Java City Retail SBU FYE 2000 Priorities & Plans

Our Management Challenge –Diverse concepts throughout the chain –No capital to invest in new stores, renovations or R&D –Increase sales goals Our Advantages / Strengths –Coffee and café’s are still very hot! –Our loyal customers base –Entrepreneurial management drive Java City Retail SBU

Our Management Goals for FYE 2000 Hit our sales and EBITDA targets –Increase sales –Increase profitability of operations Acknowledge and understand that our concept has matured and we need to run it that way –Remove hurtles and be consistent in our management approach

Java City Retail SBU Our Management Goals for FYE 2000 Increase the impact of our decision-making and management efforts –Achieve greater consistency across the chain –Increase team work across the management team

Top Priorities: 1) POS 2) Product Development 3) Marketing 4) Strengthen Human Resource Capabilities 5) Clarity Concept Across the Chain Java City Retail SBU

Current Plan Focus our efforts on agreed upon priorities –First : POS, Product Development and Marketing –Second : Strengthen Human Resources Capabilities and Clarify our Concept Across the Chain Form project teams with Executive Team sponsorship to guide the project Conduct quarterly management team meetings across the SBU to keep project teams on track and increase communication across the SBU Java City Retail SBU

POS Project Project Team : Ann, Matt, Cory and Bryan Executive Team Sponsor : John Project Goals : –Support better decision-making by providing relevant and useful information in a timely manner –Increase support of business processes and management team at the store / shift level –Increase ability to communicate across the chain, between the field management and between the home office and the field Java City Retail SBU

POS Project (continued) Project Team : Ann, Matt, Cory and Bryan Executive Team Sponsor : John Success will be measured by : –Increased profitability by decreasing labor costs by (2- 3%) and increase operational efficiencies –A smooth and stable POS system (low down time) –Increase sales - better decisions, right products, offering and return on marketing dollars Java City Retail SBU

Product Development Project Project Team : Dave, Sheri, Jim H., Jan and Bruce Executive Team Sponsor : Bob Project Goal: Create and manage high quality products that are: –Easy to produce and sell –Profitable –Relevant to each café and their market Java City Retail SBU

Product Development Project (continued) Project Team : Dave, Sheri, Jim H., Jan and Bruce Executive Team Sponsor : Bob Success will be measured by : –Increased sales from new customers and existing customers –Higher EBITBA through greater efficiencies, less waste and lower labor costs –The regain of our WOW - improve our positioning with in the markets we serve Java City Retail SBU

Increase Sale (Marketing) Project Project Team : Jennifer, Rick, Pam, Roseanne and Bob Executive Team Sponsor : Carla Project Goals –Increase transaction counts –Retain more customers and sell them more Java City Retail SBU

Increase Sale (Marketing) Project (continued) Project Team : Jennifer, Rick, Pam, Roseanne and Bob Executive Team Sponsor : Carla Success will be measured by : –Increased sales by 1% across the SBU and significantly in five key stores –Increased customer satisfaction –Increased morale and decreased turnover –Greater brand awareness in local markets and across the region Java City Retail SBU