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Consumers’ favorite pizza franchise is growing…
and we’ve got a WINNING FORMULA
What is our Winning Formula?
We have a strong brand built on an amazing product
We are a unique competitor in the growing pizza industry
We have a simpler business model with lower costs
We have room for growth, especially in new markets
Our management team has a history of solid results
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02
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05
S T R O N G B R A N D
Our core purpose
Serve With PurposeWe have an obligation to support Customers, Franchise Owners, our communities, and each other with every action we take.
Passionate About Creating Food People LoveWe love amazing food and believe that enthusiasm for helping others paired with an uncompromising commitment to quality adds a whole lot of happy to the world.
Serve People Well & Have High StandardsWe are one team committed to respectful interactions that create a productive environment. We fill a lot more tables with home-baked love when we work together.
Drive Results Through PerseveranceWe are optimistic, flexible, and focused. We understand where we want to go and persevere as we progress towards our goals. When we fail, we learn, we grow, and we start again.
Integrity Through Our ActionsWe do things the right way for the right reasons. There aren't many things we'll fall on our pizza cutters for, but acting ethically with transparency is one of them.
Our core values
S T R O N G B R A N D
1981
Our first store opens in Hillsboro, OR (under the Papa Aldo’s name)
1995
Papa Aldo’s & Murphy’s Pizza merged in 1995, forming Papa Murphy’s
1999 2003 2007 2015
Opened 500th store and partied like it was 1999…because it was
We are named the Best Pizza Chain in America for the first time
Jack-O-Lantern Pizza debuts, turning Halloween into our highest sales day
Opened 1,500th store
1983
Our first franchise location opened in McMinnville, OR
We are the customer favorite, fifth-largest pizza chain & largest take ‘n’ bake
S T R O N G B R A N D
Consumer’s Choice Award 2016, 2015, 2014, 2011
#1 Pizza Chain 2015, 2014, 2013, 2012, 2011
#1 Pizza Chain 2015, 2014, 2013, 2012, 2011, 2010, 2009
#1 Chain Overall#1 Pizza/Italian Chain
2013 (only year survey was conducted)
# 1 Rated Pizza ChainTop 5 U.S. Fast Food Chain
2012, 2011, 20102012, 2011, 2010
#1 Pizza Chain 2014
Customers love us AWARD YEAR
S T R O N G B R A N D
The pizza industry sees
$billion
Source: IBISWorld, Nov 2015, “Pizza Restaurants in the US”
sales per year …and it’s growing
U N I Q U E C O M P E T I T O R
55%
-7%
45%
+7%
+50%
Source: NPD CREST, 2015
Chains are increasing market share
2.0%3.0%
3.6%5.0%
6.6%8.0%
10.0% 14.0%
14.7% 15.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2015
DOLLAR SHARE OF PIZZA CATEGORY
Pizza HutDomino’sPapa John’sLittle CaesarsPapa Murphy’sMom & Pop/Regional
U N I Q U E C O M P E T I T O R
We have very strong customer value
Pizza/QSR/Fast CasualAverage Per Person Spend
Source: NPD/CREST Decision Key Report: Restaurant Scorecard – MM.Note: Represents per person spend for the January 2015 to June 2015 time period. (1)Average party size for Pizza Hut is 2.2(2)Average party size for Papa John’s is 2.4.(3)Average part size for Domino’s is 2.3.
(4) Average party size for Little Caesars is 2.6.(5) Average party size for Papa Murphy’s is 3.3.
$7.91(1)$8.27(2)
$7.58(3)
$4.01(4)
$6.46
$5.54$5.11
$7.84$7.24
$6.09(5)
U N I Q U E C O M P E T I T O R
We have created an ownable space in the industry with our unique productsLO
W P
RIC
E
HIGH QUALITY
LOW QUALITY
HIG
H PR
ICE
<$10
<$15
<$5
<$20
U N I Q U E C O M P E T I T O R
OUR BRANDS POSITIONING DESCRIPTOR EMOTIONAL BENEFIT
Grown-up, sophisticated ingredients on our crispy thin crust
Artisan thin crust (Less than 250 calories per slice and 25% less fat)
I feel satisfied because I finally get to eat what I want
The only fresh-made-from-scratch Pan pizza you bake at home
Thick, buttery, and completely irresistible
I feel happy that I can finally give my family a homemade Pan pizza
Four pounds of pizza for only the heartiest appetites
The 2-layer, 4-pounder I feel indulged and generous because this is a lot of pizza
A classic pizza for a classic family pizza night The recipes that made us famous I feel nostalgic and pleased because this
is a classic pizza
Pizza exactly the way you want it Create Your Own I feel relieved because everyone got exactly what they wanted
A higher-quality, value-priced pizza that’s fresh and ready to go Fresh family values I feel smart because I saved money and
served something better to my family
We have a menu with broad appeal
S T R O N G B R A N D
Our customer is different
Other pizza franchises fight over same young/male demographic, but our marketing is tightly focused on millennial and Gen X moms looking for convenient, high-quality family meals.
