Bj's Restaurants, Inc. · NASDAQ:BJRI
Bj's Restaurants — Investor Day (November 2023)
102 slides from Bj's Restaurants's investor day presentation, Nov 14, 2023
Slide 1: Investor Day
W RESTAURANT BREWHOUSE Investor Day y hey & November 14, 2023
Slide 2: Building Momentum, Unleashing Growth
Slide 3: Forward-looking statements
Certain statements in the preceding paragraphs and all other statements that are not purely historical constitute “forward-looking” statements for purposes of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created th
Slide 4: Presenting management team
Greg Levin Heidi Rogers Putnam Shin Chris Pinsak Greg Lynds Tom Houdek Chief Executive Officer SVP, Marketing Chief Growth & Chief Restaurant Chief Development Chief Financial Officer & President Innovation Officer Operations Officer Officer
Slide 5: Vision and Key Strategic Pillars to Drive Shareholder Value
Vision and Key Strategic Pillars to Drive Shareholder Value Greg Levin Chief Executive Officer & President
Slide 6: Clear Vision and Strategy to Drive Sales
1. Clear Vision and Strategy to Drive Sales 2. Initiatives to Improve Margins 3. Pathway to Accelerate Restaurant Growth Meaningful Shareholder Value Creation 25 CEB . a a
Slide 7: BJ's at a glance
BJ's m 217 restaurants in 30 states At A (c] F) nce 4, + Large-format restaurants (7,000+ sq. ft.), with new slightly smaller format launching in 2024 + 5new restaurants opened in 2023 + Potential for 425+ restaurants Our restaurants feature: * Contemporary, high quality, “polished casua positioning
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Slide 9: Scale Matters in Large and Fragmented Casual Dining Space
Scale Matters in Large and Fragmented Casual Dining Space U.S. Casual Dining Industry & pane a ae All Top25 Others Total * 0.7% of casual dining market Sales (2022) ($B) $43 $148 $191 + 11" largest brand by sales % of Total (2022) 23% 77% | 100% ¢ Expanding market share by: Growth ('19-'22) ($B) | +
Slide 10: Legacy of Taking Market Share and New Restaurant Growth
Legacy of Taking Market Share and New Restaurant Growth Sales Leader Restaurant Builder wn . For the five years before Covid, 2 -202 @|| Pre-Covid BJ's beat the industry CNR, 20g.~— 217 H || (2015-2019) 18 out of 20 quarters m , 2 10% ra S @3 2023 marked the E Post-Covid 10th consecutive O || (Since
Slide 11: Clear Vision and Strategy to Drive Sales
Clear Vision and Strategy to Drive Sales BJ’s is About the Total Experience What Sets BJ’s Apart Food & Beverage People Ambiance + An Uplifting Social Oasis with a Brewhouse Soul + Familiar Transformed to Brewhouse + Gracious Hospitality You Can't Fabulous Experience Elsewhere + A Place to Escape th
Slide 12: Food & Beverage: Familiar Items Made Brewhouse Fabulous
Food & Beverage: Familiar Items Made Brewhouse Fabulous i is 12
Slide 13: People: Extraordinary Hospitality You Can't Experience Elsewhere
People: Extraordinary Hospitality You Can’t Experience Elsewhere Gold Standard Gracious Hospitality OUR VALUES ONNECTION ESPECT DVANCEMENT UN RUST
Slide 14: Ambiance: Higher Quality, Relevant, Energetic Yet Casual
Ambiance: Higher Quality, Relevant, Energetic Yet Casual Best Bar Statement Brewhouse Theatre Elevated Design 14
Slide 15: BJ's is About the Total Experience
BJ's is About the Total Experience BREWHOUSE
Slide 16: Our Report Card
Our Report Card Q: How does the chain rate on... as #3 #1 #1 HEY Source: Datassential, September 2023, past year visitors (n=2,325). Casual Dining Bar & Grill segment comprised of 20 chains, including Applebee's, BJ's, Buffalo Wild Wings, Chili's, Dave and Buster's, California Pizza Kitchen, Miller'
Slide 17: Clear Vision and Strategy to Drive Sales
1. Clear Vision and Strategy to Drive Sales 2. Initiatives to Improve Margins 3. Pathway to Accelerate Restaurant Growth a Meaningful Shareholder Value Creation 7
