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September 2008 Future Updates To stay informed on drive-thru updates, please visit the website on @ chick-fil-a, keyword: drive-thru. If you have questions regarding this information please contact: Jessica Burgess, x54608, jessica.burgess@chick-fil-a.com

Production Throughput & Drive-Thru Update for Field Staff

Future Updates To stay informed on drive-thru updates, please visit the website on @ chick-fil-a, keyword: drive-thru. If you have questions regarding this information please contact: Jessica Burgess, x54608, jessica.burgess@chick-fil-a.com

Production Throughput Team

Mission

Tom Childers – Food Safety & Procedures

To Enhance Production Capacity

Alex Dominguez – Real Estate

(to Support the Drive-Thru)

Alex Doverspike – Business Analysis

While Improving our Ability to Meet

Rob Dugas – Supply Chain

Quality and Food Safety Requirements in

Mike Erbrick – Restaurant Technology

Existing Units

Brian Grady – Restaurant Design Production Throughput at

Roger Shealy – Production Equipment & Engineering Todd Sweatt – Drive-Thru Team Barry Vaughan - Quality Requirements Jon Bridges - Facilitator

Did you know that average Unit volumes are among the highest in the industry? Yet, at the same time, we are setting aggressive same-store sales goals. New menu items have been introduced and menu boards have been updated to help customers For internal use only. Informationn current 9-08. © 2008 Chick-fil-A Properties, Inc.

make quicker decisions. We have seen a steady rise in custom orders. Operators are faced with both labor challenges and increased competition in the marketplace. In addition, processes and technologies such as Face-to-Face ordering and the handheld Point of Sale have been put in place to deliver even more transactions from the drive-thru to the kitchen.

Given these high transaction volumes, Operators and Team members are constantly presented with the challenge of delivering fresh food fast while still meeting quality and food safety requirements. How can we help Operators deliver great food and great service with speed without adding additional stress? These are issues that the Production Throughput and the Drive-Thru teams are tackling together.


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Focus Area: Breakfast Processes Breakfast is a major source of stress for the Unit, especially during the time of transition from breakfast to lunch (10am — 11am). Food safety requirements are increasingly difficult to meet during this time; therefore the overall breakfast process is under evaluation. This assessment includes a review of the existing equipment layout, the addition of new equipment and procedures, a possible change in small wares, as well as potential

What is the Production Throughput Team Doing?

product deletions and/or replacements.

The Production Throughput Team (PTT) is working to understand current production

What do our customers think?

issues in the Unit and develop & test solutions for both existing & new stores.

Partnering with Point Forward, a company that conducts ethnographic research, customers will be asked through focus groups and in-store taste tests to evaluate the overall taste and quality of breakfast products

What are the goals of the PTT?

C Produce a $1,700 breakfast hour and $3,000 lunch hour while meeting requirements C Reduced time per order to produce and deliver the food C Higher RQA scores C Reduced team member stress on the boards C Improved customer perception of quality (RFI and other research) How will we meet these goals? To provide solutions to the issues facing Operators, the PTT must work to:

C Obtain input from high performing Operators and team members C Suggest practical ideas for existing Units (e.g. staffing guidelines) C Incorporate a new kitchen design C Evaluate new equipment C Revise requirements that achieve a balance between the demands for quality, food safety, customer satisfaction, employee morale, and sales volume.

C NOT dramatically change the footprint of new stores

(including biscuits, cooked and folded eggs, bacon and breakfast burritos). This customer taste test, scheduled for completion in September, will identify the one best quality requirement for each of the items from several different requirements. This research will assist the PTT in reviewing (and possibly revising) food requirement specifications so that they are achievable for Operators and emphasize the attributes that our customers care most about. Possible changes to breakfast processes may include: New holding procedures for eggs Current procedures require eggs cooked to order for all customers which is difficult to do given the amount of time and labor that it requires, especially during a peak breakfast hour. If eggs were premade in the restaurant, how long can they be held before the quality drops below customer acceptability? To help answer the question, The Duke Holding Cabinet (aka the “Food Condo”) is currently being tested with breakfast products, as well as chargrill chicken, at Hamilton Mill FSU, Sugarloaf Corporate Center FSU and Peachtree at Collier FSU.

In response to the challenge, the Production Throughput Team has visited over 20 Chick-fil-A restaurants and conducted focus groups with Operators and team members.

Streamlined breakfast burrito procedures

Based on their feedback, the PTT is focusing on three areas in 2008-09:

In an effort to simplify the breakfast burrito process, preparation procedures and holding methods/times will

1.

Breakfast Processes

2.

Front Counter Design

3.

Kitchen Redesign

be evaluated for the finished burrito, as well as eggs and the pepper blend using the Duke Holding Cabinet.


