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Mystery Shop Change Overview and GuideEffective January 2009

A focus on QSC Excellence leads to more satisfied customers

The “Moment of Truth” is our customer’s experience at the Front Counter or Drive Thru – and satisfying our customers consistently means higher guest counts and increased sales over time. The Customer Satisfaction Opportunity (CSO) index is

the metric used to determine how well we’re satisfying our customers and the Mystery Shop program is what we utilize to compute the CSO.

We are making enhancements to the 2009 Mystery Shop program to improve the quality of the evaluation and make it easier for you to leverage results to assist in

improving QSC in your restaurants. The changes that will take effect for all mystery shops conducted in 2009 and beyond are:

Elimination of some unscored or non-QSC Questions•All Crew member names and descriptions•Satisfaction with Speed of Service

Response Time changed to a non-Timing Question•New Question: Was your order taken in an acceptable amount of time? (Yes / No)•No opportunity for bonus points

Improved Shopper Training and Tools•Specialized timing device to help capture Service Time and Total Experience Time•Better alignment of shopper training and tools

Enhanced Restaurant Report Format•Incorporates CSO messaging and trending•Simpler, easy-to-read format

Rationale for Mystery Shop changes is on last page of this guide

What to Expect• New report form and changes to response time will take effect for all shops conducted after January 1, 2009• Inquiries on any 2008 shop will only be accepted through January 10, 2009• 2009 mystery shop results will be displayed on the Performance Matrix after January 20, 2009

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Provides current visit information including comparisons to trending of historical performance.

• Overall Mystery Shop scores • Number of critical drivers missed during a visit• Question level achievement• Diagnostic details on all questions missed• Shopper comments

Page 2: CSO Reporting and Trending

Page 3: Restaurant Ranking and Areas of Focus

Page 1: Current Mystery Shop Results

CSO is a very powerful metric on a Trailing 12 Month (TTM) basis because there are enough shops within 12 months to give you a realistic indication of performance. This page shows you:

• TTM and Year To Date CSO and comparison to the comparable prior period• Question level trending and critical driver achievement• Supporting driver (non-CSO question) performance• Open space for notes

Provides headlines on the restaurant’s ranking, top areas of opportunity and areas most improved:

• DT and DI rankings within the country • Areas of opportunity – most missed questions• Areas that have shown the most improvement over the last 6 months • Open space for notes

OVERVIEW OF MYSTERY SHOP RESTAURANT REPORT CHANGES

We heard you! Your feedback has been incorporated into a newly enhanced restaurant level mystery shop report. It is shorter, easier to read and has a significant amount of CSO information on it. Each page of the report is described below:

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Questions (* Indicates CSO Question)

MS Category % and Question Achievement

Quality 100%* Hot & Fresh Sandwich (12 pts)* Hot, Salted and Crisp Fries (11 pts)Sandwich Assembly (3 pts)Friendly 68%* Friendly Greetings & Closings (8 pts)* Attentiveness (7 pts)* Effective Communication (7 pts)Accuracy 100%* Correct Food & Drink (12 pts)Correct Condiments (5 pts)Fast 83%Service Time (9 pts) 70 sec* Total Exp. Time (9 pts) 141 secClean 100%* Clean Restaurant Interior (7 pts)* Clean Restrooms (6 pts)* Clean Employees (4 pts)

Order taker did not give me their full attention.

Current Visit - Dine In

Diagnostics

Restaurant Name: 123 Main Street Shop Date/Time: 09/16/2008 @ 12:05pm Week Part:Restaurant #: 44444 Shopper ID: Day Part:

Mystery Shop Score# of Critical

Drivers Missed YTD TTM

Drive Thru 84% 0 out of 8 92% Drive Thru 94%

Dine In 90% 1 out of 10 83% Dine In 87%Dine In 3%

Current VisitWeekdayLunch

7%

Year to Date Trailing 12 Months (TTM)Current Visit

Drive Thru 1%

12345678

Overall Mystery Shop ResultsHistorical Trending

Var fromPrev. YTD

Var fromPrev. TTM

1%

Page 1: Current Mystery Shop Results

Page 1 provides details of the mystery shop most recently conducted. Two sections are displayed below: 1) visit information and trended scoring and 2) visit details.

Current visit shows Mystery Shop score for Drive Thru and

Dine In. Also indicates the number of critical drivers missed versus the total number of critical

drivers evaluated on this visit.

CSO questions are indicated

with an *

= Missed Question

= Achieved Full Points

Diagnostics: If the question is missed, this

section provides the diagnostic reason why

Historical Trending: Shows Drive Thru and Dine In scores for Year to Date and Trailing 12 Month (TTM) performance (calculations

include the current visit). Both show a comparison to the same comparable period.

= Performance Decline

= Performance Improvement

Percentage represents the total number of points achieved divided by the number of possible points for that category

Number of points a

question is worth

Notes:• If your shop combines a Drive Thru and Dine In experience, remaining non-scored QSC questions will appear on the last page of the report• If your shop conducts the Drive Thru and Dine In experience separately, remaining non-scored QSC questions will appear on this page of the report

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Critical Drivers TTM % of Times Missed 16-Sep 15-Aug 7-Jul 24-Jun 8-May 12-Apr 21-Mar 9-Feb 16-Jan 14-Dec 19-Nov 14-Oct

Dine In CSO 50%Hot, Salted and Crisp Fries 25% Friendly Greetings & Closings 17%Clean Restaurant Interior 17%Attentiveness 8%Clean Employees 8%Clean Restroom 8%Correct Food & Drink 8%Effective Communication 8%Total Exp. Time under 5 min. 0% 141 110 91 199 97 241 95 294 80 88 83 116Hot Fresh Sandwich 0%

Page 2: CSO Reporting and Trending

Page 2 of the Mystery shop report provides CSO trending at the overall and question levels. The top section provides comparisons on TTM and YTD while the following sections display question level information.

