PIZZERIA OPPORTUNITYfor Frozen Filled Pasta

2009

1

• Industry & consumer information

• Opportunity

• Make it happen

• Pasta Program Demonstration

Objective

2

Volumetric growth through pasta placement in pizzerias.

Just the facts….• 93% of Americans eat at least one pizza a month• Average consumer….23 Lbs./year• Americans eat 100 acres of pizza a day, 350 slices/second• The pizzeria industry serves the vast majority of this

volume

Pizza Industry

3Source: National Association of Pizza Operators, Packaged Facts New York

Pizza Industry

4

76,000+ locations• Independents 65%• Pizza Hut 9.8%• Domino’s 6.7%• Papa Johns 3.6%

• Independent pizza restaurants represent $19.5B in retail sales• Major chains influence consumption… # of locations and media

- Top 3 chains 2007 media: $494MM

Source: Technomic Inc., The NPD Group, infoUSA, BrandweekNote: “Independents” defined as not in top 45 chains (up to 78 units).

• Interesting to look at the number of pizzeria locations and owners in a given state. Seven states with the most locations…

# Stores Owners # Stores/Owner

California 6,780 3,028 2.24

New York 6,117 3,182 1.92

Pennsylvania 5,052 2,873 1.76

Ohio 4,174 1,812 2.30

Florida 4,114 1,534 2.68

Texas 4,004 1,182 3.38

Illinois 3,653 1,484 2.46

... low # stores/owner ratio implies more independents

Pizza Industry

5

WEST ………

# Stores Owners # Stores/Owner # Stores/Capita

California 6,780 3,028 2.24 1.85

Washington 1,308 563 2.32 2.02

Iowa 1,302 402 3.24 4.36

Nevada 608 196 3.10 2.37

Wyoming 127 54 2.35 2.43

Idaho 351 152 2.31 2.34

Oregon 880 393 2.24 2.35

... low # stores/owner ratio implies more independents

Pizza Industry (Western Region)

6

Pizza Industry

7*Source: PMQ’s Pizza Magazine Sept 2008

• Net: Independents & region chains are significant everywhere– Highest Northeast, West Coast, and upper Midwest (lowest # of stores/owner)

Ownership(# of Stores/Owner)

1.5 – 2.3

2.3 – 2.7

2.7 – 3.6

• Quick service pizza traffic declined 3% year-end March*– Overall foodservice industry increased 1%– Prior year pizza industry declined 1%

• Looking to increase frequency and average check of loyal customers to offset traffic issue

• Independents and regional chains are in best position to use the menu to drive change (existing broader menu)

Pizza Industry

8*Source: Nation’s Restaurant News June 2008, The NPD Group

9

Pasta Category

Pasta Category

10

90%

6%

3%1%

Dry FrozenRefrigerated Oriental

59%

25%16%

Retail F/S Club

3.5 Billion Lbs.Manufacturer Sales

Note: Dry is “as sold” weight. Total “prepared” pasta weight ~ 7.9B Lbs.

Source: National Pasta Association

Trends….• Growth returns post low-carb diets• Unique, value-add products contributing to growth• Operators looking for menu innovation

– Flavors– Product different from prepared at home options– Serving suggestions

Pasta Category

11

Opportunity

12

Pasta Category(3.5B Lbs)

Pizza Segment($36.8B)

Result?

Let’s talk about frozen filled pasta first…

13

Frozen Filled Pasta

Frozen Filled Pasta

14

$232 MillionManufacturer Sales

Source: Technomic, Inc.

Segment $MMShare (%)*

Full Service Restaurants $116 50%

Limited Service Restaurants 9 4

Business & Industry 16 7

Lodging 28 12

Healthcare 18 8

Primary/Secondary Schools 12 5

College/University 21 9

Supermarkets 9 4

C-Stores – –

All Other 3 1

Total $232 100%

• Pizzerias: 6% of total foodservice sales, 19.5% of LSR sales.• $9 Million of frozen filled pasta is current sold into all LSR locations.

