CHESAPEAKE HOSPITALITY

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CHESAPEAKE HOSPITALITY RESTAURANT CONCEPT PROGRAM A new approach to hotel restaurant concept development

HOTEL RESTAURANTS

HOTEL RESTAURANTS Over the past 20 years the importance of a hotel restaurant has changed from a prestigious dining destination to a REQUIRED AMENITY... one that too often has been accepted as a loss leader. At Chesapeake, we re changing that.

HOTEL RESTAURANTS CONVENIENCE Dining options at hotels are largely based on convenience, and with guests dining expectations changing, we are seeing: White tablecloth restaurants being replaced by fast casual concepts Lobbies being transformed to social meeting places, often with the bar as a central feature Room service being phased out of non-luxury hotels SCALABLE SOLUTIONS The major brands have been largely unsuccessful in implementing sustainable, scalable solutions across their portfolios. CONSISTENCY Labor is more expensive and has less experience, while staff turnover is high across the industry. Consistency, the key to a successful restaurant, is constantly challenged. MEMORABLE EXPERIENCE Many hotel management companies take a laissez faire approach to F&B, and with guests expecting a memorable experience (food + beverage + service + ambiance), hotels rarely deliver on all fronts. RESTAURANT CONCEPT PROGRAM Experience what s possible...chesapeake s Restaurant Concept Program contributes towards the remarkable F&B departmental margins achieved in all Chesapeake managed hotels.

OUR PROGRAM

OUR PROGRAM PROPRIETARY BRANDS Chesapeake Hospitality s Restaurant Brands are customizable and can be tailored to fit the clientele and market positioning of any hotel. They are relevant, professional, and coordinated, setting the best impression for our guests. Our scalable, adaptable food & beverage menus can be deployed across multiple midscale and upscale hotels. Each concept focuses around Elevated Comfort Food, offering classic and familiar dishes done with a twist, with local food and beverage specialties incorporated to add regional awareness.

OUR PROGRAM FOOD & BEVERAGE RECIPES Create and maintain a database of recipes developed by our Corporate Culinary Team at Sysco Food Service test kitchens. Menu items are coordinated to maximize the purchasing power of BuyEfficient, our online purchasing solution. Recipes range from core items with broad appeal (burger, steak) to specialty and/or regional items High quality ingredients Presented with flair Printable recipes cards are organized on Chesapeake s Proprietary SharePoint Server Kitchen staff turnover becomes less problematic while menu product consistency is maintained

OUR PROGRAM STANDARDIZED ORDER GUIDES Recipe products are specified to maximize Sysco volume and BuyEfficient scale (Chesapeake s complete online purchasing partner). NATIONAL WINE PROGRAM Leverage wine volume with nationally recognized wineries (Kendall Jackson) for pricing, staff and manager training and incentives.

OUR PARTNERS

OUR PARTNERS VSAG vsag.com (Vucurevich Simons Advisory Group) Extensive food & beverage consulting experience Own and manage several successful, high volume independent restaurants BUYEFFICIENT buyefficient.com BuyEfficient s contracting strategy focuses on reducing our total cost - Best-in-industry purchasing practices - Performance-based incentives (paid to hotels) - Rebates (paid to hotels) - Technology allows for ease of ordering and better control

OUR METHODOLOGY

OUR METHODOLOGY F&B area redesigns to maximize staff efficiency and productivity; reducing labor while improving service whenever possible. Larger lobby facing bars, which can flex for breakfast service in the morning Multi functional buffets for use at both breakfast and catered lunch/dinner Introduction of quick cook ovens for late night menus Coordinating branding, color schemes and menu formats designed to fit the image distinctive to each hotel.

