FOODSERVICE JBP GUIDEBOOK Operator-Manufacturer Joint Business Planning Process Guidebook and Worksheets The Partnering Group October 2015

PURPOSE This Guidebook is intended to provide Joint Business Planning Practitioners with the process, principles and worksheets to guide their work as business partners. The Guidebook was developed through the work of an Industry Board made up of 15+ companies led by TPG and IFMA. It is our intention that the worksheets will be used by the industry as a Best Practices approach to building Joint Business Plans.

DEFINITION - JOINT BUSINESS PLANNING Foodservice Joint Business Planning is an ongoing collaborative process for partners to identify, prioritize and execute mutually advantageous initiatives intended to improve patron’s experience and drive financial results.

CONTENTS Foodservice Joint Business Planning (JBP) Best Practice Process Process Relationship Diagram Process Inputs & Outputs The Worksheets 1A. Approvals Tracker 1B. Category Insights Summary 1C. Prioritized Opportunity Summary 1D. Opportunity Insights Summary 2A. Key Initiative Summary 2B. Scorecard & Targets 2C. Initiative Team Grid 2D. Key Initiative Summary 3A. Tactical Development Roadmap & Testing Plan 3B. Tactical Development Feedback & Approvals Tracker 4A. Launch/Roll-out Plan 5A. Scorecard Performance Analysis (2B) 5B. JBP Learnings & Impact 5C. Plan Communication and Refinements Summary

FOODSERVICE JBP BEST PRACTICE - THE PROCESS Discovery & Strategic Alignment Goal Setting & Initiative Design Tactical Development & Testing Review & Refine Launch Share Corporate strategies Understand capabilities & requirements Identify & prioritize common opportunities Analyze & identify relevant insights Leverage opportunities & agree on priority initiatives Build scorecard & align on goals & timing Identify development teams Build tactical roadmap & testing plan Complete tactical development & testing Create and communicate launch plan Implement/ roll-out/ launch initiative Collect & assess progress vs. scorecard Discuss successes & opportunities for improvement Make plan adjustments Align & Proceed Align & Proceed Align & Proceed Align & Proceed 5 The Partnering Group

Relationship & Opportunity Evolution FOODSERVICE JBP BEST PRACTICE Representing the Ongoing Work of a JBP Relationship Relationship & Opportunity Evolution Initiative Execution Tactical Development & Testing Review & Refine Launch Discovery & Strategic Alignment Goal Setting & Initiative Design Tactical Development & Testing Review & Refine Launch Tactical Development & Testing Review & Refine Launch 6 The Partnering Group

FOODSERVICE JBP - PROCESS INPUTS/OUTPUTS Corporate strategies Capabilities summary Data and insights Understanding of Pyramid List of key opportunities from your organizations perspective Prioritized opportunities and summary of insights Method to set reasonable targets Understanding of resources and what each organization is prepared to invest in Resources, tools and capabilities needed to bring initiatives to life Testing protocols & success criteria Understanding of launch resources including: Responsibilities Capital investment Training Marketing support Supplier alignment Timing Performance data vs. targets Qualitative feedback from stakeholders Discovery & Strategic Alignment Goal Setting & Initiative Design Tactical Development & Testing Review & Refine Launch Outputs Outputs Outputs Outputs Outputs Strategic alignment JBP Insight Summary Prioritized opportunities Insights summary for priority opportunities Agreement on Key initiative(s) Scorecard/targets Initiative team members Alignment on: Tactical roadmap & testing plan Timing Feedback & approvals mechanism Complete tactical development & testing Create launch plan Communicate launch plan Execute launch plan Scorecard analysis JBP Learnings & Impact Communication of plan & execution refinements 7