The opportunity?• Most independents already sell a greater percentage of

non-pizza products (as high as 30%)• The presence of pasta on pizza chain menus is growing

across the board

Opportunity

15

• Net: Pasta in pizzerias will grow significantly• Filled pasta provides a premium alternative…that

consumers desire.

16

Make it happen

Key questions…

• Can pizzerias execute? • Is the product of Quality?• Will consumer’s buy? • What will they pay?• Can you, the operator make PROFIT?

Barriers

17

Executing well depends on equipment, materials, and labor…

• Do you have a freezer?• Do you have a cooler?• What kind of pizza oven do you • have? Settings?• Do you have a microwave• Facility to boil water?• Do they have a fryer?• What are their other ingredients?

Product

18

Drives menu item and best Windsor product.

Consumers will buy if…• they know about it• believe the quality and value is there

Consumer

19

…so market it!• Menu properly…name is critical• Sampling…in restaurant or pick-up orders• Promote…poster, tabletop, etc.

Market

•Pizza segment and pasta category are large

•Consumer demand exists

•Filled pasta “fits” pizzeria segment

Execution

•Frozen filled pasta can be done with limited operator impact

•Use existing equipment and labor

•Leverage existing raw materials to customize (sauce, etc.)

Profit

•Portion and price appropriately

•Detail prep planning with waste control

•Menu and promote effectively

Summary

20

Baked Pasta Program

What is Needed to Create a Baked Pasta Program using Bernardi Filled Pasta?

• Pizza Oven – Deck or Conveyor• Microwave Oven• Pizza Sauce / Pasta-Marinara Sauce / Any custom in-house sauce• Current In stock - Back of the house ingredients used for Pizza• Container / Dish to go into Ovens

– Takeout: Bake able Paper / Foil Container– Restaurant Service: Rarebit or Pasta Dish

• Pasta Items– Pre-Cooked Filled Pasta: Ravioli, Lasagna Stackers/Roll-ups,

Tortellini, Stuffed Shells & Manicotti, Rigatoni

Equipment Needed• Pizza Oven – Deck or Conveyor*

– Deck Ovens will average from 450-550 degrees to produce pizzas. Timing on executing a Baked Pasta Program depends on oven temperature and time. You can successfully finish off a Baked Pasta dish in 7-10 minutes.

– Conveyor Ovens will average 375-475 degrees with a “track speed of 7 - 9 minutes. This works extremely well when executing a Baked Pasta dish.

*Product must be tested in your equipment to set specific cook time

• Microwave Oven*– The microwave acts as the starting point for Baked Pasta

dishes as you need to thaw and start the internal heating of the dish. The Deck or Conveyor oven will finish off the heating of the product.

*product can also be tempered in the refrigerator

Products Needed• Sauce of your choice

– The sauce is an ingredient to the Baked Pasta dish. You can use your own Pizza Sauce,Pasta Marinara or create/buy your own signature sauces. Moisture from the sauce creates the “steaming effect” as the pasta dish is baked.

• Mozzarella Cheese– Using your current cheese blend is a good practice vs. having to

inventory a separate blend. The cheese acts as the “protective barrier” when the pasta dish is baked.

• Additional Ingredients– Customize dishes with alternate pizza topping ingredients to develop

“signature pasta dishes”• Container / Dish to Go into Oven

– Takeout: Use of a Bakeable Paper or Foil Container are the “preferred” takeout options. These containers allow you to send right through the Deck or Conveyor Ovens.