Indicates how the restaurant is performing on a Trailing 12 Month

(TTM) basis from a CSO perspective with a comparison to the previous Trailing 12 Months.

Year to Date (YTD) CSO tells how the restaurant is performing on a calendar year basis. This section will NOT be populated until April when the CSO trend

has been established.

Shop results for each critical driver are displayed for the last 12 months with the current shop (left) to

oldest shop (right)

Question level trending categories are: 1) Drive Thru Critical Drivers (CSO Questions)2) Dine In Critical Drivers (CSO Questions)3) All other DT and DI Questions (non-CSO Questions)

All of these categories have the same format (shown below)

For timing questions, if the standard is not achieved, the number will be in bold italics. If it is TET, and the

critical driver is missed as well, it will have a symbol next to the

seconds

Question order is dynam

ic based on percent of tim

e the critical driver w

as missed

= Performance Decline

= Performance Improvement

= Visit missing one or more critical drivers

= Visit achieving all critical drivers

If critical driver is achieved, area will be blank. If it is missed, there will be an

symbol

Notes: • There is also identical charts for Drive Thru and Dine In performance• If this restaurant is a Dine In only, all shops conducted in a 12 month period will be listed.

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Top QSC Opportunities*Hot, Salted and Crisp Fries - Dine In Missed 3 of last 12 times French Fries were not hot

Top Opportunities

Page 3: Restaurant Ranking and Areas of Focus

The purpose of this page is to provide your restaurant with headlines on your ranking, top areas of opportunity and areas most improved.

Your restaurant’s ranking based on the Trailing 12 Month CSO performance versus all the restaurants in highest hierarchy level listed.

Variances show how your restaurant’s Drive Thru and Dine In CSO scores compare to the

hierarchy levels listed.

Top Improvement Areas are questions that have been achieved in the last 3 months but were missed at least twice in the previous 6 months.

Top Opportunities are the mystery shop questions that were missed the most often and most recently in the last 12 months. In order to qualify as a top opportunity, the question must have been missed at least 3 times in the last 12 months.

Shows the questions that have the largest opportunity for improvement based on when and the number of times the question was

missed in the last 12 months.

Indicates the number of times missed in

last 12 months.

Indicates the top reason the question was missed. A reason is listed only if the reason has been chosen more than once.

Note: TET can be listed twice. 1) If the standard is not achieved (<=210 seconds) and/or 2) if the critical driver criteria is not achieved (<=300 seconds)

Top QSC Improvement Areas*Hot, Salted and Crisp Fries - Dine In *Friendly Greetings & Closings - Dine In *Clean Restaurant Interior - Dine In

Top Improvement Areas

Notes: • If your restaurant does not have a Drive Thru, there will be no Drive Thru ranking provided • Hierarchy levels will be defined by each country

CSO questions

are indicated with an *

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OverviewThroughout 2008, the mystery shop working team (made up of representatives from each area of the world) assisted in identifying areas of improvement that will have the greatest positive impact on the credibility, accuracy and adoption of the Global Mystery Shop program over the next several years. The general guidelines the team used to help define the areas of focus were:

• Provide better and more actionable information to the restaurant • Focus on trends versus one shop• Continually decrease inquiry rates and improve the perceived credibility of the program

Simplifying and Decreasing the Observations a Shopper Captures We want mystery shoppers focused on capturing the critical operational standard information that will help us drive CSO performance. Therefore, the team looked at the number and complexity of observations the shopper is required to gather and streamlined them. The following changes will decrease the number of observations by 15-20%.

All Crew members names & descriptions will not be capturedWhen the Mystery Shop program started, crew members names/descriptions were used to validate that the shopper went to the correct location. This added approximately 15% more shopper observations. Receipts are now gathered to validate that the shopper went to the correct location, so we will no longer require the shopper to capture any crew member’s name or description. However, the shopper will have the ability to indicate a crew person’s name if the experience is extraordinary in the shopper comments.

Satisfaction with the speed of service will not be askedThis question was originally used to analyze how important speed was to our consumers. Now that we know that speed is important to our customers (validated in other tools available today), this question is no longer needed to understand this. Since it is not being used anymore, we are eliminating it.

Response Time changes to a Non-Timing QuestionToday, the shopper is doing 25-30 simultaneous activities (observing cleanliness, listening for a greeting, driving, ordering, etc) while they are capturing the majority of our timing points. To decrease the complexity of these simultaneous activities, we will no longer ask the shopper to capture the exact number of response time seconds. Instead, we will ask them to evaluate their perception (without a timing device) of response time with guidance that being asked for your order should take no more than 10 seconds. The question will now read “Was your order taken in an acceptable amount of time.” If the shopper marks the question “no”, then they will have the ability to add additional comments if the situation warrants. The question will still be worth 2 points – but there will be no opportunity for bonus points.

Improved Shopper Training and ToolsWe have spent a significant amount of time analyzing the training materials and gathering feedback from shoppers on how to improve the guidelines we provide them. Based on that feedback, we will be focusing on improving shopper training in the following areas:

• Create more effective training in the Fast and Friendly areas that is easier to understand with more visual aids• Test a custom timing device in top markets to make it easier for the shopper to record accurate timings• Simplify shopper instructions and shopper data entry screens Enhanced Mystery Shop Restaurant Report FormatWe received substantial feedback in the last year that the mystery shop report had too much information, was too long / confusing and had no CSO messaging in it. Therefore, the working team developed an enhanced restaurant level report that is shorter, simpler, easier to read and has a significant amount of CSO information on it.

Rationale for Mystery Shop Changes