Slide 18: Tremendous Runway to Continue Expansion
Tremendous Runway to Continue Expansion Restaurant potential 4 5+ & Growth journey 1,544 only beginning 1,226 1,263 906 627. +651 ~«=—684 no 213 2 28 Praia, Gfeeate W PER RIRIin <u afer ELE oaraac One 3s AMresees Y d y ; Note:U.S. restaurant counts based on publicly available information 18
Slide 19: New Restaurant Growth Drivers
New Restaurant Growth Drivers Restaurant Profitability Build Costs Cash-on-Cash Returns * High-teen’s RLCF margins * New building reduced by $1M * 20%+ returns * Higher than system avg. + More savings for 2025+ * Lower cost = better returns y 19
Slide 20: Clear Vision and Strategy to Drive Sales
1. Clear Vision and Strategy to Drive Sales 2. Initiatives to Improve Margins 3. Pathway to Accelerate Restaurant Growth Meaningful Shareholder Value Creation 25 CEB . a a
Slide 21: Growing Market Share Through Differentiation and Awareness
Growing Market Share Through Differentiation and Awareness Heidi Rogers SVP, Marketing
Slide 22: Platform for Growth: Market Headroom and Awareness Amplification
BJs Platform For Growth Accelerating Momentum to Build Market Share Market Headroom Awareness Amplification
Slide 23: Our Differentiated Brand Position
Our Differentiated Brand Position Who We Are BJ's is the “Restaurant with a Brewhouse Soul” ALIVE The Brewhouse Energy COMFORTABLE The Comfort of Home TRUSTED Consistently Great SPECIAL The Human Connection ESCAPE An Escape from Ordinary Making Moments Matter
Slide 24: Meeting the Duality of Guests Needs
Meeting the Duality of Guests Needs A step above, premium Energy, happening / ; / Upscal i t, pl / | . pscale environment, place | Energetic, Comfortable, Favorite items | | Uplifting & Familiar & iti Consistent Special foods for every day Exciting Dining for 30 Affordable, great value Quiet enough
Slide 25: Top Guest Segments & Occasions
Top Guest Segments & Occasions THE CHEERS ON TAP SEGMENT COMES TO BJ's TO GET TOGETHER CHEERS ON TAP 16% of Casual Diners 37% of BJ's Revenue 55% of High-Affinity Guests THE ESCAPERS SEGMENT COMES TO BJ's TO GET AWAY ESCAPERS 21% of Casual Diners 24% of BJ's Revenue 24% of High-Affinity Guests Ni oR
Slide 26: Headroom for Growth
Headroom for Growth 52M Casual Diners within 10 miles of a BJ's restaurant 50% of Guests who (i) live near our restaurants and (ii) will love our Brand have never visited a BJ's WwW 9M+ Future Guests Have Never Visited a BJ's 19M Social Experience Seekers Cheers on Tap + Escapers: + 37% of casual di
Slide 27: Headroom for Growth
Headroom for Growth Unaided Awareness 49% 44h 44% Opportunity to Close Awareness Gap to Mass 8% yy, 2% Competitors WN x wW x 5) SE J Becake Mreress Bin eS <r Fes 1 4 SB ? Source: BJ's Brand Tracking Study, August 2023 27
Slide 28: Messaging Strategy that Connects
Messaging Strategy that Connects 2x Per Year Brand Campaigns Linear Television, Connected TV, and Digital Video to Build Awareness at Scale Select Markets Always On Media asrRine Paid Social and Display to Drive Action Through St # \ : a Product and Value Messaging System-Wide Coverage Organic Socia
Slide 29: Organic Acceleration
Organic Acceleration WOW Products e%
Slide 30: Becoming Part of the Conversation
Becoming Part of the Conversation ‘\ _ SWikwishlteouldle RizookiesJallithe “Yup that’s me” Bill Hader SNL Qis for Quiet Taylor Swift (150K+ Posts) (1 Million posts) (450K+ posts) Friendship Bracelets 30
Slide 31: RESTAURANT
RESTAURANT BREWHOU:;
Slide 32: Leveraging Growth in Highly Targetable Channels
Leveraging Growth in Highly Targetable Channels Industry Media Consumption Trends Share of Hours Spent Per Week By Video Platform, A18-49 27% 37% 21% 36% 27% 2019 2023 m Broadcast & Cable TV (includes DVR) ™ Connected TV Y d y D Source: MAGNA U.S. Media Landscape Fall 2023 Update t 2024-2025 (Proj.)