– Restaurant Service: Use of a Rarebit or Pasta Dish suitable to go in the Deck or Conveyor Ovens* *microwaveable is best for efficiency of oven to oven

BASIC ITEMS TO EXECUTEA PASTA PROGRAM

25

Protein Veggies/Fruit Equipment Product

Pepperoni Pizza Sauce Impinger Oven Lasagna sandwich

Sausage Sliced Mushrooms Pizza Oven Lasagna Roll up

Ham Sliced Onions Regular Oven Jumbo Round /Square Ravioli

Shredded Mozzerella

Sliced Green Peppers

Microwave Jumbo Round Beef Ravioli

Beef Crumbles Sliced Tomatoes Brick Oven Tortellini

Bacon Black Olives Rigatoni

Green Olives

Pineapple

Jalapenos

Basil/Pesto

PRODUCT DEMONSTRATION DETAIL

Steps to Create a Baked Cheese Ravioli Parmesan

Bernardi Cheese Ravioli #74747 (5-Raviolis) – Keep Frozen

1. Order Up: Remove Raviolis from Freezer and place in microwaveable dish (1-2 minutes on high to thaw down product and start to warm interior)

2. Ladle 1-2 oz of Pizza Sauce or Marinara Sauce in bottom of container/dish while Raviolis are microwaving

3. Once Raviolis are done in microwave, add to container or dish and cover with an additional 1-2 oz of sauce along with 1-2 oz of Mozzarella cheese and toppings of choice. This will give your pasta dish the “Baked Parmesan” appeal and act as the barrier to steam the pasta while in the oven.

a) Place in Deck Oven for 7-9 minutes (475-550 degrees). Oven Temperatures do vary. Minimal testing is required

b) Conveyor Oven 7-9 minute track speed and temperature will determine heating pasta all the way through. (375-475 degrees). Minimal testing is required.

4. These basic steps can be duplicated with several of the Pre-Cooked Filled Pastas available from Bernardi

28

MENU APPLICATION EXAMPLE #1

OVEN TESTED RESULTS:Microwave 1000 watts output power 3 minutes partially coveredImpinger oven (VAC 208, 1 phase, 6.0 KW 29) 5 minutes at 400 F. uncoveredConvection Oven 5-6 minutes 400 F. uncoveredTotal Cost of Ingredients $ 2.40 $ 2.40Suggested Menu Price $ 6.95 $ 7.95Profit $ 4.55 $ 5.55Food Cost % 35% 30%

INGREDIENTS YIELD1 portion

Extra virgin olive oil 1 Tbsp.Onion, ¼” dice 1 Tbsp.Green peppers, ¼” dice 1 Tbsp.Crushed tomatoes 1 C.Garlic, minced ¼ tsp.Sausage crumbled, cooked ¼ C.Pepperoni, finely diced 1 Tbsp.Oregano, dry ¼ tsp.Sugar ¼ tsp.Salt pinchBlack pepper pinchCrushed red pepper pinchParmesan cheese, grated 3 Tbsp.BIF Beef Ravioli #74740 5 PIECES

BEEF RAVIOLI WITH SAUSAGE PEPPERONI AND TOMATO SAUCE

PREPARATION:• Saute onion, peppers, garlic and crushed red pepper in olive oil*• Add tomatoes, sausage, oregano, sugar, salt and pepper and simmer for 7 minutes.• Place a small amount of sauce in bottom of microwave/bake container, place frozen Ravioli in it ( if Ravioli get

stacked, put a layer of sauce between in between to prevent sticking) cover with remaining sauce, loosely cover and microwave for 2-3 minutes ( Cooking time will vary with microwave wattage).

• Uncover, sprinkle with parmesan cheese and place in hot oven and bake until cheese has melted and turns lightly golden brown to give it a baked look.

Internal Temp = 165F

*If using pizza sauce follow same steps and omit crushed tomatoes, garlic, oregano, salt and pepper.*If using pre-made pasta sauce follow same steps and omit crushed tomatoes, oil, onion, garlic, salt and pepper.

