southern concepts restaurant group growth

Cautionary Items Regarding Forward Looking Statements

The information in presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve risks and uncertainties, including statements regarding the company’s business strategy and expectations. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “should,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” the negative of such terms or other comparable terminology. Actual events or results may differ materially. The company disclaims any obligation to publicly update these statements, or disclose any difference between its actual results and those reflected in these statements. The information constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

2 ©2015 Southern Concepts Restaurant Group, Inc. All Rights Reserved

Southern Concepts – Who We Are


Southern Concepts Restaurant Group, Inc. (OTCQB: RIBS) is a restaurant holding company, which currently owns and manages three full service barbecue restaurants, Southern Hospitality, in the Denver market and is preparing to launch a new fast casual barbecue concept, Carve Barbecue.

Southern Concepts – How We Got Here

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2008

Southern Hospitality opens for business at 45th and 9th in New York City

2011

Southern Concepts acquires the rights to franchise Southern Hospitality naJonally

February 2013

First franchise locaJon of Southern Hospitality opens for business in downtown Denver

January 2014

Southern Concepts opens its second Southern Hospitality locaJon in Colorado Springs

May 2015

Southern Hospitality Lone Tree opens, marking the third full service restaurant to be opened by Southern Concepts

October 2015

Southern Concepts will open its first locaJon of Carve Barbecue at 1000 S Colorado Blvd in Glendale, Colorado

2016

Southern Concepts plans on opening four new company-‐owned stores in the Denver market during the year

2017

During 2017, the company plans to open 10 company-‐owned Carve locaJons as well as the first 12 franchise units

By the end of 2017, the company plans to have 15 company owned Carve Barbecue locations opened as well as 12 franchise locations throughout Colorado, Arizona and California in addition to the three full service Southern Hospitality restaurants opened currently.

©2015 Southern Concepts Restaurant Group, Inc. All Rights Reserved

The Emergence of Fast Casual

¢  During 2014 Americans spent more than $21 billion at fast casual restaurants.1

¢  February 2014: “Overall, restaurant customers are trading down, foregoing some of their visits to full-service places while increasing the number of visits made to fast-casual restaurants,” said Bonnie Riggs, NPD restaurant industry analyst. “But it’s clear fast casual is also stealing share from traditional QSRs and midscale concepts, too.”

¢  In December of 2014, restaurant sales surpassed grocery sales in America for the first time ever, led by Millennial consumers.2

¢  The fast casual market is currently estimated to be $34.5 billion and is expected to grow by 10% during 2015.

¢  Focusing on quality, freshness, efficiency, transparency, and sustainability fast casual delivers value to the modern consumer where other industry segments fail.3

1)Source: Euromonitor – February 2015 2)Source: Technomic, an industry research firm – 2015 3)Source: NPD Group - an market research firm - 2015 5

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Industry Feedback & Challenges

1)Source: NaJonal Restaurant AssociaJon 2) Source: NPD Group -‐ Market Research Firm -‐ 2015 6

¢  "What consumers are looking for is the best value proposition," said Bonnie Riggs, an industry analyst with NPD Group. "And value doesn't mean the cheapest price.”

¢  NPD Group estimates that fast casual will grow in the double digits through 2022, while rest of the restaurant industry will eek out growth rates of around half a percentage point.

¢  42% of on-premises diners say they are somewhat loyal to a particular restaurant or chain, 34 percent say they are loyal, and 24 percent say they are not loyal at all. Converting them to loyal visits is an opportunity for restaurant operators, finds NPD 2.

$42.8B

$119.6B

$239.3B

$379.0B

$586.7B

$709.2B

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“The message for restaurant operators is that on-‐premises consumers are happier and more profitable consumers,” says Bonnie Riggs. “Treat them right with good tas<ng food and

the best service and a return visit is likely.”

Why Investors Are Obsessed With Fast Casual

¢  Fast Casual is an emerging industry segment, with lots of blue ocean

¢  Consumers have voted for fast casual with their dollar

¢  Cash on cash returns are powering rapid growth

¢  Opportunity associated with the changing of the guard industry-wide

¢  McDonald’s closed 350 stores in the first quarter of 2015 with 700 targeted by year end due to poor traffic

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Sales $1,800,000

Unit Level EBITDA $360,000

Development Expense $700,000

Cash on Cash Return 51%

©2015 Southern Concepts Restaurant Group, Inc. All Rights Reserved 7

Introducing:


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Carve Barbecue Today

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¢  First Carve Barbecue fast casual location to open this October 2015 in Glendale, Colorado

¢  2,500 sq.ft. relaxed, contemporary dining experience featuring the finest quality, all-natural meats and scratch sides

¢  Continuous innovation has created a menu that will reflect barbecue influences from around the country: “Barbecue Without Boundaries”

¢  Carve's meats are all natural and smoked for up to 12 hours before they are carved to order

¢  Menu includes:

¢  Hand-carved: pork, chicken, brisket, ribs and prime rib ~ Creekstone Farms

¢  All-natural, wood-smoked meats

¢  Scratch barbecue sides with a modern influence

¢  Fresh sides sourced from local farms

¢  Craft brews and local wines


Carve Barbecue Menu

¢  Menu includes the highest quality, all-natural proteins & produce, key vendors include:

¢  Creekstone Farms

¢  USDA-certified by the Agriculture Marketing Service (AMS) and supplies many of the nation’s top grocers and restaurants with quality Black Angus Beef products and Duroc pork.

