Franchise presentation - Chi-Chi's

Our concept, your success

Content q  INTRODUCTION

q  TRENDS IN THE RESTAURANT INDUSTRY

v  The world of Chi-‐Chi’s v  Development status v  BeLux locaHons v  Overview

v  CompeHHon in Europe v  What does “Casual dining” mean? v  Strengths of Chi-‐Chi’s v  Our specialiHes v  MarkeHng acHons v  Banquets & Catering v  Research & product development v  Training v  Profile of the franchisee v  Site criteria

q  STRATEGY

v  Expansion strategy Market by Market v  Development plan

v  Support

q  FRANCHISE SUPPORT q  ORGANIZATION & STRUCTURE

v  The strengths v  Management structure

q  THE CONCEPT

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q  CONCLUSION v  Terms / Contract v  Our USP v  Contact

CHI-‐CHI’S TEX-‐MEX GRILL & BAR

The world of Chi-‐Chi’s

UNITED STATES OF AMERICA

BELGIUM

KUWAIT LUXEMBOURG

UNITED ARAB EMIRATES

INDONESIA

THE NETHERLANDS

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The world of Chi-‐Chi’s

Europe North Africa Asia

Our company is the « Master Franchisor » for Europe, North Africa and Asia.

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Development Status

Today To be opened in 2014

•  Benelux 17

•  USA 28

•  China 2

•  Kuwait 1

•  Indonesia 1

Total 49

•  Benelux 5

•  Germany 2

•  Emerging countries 1

Total 8

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Benelux loca<ons

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Overview

Luxembourg

Charleroi, Belgium

Nederweert, Holland

Zaventem, Belgium 8

Overview

Waterloo, Belgium Antwerp, Belgium

Wemmel, Belgium Brussels, Belgium 9


Trends in the restaurant industry

•  Convenience • Affordable dining in comfortable surroundings

•  Interna<onaliza<on

• Huge growth of products and flavors coming from other regions.

• Themed/Ethnic restaurants = most dynamic growth sector

•  Return to basics • Hearty meals

• Retro-‐style food

•  Top priori<es for 21st century consumer

• Enjoyable eaHng experience • High quality service

• Fresh and healthy food • CreaHve convenience/extension of private living space

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Compe<<on in Europe – Casual Dining Country Compe<tors Type

France Buffalo Grill American / Grill

Hippopotamus American / Grill

El Rancho Tex-‐Mex

Germany Enchilada Mexican

Maredo American / Grill

Blockhouse American / Grill

United Kingdom Chiquitos Mexican

TGI Friday’s American / Grill

Angus Steakhouse American / Grill

UK, NL, CH Gauchos Grill American / Grill

Denmark Jensen Beef house American / Grill

Norway Bighorn American / Grill

Finland Rosso American / Grill 11


The Chi-‐Chi’s CONCEPT Restaurant

types

City center

Free standing unit

Services

Casual dining

Express

Take away

Delivery

Consumer types

Young adults

Families

Companies

Big parHes

Banquets

UNIQUE SELLING POINTS

Product offer : Margarita,

Mojito, Fajita, Burrito, Ribeye

steak

Unique ambiance :

Décor, Music, Friendly staff, AnimaHons

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What does “Casual Dining” mean?

•  Different from tradiHonal restaurants

•  Warm welcoming and personalized table service

•  Good fun with family & friends

•  Fresh & quality products

•  Affordable prices

•  Bar

•  Concept kids (video games, books…)

•  Birthday (song + Sombrero)

•  Open 7/7

•  Specialized in (big) groups

•  Relaxing music, decoraHon & atmosphere

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Strengths of Chi-‐Chi’s

•  Unique Tex-‐Mex Grill concept in Europe, USA, Middle East and Asia

•  Dual product channel : grilled meat and Mexican

è  Reduces veto

è  Less dependent (anHcyclic)

•  Excellent product quality & top quality steaks

•  Good value for money

•  Unique signature products : Margaritas and Fajitas

•  Hallal meat available for Muslim customers

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Chi-‐Chi’s speciali<es Fajitas, BBQ Spare Ribs

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Chi-‐Chi’s speciali<es The grilled items (Ribeye steaks, grilled burritos, Mix grill, ... )

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Chi-‐Chi’s speciali<es Mexican food (Burritos, nachos, enchiladas, quesadillas, tacos,...)

