1 Potatoes on the Menu: Q Prepared by the Ketchum Global Research Network July 2010

2 Executive Summary Consistent with the previous few quarters, three of the top 10 side dishes served at chain restaurants were potato-based in Q The number of potato side dish offerings at chain restaurants grew 8% in the last year (since Q2 2009) and 14% from Q through Q French fries, mashed potatoes and baked potatoes were the most popular potato items menued in Q Most potato side dishes were menued in the Casual Dining and Family/Midscale segments. Seasoned, garlic and Cajun dominated the top potato side dish flavors. White cheddar and parmesan cheese were also popular side dish flavors in Q The top four preparations continued to be fried, French-cut, mashed and baked. Crispy, Golden and Homestyle were the top marketing claims used on menus during Q to describe potato side dishes (same as in Q1 2010). The “Trans-Fat-Free” claim continued to be the most widely used nutritional claim describing potatoes on the menu.

3 Top 10 Side Dishes Overall Search criteria: Side Dishes, Chain Restaurants, Q Menu Item ComponentNumber of Menu Items French Fries4,787 Soup2,744 Cole Slaw2,603 Salad2,111 Baked Potato1,887 Vegetable1,665 Mashed Potatoes1,538 Sauce1,505 Caesar Salad1,283 Rice969

4 Search criteria: Ingredient-Potato, Side Dishes, Chain Restaurants Potato Sides by Restaurant Type Potato sides increased 8% since Q and 14% since Q Casual Dining and Family/Midscale restaurants menued the most potato side items. Potato Sides on the Menu Restaurant SegmentQ2 2006Q2 2007Q2 2008Q2 2009Q2 2010Number of Items Casual Dining2,6802,8162,8712,9473,11617,847 Family/Midscale2,2872,4142,3452,2642,51115,238 Quick Service Restaurant ,719 Fast Casual ,660 Fine/Upscale/Gourmet Number of Items5,8296,1246,0906,1416,63438,782

5 Potato Sides by Restaurant Segment Search criteria: Ingredient-Potato, Side Dishes, Chain Restaurants, Q French fries, mashed potatoes and baked potatoes were the most popular potato items menued in Q Menu Item ComponentCasual DiningFamily/ Midscale Fine/Upscale/ Gourmet Quick Service Restaurant Fast CasualTotal Sample French Fries Mashed Potatoes Baked Potato Potato Potato Salad Seasoned French Fries Hashed Brown Potatoes Steak Fries Mashed Potatoes and Gravy Garlic Mashed Potatoes Home Fries/Cottage Fries Loaded Mashed Potatoes Breakfast Potatoes Waffle Fries

6 Top Flavors of Potato Side Dishes Search criteria: Ingredient-Potato, Side Dishes, Chain Restaurants, Q Seasoned, garlic, Cajun, white cheddar cheese and parmesan flavors were the most prevalent descriptors of potato side dish flavors during Q

7 Top Preparations of Potato Side Dishes Search criteria: Ingredient-Potato, Side Dishes, Chain Restaurants, Q Consistent with the last few quarters, the top four preparations of potatoes were fried, French-cut, mashed and baked in Q

8 Marketing Claims Search criteria: Ingredient-Potato, Side Dishes, Chain Restaurants, Q Ingredient Marketing ClaimNumber of Items Crispy220 Golden171 Homestyle114 Golden Brown107 Homemade104 Fresh71 Signature59 Freshly-Made50 Creamy43 House40 Real39 Crisp39 Premium24 Tender22 Special6 Seasonal6 Classic5 Original5 Secret Recipe4 As in Q1 2010, crispy and golden were the top marketing claims used on menus during Q to describe potato side dishes.

9 Nutritional Claims Search criteria: Ingredient-Potato, Side Dishes, Chain Restaurants, Q Ingredient Nutritional ClaimNumber of Items Trans-Fat-Free88 Low-Fat15 Natural5 Cholesterol-Free3 The “Trans-Fat-Free” claim decreased from 135 menu items in Q to 88 menu items in Q potato side dishes included the claim “low-fat.”

10 Potato Side Dishes by Menu Item Cuisine Search criteria: Ingredient-Potato, Side Dishes, Chain Restaurants, Q Chain RestaurantsTop 100 Chain Restaurants North America - Traditional American 5,3321,760 North America - BBQ41357 Mediterranean - Italian28852 North America - Southwestern/Tex-Mex North America - Southern12031 Potatoes appeared most frequently on the menus of Traditional North American restaurants, followed by BBQ and Mediterranean – Italian. North American Southern Cuisine increased from Q in Chain Restaurants (100 to 120) and remained steady on Top 100 Chain Restaurants menus (31 each quarter).

11 Q New Menu Items Restaurant Menu Item Menu Item Description Menu Section Menu Type Applebee's Sizzling Steak and Cheese Applebee's classic 9 oz sirloin with sautéed onions, mushrooms and red pepper and green peppers, topped with rich Italian cheeses. served with garlic mashed potatoes.EntreeAll Day Menu Fleming's Steakhouse and Wine BarMashed PotatoesBleu cheese, parmesan-peppercorn or roasted garlic.Sides Promotional Dinner Menu Denny's Smoked Cheddar Mashed Potatoes SidesAll Day Menu El Chico CafeCheese Burger Certified Angus Beef on a kaiser bun with cheddar, lettuce, onions, tomatoes, pickles, mustard and fries.SandwichesLunch Menu Country Kitchen Country Fried Steak & Eggs Benedict Two classic CK Country Fried Steak minis combined with two farm-fresh eggs atop a crunchy, toasted English muffin and topped with our hearty country gravy. Served with seasoned hash browns.EntreeAll Day Menu Sagebrush Steakhouse & SaloonBaked Potato SidesLunch Menu Ted's Montana GrillSlow-Roasted PorkWith garlic mashed potatoes and buttered carrots.EntreeDinner Menu

12 Q2 2010: Salads Using Potatoes RestaurantRestaurant Segment Menu Item Name Menu Item Dish Gandolfo's - New York DelicatessenQuick Service RestaurantSour Cream Potato SaladSides Murphy's DeliFamily/MidscalePotato SaladSides Pickerman's Soup & SandwichFast CasualPotato SaladSides Harold's Chicken ShackQuick Service RestaurantPotato SaladSides Golden ChickQuick Service RestaurantPotato SaladSides McAlister's DeliFamily/MidscalePotato SaladSides Larry's Giant SubsQuick Service RestaurantPotato SaladSides Bill Miller BBQFamily/MidscalePotato SaladSides Juan PolloFast CasualPotato SaladSides Mr. PitaFast CasualPotato SaladSides

13 Potato Varietals on the Menu Potato Varietals on the Menu: 350 chains Menu Mentions Q2 2006Q2 2007Q2 2008Q2 2009Q Red Skin Potato Idaho Potato Red Potato Red Bliss Potato Yukon Gold Potato Russet Potatoes Baby Red Potatoes