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Brand Programs

Brand Program Management

2016 was another exciting year for the Brand Program Management (BPM) team in Glendale, as they transitioned the system
back to liquid eggs after the Avian Influenza crisis ended. The team also dealt with more complexity in the LTO calendar as the
Brand introduced many new items in 2016. With the Brand looking at new growth initiatives, the testing team had to deal with
new food and packaging items. With the move of the Applebee’s RSC to Glendale, we made a few team member changes so
that we could continue our process work to ensure product availability for our Members.

This team works with the Brand, suppliers, and our distribution partners to support new product development and testing,
limited time promotions (LTOs), and core menu changes. In 2016, the Brand initiated 19 tests. The team also supported seven
national LTO promotions, two core menu changes, multiple local / regional campaigns, and beverage promotions. Our major
role is to help drive sales by ensuring adequate supplies to meet the Brand’s forecast and Operators’ demand while minimizing
obsolete inventory.

As IHOP continues to develop new food concepts to drive sales, they are introducing many unique ingredients in their testing
platforms and eventually ending up in LTO promotions or onto the new core menu. In 2015, there were 105 new ingredients used
in test and in 2016 there were 131. In 2015, there were 44 new ingredients for LTO and core menu launches and 43 in 2016.

Scorecards are published by the Brand Programs team to measure performance in supporting the national LTOs. The key
attributes measured are:
❱ Timely Forecast – Forecast delivered to CSCS complete and on time
❱ Timely Authorization of Inventory Purchase (AIP) – AIP signed by all approvers
❱ Forecast Integrity – Absolute value variance of weighted average sales versus forecast

❱ Product Availability – Products available for start-up and throughout promotional period
❱ Obsolescence / Cost – Dollar impact to Members and Brand

2016 Scorecard results are below. Scorecards are rated jointly with the Brand, approved by the Pancake Co-op Board
Chairman, and reviewed with the Pancake Co-op Board of Directors.

IHOP Program CSCS Score

Window #1 – All You Can Eat Pancakes E
Window #2 – Double Dipped French Toast E
Window #3 – Bakery Favorites E
E = Exceeds / M = Meets / U = Underperforming
Window #4 – Paradise Pancakes E
Window #5 – Criss Croissants M
Window #6 – Apple Rings M
Window #7 – Holiday Celebration E

It was quite a busy year with our team restructures, the Brand’s relocation, as well as the multitude of promotions and
menu changes. Our team continues to make improvements in every area we touch to ensure we have product available for
our Members. We will continue to provide the “Exceeds Expectations” rating as proven by our scorecard and evaluate our
processes to ensure we are mitigating risk, diminishing outages and minimizing obsolete inventory.

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