Today s Expectations. Let s review the agenda: Break! Grow Real Sales Robert. Have A Safe Trip Home!! Drive People Capability Lisa

Transcription

1 Today s Expectations Let s review the agenda: Drive People Capability Lisa Break! Execute High Operational Standards - Steve Grow Real Sales Robert 2010: The Bonus Plan Robert Wrap-Up! Have A Safe Trip Home!!

2 Meeting Expectations Let s have a good time! Be engaged! Participate! Breaks Be a leader at your table! Take away and share some your ideas! Your managers Your team members Leave with a common vision! Go back and make a difference!

3 A Common Vision The Importance of Vision Why is it so important for leaders to have a common and clear vision? Because leadership is about going somewhere. If you and your people don t know where you are going, your leadership doesn t matter! Let s talk today about our common vision.

4 2010 Another Year of Growth Joe Langteau President & Chief Executive Officer

5 2010 Key Accomplishments Comp sales of -.19% despite continued economic challenges & cannibalization Labor cost reduced from 32.33% to 31.95% Food cost declined from 21.85% to 21.62% 9 restaurants were remodeled w/ Momentum elements Team member turnover annualized at 90%

6 2010 Key Accomplishments 2 new restaurants opened - one under construction Record OAR scores Field OPS Team stronger than ever LRM efforts are having a positive impact Recognition culture is building

7 2010 Opportunity Areas Growing Real Sales remains challenging New restaurant performance below targets Facility challenges resulted in higher than budgeted R&M expense Must take coaching process to next level Voice of Guest program has exposed operational weaknesses We need to build a stronger bench

8 Comp Sales Trends are Soft -.19% 2010 YTD 4.00% 2.56% 2.00% -1.28% 0.78% 0.86% 1.06% 1.16% 0.00% -2.00% -1.40% -1.03% -0.50% 0.65% -2.91% -2.62% -4.00% P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12

9 Comp Sales By Market 16.00% -.19% 2010 YTD 12.00% 9.88% 8.00% 4.00% 0.73% -4.30% 0.22% 0.00% -4.00% -1.57% -0.03% -8.00% DFW Austin Houston El Paso Waco Amarillo

10 2010 Top 10 Scoreboard! 1. Kendell Bolden # Son Laveau # Randall Cook # Dave Lucas # Ivan Lagunes # James Bush # Robin Castaneda # Marty Huss # Staci Robeson # Stan Venne #3025

11 2011 The Year Ahead Joe Langteau President & Chief Executive Officer

12 2011 Outlook Economic environment predicted to improve Substantial competitive activity at breakfast IHOP continues to outperform the category Guest expectations remain high - no tolerance for poor service Best operated restaurants will widen their lead Opportunities exist to secure real estate at reasonable prices Solid marketing calendar in place w/ LRM support

13 $13.9B $14.0B $13.8B $13.9B $14.1B $14.2B $14.5B $14.6B $14.5B $14.2B Market Share Doubled Market Share in 10 Years Family-style Market Share by Brand 15% 16% 15% 15% 16% 16% 16% 16% 17% 18% 9% 9% 11% 12% 13% 9% 9% 10% 6% 11% 11% 6% 6% 7% 7% 14% 15% 16% 16% 12% 12% 13% 13% 7% 7% 7% 7% 15% 13% 7% 62% 59% 58% 55% 53% 51% 51% 49% 47% 47% Independent / Other Chains CREST Family Dining

14 Increasing Competitive Pressure from Family Dining, Fast Casual and QSR $36.7MM $74.0MM $36.6MM $37.9MM $17MM $8.3MM $29.8M M $3.4MM $4.2MM $2.2MM $2.6MM $3.0MM

15 2011 Critical Priorities Grow sales by 1.62% w/ traffic increases Launch RosNet food cost tool Take LRM efforts to the next level GLI of 80% through focus on guest service Improve restaurant cash flow thru focus on labor & food cost control Effectively manage labor costs Achieve team member & management turnover targets Complete 10 remodels & open 2 new restaurants Recognition acceleration

16 What Do We Stand For? Recognition Coaching Guest Service

17 Recognition Must become a part of how we do business Praise progress Build strong systems Recognition is a great accelerator Personalize to fit your team What gets recognized gets repeated

18 Coaching Feedback is the breakfast of champions Define the performance breakthrough Structured coaching sessions matter Taking advantage of coaching moments Managing the difficult conversations Keep score of progress Active listening can be eye-opening

19 Our Passion to Serve Outstanding Guest Service is the Only Long-Term Sustainable Competitive Advantage Guest perception really matters Create an environment where team members are rewarded for exceeding guest needs Eliminate barriers that negatively impact guest service Hire the smile & attitude Reward guest service role models

20 2011 The Year Ahead Thank You!

