Traditional Store Audits are Outdated: A New Approach to Protecting Your Brand and Boosting Franchisee Success

QSR Webinar Deck

1. WEBINAR  Traditional Store Audits are Outdated: A New Approach to Protecting Your Brand and Boosting Franchisee Success Thursday, May 23rd 2:00p.m EDT

2. Speakers: Keith leads the Restaurant Vertical for Auxis . In addition to Auxis ’ traditional service offerings in BPO, ITO, and Digital Transformation, the Restaurant Services line offers unique, industry-specific solutions for Brand Protection, Integrated Franchisee and Customer Care, and IT and POS support. Keith has worked extensively across restaurant brands such as Subway, Dunkin’, Jamba, Auntie Anne’s, Cinnabon, Moe’s Southwest Grill, McAlister’s Deli, and more. Prior to Auxis , Keith held leadership roles with DHL and KPMG, specializing in large-scale transformation programs that help companies modernize their operations through a combination of operating model redesign and technology enablement. Keith Sayewitz Restaurant Vertical Leader Beto Guajardo currently holds the position of President and CEO at Blaze Pizza. His career includes significant roles across various companies such as Focus Brands, Starbucks, Levi Strauss & Co., and McKinsey. He is recognized for his contributions to the growth and development of global foodservice brands, with a particular emphasis on incorporating technology and innovation. In his current role, he focuses on enhancing the fast-casual dining experience, driving growth, and prioritizing personalized customer service. Guajardo's professional journey reflects a combination of strategic foresight and operational proficiency, contributing notably to the foodservice and franchising sectors. Beto Guajardo CEO As the Senior Principal of the Consumer & Retail Practice at Point B, Julie brings over 20 years of experience crafting outstanding customer and employee experiences. Her expertise lies in guiding clients to foster engaged and loyal relationships. Julie has successfully led prominent retailers through visionary innovation design, strategic omnichannel development, in-store digital experiences, and initiatives focused on consumer and employee engagement and loyalty. Julie holds an MBA from MIT Sloan School of Management and a BA from the University of Michigan. Julie Smith Senior Principal of the Consumer & Retail Practice

3. Goal & Agenda of our Session Interactive discussion on the future of Compliance Audits. What do we mean by brand consistency & why does it matter ? What’s working and why / limitations of the current model? A better model than the “Surprise Visit” – frequent visits. How will technology enable the future of compliance audits ? How do we merge technology & people at a scalable cost ? Agenda Proprietary and Confidential

4. Polling Question #1 & 2 Do you know what excellence looks like for your brand?  Yes I know it when I see it No Would all your frontline associates and store managers define it the same way? Yes No

5. 73% of consumers ditch brands after just one bad experience   consistency in in-store operations leads to significantly lower cost-to-serve, a dramatic increase in employee engagement leading to greater customer satisfaction, and  ultimately, 10-20% increases in sales conversion. ​ What do we mean by brand consistency & why does it matter? Human beings crave consistency and predictability.  When consumers choose you, they have a preconceived idea of what to expect. How can you shape this perception, and then ensure you are living up to it?

6. Polling Question #3 How Often Do you Visit Your Stores? Not At All 1-2 Times Per Year 3-4 Times Per Year 5+ Times Per Year

7. Today’s  Model  In- Person Visits. 3 rd Party in person + District Leadership 1-2 Times Per Year. “Surprise visits” - stores can’t cheat the process Sometimes merges food safety & operations. “Auditors” & restaurant can build a rapport. See what’s happening live Human to Human Interaction Hard to hide issues Difficult to scale Geographic / travel complexity District leadership not “elevated” Cost Per Audit is high – driving less frequent visits Limited technology enablement Data not leveraged to drive macro actions Difficult to execute “off-schedule“ visits. LTO Check-ins NSO Check-ins What’s working and why-limitations of the current model? Limitations of Today’s Model Benefits

8. Polling Question #4 Do you believe your compliance program is driving operational excellence? No Yes I don’t know, I can’t measure it Partially, but it can be significantly improved

