Sweet Street Desserts Beyond Balanced Desserts SWEET STREET

Sweet Street Desserts “Beyond Balanced Desserts”

SWEET STREET COMPANY OVERVIEW • 25 years of Frozen Gourmet Dessert Expertise • Privately held company with Woman Owned Minority Status • Extensive Product line • Innovative, quality driven organization • Extensive dessert marketing research • Current manufacturing environment is 180, 000 square feet • Facility located in Reading, PA • 99. 9% fill rate

Our Mission Cutting Edge Desserts For Every Slice of the Day We at Sweet Street Desserts choose to be the leader in the gourmet dessert industry, setting the standard by which all others are judged. Being a leader in “sweet indulgence” is our way of life. To maintain our leadership, we will be missionaries of the dessert experience, expanding its pleasures to all parts of the day and all parts of the world. With our unwavering commitment to profitably create a constantly evolving and extraordinary line of great tasting, high quality desserts, innovation will always be essential to our success and cutting edge products will always be our future.

Our Mission Above all, we are dedicated to creating a dynamic and gratifying environment so compelling, our customers, suppliers and co-workers will want to participate in achieving mutual success. By continuing to conduct ourselves with the utmost integrity and by anticipating the best interests of these valued people, our company’s sweet success will be certain.

Patrons rate taste and appearance as the two most important qualities when choosing a dessert. Sweet Street is rated #1 in taste and appearance by commercial and non-commercial operators Sweet Street #1 in Taste. Commercial Operators 1 Nearest Competitor 61. 8% 57% 39% Commercial Operators 1 Nearest Competitor 42% On-Site Operators 2 Nearest Competitor Sweet Street #1 in Appearance. 65. 1% 41. 5% On-Site Operators 2 Nearest Competitor 63% 36%

Sweet Success Elite Program • Designed to enable you to maximize your dessert sales, increase check averages and cater to your important customer base. • The SSD Sweet Success Elite program provides the tools and knowledge to take your dessert menu to the next level. • Each part of our Elite program is designed so that it is customizable specifically for your needs. • The Elite program consists of our Balance Dessert Menu Building Program, the facts behind customer satisfaction and desserts, our LTO program, a wait staff training program, and our Sweet Reward program that enables you to earn points that can be used for merchandising materials and other prizes.

Customer Satisfaction A Critical Component of Success • The restaurant industry is built on patron frequency – This is the lifeblood of the industry – gaining and keeping repeat customers • A restaurant’s reputation is built on the quality and consistency of their product. – This differentiates long term growth and short term trendiness • Customer Satisfaction is the most important attribute to measure consistency and to determine the potential for repeat business. • Statistics show a powerful correlation between dessert sales and increases in Customer Satisfaction.

Desserts are Important to our Important Customers. • Dessert incidence increase significantly with patrons who are overall highly satisfied with their experience. % Increase Segment 38. 1% Full Service Upscale Hotel Group 30. 7% Mid-Scale Italian Category 29. 5% Major Casual Dining Chains 29. 1% Casual Dining Steak/Rib Category 25. 7% Major CD Bar & Grill Chains 23. 6% Casual Dining Bar & Grill Category • Highly Satisfied customers are your most important patrons • Frequent your establishment regularly • Encourage others to patronize it • Create positive word of mouth advertising • Loyalty and resulting repeat business drive your bottom line Source: MPD Group/MPD Food World/Crest

Desserts Turn Satisfied Customers Into Highly Satisfied Customers. x • Customers who rank their “overall experience” highly satisfied increase by 29. 7% when they order desserts. Major Casual Dining Chains Highly Satisfied With Dessert Without Dessert % Change 43. 4% 33. 5% +29. 7% 79. 3% of patrons felt the after dining experience influenced the overall satisfaction level of a meal

Moving a customer from Satisfied to Highly Satisfied can lead to great things!!! Satisfied Highly Satisfied Visits per month 4. 2 visits 7. 3 visits Length of patronage 4. 4 years 8. 3 years Average monthly spend $ 210 $ 318 96% of patrons tip more when they are highly satisfied with their restaurant experience 99. 3% of patrons frequent an establishment more frequently when highly satisfied 96. 5% of patrons always or will often, recommend a restaurant if they are highly satisfied

How Do We Remove the Word Average from Every Check?