OUR METHODOLOGY Incorporation of local elements for food and beverage specialties specific to the hotel s neighborhood or market. Milwaukee Rivers Edge features Milwaukee craft beers and locally caught seafood from the Great Lakes Region Baltimore Poets features craft beers, local crab specific recipes and specialty desserts from nearby neighborhood historic family bakeries West Palm Beach The Spot features a Mahi Burger and Mango Mai Tai referencing South Florida

SOLUTIONS

SOLUTIONS STEP 1 STEP 2 CREATE A BRAND FOOD SELECTION STEP 3 DESIGN THE MENU STEP 4 STEP 5 CHOOSE BEVERAGES & SPECIALTY COCKTAILS MARKETING, SIGNAGE & SOCIAL MEDIA

STEP 1 CREATE A BRAND 1 Use the name, logo and menus already designed for Chesapeake Hospitality 2 Change the number in the logo to reflect your address, modify fonts to your hotel image 3 Work with the designer to create a custom brand or modify an existing brand A Choose your tagline

STEP 2 FOOD SELECTION 1 2 3 4 5 Choose your menu items and recipe selections from these categories (number of items per category TBD) Starters (18) Salads (5) Sandwiches (9) Entrees (9) Flatbreads (8) Burgers (10) Vegan (3) Desserts Assess your plate ware and kitchen inventory Order approved ancillary plates that correspond with menu items Order guides and pantry Access the pre-loaded BuyEfficient Order Guide Build your Own Order Guide using pre-loaded recipes Create a New Order Guide Price your menu Use Recommended Pricing (based on 31% food cost) Seek approval from Chesapeake Regional Director of Operations

STEP 3 DESIGN THE MENU 1 Choose your color palette Based on interior design of your restaurant space 2 Choose your menu format/material (costs vary) Fold Paper Stock Aluminum Binder Basket Weave Wood Leatherette Summit Linen 3 Reach out to Chris Sheesley (and cc: Diana Johnson & Chesapeake Regional Director of Operations) to finalize the combination 4 Complete the process with your Chesapeake Regional Director of Operations

STEP 4 CHOOSE BEVERAGES & SPECIALTY COCKTAILS The menus feature Jackson Family Wines. Chesapeake s customized list, with preferred pricing, was created by our national wine rep, Kevin Sullivan. If you want to choose different wines, please familiarize yourself with the PowerPoint on SharePoint (Jackson Family Wines), then reach out to Kevin Sullivan directly. or Cocktail menus incorporate trendy items e.g. Moscow Mule, The Spot Martini Feature local craft beers Complete the process with your Chesapeake Regional Director of Operations

STEP 5 MARKETING, SIGNAGE & SOCIAL MEDIA Order Directional Signage (Fast Signs) & Promotional Posters (Chris Sheesley) Update your hotel website and begin/update your social media Complete the process with your Chesapeake Regional Director of Operations

COSTS PLUG + PLAY Cost to implement one of Chesapeake s Plug + Play Solutions (Steps 1 5) $10,000. SLIGHT CUSTOMIZATION Additional costs depending upon the level. For example, if you are changing just the numbers or the name, it should be under 10 hours of design time. Additional customization will require more time and design requirements and we will provide a proposal. FULL CUSTOMIZATION Reach out to the Chesapeake F&B Team for a full quote.

RESOURCES BRAND & DESIGN Chris Sheesley chris@chrissheesley.com CULINARY Ryan O Connor ryan@kneadsolutions.com WINE Kevin Sullivan Jackson Family Fine Wines kevin.sullivan@jfwmail.com SIGNAGE Al Cothern, FastSigns al.cothern@fastsigns.com (The Spot FastSigns, 561.616.3590; 525@fastsigns.com) CHESAPEAKE REGIONAL DIRECTOR OF OPERATIONS Chris Green - cgreen@chesapeakehospitality.com Tony Harbor - tharbor@chesapeakehospitality.com Lisa Augustine - laugustine@chesapeakehospitality.com Brian Summers - bsummers@chesapeakehospitality.com CHESAPEAKE SHAREPOINT/DOCUMENTS ACCESS & MANAGEMENT Diana Johnson djohnson@chesapeakehospitality.com SOCIAL MEDIA Melissa Grossarth mgrossarth@chesapeakehospitality.com

OUR RESULTS

OUR RESULTS Hotel Indigo Baltimore Mt. Vernon

OUR RESULTS Hotel Indigo Baltimore Mt. Vernon

OUR RESULTS Holiday Inn West Palm Beach Airport The Spot First 3 Months Trends Over Prior Year Improved Revenue Dining Food +30.6% Room Service +59.8% Bar Food +27.0% Bar Beverage +42.5% Total Concept Results +30.3% (Note: Room nights sold for comparative period was up 4.8%) Better Labor Cost Restaurant/Bar Payroll Reduced 22% Better Food Cost Food Cost Reduced 3%

OUR RESULTS