RAVE Restaurant Group ICR Finance Conference January 12, 2016 is a - PowerPoint PPT Presentation

RAVE Restaurant Group ICR Finance Conference January 12, 2016

is a multi-brand restaurant operating company • Founded 1958 • Created 2011 • Primarily buffet pizza concept • Leading Fast Casual pizza concept • 237 restaurants open U.S., Middle East, Honduras • 400+ restaurants under development • 99% Franchise operation • Dual development: Company + Franchise • Consistent royalty revenue stream • Quarterly system wide sales CAGR of 24%

Sales Contribution and Growth Domestic System-Wide Retail Sales 140,000 131,399 124,242 118,289 120,000 112,248 108,147 105,361 104,461 104,170 103,230 103,165 100,000 80,000 60,000 40,000 20,000 - 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 Pizza Inn Pie Five

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, • Individualism is key • Look for value, variety & speed can bring the chaos • Casual environment • Elevated quality in the food and • Looks for value, variety, speed & environment • Value & variety healthy options • Expect transparency in ingredients • Keep the kids happy with less hassle • Want to feel important/cool

Pie Five Restaurant Growth Pie Five Unit Growth 90 82 80 68 70 60 54 50 40 40 31 30 24 20 19 18 20 15 10 0 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 Company Franchise

Geographic Growth – U.S. as of December 31, 2015 1 2  82 restaurants open 1  23 states and DC 2 2 7 3 5 1  22 franchisees 1 2 1 11 1 1 7  6 company markets 2 1 1 1 1  Traditional streetside + new 2 non-traditional location tests 22 • regional mall 4 • Casino • major college • transit station now open coming soon not here (yet)

Solid Restaurant Level Economics Res estaurant Le Level Economics* Based on units in 2 nd quarter comp base Annual Unit Sales $750,000 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 Bu Build ild Ou Out In Investm tment* Size 2,000 – 2,400 s.f. 2,200 is ideal Location Retail strip center end cap Leased space Before landlord T.I. allowance and pre-opening Construction $450,000 – $475,000 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% 19.7 20% 18.5 17.7 16.6 15.5 15% 11.9 10% 5% 0% Q1 2015/14 Q2 2015/14 Q3 2015/14 Q4 2015/14 Q1 2016/15 Q2 2016/15 -5% Prior Year Quarter Current Quarter *comp sales are calculated based on restaurants open 18 months or more in the reported quarter

Evolution – Increased Throughput Service Line Efficiency Technology Enablers Reduce Bottlenecks Online Ordering Fresh Salad Speed Station 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 •  Addition of Garlic Breadstix Enhanced screening tool • Custom tailored personality • and cheesestix profile • and bacon cheesestix • Rejecting 40-50% of applicants BEFORE granting  Bundle Merchandising interviews • Pizza bundle • Salad bundle • Breadstix bundle  Training • Kids bundle • 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