Potential replacement of scratch made biscuits

A prototype of this design has been built and is being installed at Oakmont

Two frozen biscuit options have been discussed as a possible replacement of the current scratch made biscuit:

Properties (across from the CFA Home Office). Operators and team members will have

Frozen Pucks and Parbaked. The Frozen Puck has been evaluated and eliminated from the test, while the

the opportunity to visit and provide their feedback in early September.

Parbaked (a risen, partially baked biscuit that requires “finishing off” by baking for approximately 12 minutes) is under review. What are the advantages of a frozen biscuit and/or dough over the current biscuit?

C Less labor C More consistency C Eliminates need for a knife to split the biscuit C What are the disadvantages? C Additional freezer space required C Higher food cost C Longer baking times C Potentially lower quality

A test of the new design is planned for a new FSU later this year or early 2009. KPS Order Routing KPS monitors in the restaurant are loaded down with information that the kitchen does not necessarily need to know. With KPS order routing, Operators would have the option, during a peak hour, to show only the items that the kitchen needs to see (e.g. specials). In addition to routing, more monitors and larger monitors are being considered to display more orders facilitating faster preparation time. A pilot test of both KPS order routing and adding more monitors in the kitchen to show fewer items will begin in September.

A breakfast market test is planned for these items and others beginning February 2009.

Focus Area: Breakfast Processes How can a Unit successfully accommodate a $1,700 breakfast hour and a $3,000 lunch hour gracefully? How do we make the day part transition easier on Operators and team members? These are questions that the PTT is asking, and the answer may be to redesign the kitchen and storage area as well as change the way orders are routed to the kitchen staff.

Focus Area: Front Counter Design

Center Line Kitchen The new center line kitchen design (version 2, based on Operator

Removing the barriers from the ordering process is essential to

and Field Staff feedback, shown at right) has a two-sided assembly

improving customer experience. Currently, the restaurant has

area that allows for additional preparation capacity and isolation

one destination for ordering, refills, condiments, etc.

of produce from chicken. In addition, Operators will have the ability to run a “half kitchen” during the breakfast day part and

How do we eliminate the front counter confusion? The PTT is

open the second side in preparation for lunch, thus creating a smooth transition. Other advantages of this design include minimizing touches of food, adaptability to a Unit specific product mix, increased capacity for new menu items and a preparation area for outside sales when one side is not being utilized.

partnering with the Service Innovations group for possible Version 2 of the Center Line Kitchen

solutions, such as creating multiple destinations for ordering and drink service, eliminating the need to return to the front counter. Self-service drink area currently testing at Hillcrest In- Line Unit


Some key items are being evaluated by Operators and the PTT over the next 12 months are:

C Self-Serve drink towers for customer refills. Team members will continue to serve the first drink at the counter, and customers will have the option of obtaining a refill at the self-service drink area.

C Multiple mini condiment stations spread throughout the Unit, providing customers with more

Production Throughput & Drive-Thru Update for Field Staff

convenient access.

C Self-service kiosk option for customers in addition to the counter registers. Many customers view this as a preferred way of placing an order as opposed to going to the front counter. Other industries (gas, airline, etc.) are influencing our customer’s behavior and drive the need for this service. Market research indicates that 30% of customers value size or add items to their order based on pictures displayed on the kiosk and suggestive selling.

C Handheld Point of Sale used inside the Unit, allowing team members the ability to take customers’ orders while standing in line at the counter during peak times (aka “line busting”).

C E-promotion Boards (a flat screen monitor placed between or beside our traditional menu boards) that would display menu items and special promotions.

C E-menu Boards that would accommodate day part changeability (only show breakfast during breakfast time) and display video, commercials, etc. All content is easily changed or updated.

Drive-Thru Team

Mission

Tom Childers – Food Safety & Procedures

To positively impact the customer

Alex Dominguez – Real Estate

experience and improve throughput

Alex Doverspike – Business Analysis

by focusing on innovative designs,

Rob Dugas – Supply Chain

technologies, and operations.

Mike Erbrick – Restaurant Technology Brian Grady – Restaurant Design Roger Shealy – Production Equipment & Engineering

Drive-Thru at

Todd Sweatt – Drive-Thru Team Barry Vaughan - Quality Requirements Jon Bridges - Facilitator

What is the Drive-Thru Team Doing? As society continues its “on-the-go” pace, there is greater demand for high quality, great tasting meal options that can be eaten ‘on-the-go.” In today’s aggressive QSR environment, Chick-fil-A is uniquely positioned to take advantage of this growing market.

Questions about what the Production Throughput Team’s work? For additional updates on the Production Throughput Team, please contact Jon Bridges at x58933.