21 2011 Optimize Restaurant Profitability Doug Shaw Chief Financial Officer

22 2010 Achievements Project 10 was implemented and achieved! We budgeted over $900K in improvements For the first time in ACG history, we will end the year with 10% Margins! Projected Sales of $110M and EBITDA of $11M All General Managers have been trained by Darylann on the P&L Review Process. You now have the tools to more effectively manage your P&L s Micros 4.8 was successfully rolled out to every restaurant We were once again the pacesetter in the IHOP System

23 2011 Initiatives Launching a 4 restaurant test with RosNet (Food Cost & Reporting Tool) Implementation of Restaurant Financial Audit Process Continue to focus on unprofitable & questionable discounting Test the RosNet Labor solution in the second half of the year

24 RosNet Food Cost Solution Launching a 4 restaurant test with RosNet (Food Cost & Reporting Tool) This is our project, not IHOP s project RosNet is a proven food cost and reporting tool in the Applebee s system RosNet will provide us with Actual vs. Theoretical food cost down to the ingredient level Actual vs. Budget Weekly P&L Full suite of reports on Sales, Food Cost, Labor and P&L Performance No more package logs, no more ing of product transfers, no more 9 numbers files The test should last a couple of periods then we will start training & rolling

25 Restaurant Financial Audits Darylann has created a Restaurant Audit Document The intent of the audit is to coach and teach Goal is to have consistently applied processes across the system Focuses on Cash Handling, Inventory, Accounts Payable, Discounts, etc. The Restaurant Audit will be a graded audit so you will know where you stand Results will be communicated to you, the Area Director and the RDO

26 Reduce Discounts Every 1% In Discounts equates to $1.0M In Restaurant Cash Flow! Focus on the Outlier Restaurants Daily Reporting of Server Sales & Discount % Identify Patterns of Behavior Execute Server Checkouts with Excellence! We did this in 2008 and achieved an $800,000 P&L Impact Every time we focus on this we make an impact. Let s make it permanent!

27 2011 Budget Assumptions Annual Adjusted EBITDA Goal is $11.9M Comp Sales Growth = 1.62% Open 3 New Restaurants; 1 in January and 2 midyear Remodel 10 Restaurants Base Business Restaurant Cash Flow Growth of $866,000

28 2011 Enhance Facility Base Phil Slyby Director of Construction & Real Estate

29 Enhance Facility Base Christina Castillo Facility Manager North Region Dan Parada Facility Manager South Region Mari Martinez Real Estate & Facilities Project Coordinator Hotline to communicate all facility issues Goes to all Facility Managers mailboxes

30 Real Estate, Construction & Facilities 3 NRO s in 2010: IHOP #3023 Mesquite o IHOP #3027 North Park o IHOP #3026 Arlington o

31 Real Estate, Construction & Facilities Sites under contract: Harker Heights o Suburb of Killeen o Estimated opening P7, 2011

32 Real Estate, Construction & Facilities Sites being negotiated: Abilene Webb Chapel Dallas Freedom Crossing Fort Bliss Kyle Crossing Kyle, Texas

33 Real Estate, Construction & Facilities Cities being searched: Tyler Lindale Stephenville Cleburne Houston Lakeway (Austin)

34 Real Estate, Construction & Facilities

35 Real Estate, Construction & Facilities

36 Real Estate, Construction & Facilities #3027 Northpark in Dallas

37 Real Estate, Construction & Facilities #3026 Arlington

38 Real Estate, Construction & Facilities 2011 Remodels IHOP # The Woodlands 1/9 1/12 IHOP # Uvalde 2/6 2/9 IHOP #1450 Cedar Hill 3/27 3/30 IHOP # Decatur 4/17 4/20 IHOP # Garland 5/15 5/18

39 Real Estate, Construction & Facilities 2011 Remodels IHOP # Plano 6/5 6/8 IHOP #1929 The Colony 7/10 7/13 IHOP # Lewisville 8/21 8/24 IHOP # Austin 9/25 9/28 IHOP # 1934 El Paso 10/16 10/19

