Friendly Ice Cream Corporation - O.C. Tanner · 1988 – Donald N. Smith purchases Friendly from...
35
Friendly Ice Cream Corporation Friendly Ice Cream Corporation O.C. Tanner – Creating a Carrot Culture! O.C. Tanner – Creating a Carrot Culture! September 17, September 17, 2009 2009
Transcript of Friendly Ice Cream Corporation - O.C. Tanner · 1988 – Donald N. Smith purchases Friendly from...
Friendly Ice Cream CorporationFriendly Ice Cream Corporation
O.C. Tanner – Creating a Carrot Culture!O.C. Tanner – Creating a Carrot Culture! September 17, September 17, 2009 2009
History
1935 – at the height of the great depression, the Blake brothers open a neighborhood ice cream shop in Springfield, MA……..they serve double dip cones for 5¢……name their business “friendly” reflecting their dedication to providing warm, caring, neighborly service to all their Guests.
1940 – second Friendly opens in West Springfield, MA. Strong Guest demand allows food to be added to the menu……first new item a hamburger.
1951 – Friendly operations include 10 restaurants in Western MA and CT. Company moves to current headquarters in Wilbraham, MA where the company opens a manufacturing facility that still serves much of the Friendly chain.
1974 – Friendly has grown to 500 restaurants in the Mid-Atlantic and Northeast. Business still growing, the Blake brothers sell Friendly to Hershey Foods Corp. in 1979.
1988 – Donald N. Smith purchases Friendly from Hershey Foods Corp. Friendly becomes “Friendly’s” in 1989 and goes public in 1997 on the American Stock Exchange under the ticker FRN.
August 2007 – the company is purchased by Sun Capital Partners.
2
3
Friendly Ice Cream Corporation is a diversified & vertically integrated company, with 4 operating business units
74 yr. old “iconic brand” with a powerful position in the Northeast and significant brand equity:
— 63% unaided awareness of Friendly’s restaurants— 84% of Friendly’s ice cream
506 full-service restaurants (309 Company locations, 197 franchised restaurants) – new fast/casual brand
Manufacture ice cream and frozen desserts, which are distributed to > 4,000 supermarkets and other 3rd party retail locations in 14 states (in addition to Friendly’s restaurants)
62,300 sq ft state-of-the-art mfg facility provides cost and service advantage to the restaurant system
Distribution facilities in Massachusetts and Pennsylvania
Company Overview
Restaurants
Owned 62%
Franchise 38%
Restaurant 74%
Distribution 14%
Retail 9%
Franchise 38%
Owned 62%
Restaurants Company Franchised
New York 34 79 Massachusetts 101 3 Pennsylvania 35 23 New Jersey 33 25 Connecticut 45 Ohio 22 Maryland 18 Florida 12 5 Virginia 10 5 New Hampshire 14 Vermont 10 Maine 9 Delaware 9 Rhode Island 6 South Carolina 4 North Carolina 2
4
Friendly’s Restaurants
Team Member Population Wilbraham MA: Exempt 128 Plant/Facilities Hourly 199 Office Clerical 72 399
Distribution - York & Chicopee: Exempt 8 Plant/Facilities Hourly 129 Office Clerical 7 144
Restaurant Operations--Field G&A: Field Supervision (VP, RD, FTM, FHRM) 18 DM 50 Office Clerical 2 70
Restaurant: General Manager 301 AGM/AM 440 Manager-in-Training 18
Hourly Staff 12,056 12,815
Total Team Member Population 13,428
5
Retail Overview
Retail Ice Cream Distribution
Friendly’s distributes retail ice cream and ice cream desserts products in 14 states to approximately 4,000 retail outlets
