Famous Dave’s “Pit-mastering
BBQ”Diana PurcelCFO
• Share my career path as well as some lessons learned along the way
• Highlight the Famous Dave’s brand• Encourage you to consider the
restaurant industry as a viable career option
Today, I plan to….
Grew up in Golden Valley, MNRobbinsdale Armstrong High School – class of 1984Tulane University – BSM; concentration in accounting –
class of 1988Lives in Corcoran, MN…..Mother of 3:Brandon18Laurel 16Blake 14
Diana Who?
Lesson #1
Understand what you bring ‘to the table’
“Sought and Brought” Theory
Biography in steps...
Arthur Andersen & Co., 1988-1993 (Supervisory Senior)
Dayton Hudson Corporation (Target), 1993-1998 (Senior Analyst)
Sought: Large public company experience Exposure to senior leadership
Brought: Banking experience Technical accounting expertise Ability to work in teams Strong work ethic
Lesson #2
Volunteer for the assignments or projects that no one else wants
Biography in steps...
Dayton Hudson Corporation (Target), 1993-1998 (Senior Analyst)
Damark Corporation, 1998-1999 (Dir of Reptg and Div Controller of Corp Planning and Reptg)
Sought: Supervisory experience Responsibility for own cost center
Brought: Public Company experience Large company retail experience Confidence in working with senior management and exposure CPA
Lesson #3Find your ‘line’
Biography in steps...
Damark Corporation, 1998-1999 (Director of Reporting and Divisional Controller of Corporate Planning and Reporting)
Paper Warehouse, Inc., 1999-2003 (Controller/ CFO)
Sought: Title Member of senior management
Brought: Supervisory experience Retail experience An understanding of ‘my line’ CPA
Lesson #4
It takes years to build a reputation and seconds to lose it
Biography in steps...
Paper Warehouse, Inc., 1999-2003 (Controller/ CFO)
Famous Dave’s of America, Inc., 2003-present (CFO)
Sought: Operational exposure Board of directors interaction Investor relations experience
Brought: CFO title Franchising experience Bankruptcy experience CPA
Lesson #5
Energy is everything…
Find your passion!
Introduction Fortunately…Unfortunately
Famous Dave’s of America, Inc.
• Headquartered in Minnetonka, MN
• Develop, own, operate and franchise barbeque restaurants
• First restaurant opened in June 1994
• NASDAQ: DAVE – went public in 1996
Famous Dave’s …at a glance
1994- early 2003
• Entrepreneurially –run
• Counter Service Restaurants
• Board: Friends and family
• Franchisees: Former associates, single concept owners
• Management team to TAKE a company public
Late 2003-today
• Professionally –run
• Full-Service Restaurants
• Board: Functional expertise
• Franchisees: Professional, multi concept owners
• Management team to RUN a public company
Famous Dave’s …at a glance
Roseville, MNJune 1996
Belaire, MDAugust 2010
When I stepped in…
No credibility in the financial community
No confidence by franchise system
Franchise system out-performing company restaurants
12.2 million shares outstanding, marginal cash
Company-owned comparable sales decrease (3.0%)
Accumulated deficit ($9,942,000)
Net loss ($2,898,000)
Diluted net loss per share ($0.25)
Financial Turnaround
• New executive team and founder steps out to take position with Bush administration
• Ceased corporate growth & developed real estate strategy
• Established Culture of Discipline & Invested in People and Systems
• Divestitures, impairments and closures• Stock Repurchase Programs• Commitment to being a public company• Commitment to being a franchisor• Commitment to sound corporate governance
2008 at a glance
• December 2007 CEO leaves for personal reasons
• Stock decreases from $22.77 July ‘07 to $2.70 Dec ‘08
• Activist investor files 13d
• Board member steps in as interim CEO
• Board heavily involved in day to day management vs oversight
• Franchisees concerned about personal investments
• New CEO starts April 2008 - - - leaves September 2008
• September 11, 2008 current President/CEO assumes leadership position……
The “Great Recession”
4Q 2008…. economy in shambles• Foreclosures• Unemployment • Collapse of financial institutions• Bail out of banks• Loss of value in the stock market• Consumer confidence at all-time low
Never waste a crisis….
Courageous Decisions
• Cleansed ourselves of the past
• Brought Dave Anderson back as the ‘face’ of the organization
• Took impairment charges on restaurants and/or closed underperforming locations and markets
• Defaulted certain franchise partners
• Reduction in force
• New executive team
• Narrowed the focus
• Strategic plan was a 6-12 month timeframe
“80 Proof” Burger
BBQ Potato Chips
Beef Ribs
Where is Famous Dave’s today and where are we going?
