42.3% 5.91 53.8% 14.78 29.56 2.75 39.4% 5.50 50.1% 3.20 45.8% 6.40 58.2%HOT 3.01 43.0% 6.02 54.7% 15.04 30.08 2.80 40.1% 5.61 51.0% 3.25 46.5% 6.51 59.2%
CHICKEN KICKERS with dips 10 F.C. % 20 F.C. % 30 F.C. % Lunch Pies 16"Based 160 pieces per bag 2.44 34.9% 4.87 36.1% 7.31 37.5% CHEESE 2.61 Cheese 3.74
PEPPERONI 2.85 Pepperoni 4.16STIX - Hand Tossed Dough BLEU CHEESE 0.18
W/O WITH RANCH 0.16 Drinks MS LA w 4% taxBREADSTIX 0.58 0.72 CATALINA PAK 0.34 20oz 0.57 0.60CHEESY BREAD 0.86 1.00 MARINARA 0.14 2-LITER 1.13 1.17 Cheese 0.88DESSERT STIX 0.64 0.81 0.17 20oz Water 0.57 0.60 Pepperoni 1.00
6" DD
ICING CUP
16"
55 Wings per bag 60 Wings per bag 50 Wings per bag
PAN PIZZA
SAUCE/ICING
3.23 2.37
1.63 1.200.830.45
0.89 0.64 0.450.45 0.32 0.22
2.15 1.73 1.34
0.54 0.42 0.34
0.89 0.640.45 0.32 0.22 0.57
(cheese Prices change weekly)
2.33 1.762.07 1.51
0.74 0.53
F/Marketing/Shared/RPM Docs/CoPricingRecommendations 5/20/2008 11:04 AM
RPMPLLC PRICING RECOMMENDATIONS BY RPM JR. Updated 9/12/08
RPM PIZZA PRICING & COUPON PLAN
1. Throw out all print w/out coupon code & throw out all print that conflicts with value coupons. 2. Put all 27 value coupons as visible coupons. 3. Disable 2XT (2 for 1) coupons – go to 2TT – “2X Tuesday change to two pizzas, one low price”. 4. Disable all BOGO coupons. 5. Hide all other coupons except 5 phone specials; 444, 555, 777 carryout specials. 6. Track what is used by CSR – tour stores get crew feedback. 7. Have 4 stores test, coupons value as regular price in computer. 8. Goal is to get food percent equal to other stores & sales increase equal to other stores. 9. Get prepared to have computer go to Value Menu – default coupons (step 3 – goal by end of
2008). May/may not go to value menu as menu price (must work at test stores). 3 12” 1T @ $5.55 ea c/o; 3 10” 1T @ $4 ea c/o; 3 14” 1T @ $7.77 ea c/o.
10. We do not want to promote 10” singles for delivery (it will always look like too little food for the final delivery prices).
11. At non‐Little Caesar’s stores, keep 10” 1T @ $4 (or $3.99) as c/o special. Do not emphasize 10”. November move to $4.49; July 2009 to $4.99 .
12. Bread items @ $4.99 (must cut down on the # of FREE bread given away to regular customers already using a value coupon) (BS @ $3.99).
13. Coke – 20 oz $1.49; 2L $2.49. 14. Wings – All stores at $7.99. 15. Lg cheese 1T at same price (encouraged XC by CSR for plain cheese customers). 16. Feast: 10” $10.99; 12” $12.99; 14” $14.99 Extravaganza +$1. 17. Expand feast line (DPLLC) coming – Legends Summer of 2009. 18. Keep 14” Gotham @ $9.99‐ Pull Brooklyn support.
PROPOSED DELIVERY CHARGES 1. July 2008 $2.00. 2. November 2008 increase delivery charge to $2.49. 3. July‐November 2009 increase delivery charge to $2.99. 4. Keep Sandwich @ $4.99 as long as possible. Goal would be to keep at least one sandwich @ $4.99 until January 2010. 5. Will test $5.49 & $5.99 for sandwich prior to any price change on sandwich.
Marketing/Shared/RPM Docs/RecommendedCoupons 5/20/2008 11:14 AM
RECOMMENDED COUPONS PRINT by Richard Mueller, Jr. 5/19/08
1. $5.55 2. 4444 3. $4 c/o (no limit) 4. Lg Brooklyn $9.99 5. BFD & Cinnistix $15.99 (or) Lg Meat (or) Lg Extravaganza + Cinna $ $15.99 6. Lg 1T & wings $16.99 7. Lunch – 2 10” 1T @$7.99 8. 2xT – Two pizzas, one low price 9. CATERING – Lg 777 10. FREE double cheesy bread with any order online.
