Enterprise Management and

Communicating Kitchens

A Complete Foodservice Solution

Newark, N.J., August 24, 2016

Paul HepperlaDirector – New Solutions Development for

Foodservice & Product Management –

Enterprise Services

Emerson Climate Technologies

Dean LandecheVice President of Marketing – Retail Solutions

Emerson Climate Technologies

Agenda

2

• Industry trends driving need

• The business case for connecting the kitchen

• Feasibility

• Important questions to consider

• Use cases

• Q & A

Industry Trends Driving Need — The Food Factory

3

Healthy and fresh eating trends drive

menu expansion

Increasing kitchen

density challenges

productivity

• Change frequency increasing

• Compressed implementation time

• “Food away from home” accounts for 48.7% of food sales

Competitiveness = responsiveness

Smart, energy-efficient controls and

equipment are interesting

• Tour group needs 50 chicken sandwiches

• Choice = respond or lose

• Ease and repeatability a must

• Low overhead; can’t accommodate heavy IT systems

• Must address business priorities

It’s no longer enough to just be

focused on back of the house

What Do Food Factories Need?

4

• Productivity requires:

– Repetition

– Consistency

– Flow

– Uptime

• Dictates needs:

– Quickly deployable equipment

– Monitor and manage equipment usage and health for uptime

– Transmit new cooking programs while minimizing disruption

How Can We Systemize Kitchen Equipment

Monitoring and Programming to Enable the

“Factory Floor”?

Quotables

“Running a business is kind of like a circle: You have to keep your eyes everywhere, and some things when they

aren’t right in front of you, you might not see them. Or if it can see something that will have a long-term impact that

you cannot identify yourself right away, that’s something I would call ‘smart’.”

“If you don’t realize something’s wrong until 9 in the morning when you could have known at 2:30 in the morning,

you could have had somebody out there by 7 and it could have been fixed and you wouldn’t have to close.”

Human error and constant observation are a

major source of stress:

“Training … ensuring that they are monitoring the

product, the temperature, the time.”

“Training … you’ve got to make sure they are

constantly checking sanitizer.”Emotional frustrations: “It would be nice not to have

headaches in the middle of the night.”

“I’ve got two teenagers running the store on a Friday night

and I’m glad that I can check to see if things are off, the

doors are locked, the alarm is set…”

Functional frustrations: “When [new items] come out, you got

to set your timers differently. When a product comes out,

cook times, where you’re keeping it in your refrigerator … all

that stuff changes. It basically affects everything except for

your HVAC.”

Building (HVAC, lights, water, refrigeration)

Kitchen only

Emerson’s Footprint Unlocks Restaurant Energy Monitoring Opportunity

Emerson refrigeration content

Emerson enterprise monitoring lead by OEM relationships

Our approach

Connect existing kitchen

footprint to single site gateway

OEM partnerships

Emerson remote

monitoring capability

+

+

=Connected kitchens

The Business Case

7

Connected Kitchen

Brand

Budget

EfficiencyRisk

Productivity

10%

10%

?% ?%

?%

?%

<Four-year payback on energy and

maintenance savings alone ($6,100 annually)

Feasibility — Enabling Communicating Kitchens

ProAct™ enterprise

services and cloud

solutions Site Supervisor Translator

Use Cases

Reduction in maintenanceand service call costs

Service Maintenance

$$$ $$$

Reduce Maintenance Costs and Disruption

$$$

Three P’s of Better Maintenance Management

Data-driven, “right sized” planned

maintenance!

Reducing unplanned calls by up

to 60%!

Schedule service when it’s most

convenient for you and your

operation

Planned

Three P’s of Better Maintenance Management

Expert installation and startups!

Proven to reduce the occurrence

of service calls in the first year

Proper training and easy access

to operational information to

reduce the occurrence of calls

Prevented

Three P’s of Better Maintenance Management

Remote monitoring and the

analysis of data and metrics!

Enables identification of potential

failures before they occur!

Avoiding disruption to the day to

day operation and its ability to

produce profitably

Predicted

Enabling you to maximize the

earnings potential of the food

and beverages you serve!

Remote Menu Management

Food quality and consistency —

monitored, assured!

HACCP and food safety!

Remote Menu Management

Remote Software Management

Improve equipment performance

and ease of use with the latest

software updates

Update, Change, Renew Recipes Easily

instantly across your entire network of locations!

Reduce energy and

consumable costs

Leverage Operational Use Data

More than ⅓ of energy costs

are used in the kitchen

Connected Kitchens monitors

both the facility and kitchen

equipment

Leverage Operational Use Data

Enabling chains to turn equipment

use data into consumption plans

optimized to the peaks and valleys

of each individual location!

Even minor adjustments in use can

have dramatic impact on profitability

over time!

Leverage Operational Use Data

Manage sustainability and the

carbon footprint!

For demonstrated environmental

stewardship and the loyalty of

consumers inclined to choose

responsible brands

Responsibility to the Environment

Menus and Maintenance Today

8–16-week average cycle time

$40,000 per change for 300-chain store average cost

$4.4 million menu change cost for a single item change

Maintenance

issues

Operating correctly?

Food safety?

Brand/product

consistency?

Need

Menus change

monthly

100–30,000

locations

Current process

Menus in months

New menu item, cooking program

Program mailed to locations

Local staff uploads to equipment

Sell new items

USB

Connected Kitchens Energized by Emerson

80% reduction in average cycle time

More flexible changes

Cost savings

Maintenance

milestones

Operating condition

Cooking temperatures

Properly maintained

Best practices insights

Menus in minutes

New menu item, cooking program

Menu broadcast via Emerson IoT

Menu received,equipment updated

Sell new items

How Will the OEM Benefit?

Revenue generation through increased sales and sharing of recurring revenue model with Emerson

Reduction of warranty claims as a percent of sales leads to better profitability and happier customers

Insights into equipment performance and operation will lead to systematic, continuous improvement

Reputation enhanced through best use of technology with great equipment performance

Why Emerson?

• End user presence enhances customer understanding of needs

• Common customers lead to potential opportunities

• Commitment to the markets we serve

• Protect the OEM and their intellectual property

• Additional resources (human centered design / innovation labs) can provide interactive end-user customer engagement

• A la carte approach

OEM partners

Important Questions to Consider

• Do your devices have data worth the effort?

• Can they communicate?

• Do you have someone to help take action on the knowledge gained?

• Have you talked with your IT group?

• Wired or wireless?

• In-store real estate: Do you have room?

Questions?

DISCLAIMER

Although all statements and information contained herein are believed to be accurate and reliable, they are presented without guarantee or warranty of any kind, expressed or

implied. Information provided herein does not relieve the user from the responsibility of carrying out its own tests and experiments, and the user assumes all risks and liability for

use of the information and results obtained. Statements or suggestions concerning the use of materials and processes are made without representation or warranty that any such

use is free of patent infringement and are not recommendations to infringe on any patents. The user should not assume that all toxicity data and safety measures are indicated

herein or that other measures may not be required.

Thank You!

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