JOINT BUSINESS PLANNING FOODSERVICE JOINT BUSINESS PLANNING WORKSHEETS The Partnering Group

JBP PROCESS WORKSHEETS FOODSERVICE JBP Worksheets JBP PROCESS WORKSHEETS Discovery & Strategic Alignment Goal Setting & Initiative Design Tactical Development & Testing Review & Refine Launch Worksheets Worksheets Worksheets Worksheets Worksheets 1A. Approvals Tracker 1B. Category Insights Summary 1C. Prioritized Opportunity Summary 1D. Opportunity Insights Summary 2A. Key Initiative Overview 2B. Scorecard & Targets 2C. Initiative Team Grid 2D. Key Initiative Summary 3A. Tactical Development Roadmap & Testing Plan 3B. Tactical Development Feedback & Approvals Tracker 4A. Launch/Roll-out Plan 5A. Scorecard Performance Analysis (2B) 5B. JBP Learnings & Impact 5C. Plan Communication and Refinements Summary

JBP PROCESS WORKSHEETS FOODSERVICE JBP Worksheets JBP PROCESS WORKSHEETS Planning Logic Flow Opportunity > Initiative > Tactics > Launch Four worksheets form the foundation of the plan 1C. Prioritized Opportunity Summary 2A. Key Initiative Summary 3A. Tactical Development Roadmap 4A. Launch / Roll-out Plan

Operator Approval / Date Supplier Approval /Date FOODSERVICE JBP Worksheets 1A: APPROVALS TRACKER Approvals stage-gate tracker to be used throughout the JBP process Output Step Operator Approval / Date Operator Comments Supplier Approval /Date Supplier Comments 1C. Prioritized Opportunity Agreement 2A.Key Initiative Worksheet Review 2B. Scorecard & Target Alignment 2C. Team Assignment Agreement 3A. Tactical Roadmap Review+ 3B Feedback/Approvals Mechanism Agreement 4A Launch Plan Alignment 5A,B,C. Scorecard Review & Refinement Agreement

1B: JBP INSIGHTS SUMMARY FOODSERVICE JBP Worksheets 1B: JBP INSIGHTS SUMMARY Insights Sources xxx JBP Opportunities MACRO - Business environment, FS industry, Consumer/operator/distributor/trends, Menu/eating trends and behaviors xxx CATEGORY - Size, Growth, Trends in flavor/format, Segment importance xxx xxx CONSUMER - Consumer demographics trends, Attitudes and usage, Path-to- choice xxx OPERATOR - Segmentation, Attitudes and usage, Frustrations, Path-to- purchase xxx xxx SUPPLY CHAIN / SOURCING – Trends, Advantages, Constraints, Distribution route, Capabilities, Programs xxx xxx INTERNAL (OPERATOR & MANUFACTURER) – Resources, Skills, Capabilities

1C: PRIORITIZED OPPORTUNITY SUMMARY FOODSERVICE JBP Worksheets 1C: PRIORITIZED OPPORTUNITY SUMMARY Mutual opportunities are identified based on a sharing of strategies, insights and the areas of leverageable value Priority Alignment Opportunity Name Description Foundation / Rationale for Opportunity Desired Outcome 1 xx 2 3 4

1D: OPPORTUNITY INSIGHT SUMMARY OPPORTUNITY: ___________________ FOODSERVICE JBP Worksheets 1D: OPPORTUNITY INSIGHT SUMMARY OPPORTUNITY: ___________________ Observations from Research & Data Analysis Insights Strategic Implications for JBP xxx xx xxx xx xxx xx xxx xxx xx xxx xx xxx xx xxx xxx xx

2A: KEY INITIATIVE OVERVIEW FOODSERVICE JBP Worksheets 2A: KEY INITIATIVE OVERVIEW Opportunity (from Worksheet 1C) Initiative Name XX Translate opportunity into a specific & actionable initiative Initiative Description Key Elements (High Level Tactical Overview) Success Criteria Elements Out of Scope e.g. $xM in Sales in first 6/12/18 Months e.g. $xM in Cost savings by y date e.g. x% increase in patron satisfaction scores by y date Resource Needs (People, Capital, External Support) Key Milestones e.g. Supplier Culinary e.g. Concepts Complete: June 1 e.g. Operator’s Advertising Agency e.g. Test Complete: Sept 1 e.g. Packaging Redesign Cost Estimate: $50,000 e.g. Full Launch: Jan 1