9/12/08
1. 3 12” 1T & Cinna @ $19.99 (food cost 26.7%) 2. 2 sandwiches, 2 20 oz drinks & 2 chips @ $13.98 (high) 3. 14” Gotham & Cinna @ $12.99 (food cost 25.7%) 4. Value coupons, 1 Topping Good/Bettter/Best 5. Value Coupons 2‐3 toppings Good/Better/Best 6. Sandwich Coupons – Graphic @ $4.99 7. Sandwich Coupons – Sandwich, Chips & Drink @ $6.99 (yes we will deliver +$2) 8. Sandwich Coupons – Sandwich & 10” pizza @ $9.99 = 31.3% FC 9. Sandwich Coupons – 2 Sandwiches & Lg 1T @ $20.99 = 31.3% FC 10. 2X Tuesday – 2 12” 1T @ $10.99; 2 14” 1T @ $13.49 11. Saints Promotion ‐ $5 off a large day after the game
5/16/2008 2:54 PM F:/SHARED/MARKETING/Shared/RPMJrDocs/2xTuesday
AS IS:
Buy Any Pizza at Menu Price & Get a 2nd Pizza of Equal or Lesser Value FREE! 2XT
Food Cost MP $1.71, LGP $2.34 5/18/08 Food Cost:
C/O Del+$2 Get 2 Large, 1 Topping Pizzas for $13.49 34.0% 30.2% Get 2 Medium, 1 Topping Pizzas for $10.99 31.1% 26.3% 32.7% 28.3%
BLENDED FOOD COST=30.5%
CURRENT: $163,500 sales; $51,900 food; 31.7% 98 Stores
SHOULD BE:
Super Savings on Two Pizzas on Tuesday Get 2 Large, 1 Topping Pizzas for $12.99 or Get 2 Medium, 1 Topping Pizzas for $10.99
2TT
Food Cost MP $1.71, LGP $2.34 5/18/08 Food Cost:
C/O Del+$2 Get 2 Large, 1 Topping Pizzas for $12.99 36.0% 31.2% Get 2 Medium, 1 Topping Pizzas for $9.99 34.2% 28.5% 35.1% 29.9%
BLENDED FOOD COST=32.5%
CALL‐EM‐ALL BASIC OFFERS5/19/2008
F.C. F ‐ c/o F ‐ delF $1.25/$3.99 1 10" 1T @ $3.99 c/o ‐ Min 3 Delivery 31.3 26.8F $1.71/$4.99 2 12" cheese @ $3.99 c/o + $1 toppings ‐ 34.2 30.2F $1.71/$3.99 3 12" 1T @ $3.99 c/o ‐ Min 3 Delivery 42.9 36.7F $2.34/$5.99 4 14" 1T @ $5.99 ‐ Min 2 Delivery 39.1 33.5F $2.34/$5.99 5 14" 1T @ $5.99 ‐ Min 3 Delivery 39.1 35.15F $2.34/$6 6 14" 1T @ $6 ‐ Min 2 Delivery 39.1 33.5F $2.34/$6 7 14" 1T @ $6 ‐ Min 3 Delivery 39.1 35.15F $4.68/$13.49 8 Call Mon for Tues ‐ 2x1 Tuesday 34.7 30.2F
LEARNINGS SO FAR: 1 Calls made between 1‐3:30 (start 1‐2:30) 40,000 calls/hour available2 Works best if special is for the following day only3 Female voice, under 30 seconds, mention store by name, caller ID showsthe store, has store phone #, D.P. name @ beginning and end of call.
STILL IN TEST:1 Need to get back to 50 cents/call return on basic calls.2 All phones called every 6 weeks (1/6 per week) (by hubs)
F:\SHARED\MARKETING\Shared\RPM Jr Docs\Call‐Em‐All\Call‐Em‐All Basic Offers 9/23/20084:57 PM
2 All phones called every 6 weeks (1/6 per week) (by hubs)3 Call Tuesday for Wednesday ALL basic calls4 Is minimum 2 better than minimum3 for delivery?5 Best vendor to do work (don't burn out Angie)6 What offer excites customers in markets impacted by Little Caesars?7 Is $5.99 better than $6 (go figure)
ONGOINGNetwork with other franchisees
1 Jason Shifflett ‐ one message all stores2 Dave Wood ‐ Aggressive offer for lost customers. i.e. Free 1T pizza3 Ideas: Could we call later with special automatic the next day?This is Angie with Domino's Pizza, and our records indicate that you received a delivery service of over 40 minutes yesterday. Please accept our apologyand get __________ FREE on your next order. That right, ______ for FREE.a. Free 10" 1T pizzab. Free 2 Literc. Free 12" 1T pizza on orders of $8 or more
4 Call abandoned calls
F:\SHARED\MARKETING\Shared\RPM Jr Docs\Call‐Em‐All\Call‐Em‐All Basic Offers 9/23/20084:57 PM
RPM Pizza LLCSandwich Ideal
