INTERNATIONAL OVERVIEW
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1 INTERNATIONAL OVERVIEW
2 ABOUT US Industry: Restaurant/Foodservice Segment: Quick Service Founded in San Antonio, Texas (USA) in 1952, Church s Chicken is a highly recognized brand name in the QSR sector, and is the second largest geographically located quick service chicken concept in the world. Church s Chicken serves traditional southern and spicy fried chicken with a focus on offering complete meals with large portions at low prices and is positioned as the Value Leader in the Chicken QSR category. As of March, 2017 the Church s Chicken system has over 1,600 locations in 28 US States and 28 countries, with system sales in excess of $1.1 billion. Internationally we operate as Church s Chicken and Texas Chicken. Corporate Affiliation: On August 4, 2009, Church s was acquired by Friedman Fleischer & Lowe, a private equity firm based in San Francisco, California (USA) Contact: Church s Chicken 980 Hammond Drive, Suite 1100 Atlanta, GA (USA) Phone: +1(770) Website: Attention: Bill Schreiber, Vice President of Global Development BSchreiber@churchs.com
3 MENU Known for its southern-style chicken, Church s also serves southern specialties including fried okra, coleslaw, mashed potatoes with gravy, corn on the cob, Jalapeño Cheese Bombers and its unique Honey Butter Biscuits. In 2005, Church s Chicken launched an array of spicy products, including various sandwiches, wraps, salads, breakfast items, and combination platters. Church s Favorites We ve been serving our world famous chicken for over 65 years. Our biscuits are handmade and glazed with our famous sweet and savory honey-butter. Church s serves more than 200 million pounds of chicken a year! We serve 60 million biscuits a year! That s equivalent to 7,500 miles of biscuits.
4 HISTORY George W. Church, Sr., a retired incubator salesman with more than 20 years in the poultry industry, conceived the idea of offering freshly cooked, quality fried chicken at a time when only hot dogs and ice cream were marketed fast-food style. The first Church s Fried Chicken-To-Go opened in 1952 in San Antonio, Texas across the street from the Alamo. George W. Bill Church, Jr. assumed chief operating responsibility for the family business in In 1967 Church s invented a domestic franchise program. The Church s family was bought out in October 1968, and in May 1969 Church s Fried Chicken, Inc. became a publicly held company. By the end of 1969, there were over 100 Church s restaurants were in operation in seven states. International expansion began in 1971 with the announcement of the first Church s Chicken in Vancouver, Canada. By 1974 there were 487 First Church s Restaurant Church s in 22 states with total revenues of $100 million. Church s formed its international division in 1979 and announced the first restaurant outside of North America. The company s international franchisees initially established locations in Puerto Rico, Mexico and Indonesia. Today, Church s and Texas Chicken can be found in 28 countries around the world. Church s loveable mascot, Churchie By 1989, Church s was the second largest chicken franchise organization in the United States. That same year Church s merged with the number three chicken chain, Popeye s Famous Chicken & Biscuits. While the two shared supply lines, the Church s concept remained distinct and separate from Popeye s. On November 5, 1992, America s Favorite Chicken Company (AFC) now called AFC Enterprises Inc. offi ally became the parent company to Church s Chicken, and moved its operations headquarters to Atlanta. AFC sold the brand on December 26, 2004 to the global private equity firm, Arcapita Inc. August 4, 2009 Church s was acquired by its current owner, Friedman Fleischer & Lowe, a private equity firm ased in San Francisco, California.
5 EXECUTIVE PROFILES JOE CHRISTINA Chief Executive Officer If you re looking for someone who loves responsibility, look no further than Joe Christina. He s the man in charge of all Church s restaurant operations, including U.S. operations services. But the thing that really makes Joe stand out is his proven ability to get results. While he was SVP of Franchise Operations for the North America Western Division of Burger King, Joe implemented standards that immediately reduced expenses and improved quality to the tune of an 8% increase in same-store sales. He also engineered improved scores in crucial operations aspects such as store cleanliness and friendliness, customer loyalty, and customer satisfaction. Joe is a graduate of Quinnipiac College with a Bachelor of Science in Business Management and Marketing. TONY MORALEJO EVP, International Business & Global Development Tony Moralejo s job isn t done until there s a Church s in every neighborhood or at least one within reasonable driving distance. That s because he s our Chief Development Officer, responsible for our domestic and international expansion. His duties include franchising, reimaging, construction, and real estate management. Tony spent 15 years in various leadership roles at Burger King Corporation, including General Counsel and later VP of Development for the Latin America and Caribbean regions, where he achieved unprecedented growth. He also served as Senior Director of Partner and Franchise Management in the Direct to Consumer Group at Nike, Inc., and was a member of the brand s Global Leadership Retail Team. He graduated from the University of Miami with a degree in business administration and received his law degree from the University of Pennsylvania Law School.
