Granite City Food & Brewery Ltd · OTC:GCFB
Granite City Food & Brewery — Investor Presentation (November 2007)
23 slides from Granite City Food & Brewery's investor presentation, Nov 7, 2007
Slide 1: Operations Initiatives Presentation
Operations Initiatives Presentation
Slide 2: Forward-looking statements
Certain statements made in this presentation of a non-historical nature constitute "forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results
Slide 3: Operating Priorities
Operating Priorities Protect The Brand Build A Culture Growth/Build Girth Build A Regional Model Transform Into A Public Company
Slide 4: A Modern American Upscale Casual Restaurant Chain
Is A “Modern American” Upscale Casual Restaurant Chain Squarely Positioned In The American Consumer Sweet Spot
Slide 5: Casual Dining Concepts by Price Point
Casual Dining Concepts Price Point Champps Chili’s Applebee’s TGI Friday’s Lower Olive Garden Outback Steakhouse Macaroni Grill Red Lobster Mid Level The Cheesecake Factory PF Chang’s McCormick and Schmick’s Houston’s Upscale Attributes
Slide 6: YTD Recognition
YTD Recognition Awarded Patent For Proprietary Brewing Process Nation Restaurant News, Hot Concept Winner Ernst & Young, Entrepreneur Of The Year Winner
Slide 7: Strong Comp Sales
Strong Comp Sales 5.5% 2.5% 2.6% -1.9% 1.7% -0.2% 2.7% 0.3% 2006 Q1 2007 Q2 2007 Q3 2007 Granite City Knapp-Track
Slide 8: Challenges
Challenges Economy/Gas Commodities Guest Traffic Industry As A Whole YTD Negative Comps Lower Earnings Announced By Major Co. Brand Closings Announced Slow Down In Future Development
Slide 9: Granite City's Sustained Popularity = Strong Sales Productivity
Granite City’s Sustained Popularity = Strong Sales Productivity Cheesecake Factory BJ’s Granite City PF Chang’s Olive Garden Red Robin CPK Applebee’s Chili’s Ruby Tuesday 1,773 1,348 869 830 869 849 712 653 731 500 Est. Guests/Day Cheesecake Factory Granite City BJ’s PF Chang’s Olive Garden Red Robi
Slide 10: Comparative Average Sales Volume
Comparative Average Sales Volume (in 000’s) Source: SEC filings, 10-K, analyst reports, company presentations, and Restaurant Research Journal Add decimals Chili’s Outback Granite City PF Chang’s 2.5 3.2 3.3 3.5 4.1 4.2 5.1 5.6 11.1 Applebee's TGIF Champps BJ's Cheesecake
Slide 11: Gaining G&A Efficiency
Gaining G&A Efficiency Source: SEC filings and internal projections *Represents a non-GAAP measure. G&A Leverage 9.9% * Without Stock Compensation 13.0% 8.5% 13.7% 11.7% 9.4% 2003 2004 2005 2006 2007E
Slide 12: Sales Growth
Sales Growth (in millions) Source: SEC filings and internal projections CAGR 54% $14.1 $30.6 $36.2 $58.3 $80.0 2003 2004 2005 2006 2007E
Slide 13: Unit Growth
Unit Growth Source: SEC filings and internal projections CAGR 51% 5 8 11 18 25 2003 2004 2005 2006 2007E
Slide 14: Granite City Evolution
Granite City Evolution Planning For Future Move From Foundation Setting to Discipline and Execution Results Oriented Set Up Performance Guardrails Manage With Measurables In Place Tight Field Supervision The Future Is Now
Slide 15: Opportunities
Opportunities Sales Over Staffed in Hourly and Management Prime Costs HR Field Discipline And Measureables Kitchen Management Focus Internal Controls - Stewardship Program Mgmt. Development D.O. Development And Coverage NSO Openings And Ramp Up
Slide 16: Three Distinct Initiatives
Three Distinct Initiatives Human Resources Management Development Financial
Slide 17: HR Initiatives
HR Initiatives Talent Acquisition Dissect Training Program Reduce Turnover - Increase Retention Talent Mapping Develop A Home Grown Pipeline
Slide 18: Management Development
Management Development Re-establish the District Operators Role Smaller Regions Consistent Discipline Measurable Goals Accountability for Restaurant Oversight Reduce Manager Labor Manager Levels To Sales Ratio Shift Leadership Great Supervision and Development of Staff Develop Task Managers to Suppo
Slide 19: Management Development
Management Development Balancing Culture With A Financial Mentality Building Sales With Driving Profits Following A Financial Routine Cost Of Goods Efficiency Model Projected And Actual Labor Tools Declining Checkbook For Direct Expenses Weekly Financial Accountability Kitchen Manager Repositioning
Slide 20: Financial Initiatives
Financial Initiatives Cost Of Food Management and Hourly Labor Direct Expenses NSO Ramp-Up Improvement
Slide 21: Initiatives Targets and 2008 Target Dates
Initiatives Cost Of Food Management Labor Hourly Labor Direct Expenses NSO Ramp Up 1% Improvement .3% Improvement 1% Improvement .5% Improvement .5 % Improvement End Q2 End Q1 End Q2 End Q3 End Q3 Initiatives Target Goals 2008 Target Dates
Slide 22: Evolution Of Priority
Evolution Of Priority Protect Build Growth Transform Setting Foundation Protect Accountability Discipline Focus Execution Measurables Supervision Guard Rails Earlier Initiatives Current Initiatives
Slide 23: Pipeline For Success
Pipeline For Success Product Has Been Our Anchor People Now Can Attract High Quality Talent Development Concept Works Everywhere Funding Need Long Term Funding Facility
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