Product DNC Code Case Pack PricePrice/ Unit UOM Philly Portion Philly Ideal
Philly Oven Baked Sandwich Ideal Food Cost 4.99Parbake Sandwich Rolls 3343 4-6 packs / case $12.49 $0.52 ea 1 $0.5212x12 Parchment 2368 1000 sheets / case $28.38 $0.03 ea 2 $0.06Phase 3124 3 gallons / case $34.33 $0.09 oz 0.1 $0.01American Cheese 3035 20# case $54.29 $0.08 slice 2 $0.17Philly Steak Topping 2944 6# case $24.28 $0.25 oz 2.5 $0.63Fresh Mushrooms 2975 24oz bag $2.80 $0.12 oz 0.75 $0.09Slice Provolone Cheese 2941 10 # / case $29.31 $0.09 slice 3 $0.27Onions 3054 2 # bag $3.63 $0.11 oz 0.50 $0.06Green Peppers 3044 2 # bag $4.68 $0.15 oz 0.50 $0.07Sandwich Liner 3336 200 / bundle $7.00 $0.04 ea 1 $0.04Sandwich Box 3344 200 / case $23.32 $0.12 ea 1 $0.12
Philly Steak $2.03 41%
Chicken Bacon Ranch Oven Baked Sandwich Ideal Food CostParbake Sandwich Rolls $0.52 ea 1 $0.5212x12 Parchment $0.03 ea 2 $0.06Phase $0.09 oz 0.1 $0.01Shredded Provolone Cheese 3145 12 # / case $30.37 $0.16 oz 0.5 $0.08Chicken 3333 2 # bag $8.20 $0.26 oz 2.5 $0.64Bacon 1327 10 # / case $34.84 $0.22 oz 0.75 $0.16Ranch Dressing 3358 8/24 oz bags / case $14.26 $0.07 oz 1 $0.07Slice Provolone Cheese $0.09 slice 3 $0.27Sandwich Liner $0.04 ea 1 $0.04Sandwich Box $0.12 ea 1 $0.12
Chicken Bacon Ranch $1.97 39%
Chicken Parm Oven Baked Sandwich Ideal Food CostParbake Sandwich Rolls $0.52 ea 1 $0.5212x12 Parchment $0.03 ea 2 $0.06Phase $0.09 oz 0.1 $0.01Shredded Provolone Cheese $0.16 oz 0.5 $0.08Pizza Sauce RTU 2984 6/112oz bags/case $17.92 $0.03 oz 1 $0.03Chicken $0.26 oz 2.5 $0.64Shredded Parm/Asiago Cheese 3347 1 # bag $3.95 $0.25 oz 1 $0.25Slice Provolone Cheese $0.09 slice 3 $0.27Sandwich Liner $0.04 ea 1 $0.04Sandwich Box $0.12 ea 1 $0.12
Chicken Parm RTU $2.01 40%Pizza Sauce concentrate 1760 6/108oz bags/case $25.93 $0.02 oz 1 $0.02
Chicken Parm CON $2.00 40%Italian Oven Baked Sandwich Ideal Food CostParbake Sandwich Rolls $0.52 ea 1 $0.5212x12 Parchment $0.03 ea 2 $0.06Phase $0.09 oz 0.1 $0.01Shredded Provolone Cheese $0.16 oz 1.5 $0.24XL Pepperoni 3194 10 # / case $34.10 $0.04 slice 6 $0.21Ham 1046 10 # / case $24.19 $0.01 slice 14 $0.18Salami 3348 1 # bag $3.10 $0.03 slice 3 $0.10Slice Provolone Cheese $0.09 slice 3 $0.27Onions $0.11 oz 0.50 $0.06Green Peppers $0.15 oz 0.50 $0.07Banana Peppers 3107 8-80 oz pouches / case $34.20 $0.10 oz 0.25 $0.03Sandwich Liner $0.04 ea 1 $0.04Sandwich Box $0.12 ea 1 $0.12
Italian $1.89 38%Misc sandwich sidesDoritos 3355 50 / 1.0oz bags /case $12.48 $0.25 ea 1 $0.25Potato Chips 3349 50 / 1.0oz bags /case $12.48 $0.25 ea 1 $0.25Marinara Dipping Cup 2689 120/case $16.67 $0.14 ea 1 $0.14Italian Dressing Dipping Cup 3340 120/case $20.30 $0.17 ea 1 $0.17Parm/Peppercorn Dipping Cup 2820 120/case $21.18 $0.18 ea 1 $0.18Ranch Dipping Cup 2775 120/case $19.43 $0.16 ea 1 $0.16
9/23/2008
5232 25 21.5 21.5 0.0 0.0 0.0 0.0 0.0 0.05908 29 22.0 22.0 0.0 0.0 0.0 0.0 0.0 0.05252 30 22.2 22.2 0.0 0.0 0.0 0.0 0.0 0.05282 40 22.3 22.3 0.0 0.0 0.0 0.0 0.0 0.05800 17 22.5 22.5 0.0 0.0 0.0 0.0 0.0 0.03065 49 22.6 22.6 0.0 0.0 0.0 0.0 0.0 0.05907 28 22.8 22.8 0.0 0.0 0.0 0.0 0.0 0.05914 48 23.1 23.1 0.0 0.0 0.0 0.0 0.0 0.05226 26 23.3 23.3 0.0 0.0 0.0 0.0 0.0 0.05954 22 23.5 23.5 0.0 0.0 0.0 0.0 0.0 0.05903 41 23.6 23.6 0.0 0.0 0.0 0.0 0.0 0.05905 44 24.2 24.2 0.0 0.0 0.0 0.0 0.0 0.05913 27 24.3 24.3 0.0 0.0 0.0 0.0 0.0 0.05263 45 