U N I Q U E C O M P E T I T O R
Customers prefer take ‘n’ bake, and it’s also easier for franchise owners
S I M P L E R B U S I N E S S M O D E L
The Makeline
LEAN
EFFICIENT
FAST
S I M P L E R B U S I N E S S M O D E L
Typical startup costs per store range from…
$279,455 to $492,441
Franchisees often provide $80,000 and finance the rest (subject to meeting lender qualifications)
We’ve got a couple of relationships that might help you get started:
S I M P L E R B U S I N E S S M O D E L
ACTIVE MARKETS FUTURE MARKETS
The Growth Opportunity
3x our current size in potential growth opportunity
prime territories across many markets
5 or more stores ADA commitments available
R O O M F O R G R O W T H
Location
What makes a winning location?
How does PMI help me in my search?
R O O M F O R G R O W T H
TVLocal store marketing
How do we find new customers?
DigitalRadio
R O O M F O R G R O W T H
• New customers
• Upsell
• Targeted marketing to increase customer frequency
• Expansion, which amplifies the power of the brand
How do we grow sales?
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04 OPEN
MORE…
MORE…
MORE…
MORE…
R O O M F O R G R O W T H
We believe digital is our next big growth lever
Ordering pizza online is a big deal
50%+ online orders1
50%+ online orders2
45%+ online orders3
Online ordering is more profitable for us
larger checks+ lower labor$
Because the audience is already there
69% of people shop onlineMintel Online Shopping US 2015 Report
1. https://biz.dominos.com/web/public/about-dominos/fun-facts2. http://ir.papajohns.com/releasedetail.cfm?releaseid=8868413. http://nrn.com/hr-training/pizza-hut-franchisee-abruptly-closes-call-center
Company data
R O O M F O R G R O W T H
Our Model Market Program focuses on participating markets with affordable broadcast media costs. With the ADF investment provided, they are able to use ongoing broadcast media to boost awareness across their market, with coverage throughout the year.
Papa Murphy’s Local Investment
Our Investment Market Program provides additional funding for participating markets that are in high broadcast media cost areas. With the ADF investment provided, these markets are able afford broadcast media advertising at key times during the year.
R O O M F O R G R O W T H
eCommerce
We Are Focused & Investing in Future Growth
Pre-sale Development
Precision Marketing
FOR SALE
R O O M F O R G R O W T H
$370,742
$565,005
$935,006
Bottom Third Middle Third Top Third
Financial Performance
Source: Papa Murphy’s Franchise Disclosure Document, issued March 2016
Total System Average Net Sales
$623,498per year
R O O M F O R G R O W T H
Ken Calwell, President & CEO 4 30
Mark Hutchens, CFO 1 10
Jayson Tipp, CDO & SVP Technology 3 27
Brandon Solano, CMO 1 7
Victoria Blackwell, CLO & SVP Talent 14 14
Dan Harmon, SVP Operations 3 29
Our experienced leadership
Years at PMI
Years’Franchise
Experience
Ken Mark Jayson Brandon Victoria Dan
M A N A G E M E N T T E A M
Using industry expertise to guide & support
Promotional marketing kits shipped to stores
In-house Graphic Studio for custom requests
Field team distributed throughout the country
Marketing
In-store training program for on-site operator
Training at PMI headquarters leveraging on-site subject matter experts
Ongoing e-learning training resources provided
Training
Operations manual and procedures
Safety requirements and secure supply chain
Field team distributed throughout the country
Operations
M A N A G E M E N T T E A M
And this support begins before your store is even open
Market area expertise
Lease review & negotiation tactics
Process guidance & tracking
Detailed store plans & architect interface
Only 4 ACH payments to build store with
quote consolidation & invoice processing
GC consultation & direction
Real Estate Managers
Store Planning & Construction Managers
What is our Winning Formula?
We have a strong brand built on an amazing product
We are a unique competitor in the growing pizza industry
We have a simpler business model with lower costs
We have room for growth, especially in new markets
Our management team has a history of solid results
01
02
03
04
05
Next Steps
Fill out Qualification Form
Discuss financing options
Complete franchisee validation
Review FDD (only after Qualification Form
is returned)
Attend Discovery Day
Signing
Step 1
Step 3
Step4
Step 2
Step 5
Step 6
