Winning with KFC Technology Robert Brown – Technology Capability Builder

Outline/Agenda MERIT project overview Pre-Install Go-live Post-Install Excelling with MERIT tools & ARL reports Scorecard, Labor, Food Cost, Shift Accountability Keeping Honest people Honest with XBR Introduction to available reports

TCB Support Overview 8 Weeks Out 6 - 4 Weeks Out Technology Capability Builder introduced. Overview of Pre, Go-Live and Post Install training support discussed. 6 - 4 Weeks Out Weekly calls with FTL(Franchise Technology Leader). Training on OSM tools, MERIT module training access & expectations and discussing practice register process.

TCB Support Overview 4 – 0 Weeks Out Continue regular calls/webinars with FTL to ensure training completion, introduction to key reports & processes, on-going coaching on Install readiness Go Live Date FTL and Rgm works with Implementation Specialist during Start of Day, Shift change and Close of Day process. Hands on support with all data entry processes. Training on custom features.

TCB Support Overview Face-to-Face Meeting with FTL to train on MERIT Reporting & Online tools Week 1 and ongoing Regular 1:1s with FTL Review reports via online tools to build know how on KPI’s, share success routines & discuss tactics to improve results. On-going follow-up with feedback Week 8 Continue on-Follow up on additional ARL MERIT & KFC Technology reporting tools. Inform about ARL training 2-day class (in Louisville) Week 12 Transition from active support to Ops Leader as number one support contact for Franchisee

MERIT – Winning with Process & Follow up

Daily Financial Cash control report

Restaurant level – MERIT Scorecard

Daily Business Summary with OMR

Labor Cost Tools support Winning with MERIT

Labor Hours calculations Merit uses the following information to calculate your Forecasted and Earned Hours. Actual Sales Planned Sales Forecasted sales and transactions Labor plan % The number of salaried managers : Planned and Actual The number of hours each salaried manager is required to work per week Flow Thru Rate Last Week’s Average Hourly Rate The Restaurant’s Operating Hours The Concept mix

Labor terminology Actual Sales: Sales that have been tendered on the POS Planned Sales: The sales plan that is located in the restaurant plan editor by concept. Forecasted Sales: An estimate of the restaurant’s sales for the coming week. Labor Plan %: A fixed labor percentage that is in the restaurant plan editor. Salaried Manager Plan: The number of salaried managers in the restaurant plan editor. Salaried Manager Count: The number of salaried managers entered in Merit as employees. Salaried Manager Min Hours: Minimum number of hours each salaried manager is required to work each week. Actual Average Hourly Rate: This is the total Hourly Labor Dollars/Total Hourly Labor Hours Operating Hours: All hours of operation + 2 hours prior to open and + 1 hour after close. Flow Thru Rate: The percentage of dollars above plan added to labor. KFC, PH - 10% TB, LJS, A&W- 16% This calculation is what keeps the manager on task as actual sales are coming in. If they are above or below the RGM forecast, earned hours calculates the Flow Thru rate. Basically what that means is for every dollar above or below forecast being rang in on the POS, Merit calculates additional labor or less labor at the above flow thru rates.

Schedule Forecasting Screen

Schedule Building Main Screen

Schedule Building Daily Screen

Food Cost Tools support Winning with MERIT

Inventory Reconciliation Report

Product Projection Report

Product Comparison Report

How Shift Accountability supports Winning with MERIT

What is Shift Accountability Shift Accountability means that every Manager on Duty is responsible for their shift !!! This is achieved by counting inventory at the start and end of every shift and by settling, auditing, and coaching CSTMs who need it. Here are some key reasons that Shift Accountability is important to running great restaurants: Reduces losses and increases sales Drives better cash controls Increases labor hours Helps identify root causes of problems Helps develop your team Helps create a more positive and accountable environment Being accountable for your shift is just that, managers on duty are responsible for their shift, cash, inventory and everything in between. To help manage this One System Merit asks you to count inventory at the beginning and end of every shift, settle and audit drawers and provide coaching specifics for CSTM’s (REVIEW BULLETS) Anytime you get every nickel of sales in the drawer it helps inventory results improve as well as grows sales and increases labor hours. When food leaves the building without being accounted for everything else suffers There are 3 different levels of metrics, Low/Med/High These are determined by the franchisee and are selected during the first SOD when the system is installed. They can also be changed by a Level 6 code at anytime. To make a change to the metrics have a level 6 code login and go to: Customize / Store Configurator The next page displays where this metric is configured.

Shift Accountability Metric Thresholds Shift Accountability (within MERIT) MOD KPI: Manager Deletes > 0.5% of Gross Sales Open Coupons > 0.4% of Gross Sales Giveaways > 0.5% of Gross Sales Drive Thru Gap > 5 transactions negative CSTM KPI: Debit voids >$20 or >8% of Gross Sales Voids >0.75% of Gross Sales Modified >$10 Per Work shift

Shift Accountability Reports Employees expect…..What you inspect !!!! There are 4 custom shift accountability reports available. This is not where managers DO or Key in anything, it’s simply reporting. This can be used as comparison between team members or managers. One Best Practice is to post Trend reports for All Employees on the communication board in the store with a GREAT JOB next the team member with the lowest numbers (best results) on debit voids, void orders etc. Don’t say anything negative about the worst performers, just direct team members to the report and explain how to read it. Competition is often a motivator as well.

Manager Financial Report The Manager financial report shows metrics for managers on a per shift basis PTD, QTD and YTD. These are functions that are performed under the manager menu on the POS. Moving left to right, first is the average number of exceptions per shift, the number of shifts worked. Average number of manager deletes per shift and the average dollar amount per shift. Most shifts are similar, if one MOD is higher than the others ask why or pull the transaction viewer and or CSTM settlement paperwork to research why. Average number of open coupons and average dollar amount per shift. Most shifts are similar, if there was an issue with a coupon it should be noted in daily paperwork and should have only happened once not every shift. Average number of customer giveaways and the average dollar amount. Same as above, Ask questions, research transaction report and or CSTM settlement paperwork. Average dollar amount of sales in training mode. Do you have new CSTM’s? Were they quoting a Catering order? Average car count variance compares cars over timer to Transactions tendered at register. Average number of employee meals and average dollar amount. If not rang in consistently could create food cost issues and/or missing chicken. Average number of drawer pulls and the average drawer pull amount. All Managers should take consistent/frequent pulls or skims. This will quickly highlight if a manager is NOT doing that which means there is often extra cash in that manager’s registers.

XBR

It is a business intelligent system that utilizes the computer system What is XBR ? XBR is Exception Based Reporting It is a business intelligent system that utilizes the computer system to scan thru POS transactions to Identify team members & managers with questionable cash handling events and other suspect activities. and other suspect activities.

Home Page view with Alerts within XBR

Query List view within XBR – AC Library

Query List view within XBR – Franchisee Library

The employee in this video whose Low Dollar Transaction % is twice of the restaurant average

Large Orders passing the DT window but only drinks or side items were rung up Definitely more than a drink More than just Mashed Potato More than just beans

Suspect Modified Transaction

TCB Contact Info Robert Brown 678-410-2669 Robert.Brown@yum.com