Slide 33: Boosting Media Strategically
<4 Boosting Media Strategically BJ's Media Spend ($M) $16 $16 $13 $14 22% 20% \\ 10% 2022 2023 2019 mTV BCTV&DV mLocal Media 2024 Est Other 2023 TV/Digital Video Flights Driving 2%+ Comp Sales Leaning into a Higher Mix of Connected TV and Digital Video to Build Awareness at Scale Increasing Media Sp
Slide 34: Local marketing relies mostly on centrally trained local efforts
Local marketing relies mostly on centrally trained local efforts, with 15 restaurants receiving boosted (Level 2 & 3) support
Slide 35: Leveraging Strategic Advantage #1: Making Pizookie a Household Name
Leveraging Strategic Advantage #1: Making Pizookie a Household Name Celebrating Return of Major Influencer Creating 100M Pizookies Sold acs Favorite Seasonals rT = Buzz ‘OU ASKED, WE LISTENED: > %) pits * anes cnacaniiaascst + F x POV: You got the spooky = LOSS te) Emre A j pizookie at BJ’s °S@@ 495
Slide 36: Leveraging Strategic Advantage #2: Fortifying Beer Authority
Leveraging Strategic Advantage #2: Fortifying Beer Authority Showc New On-Trend Seasonals All Year Highlighting Key Seasonal Five-Course Beer Dinners Beers Through Pint Class 5x a Year 36
Slide 37: Platform for Growth Summary
Platform for Growth Summary Culinary Market Development Headroom Growth , Overlays Awareness Gracious Amplification Hospitality Energize Ambience Solid Growth In BJ's CORE 37
Slide 38: Culinary Innovation and Sales Growth Overlays
Culinary Innovation and Sales Growth Overlays Putnam Shin Chief Growth & Innovation Officer
Slide 39: Platform for Growth: Culinary Development and Growth Overlays
BJs Platform For Growth Accelerating Momentum to Build Market Share Culinary Development Growth Overlays
Slide 40: Familiar Fabulous
Familiar Fabulous
Slide 41: Familiar
Familiar ee MY 41
Slide 42: Familiar Fabulous
<4 Familiar . Fabulous 42
Slide 43: Enhancing the Core
Enhancing the Core 2023 Upgrades W 43
Slide 44: Targeted New Areas: Menu Development
Targeted New Areas: Menu Development Seasonal Yield =r, 44
Slide 45: Results to Date: It's Working. It's Accelerating.
Results to Date: It’s Working. It’s Accelerating. Enhanced Core Yield Up *Folowing Items Launched / Relaunched yf i 15 4 ¢ H1 H2 Hi yj 2023 2023 ——_ = a 7 + #8to #1 + NPS +5% + #1Dessert + App category +3% + 2xsales growth + Better economics + 3x Previous Seasonal + Lunch items +7% y/y 45
Slide 46: 3-Year Plan
3-Year Plan Future Menu - Item Mix Innovate > Wow Upgrade 30% Core Performers Innovate > Value
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Slide 48: Growth Overlays: Menu Format
Growth Overlays: Menu Format i aes, _ —| Better Layout of dronanliwmes Tx. “ sles - a (More images drives upsells) Improved Visual (More polished casual) Increased Check & Traffic (Encouraging test results) STARTER SALADS 48 4
Slide 49: Growth Overlays: Loyalty Program
Growth Overlays: Loyalty Program Program Benefits Lots of Headroom Induces Frequency Higher Avg. Check y More Off Premise Y Maye ia7 More Off Peak Visits Y po ey . . . Loyalty Personalize Relationship Y Plan in place to grow program Ww
Slide 50: Growth Overlays: Subscriptions
Growth Overlays: Subscriptions Strategic Advantages THE PIZOOKIE PASS™ IS ON SALE NOW! Beer Club: Expansion Pizookie Pass: Rollout from Pilot WwW Increased frequency (2-4x monthly revenue per guest) Stable Cash Flow (Uplift patterns consistent) Strategically Sticky (High affinity items = Low churn)
Slide 51: Growth Overlays: Off Premise
Growth Overlays: Off Premise Off Premise Sales 2023: BJ's vs. Industry (ppts) 3.8% 21% 19% O4% Q! Q2 Q3 Q4'TD Y d y D Source: GuestXM / Black Box Intelligence Growth Strategy Spontaneous Consideration (Top 3 choice during target occasions and food category) Seamless User Journey (Perfect every touch
Slide 52: Platform for Growth Summary
Platform for Growth Summary —_ Solid racous Growth Hospitality — In BJ's Ambience C (@) R E
Slide 53: Winning with Gracious Hospitality and Improved Efficiencies
Winning with Gracious Hospitality and Improved Efficiencies Chris Pinsak Chief Restaurant Operations Officer
Slide 54: Gracious Hospitality
Gracious Hospitality An Obsession with Making the Guest _ Feel Special _ Service that makes guests feel... Warm, Energized and Fulfilled It means being... Kind, Aware and Thoughtful If done right, guests will leave... Smiling and Eager to Return
Slide 55: BJ's is Gold Standard