2B: SCORECARD & TARGETS Initiative Name: Leading / Lagging FOODSERVICE JBP Worksheets 2B: SCORECARD & TARGETS Initiative Name: Leading / Lagging Key Measures Goal Actual (Through XX/XX) Status Leading Measures of Activity e.g. # of Restaurants Launched into e.g. 100 e.g. % of Full Truck Shipments e.g. 85% Lagging Measures of Outputs e.g. Units Sold Weekly e.g. 1,000 e.g. Efficiency savings e.g. $500,000

2C: INITIATIVE TEAM GRID FOODSERVICE JBP Worksheets 2C: INITIATIVE TEAM GRID Initiative Name: Supplier / Operator Name Function Initiative Role Tactical Responsibilities Email Phone Operator Supplier

2D: KEY INITIATIVE SUMMARY Combines Worksheets 2A, 2C and 3A FOODSERVICE JBP Worksheets 2D: KEY INITIATIVE SUMMARY Combines Worksheets 2A, 2C and 3A Initiative Name Initiative Description ‘Translate opportunity into a specific & actionable initiative’ Success Criteria Team Members & Roles e.g. $xM in Sales in first 6/12/18 Months e.g. $xM in Cost savings by y date e.g. x% increase in patron satisfaction scores by y date Tactical Plan Tactic / Description Owner Key Dates

3A: TACTICAL DEVELOPMENT ROADMAP & TESTING PLAN FOODSERVICE JBP Worksheets 3A: TACTICAL DEVELOPMENT ROADMAP & TESTING PLAN Initiative Name: Tactic Owner Support Resources Milestone? (Y/N) Week (or Month/add dates) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

3B: TACTICAL DEVELOPMENT FEEDBACK & APPROVAL TRACKER FOODSERVICE JBP Worksheets 3B: TACTICAL DEVELOPMENT FEEDBACK & APPROVAL TRACKER Initiative Name: Milestone Tactic (from 3A) Approver & Date Feedback

4A: LAUNCH / ROLL-OUT PLAN FOODSERVICE JBP Worksheets 4A: LAUNCH / ROLL-OUT PLAN Initiative Name: Launch Step Owner Support Resources Comments Week (add dates) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 e.g. Training e.g. Merchandising Support e.g. New Equipment e.g. Product delivered to units

5A: SCORECARD PERFORMANCE ANALYSIS Add Actual Results to 2B Scorecard FOODSERVICE JBP Worksheets 5A: SCORECARD PERFORMANCE ANALYSIS Add Actual Results to 2B Scorecard Initiative Name: Leading / Lagging Key Measures Goal Actual (Through XX/XX) Status Leading Measures of Activity e.g. # of Restaurants Launched into e.g. 100 e.g. % of Full Truck Shipments e.g. 85% Lagging Measures of Outputs e.g. Units Sold Weekly e.g. 1,000 e.g. Efficiency savings e.g. $500,000

5B: JBP LEARNINGS & IMPACT FOODSERVICE JBP Worksheets 5B: JBP LEARNINGS & IMPACT Learning Based on Scorecard Results Short-Term Initiative Related Long-Term Relationship Impact Initiative Adjustment Recommendations Implications to Relationship – New Opportunities & Areas of Leverageable Value xx

5C: PLAN COMMUNICATIONS & REFINEMENTS SUMMARY FOODSERVICE JBP Worksheets 5C: PLAN COMMUNICATIONS & REFINEMENTS SUMMARY Agreed Upon Areas to Change Priority / Timing of Deliverable / Change Owner Resources / Cost xx E.g. Immediate, required in-store in 7 seven days