Chick-fil-A wants to provide the best Drive-Thru experience that creates a lasting impression in the minds of our guests. We want to utilize the Raving Fans Strategy by executing Operational Excellence, delivering 2nd Mile Service and creating Emotional Connections. Drive-Thru “Face-to-Face” Ordering is a great way to create Raving Fans! It entails having team members positioned in the Drive-Thru lane to serve as Drive-Thru hosts/hostesses, answering questions about menu, products or prices and taking orders. This service model provides a tremendous opportunity for 2nd Mile Service. It allows team members to make an emotional connection with the guest and anticipate their needs. Benefits of Face-to-Face Ordering in addition to 2nd Mile Service include the following:


Face-to-Face Ordering

Benefits of Face-to-Face Ordering

As society continues its “on-the-go” pace, there is greater demand for high quality, great tasting meal options

in addition to 2nd Mile Service include the following:

that can be eaten “on-the-go.” In today’s aggressive QSR environment, Chick-fil-A is uniquely positioned to take advantage of this growing market.

Faster Service

C Improves communication and helps with language barriers.

Chick-fil-A wants to provide the best Drive-Thru experience that creates a lasting impression in the minds of our guests. We want to utilize the Raving Fans Strategy by executing Operational Excellence, delivering 2nd Mile Service and creating Emotional Connections. Drive-Thru “Face-to-Face” Ordering is a great way to create Raving Fans! It entails having team members positioned in the Drive-Thru lane to serve as Drive-Thru hosts/hostesses, answering questions about menu, products or prices and taking orders. This service model provides a tremendous opportunity for 2nd Mile Service. It allows team members to make an emotional connection with the guest and anticipate their needs.

It also reduces gaps

in the queue and allows more time for team members inside the Unit to fulfill orders. Improved Sales

C Increased speed of service means increased Drive-Thru sales. Education

C Increases guests’ knowledge of menu especially in low awareness markets. Starting Face-to-Face Ordering As more and more Operators continue to implement face-to-face ordering in their Units, the Drive-Thru Team developed a starter kit that provides all the necessary tools to begin Face-to-Face Ordering. The starter kit may be ordered from the Chick-fil-A warehouse. Face-to-Face Ordering Communication Face-to-Face Ordering continues to evolve and it is important that we provide the most efficient communication options. Headsets are emerging as the preferred method of communication. Now, existing headset systems can be upgraded with an antenna to allow for use outside, thus eliminating the need for cell phones. All new Units will be equipped with this capability. This is a huge step in our progress, because it eliminates charges Operators incur through cell phone plans.

We did Face-to-Face ordering for the first time with the new system. Result… $1100 sales in drive-thru during lunch! It worked great! I We now dominate the trade area with a level of service that the competition simply cannot match. Jeff Glover Braker Lane FSU

can’t believe how this simplifies everything. No cell phones, microphones, monthly bills etc… Thank you from a very satisfied customer! Steve Troutman John’s Creek FSU


POS Handheld Device

Also in April 2008, multi-lane testing began at Hamburg

The handheld device is a wireless, por-

Place FSU in Lexington, KY. This is the primary test site

table register designed to be used with

for multi-lane ordering. Hamburg’s high volume lunch

Drive-Thru Face-to-Face Ordering. Its

period and large lot size allows us to test and study this

cutting edge technology enables us

methodology under a variety of configurations. Four-phase

to accept credit and debit cards when

testing will test multi-lane at different locations on the lot.

the order is placed. The goal is to understand the ideal configuration and confirm a positive return on investment to learn whether multi-lane ordering should be retrofitted to existing sites and/or designed into new development for Chick-fil-A. In addition to measuring throughput and sales increase, we will monitor customer experience and reaction, as well as traditional drive-thru performance measures such as order accuracy and operational efficiency. Uniforms The Drive-Thru Team is in the second phase of testing and should have 65 locations in test by year end. Multi-lane Ordering Multi-lane ordering is an emerging trend in the industry. The first prototype was tested in late 2007 at Sandy Springs FSU. The test confirmed our method works and can be easily integrated into existing operation with a very short learning curve. In April 2008, Oak Park Plaza FSU opened as our first multi-lane Unit and has proven to be very successful.

A new lighter color shirt option for Drive-Thru Face-to-Face Ordering is now available to order from Oobe. This new color option was tested and found to be cooler and more comfortable in hot weather conditions. Also, Oobe now provides a uniform short option. Team members may either wear clean athletic shoes and white socks or the regular uniform black shoes and socks when wearing TeamStyle shorts. Drive-thru team members are required to change back into their standard TeamStyle uniform long pants when assuming traditional duties inside the Unit.

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