180 Restaurants in 37 states
Company RestaurantsFranchise Restaurants
Total restaurants
1996 1997 1998 1999 2000 2001 2002 2003 today0
20
40
60
80
100
120
140
160
180
200
3 14 22 30
42 56
73
92
18052 company-owned and 128 franchise-operated
2010 System-wide sales $471.6 million
Franchise-operated
Company-owned
Business Model
Franchise-related Fees**
CAGR: 16%
Restaurant Sales*Dine-In: 69%
To-Go /Catering: 31%
* Fiscal 2010** 2003 - 2010
Retail** CAGR: 16%
Dave’s Distinctions
• Scratch Cooking– Fresh every day, unlike competitor’s
pre-prepared foods• Smoked Meats
– Slow cooked for up to 8 hours; no parboiling or baking
• 5 Regional Sauces– Tout our expertise in regional
BBQ variations• Product Innovation
– Frequently updated menu; wide room for creativity
• Authentic Founder– Dave Anderson; gives us legitimacy
• Franchise model– Leveraging growth with experienced
franchise candidates• Off-premise Revenue Levers
– “To Go” and catering sales compliment in-house dining
• Value– High quality food, distinctive
atmosphere, superior service, competitive prices
• BBQ Expertise– 25 years in BBQ R&D and methodology
• Rib Team– Traveling billboard
Award Winning & Segment Defining
Just some of the Awards recently won….
JudgeMemphis Rib Fest
Best BBQ
Daily Herald Reader’s Choice
Chicago, IL
1 st Place – Ribs, Pork,
Brisket
Smokin’ on the Strip
Barbecue Cook Off
Branson, MO
Best BBQ
Best of Long Island
Westbury, NY
People’s Choice Best BBQ
Safeway National Capital
Barbecue Battle
Best BBQReader’s ChoiceMinneapolis City Pages
1st place – St. Louis-
Style Spare Ribs
Ultimate Rib Fest of
SW Florida
JP’s Bar-B-Que
Over 500 Awards
External Brand = Internal Brand
Brand Promise:Authentic, Genuine, Legendary Pit BBQ
Guest Experience
“Like having good friends over for a backyard BBQ”
Guest Satisfaction
50%
55%
60%
65%
70%
75%
80%77.8%
76.3%77.1%
74.4%
77.3%74.9%
Franchise-Operated Total SystemCompany-Owned
2010
2009
Comparable Sales
2004 2005 2006 2007 2008 2009 2010-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%2.2%
2.9% 2.9%2.1%
(2.0%)
(6.3%)
0.7%
(1.4%)(0.6%)
(1.2%)
(3.3%) (3.6%)
(8.5%)
(0.8%)
= Company- Owned
= Franchise- Operated
Revenue (in millions)
2004 * 2005 2006 2007 2008 2009* 2010$0
$20
$40
$60
$80
$100
$120
$140
$160
$99.3 $102.4$116.6
$125.9$140.4 $136.0
$148.3
* 53 weeks
Diluted Earnings Per Share
$0.67
$0.67
2007 2008 2009* 2010
$0.59
$0.04
$0.62
$0.82
$0.53
$0.67$0.60
* 53 weeks
NASDAQ: DAVEStrong board and executive teamReal Founder – Real storySolid balance sheet and access to capitalRAVING fans
Lesson #6
Be responsible for your own career
The Restaurant IndustryA Great Career Opportunity
• Nearly ½ of all adults have worked in the restaurant industry at some point in their lives
• 80% of restaurant owners’ first job was an entry level position
• 88% of restaurant employees said restaurants often provide the opportunity to start at the bottom and move up to management
Source: NRA
The Restaurant Industry – small businesses with a large impact
• Restaurant industry sales are projected to total $604 billion in 2011 = 4% of U.S. GDP
• The overall economic impact of the restaurant industry is expected to exceed $1.7 trillion in 2011
• The restaurant industry is projected to employ 12.8 million jobs over the next decade, with employment reaching 14.1 million by 2021
Source: NRA
Lesson #7
Never stop investing in yourself or in your education – be a life learner
Lesson #8
No one can ever take your education away from you
Lesson #9
“Thank you” and “I’m sorry” are two of the most important words yet are the most infrequently used
Lesson #10
Start building your network now; be purposeful;
make it a priority; and pay it forward
Thank Que….Que & A?