o Connecticut
o Florida
o Indiana
o Rhode Island
o Maine
o Maryland
o Massachusetts
o New Hampshireo New Jerseyo New Yorko Ohioo Pennsylvaniao Vermonto Virginia
8
Retail Product Line
Number of SKU’s 49
Average Consumer Price Paid1 $3.00
2008 Unit Volume 29 million
2008 Net Sales $54.6 million
Number of SKU’s2 6
Average Consumer Price Paid1 $17.00
2008 Unit Volume 400,000
2008 Net Sales $3.3 million
Number of SKU’s 6
Average Consumer Price Paid1 $6.00
2008 Unit Volume 0.9 million
2008 Net Sales $2.7 million
56-ounce Cartons
Ice Cream Rolls Sundae Cups
Number of SKU’s 6
Average Consumer Price Paid1 $1.11
2008 Unit Volume 7.7 million
2008 Net Sales $4.7 million
1. Source: AC Nielsen, July 2009.2. Cakes are sold in 6 SKU’s, 26 varieties.
Ice Cream Cakes
48 oz Cartons48 oz Cartons
A total of 49 SKU’s distributed:A total of 49 SKU’s distributed:
— Red Box (26 SKU’s)Red Box (26 SKU’s)
— Smooth Churned (11 SKU’s)Smooth Churned (11 SKU’s)
— Fruit Swirls (4 SKU’s)Fruit Swirls (4 SKU’s)
— Sundae Xtremes (4 SKU’s)Sundae Xtremes (4 SKU’s)
— Sherbets (3 SKU’s)Sherbets (3 SKU’s)
— Yogurts (1 SKU)Yogurts (1 SKU)
2008 annual volume: 25.2MM Gallon2008 annual volume: 25.2MM Gallon
Strategies & Results
Current Strategies:
— Managing to the Environment & Marketplace— People Improvement — Guest & Operations Improvement— Preparing for the Rebound – Growth & Opportunity
Results:
— Sales:– Restaurants– Retail
— Profit
10
Mission, Vision, & Values
Mission:
“We bring Families & Friends together by serving the best ice cream & food through our passion for quality, value, and our attentive & friendly service.”
Vision:“To become a world-class restaurant company, known for delivering a
quality brand to our Guests, quality careers to our teammates, and quality returns to all stakeholders.”
Values:— Friendly’s Culture— People are the Product— Engaging Hearts, Heads, and Hands
11
Friendly Ice Cream CorporationFriendly Ice Cream Corporation
Friendly Ice Cream CorporationFriendly Ice Cream Corporation
O.C. Tanner – Creating a Carrot Culture!O.C. Tanner – Creating a Carrot Culture! September 17, September 17, 2009 2009
History
1935 – at the height of the great depression, the Blake brothers open a neighborhood ice cream shop in Springfield, MA……..they serve double dip cones for 5¢……name their business “friendly” reflecting their dedication to providing warm, caring, neighborly service to all their Guests.
1940 – second Friendly opens in West Springfield, MA. Strong Guest demand allows food to be added to the menu……first new item a hamburger.
1951 – Friendly operations include 10 restaurants in Western MA and CT. Company moves to current headquarters in Wilbraham, MA where the company opens a manufacturing facility that still serves much of the Friendly chain.
1974 – Friendly has grown to 500 restaurants in the Mid-Atlantic and Northeast. Business still growing, the Blake brothers sell Friendly to Hershey Foods Corp. in 1979.
1988 – Donald N. Smith purchases Friendly from Hershey Foods Corp. Friendly becomes “Friendly’s” in 1989 and goes public in 1997 on the American Stock Exchange under the ticker FRN.
August 2007 – the company is purchased by Sun Capital Partners.
