RAVE Restaurant Group

ICR Finance Conference

January 12, 2016

is a multi-brand restaurant operating company

Founded 1958
Primarily buffet pizza concept
237 restaurants open U.S., Middle East, Honduras
99% Franchise operation
Consistent royalty revenue stream

Created 2011
Leading Fast Casual pizza concept
400+ restaurants under development
Dual development: Company + Franchise
Quarterly system wide sales CAGR of 24%

Sales Contribution and Growth

Domestic System-Wide Retail Sales
140,000

131,399
124,242
118,289

120,000
104,461

103,230

104,170

103,165

105,361

1QFY14

2QFY14

3QFY14

4QFY14

1QFY15

108,147

2QFY15

112,248

100,000

80,000

60,000

40,000

20,000

Pizza Inn

Pie Five

3QFY15

4QFY15

1QFY16

2QFY16

Sales Contribution total retail sales mix

A Fast Changing Company
FY14

2QFY16 (TTM)

11%

30%

70%

89%
Pizza Inn

Pie Five

Our Fans

Millennial Moms

Hang Out Gang

Lunch Crew

30 40 year-old females

16-25 year-olds

25-35 year-olds

Brings kids and other moms

Male driven

Male & female

Casual environment, easy to park,

can bring the chaos

Individualism is key

Look for value, variety & speed

Casual environment

Elevated quality in the food and

environment

Looks for value, variety, speed &

healthy options

Value & variety

Keep the kids happy with less hassle

Want to feel important/cool

Expect transparency in ingredients

Pie Five Restaurant Growth

Pie Five Unit Growth
90

82
80

68

70

60

54
50

40

40

31

30

20

15

18

19

20

2QFY14

3QFY14

4QFY14

24

10

0
1QFY14

1QFY15
Company

2QFY15
Franchise

3QFY15

4QFY15

1QFY16

2QFY16

Geographic Growth U.S.

as of December 31, 2015

82 restaurants open

1
2
1

7
1

11

23 states and DC

1
1

7
2

22
4

now open

coming soon

22 franchisees
6 company markets

1
2

not here (yet)

Traditional streetside + new

non-traditional location tests
regional mall
Casino
major college
transit station

Solid Restaurant Level Economics

Restaurant Level Economics*
Annual Unit Sales

$750,000

Based on units in 2nd quarter comp base

Restaurant Operating Cash Flow

17 19% margin

Occupancy and fixed operating costs drive variability

Allocated Mktg & Adv Expenses

5% of net sales

Invest to build brand understanding and trial

Build Out Investment*

Size

2,000 2,400 s.f.

2,200 is ideal

Location

Retail strip center end cap

Leased space

Construction

$450,000 $475,000

Before landlord T.I. allowance and pre-opening

expense

Payback Targets

1.5:1 2:1 sales/investment ratio

3 year cash on cash return target

*targets calibrated on units in comparable store base at end of Q2 FY16.

*restaurant operating cash flow represents the pre-tax income earned before:
1) Allocated marketing advertising expenses
2) Depreciation and amortization
3) Pre-opening expenses
4) Operations management and extraordinary expenses; and
5) Deferred rent adjustment (net) and impairment.

Comp Sales Growth Quarterly Two Year Trends

Two Year Reported Comp Sales Growth*
25%
20%

19.7
17.7

16.6

15%

18.5

15.5

11.9

10%
5%

0%
Q1 2015/14

Q2 2015/14

Q3 2015/14

Q4 2015/14

-5%

Prior Year Quarter

Current Quarter

*comp sales are calculated based on restaurants open 18 months or more in the reported quarter

Q1 2016/15

Q2 2016/15

Evolution Increased Throughput

Service Line Efficiency

Technology Enablers

Reduce Bottlenecks

Fresh Salad Speed Station

Online Ordering

Kiosk Test

Customer Enabled
Checkout

Evolution - Food & Service

Rave-able, Crave-able Comeback Quality Food

Service So Good it Drives Sales

Larger Pizza... Better Value

Recruitment
Enhanced screening tool
Custom tailored personality
profile
Rejecting 40-50% of
applicants BEFORE granting
interviews

Addition of Garlic Breadstix

and cheesestix
and bacon cheesestix

Bundle Merchandising
Pizza bundle
Salad bundle
Breadstix bundle
Kids bundle

Training
P FIVE vibe behaviors
Six Slices of Service

Feedback & Reward

Mystery shop 2X/week

Next AM feedback
Quantitative & Qualitative feedback
CASH incentives to crews achieving 100% shop

Investment Highlights
Multi-branded Restaurant Company
Pizza Inn providing stable earnings contribution
Franchise model
Experienced, local franchise owners
Pie Five pioneering Fast Casual Pizza Segment with significant growth upside
Early days for this emerging segment
Strong unit economics and new restaurant pipeline
Continued concept evolution to maximize success

Breakouts
11:00 AM Mediterranean Salon 5

2:30 PM

Coquina Ballroom Room 2

Company Representatives:
Randy Gier, CEO
Tim Mullany, CFO