29

MENU APPLICATION EXAMPLE #2

OVEN TESTED RESULTS:Microwave 1000 watts output power 3 minutes partially coveredImpinger oven (VAC 208, 1 phase, 6.0 KW 29) 5 minutes at 400 F. uncoveredConvection Oven 5-6 minutes 400 F. uncoveredTotal Cost of Ingredients $ 2.95 $ 2.95Suggested Menu Price $ 8.95 $ 9.95Profit $ 6.00 $ 7.00Food Cost % 33% 30%

INGREDIENTS YIELD1 portion

 Chicken strips, grilled 2 oz.Olive oil 1 Tbsp.Onion, sliced 2 Tbsp.Dry white wine 2 Tbsp.Red peppers, sliced ¼ C.Carrot, julienne 2 Tbsp.Celery, julienne 1 Tbsp.Garlic ¼ tsp.Crushed red repper pinchBay powder pinchBasil, dry pinch.Chopped, canned tomatoes 2/3 C.Salt pinchBlack pepper pinchProvolone cheese, shredded 2 Tbsp.Mozzarella, shredded 2 Tbsp.BIF Lasagna Sandwiches #77071 2 pieces

 PREPARATION:1)Saute onion, pepper carrots, celery, garlic and pepper flakes in olive oil*2)Add wine and reduce by half*3)Add tomatoes, lemon zest, basil and bay powder and simmer 35 minutes*4)Place some sauce in bottom of a microwave container, place frozen Lasagna Sandwich in it single layered, ( if pasta gets stacked, put a layer of sauce in between to prevent sticking) loosely cover, and microwave for approximately 2-3 minutes (cooking time will vary with microwave wattage).5)Uncover, place chicken breast on pasta, sprinkle with provolone and mozzarella cheese, place in hot oven until cheese melts and slightly turns to a golden brown and has a baked look to it.Garnish with chopped parsley. Internal Temp = 165F

*If using pizza sauce omit garlic, basil, salt and pepper*If using pre-made pasta sauce omit olive oil, onion, garlic, basil, salt and pepper

 

LASAGNA SANDWICH AND CHICKEN CACCIATORE

Products Available for a Baked Pasta ProgramFilled Pastas

  BREADED RAVIOLI

  Bernardi® Breaded Ravioli (Medium Square)

74948 Breaded Espanol Medium Square Ravioli74952 Breaded Cheese (Bakeable/Fryable) Medium Square Ravioli

  RAVIOLI

  Bernardi® GRAND-i-OLI'S™ (Super Jumbo Hexagon)70780 Breaded 5-Cheese Grand-i-Oli's™ 70782 Shrimp Scampi Grand-i-Oli's™70784 5-Cheese Grand-i-Oli's™70785 Florentine Supreme Grand-i-Oli's™70786 Savory Beef Grand-i-Oli's™70787 Roasted Mushroom Grand-i-Oli's™

  Bernardi® Ravioli (Jumbo Round)74757 Cheese Jumbo Round Ravioli

9159535 Six Cheese Jumbo Round Ravioli77602 Florentine (Spinach & Cheese) Jumbo Round Ravioli

  Rotanelli by Bernardi® Ravioli (Jumbo Square)

9158535 Portabella Mushroom Jumbo Square Ravioli

  Bernardi® Ravioli (Square)74682 Beef Square Ravioli74690 Cheese Square Ravioli74697 Portobello Mushroom Square Ravioli

  TORTELLINI   Bernardi® Tortellini

74625 Cheese Tortellini74633 Tri-Color Cheese (3-pasta colors; 3/4 lb. bags) Tortellini

  SHELLS  Bernardi® Stuffed Shells

74799 Cheese (2.25 oz.) Stuffed Shells74815 Florentine (Spinach & Cheese) Shells

  CANNELLONI / MANICOTTI  Bernardi® Cannelloni & Manicotti

74773 Manicotti - 4 1/4"  SPECIALTY PRODUCTS  Bernardi® Italian Specialties

9160035 Home Style Cavatelli  PASTA SHEETS / ROLLUPS / SANDWICHES  Bernardi® Pasta Sheets/Rollups/Sandwiches

73987 Cheese Roll-Ups77071 Lasagna Sandwiches (with cheese)

SALES BUILD

DETAILED PROFIT / GROWTH POTENTIAL

32

CONTACT YOUR LOCAL DSM FOR ASSISTANCE PUTTING

TOGETHER YOUR PASTA PROGRAM