Convince Just One Customer and You’ll Sell More Desserts…. • 82. 4% would order dessert when someone else at the table orders dessert. 4 • 76% would order a dessert specifically made to be shared. 5 Train waitstaff to encourage your customers to share. • 65. 8% would order coffee and tea or an after-dinner drink when someone orders a dessert. 5 • 88% would order coffee and tea or an after-dinner drink with their dessert. 5 • 47. 9% of patrons choose a restaurant because it serves a dessert they like.

The balanced dessert menu—a brilliant way to sell more desserts. • Offer the flavors that appeal to patrons. • Offer the choices that appeal to a broad base of customers • Offer the textures that add to appeal. • Textures also give your waitstaff a good starting point for mouthwatering descriptions. • Present an array of shapes • Research shows these are your patrons’ favorite dessert flavors: - Chocolate - Citrus - Fruits and Nuts - Cheesecake • With these four flavors, you can appeal to 88% of patrons. 5 1 Restaurant 2 Penton Hospitality/Food Management Research, 2002 Media, Inc. Consumers Dessert Usage Study, 2001, (of 1, 088 surveyed) • Present desserts beautifully to tempt purchase

Significantly Increase Check Averages with the Right Mix of Desserts. 3 DESSERT CHECK AVERAGE INCREASE Brownie 31. 8% Cakes 56. 1% Cheesecakes 104. 8% Cobblers/Crisps 72. 6% Pies 17. 2% Other Non-Frozen Desserts 62. 3% Average Eater Check. Dessert, excluding ice cream.

The economics behind the Power of One • Sell ONE dessert to a Table of 5 and see how it effects the check average – 66% would order coffee, tea or an after dinner drink • (3 of 5 x $2. 50 = $7. 50) – 88% will order coffee, tea or an after dinner drink with their own dessert • (90% order $2. 50 beverage = $2. 25) – 82% would order dessert when someone else at the table orders dessert • (3 of 5 x $3. 95 = $11. 85) Penton Media research, 2002

“Wow” them with Presentation. • 89% are influenced to buy based on the appearance of the dessert. 5 • A dessert cart, with attention to presentation, is a legendary influencer in the buying decision. • An original platescape can give any dessert your signature. • Include a visual description in your menu to capture patrons’ imaginations early in the meal occasion.

Dessert “Limited Time Offers” Increase The Bottom. • Dessert LTO’s are a great tool to increase dessert incidence and boost the bottom line. • Dessert LTO’s will give your waitstaff a “special” reason to review the dessert menu. . . even to your most loyal customer base. • LTO’s provide your patron’s something they want. . . something “special”.

Offering New/Unique Items Are More Important Than Ever. 6 • 94% now agree with the statement that they are looking for new items they don’t prepare at home. Year % Agreement 1992 1994 1996 74% 79% 83% 1998 2002 81% 94%

Limited Time Offers (LTO’s). Big Time Sales Spikes. • LTO’s refresh your dessert offering, can spike menu importance by 38%, and boost sales in your operation. 7 • 82% of LTO’s become regularly menued items, increasing sales longterm. • 68% of consumers say that the price of desserts does not influence their decision whether or not to order dessert.

Tips for a Successful LTO. • Offer something new that complements your main dessert menu’s balance. • Use LTO’s to build your dessert menu and increase price point. • Create 6 -8 week promotions at least four times per year. • Promote seasonal items during major holidays. • Use table tents and menu inserts to effectively promote. • Train your staff on selling desserts and raising check averages.