24.4 24.4 0.0 0.0 0.0 0.0 0.0 0.05912 40 24.5 24.5 0.0 0.0 0.0 0.0 0.0 0.05934 29 25.2 25.2 0.0 0.0 0.0 0.0 0.0 0.05916 41 25.3 25.3 0.0 0.0 0.0 0.0 0.0 0.05833 22 25.5 25.5 0.0 0.0 0.0 0.0 0.0 0.05285 46 25.7 25.7 0.0 0.0 0.0 0.0 0.0 0.05962 24 26.3 26.3 0.0 0.0 0.0 0.0 0.0 0.05290 40 26.3 26.3 0.0 0.0 0.0 0.0 0.0 0.05277 33 26.5 26.5 0.0 0.0 0.0 0.0 0.0 0.05909 40 26.6 26.6 0.0 0.0 0.0 0.0 0.0 0.03064 43 26.7 26.7 0.0 0.0 0.0 0.0 0.0 0.05990 17 26.9 26.9 0.0 0.0 0.0 0.0 0.0 0.05933 37 27.2 27.2 0.0 0.0 0.0 0.0 0.0 0.05210 34 28.0 28.0 0.0 0.0 0.0 0.0 0.0 0.05832 30 28.0 28.0 0.0 0.0 0.0 0.0 0.0 0.05973 24 28.4 28.4 0.0 0.0 0.0 0.0 0.0 0.05902 53 28.5 28.5 0.0 0.0 0.0 0.0 0.0 0.05272 44 29.2 29.2 0.0 0.0 0.0 0.0 0.0 0.05831 24 29.2 29.2 0.0 0.0 0.0 0.0 0.0 0.03057 35 30.5 30.5 0.0 0.0 0.0 0.0 0.0 0.05929 31 31.5 31.5 0.0 0.0 0.0 0.0 0.0 0.05910 33 32.0 32.0 0.0 0.0 0.0 0.0 0.0 0.05287 66 33.8 33.8 0.0 0.0 0.0 0.0 0.0 0.05901 40 33.9 33.9 0.0 0.0 0.0 0.0 0.0 0.03054 37 35.5 35.5 0.0 0.0 0.0 0.0 0.0 0.05270 38 35.6 35.6 0.0 0.0 0.0 0.0 0.0 0.05968 39 36.4 36.4 0.0 0.0 0.0 0.0 0.0 0.05932 25 41.8 41.8 0.0 0.0 0.0 0.0 0.0 0.05371 43 41.9 41.9 0.0 0.0 0.0 0.0 0.0 0.05926 66 47.7 47.7 0.0 0.0 0.0 0.0 0.0 0.05829 28 49.5 49.5 0.0 0.0 0.0 0.0 0.0 0.05970 69 99.1 99.1 0.0 0.0 0.0 0.0 0.0 0.0Stores Week Mon Tue Wed Thu Fri Sat Sun
PCAR 74 11.9 11.9 0.0 0.0 0.0 0.0 0.0 0.0DLIU 113 12.7 12.7 0.0 0.0 0.0 0.0 0.0 0.0SVIC 39 12.8 12.8 0.0 0.0 0.0 0.0 0.0 0.0CRAN 171 13.4 13.4 0.0 0.0 0.0 0.0 0.0 0.0SSCH 126 14.6 14.6 0.0 0.0 0.0 0.0 0.0 0.0ABIA 53 15.4 15.4 0.0 0.0 0.0 0.0 0.0 0.0VLAU 137 15.5 15.5 0.0 0.0 0.0 0.0 0.0 0.0ELAW 143 15.6 15.6 0.0 0.0 0.0 0.0 0.0 0.0FGON 91 16.1 16.1 0.0 0.0 0.0 0.0 0.0 0.0SROB 144 16.2 16.2 0.0 0.0 0.0 0.0 0.0 0.0GDAN 127 17.1 17.1 0.0 0.0 0.0 0.0 0.0 0.0JFAI 153 17.3 17.3 0.0 0.0 0.0 0.0 0.0 0.0NOLI 42 17.5 17.5 0.0 0.0 0.0 0.0 0.0 0.0CBRA 58 18.6 18.6 0.0 0.0 0.0 0.0 0.0 0.0KMIL 196 18.6 18.6 0.0 0.0 0.0 0.0 0.0 0.0KSCH 121 18.9 18.9 0.0 0.0 0.0 0.0 0.0 0.0SMCC 306 20.4 20.4 0.0 0.0 0.0 0.0 0.0 0.0CTHO 38 23.6 23.6 0.0 0.0 0.0 0.0 0.0 0.0BREA 149 25.6 25.6 0.0 0.0 0.0 0.0 0.0 0.0RJOS 41 26.0 26.0 0.0 0.0 0.0 0.0 0.0 0.0LGAU 314 26.8 26.8 0.0 0.0 0.0 0.0 0.0 0.0JPAT 140 27.6 27.6 0.0 0.0 0.0 0.0 0.0 0.0JGIL 253 28.3 28.3 0.0 0.0 0.0 0.0 0.0 0.0MBAR 140 28.9 28.9 0.0 0.0 0.0 0.0 0.0 0.0ABRA 202 36.2 36.2 0.0 0.0 0.0 0.0 0.0 0.0Areas Week Mon Tue Wed Thu Fri Sat Sun
PCAR 245 12.9 12.9 0.0 0.0 0.0 0.0 0.0 0.0CBUR 505 15.8 15.8 0.0 0.0 0.0 0.0 0.0 0.0RTED 510 17.6 17.6 0.0 0.0 0.0 0.0 0.0 0.0SMCC 306 20.4 20.4 0.0 0.0 0.0 0.0 0.0 0.0KSCH 414 20.6 20.6 0.0 0.0 0.0 0.0 0.0 0.0GMAG 760 22.3 22.3 0.0 0.0 0.0 0.0 0.0 0.0HMIT 467 23.2 23.2 0.0 0.0 0.0 0.0 0.0 0.0SPEC 164 32.2 32.2 0.0 0.0 0.0 0.0 0.0 0.0
Regions Week Mon Tue Wed Thu Fri Sat Sun
RPM 19.3 19.3 0.0 0.0 0.0 0.0 0.0 0.0
RPM Sandwiches / $1000 Roy Sales Ranking Numbers are reported as # of Sandwiches ordered per $1000 in Royalty Sales
Monday, September 22, 2008
SandwichRanking Generated 9/23/2008 12:36:24 PM by REPORTS\kathyk Page 1 of 1