2
3
Friendly Ice Cream Corporation is a diversified & vertically integrated company, with 4 operating business units
74 yr. old “iconic brand” with a powerful position in the Northeast and significant brand equity:
— 63% unaided awareness of Friendly’s restaurants— 84% of Friendly’s ice cream
506 full-service restaurants (309 Company locations, 197 franchised restaurants) – new fast/casual brand
Manufacture ice cream and frozen desserts, which are distributed to > 4,000 supermarkets and other 3rd party retail locations in 14 states (in addition to Friendly’s restaurants)
62,300 sq ft state-of-the-art mfg facility provides cost and service advantage to the restaurant system
Distribution facilities in Massachusetts and Pennsylvania
Company Overview
Restaurants
Owned 62%
Franchise 38%
Restaurant 74%
Distribution 14%
Retail 9%
Franchise 38%
Owned 62%
Restaurants Company Franchised
New York 34 79 Massachusetts 101 3 Pennsylvania 35 23 New Jersey 33 25 Connecticut 45 Ohio 22 Maryland 18 Florida 12 5 Virginia 10 5 New Hampshire 14 Vermont 10 Maine 9 Delaware 9 Rhode Island 6 South Carolina 4 North Carolina 2
4
Friendly’s Restaurants
Team Member Population Wilbraham MA: Exempt 128 Plant/Facilities Hourly 199 Office Clerical 72 399
Distribution - York & Chicopee: Exempt 8 Plant/Facilities Hourly 129 Office Clerical 7 144
Restaurant Operations--Field G&A: Field Supervision (VP, RD, FTM, FHRM) 18 DM 50 Office Clerical 2 70
Restaurant: General Manager 301 AGM/AM 440 Manager-in-Training 18
Hourly Staff 12,056 12,815
Total Team Member Population 13,428
5
Retail Overview
Retail Ice Cream Distribution
Friendly’s distributes retail ice cream and ice cream desserts products in 14 states to approximately 4,000 retail outlets
o Connecticut
o Florida
o Indiana
o Rhode Island
o Maine
o Maryland
o Massachusetts
o New Hampshireo New Jerseyo New Yorko Ohioo Pennsylvaniao Vermonto Virginia
8
Retail Product Line
Number of SKU’s 49
Average Consumer Price Paid1 $3.00
2008 Unit Volume 29 million
2008 Net Sales $54.6 million
Number of SKU’s2 6
Average Consumer Price Paid1 $17.00
2008 Unit Volume 400,000
2008 Net Sales $3.3 million
Number of SKU’s 6
Average Consumer Price Paid1 $6.00
2008 Unit Volume 0.9 million
2008 Net Sales $2.7 million
56-ounce Cartons
Ice Cream Rolls Sundae Cups
Number of SKU’s 6
Average Consumer Price Paid1 $1.11
2008 Unit Volume 7.7 million
2008 Net Sales $4.7 million
1. Source: AC Nielsen, July 2009.2. Cakes are sold in 6 SKU’s, 26 varieties.
Ice Cream Cakes
48 oz Cartons48 oz Cartons
A total of 49 SKU’s distributed:A total of 49 SKU’s distributed:
— Red Box (26 SKU’s)Red Box (26 SKU’s)
— Smooth Churned (11 SKU’s)Smooth Churned (11 SKU’s)
— Fruit Swirls (4 SKU’s)Fruit Swirls (4 SKU’s)
— Sundae Xtremes (4 SKU’s)Sundae Xtremes (4 SKU’s)
— Sherbets (3 SKU’s)Sherbets (3 SKU’s)
— Yogurts (1 SKU)Yogurts (1 SKU)
2008 annual volume: 25.2MM Gallon2008 annual volume: 25.2MM Gallon
Strategies & Results
Current Strategies:
— Managing to the Environment & Marketplace— People Improvement — Guest & Operations Improvement— Preparing for the Rebound – Growth & Opportunity
Results:
— Sales:– Restaurants– Retail
— Profit
10
Mission, Vision, & Values
Mission:
“We bring Families & Friends together by serving the best ice cream & food through our passion for quality, value, and our attentive & friendly service.”
Vision:“To become a world-class restaurant company, known for delivering a
quality brand to our Guests, quality careers to our teammates, and quality returns to all stakeholders.”
Values:— Friendly’s Culture— People are the Product— Engaging Hearts, Heads, and Hands
11
Friendly Ice Cream CorporationFriendly Ice Cream Corporation
• Great Marketing
• Great Training
• Great Sales Contest
Delivering The Experience
• Performance Gap
Sustainability
High Scores
Expectations
Consequences
Low Scores
Big Picture
Thanked for effort
Manager Cares about me
2004 Employee Survey
Challenges:
• Awards• Connection to Business Drivers• Keep it Alive
Develop a Recognition Strategy
Impact: Sales Improvement
Impact: Guest Comp
Impact: Complaints per 100K Guests
Impact: Turnover
• Live Chat• Review Business Drivers
Future of Recognition at Friendly’s
Q&A
Friendly Ice Cream CorporationFriendly Ice Cream Corporation
O.C. Tanner – Creating a Carrot Culture!O.C. Tanner – Creating a Carrot Culture! September 17, September 17, 2009 2009