40 Real Estate, Construction & Facilities

41 Real Estate, Construction & Facilities

42 Real Estate, Construction & Facilities

43 Real Estate, Construction & Facilities

44 Real Estate, Construction & Facilities

45 2011 Grow Real Sales Mike Grady Regional Director of Operations South Region

46 Grow Real Sales Properly Implement the Pancake Revolution Internet Marketing Plan Establish and Execute IHOP Nights in Every Restaurant Drive Improved Execution at the Front Door & Host Areas

47 Grow Real Sales Properly Implement the Pancake Revolution Internet Marketing Plan Q1 Milestones Plan and implement comprehensive program to drive overall E-Club membership to at least 100,000 members by April 1, Create and implement E-Club marketing program to supplement current IHOP Corporate LTO and marketing campaigns.

48 Grow Real Sales Establish And Execute IHOP Nights in Every Restaurant Q1 Milestones Implement specific training guidelines including: Internal restaurant guest connect practices Proper use of available marketing and support materials Proper IHOP Night operational implementation

49 Grow Real Sales Drive Improved Execution at the Front Door & Host Areas Q1 Milestones Enhance front door execution to achieve a minimum 80% Greeting VOG Score thru the following: Verify proper scheduling procedures in all restaurants Readdress hospitality expectations Re-train guest timing procedures Re-train wait lists/times

50 IHOP National Pancake Day 2011 Mike Grady & Wendell Patterson

51 IHOP National Pancake Day 2011 Who are the Shriners? Key focus areas International fraternity of approximately 375,000 members (volunteers) from 191 temples throughout the US, Canada and Mexico. They support a one of a kind international health care system of 22 hospitals dedicated to improving the lives of children. These hospitals provide care for children up to 18 years of age free of charge: Orthopedics Burns Spinal cord injuries It costs approximately $2M a day to operate their 22 hospitals.

52 IHOP National Pancake Day 2010 The Review! What happened last year? Last year, we once again focused an entire month to drive a company-wide initiative to raise funds for The Shriner s Hospitals. Overall, it was an unbelievable success! Business was great! Donations were at an all time high! Great job to everyone!

53 IHOP National Pancake Day 2010 The Review! Four Year History of Shriner s Donations

54 IHOP National Pancake Day 2011 What s the plan this year? Another aggressive 3 ½ week window Raise more money again this year by sticking to our plan! Again this year, the RSC will be included! Promotion begins on Friday, January 31, Culminates with NPD March 1, 2011 Christy will be in the lead this year! Daily reporting! 2011 Goal - $250,000.00!! $5.00 per server per shift!!!

55 IHOP National Pancake Day 2011 What are the specific components? Wall plaques for donations Yellow Wall Tags - $1.00 donation Red Wall Tags - $5.00 donation $5.00 donation comes with a complimentary $5.00 Bounce Back Card. $5.00 Bounce Back Card is for use on NEXT visit. In-restaurant POP materials Christy will supply everyone with specific details in the coming weeks. Remember it s for the kids! Let s do it again this year!

56 2011 Execute High Operational Standards Wendell Patterson Regional Director of Operations North Region

57 Execute High Operational Standards Provide a Consistently Superior Guest Experience - Measured by the VOG, Complaint Reductions and A/B Operator Targets Ensure that Managers are On the Floor Touching Tables & Connecting w/community Exceed Food Safety & Sanitation Targets

58 Execute High Operational Standards Provide a Consistently Superior Guest Experience - Measured by the VOG, Complaint Reductions and A/B Operator Targets Milestones Enhance operational execution to achieve a minimum 80% Speed and Food Quality Scores thru: Daily monitoring of table turn times via B-50 Focus on outlier approach with servers in areas of table turns and VOG scores Re-train and enhance expo and food running performances Re-train and enhance server table service performances Area Directors to target underperforming restaurants.

59 Execute High Operational Standards Ensure that Managers are On the Floor Touching Tables & Connecting w/community Milestones Enhance manager s operational execution of shift management, guest interaction, and guest connections by rolling out specific training guidelines including: Focus on outlier approach using restaurant s VOG scores Re-focus on shift management and guest interaction expectations during MIT training Re-train shift management expectations to all members of management Area Directors to target underperforming restaurants.