PULL-THROUGH SALES: SELLING A GREAT DESSERT MENU More benefits from Sweet Success LTO program. Logo - Mardis Gras - Father’s Day - Valentine’s Day - Graduations and Weddings - Easter - Halloween and Thanksgiving - St. Patrick’s Day - Independence Day - Cinco de Mayo - Christmas and New Year’s - Mother’s Day Keep Dessert LTO’s Fresh Year-Round Choose from our full-line of high-end desserts tied to holidays and special occasions. MARDI GRAS VALENTINE’S DAY ST PATRICK’S DAY EASTER CINCO DE MAYO (Jan 3 THROUGH Feb 28) (Feb 1 THROUGH Mar 31) (Apr 1 THROUGH May 31)

PULL-THROUGH SALES: SELLING A GREAT DESSERT MENU More benefits from Sweet Success LTO program. MOTHER’S DAY FATHER’S DAY (Apr 1 THROUGH May 31) (May 1 THROUGH June 30) INDEPENDENCE DAY (July 1 THROUGH August 31) Graduation, Weddings, etc. (May 1 THROUGH June 30) HALLOWEEN/T’GIVING (Apr 1 THROUGH May 31)

Our Sweet Money Waitstaff Program. • Customizable program offers tips for selling desserts, detailed descriptions, and incentives to inspire your staff to sell desserts. • Helps waitstaff become more wellinformed and better at selling desserts. • Increases waitstaff involvement which also increases check averages to help you and your staff make more money. 80% of patrons would be more likely to order a dessert if the waiter or waitress is enthusiastic and knowledgeable about the dessert

Other Benefits of a Well-Trained Waitstaff. • • • Increase in Customer Satisfaction Decrease in employee turnover. Increase in revenue. Increase in overall check average. Increase in individual’s tip. A well-trained wait staff, coupled with desserts, can greatly increase customer satisfaction. WITH DESSERT WITHOUT DESSERT Accuracy of order 57% 47% Made me feel like a valued customer 45% 35% Pleasant, friendly service 51% 41% Fast, efficient service 39% 32% Results from major casual dining chain.

Sweet Shop powered by I-Extend Customized Point-of-Sale. • Templates available for the most popular Point-of-Sale materials. - Clean, classy design. - Stunning color photography. - Mouthwatering descriptions. - Customized by YOU. • You simply choose: - Merchandising format and options. - Products you want to sell. • Fast, affordable, easy. • Available at sweetstreet. com

Influence Patrons to Buy. • 95% are more likely to order dessert if their favorite flavor is on the menu. 5 The top five influencers. 5 - 95% Favorite Flavor on Menu - 89% Appearance of Dessert - 85% Photo of Dessert - 80% Dessert on Cart/Tray - 70% Spouse/Companion • Nearly half skip dessert if their favorite isn’t on the menu. 5 • Price matters little. Fewer than a third say it influences their decision to order dessert. 5

Show them the Dessert and they will order • 85% of patrons would order a dessert they have not tried based on a photo or description. 5 • The four most effective POS elements 5: Photo on Menu 85% Table Tent 52% Menu Clip-On Poster/Counter Card 42% 36%

Sweet Rewards Program Puts the “Sweet” In The Street Create patron “reward” programs, waitstaff incentives or treat your establishment to some new equipment. . . • Earn fabulous rewards just for purchasing Sweet Street Desserts. • Points can be redeemed for Point-of-Sale materials or great merchandise for yourself or as sales incentives for your staff.

Desserts Ensure Sweet Success • Desserts improve customer satisfaction • Desserts increase your check average • Desserts drive complement sales • Desserts drive repeat business • Desserts should be strategically important to you and your business!

Sources 1 - A&G Research, 2001 2 - NRN Research, 2000 3 - The NPD Group/NPO Passworld/CREST/Customer Satisfaction Research, March, 2004 4 - Penton Media, Inc. Consumers Dessert Users Study, 2001 (of 1, 088 surveyed) 5 - Restaurant Hospitality/Food Management Research, 2002 6 - NPD Crest LTO Analysis, 2004 7 - Technomic (DATE) X - NEED SOURCE IF WE HAVE ONE