3012 13 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.03007 17 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.03011 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.05219 48 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.03032 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.03027 11 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.05215 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.05293 4 4.3 4.3 0.0 0.0 0.0 0.0 0.0 0.03031 8 4.7 4.7 0.0 0.0 0.0 0.0 0.0 0.05267 15 7.2 7.2 0.0 0.0 0.0 0.0 0.0 0.05245 10 7.9 7.9 0.0 0.0 0.0 0.0 0.0 0.05922 9 7.9 7.9 0.0 0.0 0.0 0.0 0.0 0.05248 9 8.8 8.8 0.0 0.0 0.0 0.0 0.0 0.05244 12 9.6 9.6 0.0 0.0 0.0 0.0 0.0 0.05208 16 9.8 9.8 0.0 0.0 0.0 0.0 0.0 0.05257 24 9.8 9.8 0.0 0.0 0.0 0.0 0.0 0.05241 28 10.2 10.2 0.0 0.0 0.0 0.0 0.0 0.05200 26 10.5 10.5 0.0 0.0 0.0 0.0 0.0 0.05233 23 10.8 10.8 0.0 0.0 0.0 0.0 0.0 0.05228 15 11.2 11.2 0.0 0.0 0.0 0.0 0.0 0.05240 39 11.3 11.3 0.0 0.0 0.0 0.0 0.0 0.05217 18 11.6 11.6 0.0 0.0 0.0 0.0 0.0 0.05246 20 11.8 11.8 0.0 0.0 0.0 0.0 0.0 0.05249 17 12.0 12.0 0.0 0.0 0.0 0.0 0.0 0.03047 17 12.1 12.1 0.0 0.0 0.0 0.0 0.0 0.05261 20 12.2 12.2 0.0 0.0 0.0 0.0 0.0 0.03046 21 12.3 12.3 0.0 0.0 0.0 0.0 0.0 0.05204 18 12.6 12.6 0.0 0.0 0.0 0.0 0.0 0.05243 35 12.6 12.6 0.0 0.0 0.0 0.0 0.0 0.05936 13 12.9 12.9 0.0 0.0 0.0 0.0 0.0 0.05239 27 12.9 12.9 0.0 0.0 0.0 0.0 0.0 0.05256 20 13.0 13.0 0.0 0.0 0.0 0.0 0.0 0.03062 13 13.0 13.0 0.0 0.0 0.0 0.0 0.0 0.03053 10 13.1 13.1 0.0 0.0 0.0 0.0 0.0 0.03048 33 13.2 13.2 0.0 0.0 0.0 0.0 0.0 0.05230 18 13.5 13.5 0.0 0.0 0.0 0.0 0.0 0.05931 16 13.7 13.7 0.0 0.0 0.0 0.0 0.0 0.05935 20 13.7 13.7 0.0 0.0 0.0 0.0 0.0 0.05213 16 13.9 13.9 0.0 0.0 0.0 0.0 0.0 0.05921 13 14.0 14.0 0.0 0.0 0.0 0.0 0.0 0.05925 20 14.1 14.1 0.0 0.0 0.0 0.0 0.0 0.03016 19 14.1 14.1 0.0 0.0 0.0 0.0 0.0 0.05258 18 14.1 14.1 0.0 0.0 0.0 0.0 0.0 0.05276 13 14.3 14.3 0.0 0.0 0.0 0.0 0.0 0.05906 13 14.3 14.3 0.0 0.0 0.0 0.0 0.0 0.03059 24 14.3 14.3 0.0 0.0 0.0 0.0 0.0 0.05984 11 14.4 14.4 0.0 0.0 0.0 0.0 0.0 0.05251 32 14.5 14.5 0.0 0.0 0.0 0.0 0.0 0.05266 55 15.0 15.0 0.0 0.0 0.0 0.0 0.0 0.03045 25 15.1 15.1 0.0 0.0 0.0 0.0 0.0 0.03038 17 15.2 15.2 0.0 0.0 0.0 0.0 0.0 0.05281 16 15.3 15.3 0.0 0.0 0.0 0.0 0.0 0.05224 20 15.4 15.4 0.0 0.0 0.0 0.0 0.0 0.05235 26 15.5 15.5 0.0 0.0 0.0 0.0 0.0 0.05205 28 15.5 15.5 0.0 0.0 0.0 0.0 0.0 0.03037 26 15.8 15.8 0.0 0.0 0.0 0.0 0.0 0.05939 13 16.3 16.3 0.0 0.0 0.0 0.0 0.0 0.03044 18 16.4 16.4 0.0 0.0 0.0 0.0 0.0 0.05262 27 16.5 16.5 0.0 0.0 0.0 0.0 0.0 0.05209 28 16.5 16.5 0.0 0.0 0.0 0.0 0.0 0.05211 34 16.6 16.6 0.0 0.0 0.0 0.0 0.0 0.05911 34 16.6 16.6 0.0 0.0 0.0 0.0 0.0 0.05242 32 16.6 16.6 0.0 0.0 0.0 0.0 0.0 0.05292 19 16.8 16.8 0.0 0.0 0.0 0.0 0.0 0.05274 27 16.8 16.8 0.0 0.0 0.0 0.0 0.0 0.05202 16 16.9 16.9 0.0 0.0 0.0 0.0 0.0 0.05259 21 16.9 16.9 0.0 0.0 0.0 0.0 0.0 0.05238 25 17.1 17.1 0.0 0.0 0.0 0.0 0.0 0.05269 15 17.2 17.2 0.0 0.0 0.0 0.0 0.0 0.05273 29 17.3 17.3 0.0 0.0 0.0 0.0 0.0 0.05260 18 17.4 17.4 0.0 0.0 0.0 0.0 0.0 0.05237 24 17.7 17.7 0.0 0.0 0.0 0.0 0.0 0.03036 20 18.2 18.2 0.0 0.0 0.0 0.0 0.0 0.05917 22 18.4 18.4 0.0 0.0 0.0 0.0 0.0 0.05225 25 18.4 18.4 0.0 0.0 0.0 0.0 0.0 0.05218 27 19.2 19.2 0.0 0.0 0.0 0.0 0.0 0.05247 19 19.2 19.2 0.0 0.0 0.0 0.0 0.0 0.05201 28 19.5 19.5 0.0 0.0 0.0 0.0 0.0 0.05920 33 19.6 19.6 0.0 0.0 0.0 0.0 0.0 0.03055 26 19.6 19.6 0.0 0.0 0.0 0.0 0.0 0.05288 37 20.0 20.0 0.0 0.0 0.0 0.0 0.0 0.05236 30 20.1 20.1 0.0 0.0 0.0 0.0 0.0 0.05289 27 20.9 20.9 0.0 0.0 0.0 0.0 0.0 0.0Stores Week Mon Tue Wed Thu Fri Sat Sun
Operation Destroy Little Caesar’sLittle Caesar’s
Goals And Objecti esGoals And Objectives