6 EXECUTIVE PROFILES BARRY BARNETT SVP, Global Supply Chain and Purchasing When you make chicken this good, keeping up with demand is a full-time job. But we re not just saying that. It s a job that belongs to Barry Barnett, our head of Global Supply Chain and Purchasing. His responsibilities include keeping our supplies up and our business ready for growth. Barry was previously VP and Global Supply Chain manager at Burger King Corporation where he established and led successful strategies for the supply of food, packaging, distribution, equipment, and facilities. Let s just hope we always have a supply of Barry. BILL SCHREIBER Vice President of Worldwide Business Development Church s Chicken / Texas Chicken Leveraging his experience in the food industry, Bill Schreiber leads and is responsible for identifying potential international and domestic franchise partners who are capable of developing multiple international and domestic Church s Chicken and Texas Chicken restaurants. In addition, he is responsible for developing country entry plans, including internal support needed to meet opening commitments. Previous to his current role as Vice President of Worldwide Business Development, Schreiber held the title of Senior Director of International Development for Church s where he held the responsibility of sourcing, negotiating and qualifying new international franchisees for the Church s and Texas Chicken brands. As Vice President of Worldwide Business Development, Schreiber brings more than 18 years of experience in franchise development. Prior to joining Church s Chicken in 2009, Schreiber served at Arby s Restaurant Group where he held several positions over the years such as: Vice President of Franchise Management, Senior Director of Franchise Management, Director of Franchise Management and Franchise Business Manager. As Vice President of Franchise Management, Schreiber was responsible for franchise operations in the Western Division of the United States, which included more than 250 franchisees and more than 1,900 restaurants. During this time he also served as the General Manager of Canada. Schreiber s professional career also includes time as the Director of Development and Construction at Pollo Campero, USA and experience as the Director of Franchise Management for the Caribbean, Central American and Latin America at KFC. Bill Schreiber graduated from the University of New Mexico with a Bachelor of Science in Criminal Justice.
7 GLOBAL PRESENCE AMERICAS Puerto Rico Mexico Trinidad & Tobago Honduras Guyana Curacao Canada Venezuela St. Lucia MIDDLE EAST UAE Saudi Arabia Egypt Jordan Iraq OPENING IN EARLY 2017 Bahrain Oman ASIA-PACIFIC Indonesia Singapore Malaysia Vietnam New Zealand Thailand Pakistan Laos EASTERN EUROPE Bulgaria Belarus
8 SUPPORT Church s has a vested interest in the success of its franchisees. For Church s to be successful as a company, its franchisees must also be successful. Church s franchisees receive comprehensive training to ensure operators and management is equipped with the proper knowledge and tools to operate at the brand standard. Regional Franchise Directors (RFDs) RFDs lead the international franchise development process. RFDs are the key relationship contact between franchisee and franchisor. RFDs are dedicated to ensuring that the franchise process is developed effectively and efficiently. RFD s are located throughout the world and generally speak the local language. RFDs are experienced food service professionals dedicated to supporting Church s international franchise partners with site selection, operations, training, product quality, marketing and much more. Training Training steps include: Comprehensive New Franchise Opening Program (NFOP) at Church s headquarters in USA. RFDs and Dedicated Trainers work closely with franchisees to establish staffing guidelines and develop the new restaurant opening team International restaurant managers undergo a 4-week training period in an operating US or international restaurant. Development Services Church s Architecture and Engineering (A&E) Department creates restaurant designs that are operationally efficient, cost effective, and aesthetically appealing. Most, although there is a minimum space requirement, major operational functions of the restaurant can be adjusted to fit any existing building configurations. Church s restaurant venue and specs include: Free standing restaurants with a drive-thru Food court locations In-line shopping center spaces International airports A linear production system makes the Church s system one of the most flexible quick service restaurant concepts in the world. A Church s unit can fit into many types of spaces. There are proprietary models for stand-alone restaurants, drive-thru s, food courts and other types of locations that your market may require. We can work with as little as 900 square feet.
9 BASIC FEES Church s / Texas Chicken international agreements involve the development of several restaurants (depending on the market) within a country or large geographic region over a period of three to ten years. The potential international franchisee must have the financial ability to fulfill their development agreement. The franchisee must have or be willing to establish the operational staff necessary to manage its Church s business. The international franchisee s financial commitment includes both one-time and ongoing fees. INITIAL INVESTMENT INITIAL FEES 1 + Royalty Fee... 5% of gross sales + Marketing Fee... 5% of gross sales 1 For more details, see Item 5 of the 2014 Church s Chicken Franchise Disclosure Document, available upon request.
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