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CONFIDENTIAL: May be used only by KFC and its franchisees and licensees. Unauthorized use, sale, or reproduction is strictly prohibited. This

presentation may contain sales and other financial information. No reporting of past or anticipated results should be construed as a guarantee of future

performance. ©2014 KFCC

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• Understand Franchise opinions, attitudes and concerns regarding the business

• Partner with the AKFCF and entire Franchise community to turn feedback into action and strengthen our commitment to work together efficiently and effectively

• Evaluate how the overall Franchisor/Franchisee relationship has grown over the past year

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Total Franchise Participation: 241/572

3

42%58%Completed

Not Completed

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Statement Percentage Agree or

Strongly Agree

I believe we need to support both the high end (group meal) and

low end (individual meal) of our business

92%

I intend to attend the 2015 AKFCF Convention in February in Las

Vegas, NV

83%

I believe effectively leveraging technology is crucial to our brand’s

future

81%

I believe that our priority focus for simplifying operations for our

store teams should be in the BOH processes

78%

I believe we can and will turn around this great brand together 78%

4

= high scored item in 2013

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5

Statement Percentage Agree or

Strongly Agree

Nationally KFC consistently delivers operational excellence in all

4,500 restaurants16%

I believe we have made the RGM’s job easier than last year 16%

I am satisfied with the innovation pipeline 16%

I am satisfied with the overall leadership and direction provided

by KFCC Food Innovation20%

Financial data used to make business decisions is shared in a

timely and effective manner29%

Over the next 12-18 months, I would be interested in using the

Online Projection system in one or more of my MERIT

restaurants

29%

= low scored item in 2013

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Statement 2014 Score 2013 Score Difference

KFCC and Franchisees are making real

progress towards working

collaboratively in the spirit of mutual

trust, respect and partnership

73% 34% +39

I am satisfied with the overall leadership

and direction provided by KFCC

Marketing

55% 20% +35

Partnership – Overall Results 76% 44% +32

I am satisfied with the overall leadership

and direction provided by KFCC

Leadership Team63% 31% +32

I intend to attend the 2015 AKFCF

Convention in February in Las Vegas,

NV

83% 52% +31

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Statement 2014 Score 2013 Score Difference

I am satisfied with the support I receive

from the MERIT Restaurant Helpdesk55% 70% -15

I am satisfied with the support I receive

from MERIT Data Management63% 71% -8

I am satisfied with the taste and flavor

of our current core menu products40% 48% -8

Food Innovation – Overall Results 42% 49% -7

I believe that our priority focus for

simplifying operations for our store

teams should be menu item reduction

71% 78% -7

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Statement 2014 Score 2013 Score Difference

KFCC and Franchisees are making real

progress towards working collaboratively

in the spirit of mutual trust, respect and

partnership.

73% 34% +39

I believe we can and will turn around this

great brand together.78% 54% +24

Partnership - Overall Results 76% 44% +32

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Statement 2014 Score 2013 Score Difference

I believe profitable growth is the brand’s

#1 priority.75% 58% +17

Brand Strategy - Overall Results 75% 58% +17

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Statement 2014 Score 2013 Score Difference

KFCC provides open and frequent communication

regarding brand strategy, initiatives and important

decisions.59% 61% -2

I value KFCC Town Hall Calls with specific business

topic agendas, best practices, recognition and pre-

read emails.68% 69% -1

I intend to attend the 2015 AKFCF Convention in

February in Las Vegas, NV.83% 52% +31

Team KFC is an effective tool to access the most

important and relevant information I need to run my

business.74% 69% +5

The Association of Kentucky Fried Chicken

Franchisees (AKFCF) website is an effective tool to

access the most important and relevant information I

need to run my business.

55% 42% +13

Financial data used to make business decisions is

shared in a timely and effective manner.29% 27% +2

Communication - Overall Results 61% 58% +3

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Statement 2014 Score 2013 Score Difference

KFCC Operations 54% 27% +27

KFCC Training/Human Resources 43% 39% +4

KFCC Marketing 55% 20% +35

KFCC Food Innovation 20% 14% +6

KFCC Technology 38% 37% +1

KFCC Franchise Administration 39% 35% +4

KFCC Leadership Team 63% 31% +32

The National Council and Advertising Cooperative

(NCAC) 50% 26% +24

The Operations Excellence Committee (OEC) 47% 31% +16

The Association of Kentucky Fried Chicken

Franchisees (AKFCF) Board & Committees 63% 49% +14

Restaurant Supply Chain Solutions (RSCS) 50% 65% -15

Leadership/Representation - Overall Results 47% 34% +13

I am satisfied with the overall leadership and direction provided by…

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Statement 2014 Score 2013 Score Difference