To Close The New Little Caesars That Opened In The Jacksonville Market
To Delay Or Stop Future Growth Of Little Caesars In The Jacksonville Market
To Increase Sales/Orders Without Decreasing Store Profitability In Test Store
Goals And Objectives ContinuedGoals And Objectives Continued To See If Heavily Discounted Carry Out Prices Could Be A Long Term Profitable WayPrices Could Be A Long Term Profitable Way Of Doing Business
Could The Store End Up Achieving Greater Sales And Profit Results Before The Little Caesars Open
Could We Close Down Other Competitors In The Area And Re-Strengthen Our Fortress In The Market
Goals And Objectives ContinuedGoals And Objectives Continued
Re-Energize Manager And Team Members To Attack And Out Perform The Competition A d Wi I Th M k t PlAnd Win In The Market Place
&Re-Establish & Increase Manager’s Bonus Prior To The Opening Of Little Caesars
Period Results 4901 Lil Caesar's Opens $5 Maintained
Period 8, 2005 Period 9, 2005 Period 2, 2006ROYALTY SALESROYALTY SALES Net Sales: 78,645 100.0% 63,686 100.0% 78,497 100.0% (Coupons & Lates): 0.0% 0.0% 0.0%TOTAL ROYALTY SALES 78,645 100.0% 63,686 100.0% 78,497 100.0%KEYS = (Food+V.Wage+Mgr+Mileage) 52.7% 56.5% 56.5%
AWUS 19,661 15,922 19,624 20% Drop in AWUS
All Labor % (Mgr + Variablr) 19.9% 23.5% 20.2%
STORE VARIABLE COSTS Cost Of Food Sales: 23,558 30.0% 19,001 29.8% 26,541 33.8% Variable Wages: 13,246 16.8% 12,550 19.7% 13,471 17.2% Other Compensation: 2,377 3.0% 1,378 2.2% 1,919 2.4% Payroll Taxes: 1,887 2.4% 1,528 2.4% 1,884 2.4% Workers' Compensation: 1,494 1.9% 1,210 1.9% 1,491 1.9% Delivery Expense: 2,245 2.9% 2,042 3.2% 1,971 2.5% Advertising Expense: 6,685 8.5% 5,413 8.5% 6,672 8.5% Supplies Expense: 551 0.7% 446 0.7% 549 0.7% Royalties Expense: 4,325 5.5% 3,503 5.5% 4,317 5.5%TOTAL VARIABLE COSTS 56,369 71.7% 47,071 73.9% 58,816 74.9%
CONTRIBUTION MARGIN 22,276 28.3% 16,615 26.1% 19,681 25.1%
STORE FIXED OPERATING COSTS Telephone & Utilities: 1,950 2.5% 1,950 3.1% 1,950 2.5% Real Estate Rent: 1,605 2.0% 1,605 2.5% 1,605 2.0% Equipment Leases 0.0% 0.0% 0.0% Repairs & Maintenance: 550 0.7% 550 0.9% 550 0.7% Professional Service Fees: 200 0.3% 200 0.3% 200 0.3% Computer Expenses: 90 0.1% 90 0.1% 90 0.1% Other Taxes 310 0.4% 310 0.5% 310 0.4% Group Health Insurance: 0.0% 0.0% 0.0% Store Insurance: 1,000 1.3% 1,000 1.6% 1,000 1.3%
Manager Wages: 2 400 3 1% 2 400 3 8% 2 400 3 1% Manager Wages: 2,400 3.1% 2,400 3.8% 2,400 3.1% Other Expenses: 700 0.9% 700 1.1% 700 0.9% Storage: - 0.0% - 0.0% - 0.0%TOTAL FIXED OPERATING COSTS 8,805 11.2% 8,805 13.8% 8,805 11.2%
STORE EBITDA 13,471 17.1% 7,810 12.3% 10,876 13.9%
Carry-Out Sales (Total Avg. Weekly) 3,912 3,228 5,849 Delivery Sales (Total Avg. Weekly) 16,947 13,556 15,203 y ( g y) , , ,
Profit Gain - Increase in Commissary purchases / Rebates for unitProfit Gain - Worker's Comp as to more Restaurant Wages vs. Driver w agesProfit Loss - Increase in volume Utilities & Add'l phone line for C/O credit cardProfit ? - Store Insurance - currently being charged on Driver payroll - This should be a w ash or a profit gainProfit Loss - Bought new triple deck BOFI Ovens (570's size) to replace double M/M 570's -- But traded these in a new store that w e are buildingProfit Loss - New Hot box for carry-out pizzasProfit ? - Launch print/marketing i.e.: Vinyl's, cards, print etc.