BJ's is Gold Standard BJ's vs. Competition (ppts) Food & Beverage Quality Freshness +6% Taste +6% High Quality Food +8% Premium Ingredients +6% Presentation +5% Customer Experience Décor / Ambiance Consistency Cleanliness Speed Accuracy HRY Source: Datassential, September 2025, past year visitors (n
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Slide 57: Quality
Quality
Slide 58: The Right Training and Strong Leaders Boosting Retention
The Right Training and Strong Leaders Boosting Retention Hourly Retention: 2023 vs. 2019 (bps) -3% 5% Ql Q2 1% 0% 2% In Q3'23, BJ's retention was 120bps better than industry Q3 Sep Oct L " is Note: Industry retention rates from GuestXM / Black Box Intelligence. Retention rates shown on a quarterly b
Slide 59: Investing in our People Yielding Fantastic Returns
Investing in our People Yielding Fantastic Returns Enhanced Hourly Training New Restaurant Openings Greater Kitchen Efficiency + Beer heritage + 7 more days of live training * Prep aligned with skill * Pizookie a household name * 7 more days of sales * Created greater repetition * Scripting * Soft o
Slide 60: In Focus: Menu Reduction
In Focus: Menu Reduction e007 On June 29: aver" sez ¢ Removed 17 menu items * Reduced prep hours * Reduced SKUs by 30 * Increased Quality 3 oot 3” * Eliminated 25 prep recipes * More Repetition * Chosen based on demand, * Lower food waste . profitability, complexity and menu strategy fit et Now appr
Slide 61: Best-in-Class Technology: Guest-facing
Best-in-Class Technology: Guest-facing Digital Order Tracker Automated Waitlist Takeout Stats Board Boost guest confidence Real-time updates (visual) Curbside check-in Voice recognition Increased team member productivity 100% increase Guest and delivery partner convenience Increased team member prod
Slide 62: Best-in-Class Technology: Guest-facing
Yam Memory 8 Best-in-Class Technology: "| READY PREPARING => BRANDON W. Guest-facing Digital * Boost guest confidence Order + Real-time updates (visual) Tracker * Curbside check-in + Voice recognition Automated * Increased team member Waitlist productivity * 100% increase * Guest and delivery partne
Slide 63: Best-in-Class Technology: Team Member-facing
Best-in-Class Technology: Team Member-facing + Real-time allergen info by Server menu item H itali Ae ae a + Improved hospitality with aeinlereret coursing and table alerts Digital * Digitized >95% checklists Operations + Better reporting unlocking Checklists cost savings opportunities Al-Based * Dr
Slide 64: In Focus: AI-Based Sales Forecasting at Each Restaurant
In Focus: Al-Based Sales Forecasting at Each Restaurant Avg. wales Forecast Why this Matters Next Up ariance 0% = Most Accurate 2.8% 21% 0.1% Ql Q2 Q3 Al forecasting tool launched mid-Q2 <4 * Inaccuracy costs $$$ * Improved labor efficiency * Less food waste + Manager time savings . More granular fo
Slide 65: Elevating Guest Experience while Driving Efficiencies and Profitability
Elevating Guest Experience while Driving Efficiencies and Profitability Q3 2023 vs. Q3 2019 Guest Hospitality +3 ppts (Net Promoter Scores) Pace +5 ppts Kitchen IPLH +4 items Dining Room IPLH +2 items Operational Overtime Hours — (12) hours/ROW Training Hours (9) hours/ROW Kitchen Hours (20) hours/R
Slide 66: Platform for Growth Summary
Platform for Growth Summary Energize Ambience Solid Growth In BJ's CORE 66
Slide 67: Break
Break
Slide 68: Remodeled and New Restaurants Delivering Attractive Returns
Remodeled and New Restaurants Delivering Attractive Returns Greg Lynds Chief Development Officer
Slide 69: Energizing Ambiance Through Remodels
Energizing Ambiance Through Remodels * Elevate Best-In-Class Bar Statement * Optimize Seating and Increase Table Count ¢ Accentuate Brewing Prowess * Create Immediate and Noticeable Wow 69
Slide 70: Remodel Program Driven by Guest Feedback
Remodel Program Driven by Guest Feedback * 130” Video Wall + 2 - 75” TVs * New beer chalkboard * Adding three new 84" booths to previous service areas * 39 relocated beer taps + Authentic Brewhouse artwork . , 4. . + New, white oak tables, chairs & + New quartz bar top + New lighting & music system
Slide 71: Remodels Delivering Solid Sales Lifts and Attractive Financial Returns
Remodels Delivering Solid Sales Lifts and Attractive Financial Returns $in 000s Remodel Return on Investment Blended Average Cash Investment $365 Annual Sales Lift $150 RLCF $1 $75 RLCF %! 50% Cash-on-Cash Returns 20% L SB 9 1. 50% profit flow through based on variable and semvariable restaurant-lev
