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2. The Rise of the Food Network and its Effect on Resident’s Dining Expectations May 16, 2012 2

3. Panelist Guy Hemond - Vice President Culinary & Dining Experience Benchmark Senior Living Stephen Kennery- Sr. Vice President Professional Services Carlton Senior Living Steve Sacco - Senior Divisional Director of Dining Services Emeritus Senior Living Shawn Stanfield - Director of Dining Service Vintage Senior Living 3

4. Presentation Overview The Food Networks Effects on: Resident Dining Expectations Associate Engagement Senior Dining Models of the Future Current Trends in Senior Dining Dining Room and Table Top Options Diets 4

5. Presentation Overview What’s Keeping the Foodies Up at Night? Food Inflation-Rising Food Costs Rising Fuel Prices Questions and Answers Panel Discussion 5

6. The Food Network 6

7. Food Network Viewer Profile Senior Living Demographics Median Age 87.0 Gender Male 24.9% Female 75.1% 7 Viewer Age Groups 18-34 29% 35-54 42% 55+ 29% Median Age 45.2 Gender Male 36% Female 64%

8. Influence on Resident Dining Expectations Food savvy residents. Increased levels of participation in food related activities & food forums. Residents have become more adventurous with meal selections. Increased engagement in the menu development process. Likely to be more critical of food presentation and flavor profiles. 8

9. Influence on Resident Dining Expectations Heightened interest in our chefs previous work experience and training. Have a better understanding of our chef’s daily responsibilities. Express a demand for more fresh and local grown products. Label/ Brand consciousness Angus Beef, Idaho Potatoes 9

10. Resident Engagement 10

11. Influence on Dining Associates Stimulates interest in culinary careers leading to an enriched labor pool. Creates a competitive culinary spirit within our communities. Has helped to instill a sense pride and creativity. Validates the value of our dining programs- marketing, resident engagement. 11

12. Associate Engagement 12

13. Influence on the Senior Dining Model of the Future Dining programs could become the product differentiator that influence our customers decision in Senior Living brand selection. A la carte dining menus vs. cycle menus. Open dining concepts - coffee bars, pubs, counter service, “all day dining” venues. Chef recruitment – Marketing value of local “celebrity” chefs 13

14. Influence on the Senior Dining Model of the Future Introduction of ethnic cuisines. Healthy dining selections, organic foods, vegetarian options, local grown and sustainable food products. Develop a connection with the adult decision makers through food events. 14

15. Influence on the Senior Dining Model of the Future Interactive - Sensory Dining Food Presentation- “It’s all a show” 15

16. Current Trends in Senior Dining Dining Room Table Tops The transition from white tablecloths to elegant placemats Cost Reduction / Rentals Increased Productivity Sanitary Standards Contemporary Ambience Efficient Spill Clean Up 16

17. Placemats vs White Tablecloths 17

18. Placemat vs White Tablecloth 18

19. Diets Gluten Free Diets Celiac Disease – An immune reaction to eating the protein gluten. Gluten – A protein composite found in foods processed from wheat and related grain species Gluten-Free Diet - a diet that excludes foods containing gluten. 19

20. Diets The diagnosis of Celiac disease has increased 300% since the 1950’s. The disease effects about 1 in 100 people. »Is this diet supported in your communities? »How is it managed? Ancillary charges? »Does the potential lease revenue outweigh the risks? 20

21. What’s keeping the foodies up at night? 21

22. Food inflation Pork Is at an All-Time High 22 The Sky May be Falling, but Chicken Prices are Going Up Cheese Borders On Luxury Status Eggs Breaking Well Above $1.20

23. The Rising Cost of Food Global food prices have increased 68% since 2007. US food prices have increased by 8% in the last four months. All key food category prices have been impacted. 23

24. Rising Cost of Food What’s causing the pricing surge? World Wide weather catastrophes »Japan- Tsunami and Earthquake »Australia, China, Pakistan, Thailand, Brazil – Floods »United States – Drought and Flooding in the South Livestock feed prices increased from $80/ ton to $200/ ton. Pork and beef prices experienced double digit pricing increases. Dairy prices spiked 10.2% Peanut supply reduced 13% -Price surge $450/ ton to $1200/ ton 24

25. Rising Cost of Food 1.Reduced production due to bad weather. 2.Export restrictions and panic buying. 3.Increased demand. 4.Financial pressures – depreciation of the dollar. 5.Increased fuel /oil prices. 25

26. Fuel Prices The cost of diesel fuel is a major expense in food distribution. Foodservice distributors adjust fuel surcharges regularly to compensate for escalating fuel prices. 26

27. Fuel Prices Typical Diesel Fuel Surcharge For every $.05/gallon diesel fuel price increase, it’s estimated that the impact on the cost of products received is $.01/case. 27

28. Questions ? Thank you for attending! 28