Awus GraphpAwus
20 000
21,000
19,000
20,000
17,000
18,000Awus
15 000
16,000
15,000Period 6,
2005Period 7,
2005Period 8,
2005Period 9,
2005Period 10,
2005Period 11,
2005Period 12,
2005Period 13,
2005Period 1,
2006Period 2,
2006
Labor GraphLabor
23.0%
24.0%
21.0%
22.0%
labor
19.0%
20.0%
18.0%Period 6,
200Period 7,
200Period 8,
200Period 9,
200Period 10,
200Period 11,
200Period 12,
200Period 13,
200Period 1,
2006Period 2,
20062005 2005 2005 2005 2005 2005 2005 2005 2006 2006
Food Graph pFood
35.0%36.0%
32.0%33.0%34.0%
Food
29 0%30.0%31.0%
28.0%29.0%
Period 6, Period 7, Period 8, Period 9, Period 10, Period 11, Period 12, Period 13, Period 1, Period 2,2005 2005 2005 2005 2005 2005 2005 2005 2006 2006
Mileage Graph
Delivery
3.4%3.6%
2.8%3.0%3.2%
Delivery
2 2%2.4%2.6%2.8% Delivery
2.0%2.2%
Period 6, Period 7, Period 8, Period 9, Period 10, Period 11, Period 12, Period 13, Period 1, Period 2,2005 2005 2005 2005 2005 2005 2005 2005 2006 2006
EBITDA $EBITDA $EBITDA $EBITDA $
14 00015,000
11,00012,00013,00014,000
EBITDA $
8,0009,000
10,00011,000 EBITDA $
6,0007,000
Period 6, Period 7, Period 8, Period 9, Period 10, Period 11, Period 12, Period 13, Period 1, Period 2,2005 2005 2005 2005 2005 2005 2005 2005 2006 2006
EBITDA %EBITDA %EBITDA %
17 0%18.0%
15.0%16.0%17.0%
12 0%13.0%14.0% EBITDA %
10.0%11.0%12.0%
P i d 6 P i d 7 P i d 8 P i d 9 P i d 10 P i d 11 P i d 12 P i d 13 P i d 1 P i d 2Period 6,2005
Period 7,2005
Period 8,2005
Period 9,2005
Period 10,2005
Period 11,2005
Period 12,2005
Period 13,2005
Period 1,2006
Period 2,2006
Carr O t SalesCarry Out SalesCarry OutCarry Out
6,5007,000
4 5005,0005,5006,0006,500
Carr O t
3,0003,5004,0004,500 Carry Out
2,0002,500
Period 6, Period 7, Period 8, Period 9, Period 10, Period 11, Period 12, Period 13, Period 1, Period 2,2005 2005 2005 2005 2005 2005 2005 2005 2006 2006
Deli er SalesDelivery SalesDelivery
18,000
16,000
17,000
14,000
15,000 Delivery
12,000
13,000
P i d 6 P i d 7 P i d 8 P i d 9 P i d 10 P i d 11 P i d 12 P i d 13 P i d 1 P i d 2Period 6,2005
Period 7,2005
Period 8,2005
Period 9,2005
Period 10,2005
Period 11,2005
Period 12,2005
Period 13,2005
Period 1,2006
Period 2,2006
Order CountOrder Count4901 ORDERS
1 2001,3001,4001,500
800900
1,0001,1001,200
400500600700800
200300400
2005 Tot Orders 2005 Del Orders 2005 C/O Orders2006 Tot Orders 2006 Del Orders 2006 C/O Orders
Ticket SalesTicket Sales4901 TICKETS
22.50
25.00
17.50
20.00
10 00
12.50
15.00
7.50
10.00
1-1 1-4 2-3 3-2 4-1 4-4 5-3 6-2 7-1 7-4 8-3 9-2 10-1
10-4
11-3
12-2
13-1
13-4
1 1 1 1 1 1
2005 AVG Ticket 2005 Del Ticket 2005 C/O Ticket2006 AVG Ticket 2006 Del Ticket 2006 C/O Ticket
Sales4901 SALES
26,000
20,00022,00024,00026,000
12 00014,00016,00018,000
6,0008,000
10,00012,000
2,0004,000
2005 Tot Sales 2005 Del Sales 2005 C/O Sales2006 Tot Sales 2006 Del Sales 2006 C/O Sales
Before Our Banner’s
$5 Carry Out Bannery
Box Truck With Banner
New Custom C O T Li hCarry-Out Trans Lights
Any Way PizzaAny Way Pizza
Bread SpecialsBread Specials
Large SpecialLarge Special
Chicken SpecialChicken Special
Front Counter With Wallet Cards And Windshield Clings
Installation of Hot Boxes
Customers Can See “Our Always Hot – Always Fresh Pizza’s”
A Separate Credit Card M hi F F S iMachine For Faster Service
New Triple BOFI Ovens To pHandle Volume
CompetitionCompetition
5/26/2008 Phone call with Chip Bialzik
Miles from store Small0‐5,000 5‐10,000 10‐15,000 15‐20,000 20,000+
0‐1 102 104 97 67 681‐2 112 95 73 63 442‐3 97 50 68 59 343+ 92 26
WHAT THEY FOUND1. Most stores are located in the heart of their area and address go down as one drivesaway from the store.2. Smaller towns have less competition.3. There is a natural gravity to a store:Customers will think of the closest one first for awareness & convenience4. As he recalls, carryout customers seem to have steady penetration within 1/2 or 3 milesfrom the store. More important is traffic flow; i.e., is it on my way home, is it easy to get in & out of, etc.
Sales per household per week
9/23/20085:04 PM F:\SHARED\MARKETING\Shared\RPM Jr Docs\ChipBialzikCall5‐08
NEED TO UNDERSTAND WHERE OUR CUSTOMERS ARE COMING FROM
3 Mile Ring 4 Mile Ring
A 1 MB 2M‐AC 3M ‐ A‐BD 4M ‐ A‐B‐C
Average DP store RPMPLLC 9223 HH @ 25 sq mi
3 Mile Ring H.H. H.H. H.H.1 1²∏‐1∏=1∏ 1333 1000 667
A
BC
D
A
BC
F:\SHARED\MARKETING\Shared\RPM Jr Docs\CustomerRadiusReport 5:06 PM9/23/2008
1 1 ∏ 1∏ 1∏ 1333 1000 6672 2²∏‐(4‐1)∏=3∏ 4000 3000 2000
28.3 sq mi 3 3²∏9‐4∏=5∏ 7667 5000 383312000 9000 6000
4 Mile Ring H.H. H.H. H.H.1² 1 1 750 562 3752²∏ 4∏ 3 2250 1688 21253²∏ 9∏ 5 3750 2813 1875
50.3 sq mi 4²∏ 16 7 5150 3937 2625HOUSES 12000 9000 6000
total # Penetration
1. Is c/o far away or close customer (?) W X%2. Is del. Far away or close customers (?) Y Z%
F:\SHARED\MARKETING\Shared\RPM Jr Docs\CustomerRadiusReport 5:06 PM9/23/2008
5/20/2008 10:40 AM F:/SHARED/MARKETING/shared/RPM Jr Docs/Effective LSM
EFFECTIVE LOCAL STORE MARKETING
ONE MAN HOUR:
60 Doorhangers out in neighborhood 100 D.H. apartments 180 Windshielders out ‐ shopping center post‐it notes 60 Business tape (late night) w/ gas 1 Visit school & talk with office people 2 Visit hotels & talk with front desk
HOW MUCH CAN BE DONE IN ONE HOUR (?) WHAT IS THE MOST EFFECTIVE (?)