We have clear operations performance standards for

our restaurants.71% 56% +15

Nationally KFC consistently delivers operational

excellence in all 4,500 restaurants.16% 13% +3

I consistently deliver operational excellence in my

restaurants.63% 69% -6

I believe that our priority focus for simplifying

operations for our store teams should be menu item

reduction.71% 78% -7

I believe we have too many products/configurations. 75% 81% -6

I believe that our priority focus for simplifying

operations for our store teams should be in BOH

processes.78% 84% -6

I am satisfied with the quality and functionality of our

current packaging.38% 36% +2

I believe we have made the RGM's job easier than

last year.16% 12% +4

Operations - Overall Results 54% 58% -4

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Statement 2014 Score 2013 Score Difference

Relevant tools, knowledge and training are provided

to achieve operational excellence.58% 55% +3

Training is easily accessible to franchisees,

managers and team members.51% 51% No Change

Learning Zone is an effective tool for accessing

training material and tracking completion of training

standards.49% 53% -4

I am satisfied with the level of training I received

during implementation.48% 50% -2

I have effective resources and capability to effectively

use the MERIT system.54% 52% +2

Training/Human Resources - Overall Results 53% 52% +1

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Statement 2014 Score 2013 Score Difference

Our marketing plan is strategically sound. 41% 12% +29

I believe we need to support both the high end (group meal)

and low end (individual meal) of our business.92% 91% +1

Our marketing plan is capable of driving +5% comp sales

growth.36% 11% +25

I am satisfied with our advertising. 39% 15% +24

I am satisfied with our merchandising. 38% 28% +10

Our marketing plan development process is disciplined with

proper lead time.43% 25% +18

Our National Council and Advertising Cooperative (NCAC)

process is efficient and effective.36% 20% +16

I believe the best way to improve consumer value perception

is by optimizing price-value across the menu at all KFC

restaurants.47% 41% +6

I believe the best way to drive transactions is through the

incorporation of lower-cost menu options across all KFC

restaurants.37% 37% No Change

I believe the best way to improve value perception is through

delivering hot and fresh product within 5 minutes to all KFC

guests.76% 72% +4

Marketing - Overall Results 48% 34% +14

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Statement 2014 Score 2013 Score Difference

I am satisfied with the taste and flavor of our current

core menu products.40% 48% -8

I am satisfied with the innovation pipeline. 16% 11% +5

I believe our side items represent a tremendous

marketing opportunity.73% 71% +2

Food Innovation - Overall Results 42% 49% -7

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Statement 2014 Score 2013 Score Difference

I believe effectively leveraging technology is crucial to

our brand’s future.81% 67% +14

I am satisfied with the support I receive from the

MERIT Restaurant Helpdesk.55% 70% -15

I am satisfied with the support I receive from MERIT

Data Management.63% 71% -8

The features of the MERIT system help me run better

operations.63% 58% +5

Over the next 12-18 months, I would be interested in

using the Online Projection system in one or more of

my MERIT restaurants.29% 30% -1

Technology - Overall Results 58% 59% -1

Statement Yes No

I am a current user of the MERIT system. 88% 12%

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REPRESENTATIVE COMMENTS

•“We must continue to make our operations less complicated”

•“By simplifying BOH and putting more emphasis on customer service and speed of service”

•“By keeping in mind simplification when coming out with new products”

•“Limit products that are not selling (grilled, hot wings)”

•“Continue to improve Learning Zone”

•“More RGM Training Seminars”

COMMENT TOPICS, RANKED

(% OF COMMENTS)

19

•Ops Simplifications (20%)

•Product (14%)

•Training (10%)

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ibuteREPRESENTATIVE COMMENTS

•“Being able to make enough profit to survive”

•“Costs to operate”

•“KFC being around in ten years”

•“The relevance of our brand”

•“KFC consistently fails to deliver relevant products”

•“Lack of food innovation”

COMMENT TOPICS, RANKED

(% OF COMMENTS)

20

•Financial Model (36%)

•Brand Future (15%)

•Product (14%)

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ibuteREPRESENTATIVE COMMENTS

• “The quality of leadership, both KFCC and franchise, and their ability to move this business in a strategic way forward”

• “Our leadership team turning this brand around”

• “New food items to help bring attention and customers to KFC”

• “Popcorn chicken coming back”

• “Better relations between KFCC and franchisees”

• “A dedicated team working together to attain goals that lead to greater profit”

COMMENT TOPICS, RANKED

(% OF COMMENTS)

21

•Leadership (24%)

•Product (15%)

•Partnership (12%)