Kevin Adam

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• Kevin Adam
• Chris Duncan
• Amy Luttrell
• Jennifer Moran

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Good Tea Bad Tea

• http//www.youtube.com/watch?v6sVWBFwZEQ4

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Overview

• Background Info
• Founder
• New CEO
• Menu
• Competitors

• Franchising
• Finance
• Current Issues
• Alternatives

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Background Info

• Open in 1989
• Favorites
• Fast Casual Dining
• Personal Service
• Great Food

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Converted Gas Station
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McAlisters Locations

• 305 Stores in 22 States

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Founder Don Newcomb

• Mississippi
• Military
• Dental Practice
• The Heart of Dixie Movie
• Chequers
• History of McAlister name

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McAlisters Gets New CEO

• Frank G. Paci replaces Phil Friedman as CEO
• Over 25 years of experience in top roles
• Pizza Hut, Burger King, Blockbuster
• Bachelors in Economics from Yale University
• MBA from University of Pittsburgh

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Big Shoes To Fill

• Previous CEO, Friedman, had many accomplishments
• NASBIC Portfolio of the Year 2005
• Nations Restaurant New Franchise Excellence 06
• Top 10 Restaurants with under 300 units Award
• Best Restaurant for Families 2009
• Developed and grew McAlisters from 27 to over
  300 locations.

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McAlister's Menu

• Soups and Nachos
• Fresh Salads
• Panini's
• Deli Sandwiches
• Pizza
• Wraps
• Baked Potatoes
• Sweet Tea

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Competitors

• Au Bon Pain
• Fuddruckers
• Jason's Deli
• Pei Wei
• Baja Fresh

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Strategic Groups (p. 88 in Text)
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Franchising

• Ease of Operations
• Expanding to 25 different states in 2010 alone
• Services and resources available to franchisees
• Development
• Site selection
• Marketing
• Many more

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Franchising Requirements
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Existing Location Fees
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New Construction Fees
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Finance

• 375 million in sales for 2009
• Sales per unit 1.31 million
• 285 units in 2009

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Current Issues

• Rising commodity prices
• If we raise prices, will customers go elsewhere?
• Food prices are on the rise
• How will this affect our profit margin on the
  sale of goods?
• New CEO
• Q4 2010 transitioned to a new CEO
• How is he doing?
• Growth
• How do we maintain our fast rate of growth?

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Alternatives

• New food supplier, one that offers better
  pricing, more flexibility and closer distribution
  center.
• Smaller portion size per order.
• Menu changes featuring more lunch oriented
  specials.
• Hedge our food prices.
• Offer curbside pick-up service.

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Conclusion

• McAlisters was founded in 1989 by Don Newcomb.
  It is a fast-casual deli that can be found in 22
  states. With a new CEO, rising food prices, and a
  fast growth rate, McAlisters needs to create a
  strategy that will help them continue the success
  of this franchise!

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• Questions? Comments?
• Thank you for listening!

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References

• http//www.mcalistersdeli.com/about/history/http
  //www.mcalistersdelifranchise.com/articles/McAlis
  ters_Celebrates_20th_Anniversary.pdfhttp//www.m
  calistersdeli.com/pdf/Frank_Paci,_New_President__
  CEO_Sept._2010.pdfhttp//www.bizjournals.com/kan
  sascity/stories/2010/04/05/daily1.htmlhttp//www
  .mcalistersdelifranchise.com/articles/QSR-Jan2008.
  pdf