9. Polling Question #5 What do you see as the main challenges of your current compliance program? It is too costly to achieve desired benefits. It is too focused on food safety & not operational excellence. It is not data & technology enabled We are not doing enough with the results

10. The surprise visit has been universally accepted as a way to catch stores . Due to cost constraints this was considered the best mouse trap available to brands. “Wouldn’t we rather drive consistent execution than catch someone failing” Frequent Quarterly Visits = Sustained Operational Execution A better model than the ”Surprise Visit” – Frequent Visits

11. Polling Question #6 Are you planning to implement technology (such as IOT devices) into your compliance program? Yes, we have a plan. Yes, but we have no plan. No Don’t know - but we see value in it.

12. Social Data Video + AI Temperature Monitoring In-store Music In-Store Promotions Climate Cost Control Fraud Detection Food Prep Analysis LTO Compliance Cleanliness Checks Consumer Feedback Scrape Operational Data Food Consistency Cleanliness Overall Experience Technology & the Future of Compliance Audits IoT Devices What is the journey to use technology to reduce operational compliance costs and enable consistency?

13. Frequent Visits Consistent Consumer Experiences & Customer Loyalty at Scale What’s the “Secret Sauce” To Achieve Consistent Operational Execution Nearshore Low Cost Per Visit Remote Brands Experts Technology Enablement

14. Franchisee & Customer Feedback Franchisee Feedback “The experience with the review is perfect . The auditor is nice and gives pointers for the things that need to improve that will be helpful for the business operations as well as customer satisfaction”. “ “Mr. Alaa is very friendly and always gives good advice or coaching all the times. I'm happy to work with him in OER time”. “As a first time handler of OER,I am impressed how it goes and coach Karol was very patient. Thank you so much, coach!” “A MASSIVE Thank you for being so kind and polite with us coach, and for explaining to us where we could improve in our store to reach a full potential, it was a totally educational day and very enjoyable, it was AMAZING”. Survey Question Score Adequate information received to prepare for review. 97.95% Review was useful & productive. 98.10% Coach Friendliness. 98.50% Ease of Scheduling. 98.15% Time it took to complete OER. 97.65% Audio & Video Quality. 97.50% Average Score 98.64% Our overall customer satisfaction scores now sit at 98% , and, even more important,  we’re seeing an 8.5–12.5% sales increase at sites taking advantage of virtual coaching , compared to those that haven’t yet engaged this resource. – Jim Holthouser , CEO of Focus Brands.

15. Polling Question #7 Do you think a technology enabled virtual program can meet your needs? No Yes Yes, but I don’t think this would work for my brand

16. Thank You! Keith Sayewitz Auxis Restaurant Leader 347 419 1393 [email protected] www.auxis.com

17. Brand Protection Use-Cases Periodic assessment that covers set of operational & brand categories. COE resource walks through a script verifying each area with picture / video evidence. Detailed report sent post assessment providing a score and detailed feedback Subsequent assessment scheduled based on results of previous assessment Data flows to analytics repository for trend analysis Standard Program is highly flexible and can be used in a variety of ways based on your needs.  This includes level of brand knowledge, frequency, duration, categories, content, etc.      Similar to “Standard” but more consultative in nature. Shared service resource is “coaching” on best practice during the assessment process. Assessment generally takes longer and is more interactive  COE resource training more robust and generally includes in-store training.  Report & analytics created same as a standard assessment “Coach” Assessment to accompany the launch of a new marketing campaign, product launch or New Store Opening  Designed to confirm stores are “ready” have POP, Pricing, etc. setup to be executed.  Drives increased compliance in programs or store operations from day 1.  Helps ensure target ACV at earliest point.  LTO / NSO Assessment done based on a specific operational issue. Intended to check in on a very specific operations topic. For example, Consumer Feedback that a specific new beverage not being prepared properly. (e.g. too sweet, etc.) Shorter in duration than a standard assessment Example: Previous customer used this to address feedback that Pretzels were being sold “with a burnt taste”. Point