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Chi-‐Chi’s speciali<es Wraps

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Chi-‐Chi’s speciali<es Giant American burgers

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Chi-‐Chi’s speciali<es

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Marke<ng ac<ons

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Marke<ng ac<ons

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Marke<ng ac<ons

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Marke<ng ac<ons

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Marke<ng -‐ website

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Banquets & Catering We offer an original alternaHve to classical team meeHngs, incenHves and group events. Dine-‐in or Catering possibiliHes.

We transform boring incenHves into a sunny explosion of flavors by delivering our concept where the party stands

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Research & Product development

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Training

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Profile of the franchisee

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Site criteria Chi-‐Chi’s concepts Popula<on FooTraffic Cartraffic Unemployment Income Trade-‐area Daily retail

City center loca<on 50.000 15.000-‐35.00

0 na Not below 90% market average A+ citycenter yes

Free standing unit

150.000 -‐ 250.000 na 25.000 Not below 90%

market average A+ 20 min car drive Hme yes

Take away -‐shop 25.000 15.000 Not below 90%

market average A+ suburban yes

Express Chi-‐Chi's 15.000 -‐

30.000 Not below 90% market average A+ railways na

Leisure Terrace Surface m² Rent Parking visibility Entrance

City center loca<on yes 40 seats 250-‐350 10% sales na medium good

Free standing unit yes 80 seats 300-‐450 6% sales 60-‐80 high good

Take away -‐shop yes 20seats 60-‐80 8% 6 high good

Express Chi-‐Chi's na 8 stand-‐up

seats 60-‐80 8% na high open

Daily retail: grocery shops, supermarkets, hypermarkets, na3onal and interna3onal brands

Leisure: primarily movie theaters, bowling places, video houses, disco's… 30


Expansion strategy Market by Market

1.   Remodeling exis<ng restaurant: 150.000€ à 300.000€

2.   New restaurant : 250.000€ à 350.000€

3.   Free standing unit : 650.000€

2013-‐2014

•  ConHnue development in Benelux.

2014:

•  Speed up expansion in Asia and focus in China •  Start development in Germany

2014 (second half):

•  Start up development North of France.

•  Start development in emerging markets with low labor cost (Morocco, Russia and other Eastern European countries).

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Development plan

Only Europe has already a potenHal of more than 400 units 32

0

20

40

60

80

100

120

140

160

180

2013 2014 2015 2016 2017 2018

49 49 57

69

89

119 8

12

20

30

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New units

ExisHng units

Franchise support

•  Site finder •  Architectural support •  In depth training •  Opening team

•  Standards of operaHons (manuals)

•  MarkeHng tool kit

•  Mystery customers & surveys

•  ConsulHng & coaching •  Supply chain

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THE STRENGTHS of Chi-‐Chi’s organiza<on

•  In-‐depth knowledge of the restaurant business throughout Europe and USA.

•  Strong operaHonal capabiliHes / hands-‐on management

•  Strong analyHcal capabiliHes

•  Experienced in managing high-‐labor countries

•  In-‐depth consumer insights regarding experience and food taste expectaHon

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Management structure

•  Francis Leroy

C.E.O, Development & Franchise, 22 years with Tricon Restaurants InternaHonal. [email protected]

•  Joachim Richling

Finance/M&A, Development & Franchise, 10 years internaHonal M&A, 6 years Pizza Hut Austria and founder of Pizza & Grill in Vienna. [email protected]

•  Ron Hannen

Development, InternaHonal retail experience for more than 15 years. Financial background. [email protected]

•  Walter Lavers

OperaHons & Franchise, 25 years of experience in "Franchising. [email protected]

•  Nicolas Usuwiel

MBA in MarkeHng & CommunicaHon, 15 years in the restaurant industry. [email protected]

An experienced team with impressive track records in their field.

Francis Leroy

Joachim Richling Ron Hannen Walter Lavers Nicolas Usuwiel

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The terms / contract INTERNATIONAL

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The terms / contract FOR BELGIUM

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Our Unique Selling Proposi<on

For friends and families looking for having a great moment together, Chi-‐Chi’s staff is proposing tasty, colorful and spectacular Tex-‐Mex food and drinks in comfortable and relax restaurants because only Chi Chi’s combines unique recipes and real Tex-‐Mex food quality thanks to great opera<ons and dedicated suppliers.

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Contact us

Headquarters: Chi-Chi’s Tex-Mex Restaurants 170 Doornveld Z3 box 34, 1731 Zellik, Belgium, Europe Email: [email protected] Tel & fax: +32.2.466.12.92

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Our concept is now in your hands

Documents

Franchise presentation - Chi-Chi's