Slide 72: Restaurant Remodels: Before and After
Restaurant Remodels: Before and After Rancho Cucamonga, CA Features lighter wood shelving with 130” TV and 39 beer taps strengthening Brewhouse Authority Befo re: Dark wood with dated mica panel 72
Slide 73: Restaurant Remodeled Bar
Restaurant Rem odeled Bar ‘ Arlington, TX = (130” TV, New Beer C <-> d: Beer Tank Design Statement ”
Slide 74: Restaurant Remodels: Before and After
Restaurant Remodels: Before and After Bakersfield, CA 3 new barrel booths with brewing process mural and updated dining Before: Unused service area with detailed artwork 74
Slide 75: Restaurant Remodels: Before and After
Restaurant Remodels: Before and After Natomas, CA Before: Faded stucco After: -New updated murals -Updated lighting -Contrasting brick accent and BJ's brand colors 75
Slide 76: Restaurant Remodels: Exterior
Restaurant Remodels: Exterior Summerlin, NV (Galvanized signature silo - updated to brand colors) \ Be Xy gy z
Slide 77: Platform for Growth Summary
Platform for Growth Summary Market Headroom Awareness Amplification Culinary Development Growth Overlays Gracious Hospitality Energize Ambience Ww 77
Slide 78: New Restaurant Growth
New Restaurant Growth * National brand with strong performance across portfolio * New restaurants performing well in terms of sales and margins ¢ Attractive new restaurant returns will be even better next year with new, lower cost building * Only halfway to 425+ restaurant opportunity 78
Slide 79: Tremendous Runway to Continue Expansion
Tremendous Runway to Continue Expansion Restaurant potential 4 5+ & Growth journey 1,544 only beginning 1,226 1,263 906 627. +651 ~«=—684 no 213 2 28 Praia, Gfeeate W PER RIRIin <u afer ELE oaraac One 3s AMresees Y d y ; Note:U.S. restaurant counts based on publicly available information 79
Slide 80: Growing from Regional to National Brand
Growing from Regional to National Brand f- pay > Restaurants: 29 Restaurants: 103 Restaurants: 217 States: 4 States: 13 States: 30 W 80
Slide 81: Consistent Development Strategy
Consistent Development Strategy EJ] Location Clustering Strategy creates efficiencies across management, supply chains and marketing/awareness EJ] Flexible Real Estate Strategy through conversions, new prototype, ground lease or purchase * Maintaining strong site pipeline * Leverage guest traffic me
Slide 82: Capitalize On Our New Restaurant Growth Potential
Capitalize On Our New Restaurant Growth Potential 1 | Preferred Tenant Status with developers 2 | Leader in Guest Traffic per square foot and AUVs ¢ Strong lunch, mid-afternoon, dinner and late-night dayparts 3 | Proven Experienced Site Selection Team with best-in-class predictive analytics tools
Slide 83: Proven Growth Concept in Diverse Trade Areas
Proven Growth Concept in Diverse Trade Areas Los Angeles, CA Metro Area San Antonio, TX Metro Area Washington, DC Metro Area Location Oxnard, CA Westlake Village, CA Population 262,609 123,930 MHHI $83,023 $121,774 Ww Location San Antonio (The Rim), TX New Braunfels, TX Population 157,427 77180 MHHI
Slide 84: New Restaurants Delivering Very Strong Performance
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Slide 87: New Restaurant Prototype: Strong Sales and More Efficient
Slide 88: Maintaining and Enhancing Attractive Investment Return Profile
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4 2 4 2 • 5 1 1 7 4 2 • 7 14 6 6 1 59 6 1 3 1 3 4 6 2 2 1 • 2 3 36 22 • •
Slide 90: Financial Outlook and Long-Term Growth Algorithm
Slide 91: Meaningful Margin Progress – And More Benefits Expected
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Slide 92: Margin Improvement Initiatives Launched Mid-2022
Slide 93: Growing Margins Remains Top Priority with NROs and Returning Capital Up Next
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Slide 95: Growing Margins Remains Top Priority with NROs and Returning Capital Up Next
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Slide 97: Meaningful Growth Opportunity: Adj. EBITDA
Slide 98: Investing in Growth + Returning Capital
Slide 99: Executing Growth Plan Creates Valuation Expansion Opportunity
Slide 100: Tremendous Opportunity to Unlock Shareholder Value
Slide 101: Q&A
Slide 102: Today's Key Messages