WHAT IS THE MOST EFFECTIVE SPEND(?) COST EFFECTIVE MARKETING BASICS
1. CSR Upsell 2. Reasonable pricing so as not to encourage CSR to downsell. 3. CSR wizard reports on upsell percentages. Who is best? 4. Turn calls into orders – study lost calls – what happened? About 45% of calls turn into orders.
5/20/2008 10:34 AM F:/SHARED/MARKETING/Shared/RPM Jr Docs/LC Intrusion Learnings
WHAT DOES L.C. STAND FOR? LITTLE CAEASAR’S INTRUSION LEARNINGS
1. Lg Pizza @ $5.50 – no limit everyday carryout. 2. Ready to go – no phone lines 3. Limited locations, but growing
DOMINO’S PIZZA STRENGTHS
A. Delivery B. Variety (only 20% want 1‐T large pepperoni pizzas) C. We have closer located stores for carryout/60% have pickup windows
WHAT HAVE WE TESTED?
1. Jackson – Blast with billboards & TV Lg 1T @$5. a. DP delivery went to carryout b. Profits dropped c. Manager bonus down d. H.T. pizza does not hold well (even in heat box) e. Order counts went up ☺
RESULTS: We pulled within 6 months
2. Jackson – Push 2 for 1 carryout – Results fair a. 2 – 12” 1T $$10.99; 2 – 14” 1T @ $13.49
3. Jackson new test ‐ $7.99 unlimited, 2nd $5.99 large unlimited (test) (no double portions) Will deliver 1 pie.
We feel like Edison with the light bulb. As we test and fail, we get closer to an ultimate solution!
OTHER IDEAS:
Jason Shifflett #1 1. Engineer a product we can call a large that we can sell profitably on carryout for $5.50. 2. What are exciting call‐em‐all offers to L.C. customer?
Competitor instruction plan w/in 1 mile ring around L.C. store. 1. Pull by income over $60K, DM customer – direct mail 50% and door hand 50%. 2. Take off delivery customer (MVP) only off of DM.
WK 1 – 1 MI WK 5 – OFF WK 9 ‐ OFF WK2 – 1 MI WK 6 – 1 MI WK10 – 1MI WK3 – 1 MI WK 7 – OFF WK11 ‐ OFF WK4 – 1MI WK 8 – 1 MI WK12 – 1MI
Aspen - March 2006Littl C Att k PlLittle Caesars Attack Plan
Operational Sharing
Building a 5 Star World Class Great Company!
Good to GreatGood to Great
Building a 5 Star, World Class, Great Company!
Little CaesarsLittle Caesars
• How many Franchisees have had a LC open in How many Franchisees have had a LC open in the past year?
• Are they doing the $5 Hot N Ready?• Are they doing the $5 Hot-N-Ready?
• Did they impact your store?
Good to GreatGood to Great
Little Caesars $5 PlanLittle Caesars $5 Plan
• Build visible modern looking storesBuild visible modern looking stores
• Use minimum topping
Ch l i• Charge a low price
• Shaker board $5 message daily
• Under top $5 pizzas
• Have the pizzas ready when the Customer Have the pizzas ready when the Customer walks in
Good to GreatGood to Great
Little Caesars $5 Pizza –26 P i’26 Pepperoni’s
Good to GreatGood to Great
LC Hot-N-ReadyLC Hot N Ready
Good to GreatGood to Great
Preventative LC PlanPreventative LC Plan
• Do something now so they will not want to ever come Do something now so they will not want to ever come in to your area
• Don’t be afraid to do drop your pants pricing!p y p p g
• Insert full drop $5 newspaper inserts every 12 weeks
• Give store 2000 flyers to be put out Sunday – Monday Give store 2000 flyers to be put out Sunday Monday @ 5:00 PM
• Shaker board daily 4:30 – 6:00 Monday – Thursdayy y y
• Have specials for the weekend
• Use the Free Medium Pizza promo Once a year
Good to GreatGood to Great
Use the Free Medium Pizza promo Once a year
Original $5 Promo – Insert FrontOriginal $5 Promo Insert Front
Good to GreatGood to Great
Original $5 Promo - BackOriginal $5 Promo Back
Good to GreatGood to Great
Current $5 Insert - FrontCurrent $5 Insert Front
Good to GreatGood to Great
Current $5 Insert - BackCurrent $5 Insert Back
Good to GreatGood to Great
Store Flyers (2000 per store)Store Flyers (2000 per store)
Good to GreatGood to Great
Domino’s Pizza Ready Now!Domino s Pizza Ready Now!
Good to GreatGood to Great
New Test ItemsNew Test Items
• Hot and Fast Wednesday’s – No results as of Hot and Fast Wednesday s No results as of yet
Good to GreatGood to Great
Hot & Fast Button for TeamHot & Fast Button for Team
Good to GreatGood to Great
Hot & Fast LabelHot & Fast Label
Good to GreatGood to Great
Hot & Fast Post it NotesHot & Fast Post it Notes
Good to GreatGood to Great
Free vs. LC $5Free vs. LC $5
Good to GreatGood to Great
Marketing/Shared/RPMJrDocs/LCPizzaCarryout 5/20/2008 4:44 PM
DOMINO’S PIZZA L.C. PIZZA FOR CARRYOUT (LOW COST)
12” pizzas cooked in 14” pan Using 12” sauce & cheese portions & 32‐36 pepperonis Spray butter on pan bottom & sides where dough touches pan Use rolling pin to stretch out dough Proof for 2 hours Sauce/cheese/topping Bake may/may not require longer time to bake Need to use thinner 14” pan Ideal is 14” cheese ring
Call it L.C. Pizza ( i.e. Low Cost Pizza)\
Our Low Cost Carryout Pizza (only $5.50 Lg)
READY NOW!