Page 6 - Onboarding May 2017

CSCS History and Purpose

Centralized Supply Chain Services, LLC (CSCS) is an independent purchasing cooperative, formed
in February 2009. It is separate from DineEquity, Applebee’s and IHOP, and is the exclusive
authorized purchasing agent for all Applebee’s and IHOP restaurants.

CSCS’s main purpose is to manage the supply chain and facilitate the restaurant operators’
purchases of goods, services, equipment, and distribution services at the lowest sustainable
prices. CSCS leverages the combined volumes of the Applebee’s and IHOP systems for better
pricing and long-term supplier stability.

CSCS was the first purchasing cooperative in both the casual and family dining segments, and
manages approximately $2 billion in spend between the Applebee’s and IHOP systems.

Applebee’s and IHOP define product specifications, and products purchased from CSCS
contracts must meet those specifications. Applebee’s and IHOP also develop quality standards
for products, and approve and disapprove suppliers and distributors.

CSCS is owned by the Apple Supply Chain Co-op (whose Members are Applebee’s Services, Inc.
and Applebee’s franchisees), and the Pancake Supply Chain Co-op (whose Members are IHOP
and IHOP franchisees). CSCS’s operations are managed by a Board of Directors with
representatives from both Co-ops. The Apple and Pancake Co-ops have no staff and minimal
expenses.

CSCS’s operations are funded by a separate sourcing fee added to products that everyone uses.
The fee is paid by all Applebee’s and IHOP operators, whether or not they are Co-op Members.

Pricing negotiated by CSCS for goods and equipment is available to all operators who purchase
them, but only Members are eligible to receive patronage dividends based on the purchases.

As of September 30, 2016, there were 34 Apple Co-op Members and 327 Pancake Co-op
Members. 100% of Applebee’s restaurants are owned by Apple Co-op Members, and 99.4% of
IHOP restaurants are owned by Pancake Co-op Members. CSCS supports over 3,400 franchise
and company-owned restaurants across both Concepts.

CSCS has offices in Kansas City, Missouri (headquarters) and Glendale, California.