60 Execute High Operational Standards Exceed Food Safety & Sanitation Targets Milestones Implement enhanced Green Book. Area Directors to implement enhanced Visitation Report Enhance higher level of accountability in each restaurant.

61 2011 Drive People Capability Lisa Hammond Senior Director Human Resources

62 Drive People Capability Hire Right 2010 Year In Review Management turnover 2009 Manager turnover was 31% 2010 Manager turnover was 27% 2011 goal is 25% Team member turnover 2008 TM turnover was 152% 2009 TM turnover was 95% 2010 TM turnover goal is 95% and we finished the year at 86%!!!

63 Drive People Capability 2010 Retention Awards First Place Erin Blackmon - IHOP # % Second Place Jon Knoke IHOP # % Third Place Jon Dyess IHOP # % Fourth Place Walter Steele IHOP # % Area Director Scot Thomas 51%

64 Drive People Capability Most Improved Jeff Holman IHOP # % to 147% in 2010 Dodd Berendt IHOP # % to 63% in 2010

65 Drive People Capability Hire Right! Through the Implementation of Click and Hire, Enhance the Selection Process, resulting in Best in Class Retention Train Right! Through enhancements to the coaching process, ensure all employees receive timely, productive feedback Treat Right! Through the implementation of the Pour It On! Program, continue building a recognition and retention culture at all levels of the organization.

66 Drive People Capability Progression Reports Team members will be completed in February. GM & Managers will be completed in March Raises will be effective Week 1 of P4. Progression report forms Available for download on the Netchex web site.

67 Drive People Capability Setting a goal is not the main thing. It is deciding how you will go about achieving it and staying with that plan. Knute Rockne

68 Mission Statement Mission Statement This statement is a very brief statement of our organizational goal. It should be easy to remember and meaningful to employees and guests alike. By serving high quality food in a clean, friendly environment, we ensure that each guest leaves knowing This is MY IHOP.

69 Guiding Principles Guiding Principles These phrases should be concise and limited in number. It should drive home what is important to us and what we stand for We create great memories for our guests, employees, local communities and each other. We are committed to recognizing the contributions of every member of the team. Individual accountability and execution is the foundation of our team s success.

70 Guiding Principles Guiding Principles These phrases should be concise and limited in number. It should drive home what is important to us and what we stand for We coach to give people the development they need to achieve their goals. We conduct ourselves with honesty, integrity, and the highest business ethics. We value the diversity of our team, guests and suppliers; demonstrating respect for the individual.

71 Operations Awards Robert Tomlinson Senior Vice President Operations

72 Operations Awards Club Awards IHOP #1375 College Station Shannon Sabur IHOP #1396 Austin Leo Gaertner IHOP #1404 Garland Janelle Thompson IHOP #1421 Austin Masoud Madji IHOP #1477 Austin Mary Touchton

73 Operations Awards Club Awards IHOP #1487 Pflugerville Dave Lucas IHOP #1934 El Paso Richard Cannarsa IHOP #1954 Gainesville Daren Mills IHOP #3000 Slaughter Lane - Austin Chris Montana IHOP #3004 Ennis Christina Dodson

74 Operations Awards Club Awards IHOP #3019 Highland Village Erin Blackmon IHOP #3023 Mesquite Julio Dominguez

75 Operations Awards Double Digit Awards IHOP #1468 Irving Kendell Bolden 11.52% IHOP #1337 Amarillo Roger King 23.32%

76 ACG Texas Ring of Honor

77 ACG Texas Ring of Honor Ring of Honor Winners

78 ACG Texas Ring of Honor 2010 IHOP #1337 Amarillo Roger King IHOP #1404 Garland Janelle Thompson IHOP #1413 Plano Farooq Ahmad IHOP #1421 Austin Masoud Madji IHOP #1486 Hillsboro Jonathan Dyess

79 ACG Texas Ring of Honor 2010 IHOP #1487 Pflugerville Dave Lucas IHOP #1498 Southlake Susana Cruz IHOP #1499 Main Street - Lewisville Godwin Uba IHOP #3006 Allen Al Lyell IHOP #3011 Terrell David Robbins

80 ACG Texas Ring of Honor 2010 IHOP #3012 El Paso Hector Diaz IHOP #3017 North Frisco Dodd Berendt IHOP #3018 Euless John Flanagan IHOP #3020 El Paso Ray Caro

81 ACG Texas Ring of Honor 2010 Double Winners! IHOP #1408 Abrams - Dallas Ava Hardin IHOP #1450 Cedar Hill Estella Gallegos IHOP #1476 Austin David Henson IHOP #3009 Lancaster Clifton Davis IHOP #3024 Bryan Chuey Cabrera

82 ACG Texas Ring of Honor 2010 Annual 100% Winner! IHOP #3004 Ennis Christina Dodson

83 2011 Choices! Robert Tomlinson Senior Vice President Operations ACG Texas

84 Who is the Competition?

85 Tomlinson Top 7 VOG! IHOP Nights E-Club The HOSPITALITY Gene! Coaching Recognition Accountability

86 It s not what happens to you..

87 Voice of the Guest Critical to our growth and is a key piece of our A/B ranking. Currently, the IHOP system is at 76%. We on the other hand are at 73%. Remember, these comments come directly from our guests and some are troubling!

88 Voice of the Guest Here are the details: Overall GLI 73% Overall Satisfaction 67.9% Likely to Return 79.9% Likely Recommend 71.3% Accuracy 93.1% Greeting 65.9% Friendly 77.1% Speed 64.6% Attentive 70.8%

89 Voice of the Guest Here are the details: Food Quality 67.9% Staff Appearance 75.5% Clean 68.2% % Alerts 15.7% Number of Surveys 1,312 High YTD 49 Low YTD 4 What will you choose to do?

90 IHOP Nights Outstanding and proven way to drive top line sales! Our goal is to have one IHOP Night per restaurant per week during Why has this been a struggle to get off the ground? Culture? Commitment? Proven? What will you choose to do?

91 E-Club Due to your hard work, ACG Texas leads the IHOP brand. IHOP 591,000 (1500 restaurants) Southwest Region 151,000 ACG Texas (4%) 84,304 (14.3%)

92 E-Club Six of the Top Ten performers! The Top Performers! 6. IHOP #3020 2,683 Members #8 5. IHOP #3012 2,795 Members #7 4. IHOP #1413 2,845 Members #6 3. IHOP #3025 3,546 Members #5 2. IHOP # Members #4 1. IHOP #1487 7,613 Members #1

93 E-Club Fish Bowl is a restaurant industry Best Demonstrated Practice and proven way to drive top line sales! Why has this been a struggle for some restaurants to get off the ground? Two per server per shift! New goal of 120,000 Members! 100,000 by end of P3! 120,000 by end of P6! What will you choose to do?

94 The HOSPITALITY Gene! What are our guests saying? What about your team? Do you have the gene? How do we identify it? (Hire Right) How do we train it? (Train Right) How do we nurture its growth? (Treat Right) The BAD examples! How do we change our culture? What will you choose to do?

95 Coaching! It s not a form! It s not a checklist! It is about connection! It is about commitment! It s time for us to get this right! Honest and open feedback is an opportunity! Here is another BAD example! What will you choose to do?

96 Recognition! Review our commitment in How far have we come? Where are our opportunities? We need your help! Recognition is something we are not something we do! What will you choose to do?

97 Accountability! Is our society is all about blame? How hard is it? What are the benefits? We need to move forward! What will you choose to do?

98 Tomlinson Top 7 VOG! IHOP Nights E-Club The HOSPITALITY Gene! Coaching Recognition Accountability

99 Choices! Today, we begin our new journey in 2011 TOGETHER! We must change who we are! If it s going to be it s up to me! Commitment vs. Compliance! Go back and make an impact! Be the Ambassador of Change! Make a difference! Take care of the guests and each other!

100 Choices! Who s With Me?

101 2011 Quarterly VOG Incentives Robert Tomlinson Senior Vice President - Operations

102 Quarterly VOG Incentive 2011 Quarterly Sales Incentive Drive For Five! This is the key to success! The only criteria is the GLI score!! Highest GLI scores during each quarter First Place GM earns $1, Second Place GM earns $ Third Place GM earns $ Most Improved GM earns $ One North and One South! All restaurants participate.

103 Quarterly VOG Incentive 2011 Quarterly Sales Incentive Drive For Five! Areas Highest server GLI score in each AD area = $100.00! One server per Area Director per period. Restaurants Highest server GLI score in each restaurant = $25.00 One server per restaurant per period. Servers must have a minimum of 5 surveys to participate.