¢  Boulder Natural & Redbird Farms

¢  The highest quality, most consistent poultry suppliers in the country. Both Redbird and Boulder Natural maintain industry leading ranching practices and are chosen by many fine dining restaurants for chicken.

¢  Craft Brews and Maine Root Soda

¢  Carve will serve Maine Root soda in each of its locations, along with a variety of local beers, such as 90 Schilling in Colorado.


Carve Barbecue Unit Level Economics

*Other Operating Expenses is inclusive of all store level expenses with the exception of Cost of Goods Sold, Labor Expense, and Occupancy Expense, to include taxes and licensing fees.

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Sales $1,800,000 100%

Cost of Goods Sold $606,600 34%

Gross Profit $1,193,400 66%

Labor Expense $410,000 23%

Operating Expenses $310,000 17%

Occupancy Expense $111,500 6%

EBITDA $361,900 20%


Carve Barbecue Growth


Carve Barbecue Pro Forma Model

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Consolidated EOY Run Rate ’15 / ‘16

Revenue EBITDA

2015

Southern Hospitality Denver 2,900,000 340,000

Southern Hospitality Colorado Springs 2,800,000 70,000

Southern Hospitality Lone Tree 3,000,000 471,000

Carve Glendale 1,800,000 360,000

EOY 2015 Run Rate 10,500,000 1,241,000

2016

Carve #2 1,800,000 360,000

Carve #3 1,800,000 360,000

Carve #4 1,800,000 360,000

Carve #5 1,800,000 360,000

EOY 2016 Run Rate 17,700,000 2,681,000


Multi-‐Faceted Growth Strategy

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¢  Build Upon Strong Base: SCRG has established a strong operational foundation with growing customer demand

¢  Stay CommiFed to Quality & InnovaKon: We have the proven ability to consistently produce and deliver quality barbecue across our three full service restaurants

¢  Pivot Business Model to Fast Casual Barbecue: New 2,500 sf fast casual restaurant is designed to provide increased capacity as well as deliver better economies of scale

¢  Team Up with Professional Franchise Operators: Utilize proven franchise operators, with a track record of success in fast casual, to develop new markets around the country for an increased growth trajectory and first mover advantage

¢  Rollout Regional Expansion: Prove fast casual model in local metro Denver market, then rollout to similar markets in Phoenix, San Diego & Orange County

¢  Leverage Public Company Advantage: Financial markets can provide attractive access to capital and support long-term growth initiatives, including strategic acquisitions

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EQUIPMENT PLANSCALE: 1/4" = 1'-0"

Equipment LayoutPlan & Schedule

Scale:As Noted

Sheet Number:

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Designer/Project Manager9355 Northfield Blvd.

Denver, CO 80238Phone: 303.289.9378Fax: 303.289.9505

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Key Takeaways

¢  Southern Concepts is an award-winning full service barbecue restaurant group moving into the high growth fast casual market

¢  Carve Barbecue will allow the company to realize exponential growth through both company owned stores as well as franchise locations

¢  Company owned units will generate a cash on cash return of more than 50%

¢  Access to “Class A” retail real estate will be more available to Carve than other competitors, because Carve is a first mover it the barbecue category and is not excluded like many others

¢  Carve will launch in October 2015 in the Mecca of fast casual restaurants, Denver, Colorado, where the concept will be refined for national and international growth.

¢  During 2016 the company will expand Carve corporate stores and will begin franchising the concept to multi-unit operators during 2017 and 2018.


Revenue & New Stores

Key Stats (OTCQB: RIBS)

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Stock Price (9/2/15) $0.27

52 Week High-‐Low $0.45-‐$0.15

Avg. Daily Vol. (3 mo.) 10,200

Shares Outstanding 53.0M

Float (est.) 36.6M

Insider Holdings ~28%

InsJtuJonal Holdings ~3%

Market Cap $14.3M

Enterprise Value $18.6M

Date Founded 2008

Employee Count 13

Data sources: Yahoo! Finance, S&P Capital IQ, company esJmates (`m) = trailing 12 months at June 30, 2015 (mrq) = most recent quarter at June 30, 2015

Total Revenue (Fm)¹ $5.5M

Net Income (`m)¹ ($3.3M)

EPS (`m)¹ ($0.07)

EV/Revenue 3.4x

Cash & Equiv. (mrq) $0.4M

Total Assets (mrq) $4.9M

Total Debt (mrq) $2.3M

Total LiabiliJes (mrq) $3.0M

Total Equity $1.7M

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Contact Us


Company Contacts Mitchell Roth Co-Chairman & CEO

2 North Cascade Avenue, Suite 1400

Colorado Springs, CO 80903

(719) 265-5821 / [email protected]

www.southernconcepts.com

Investor Relations Chris Tyson Managing Director

Liolios Group, Inc.

(949) 574-3860 / [email protected]

Appendix


Mitchell Roth | Co-Chairman, President and CEO Mitchell Roth is the Co-Chairman, President and CEO of SCRG. Mr. Roth joined the company in 2013 and became the CEO in June 2014. During his tenure as CEO, the company opened its third location of Southern Hospitality, located in Lone Tree, Colorado. Additionally he led the company to develop its fast-casual concept, Carve Barbecue. Prior to joining SCRG, Mr. Roth worked in investment banking at Laidlaw and Company, Ltd. in New York City where he worked alongside senior investment bankers in helping clients gain access to capital through the public markets. He received a Bachelor of Science degree in Business Finance and Economics from Liberty University in Lynchburg, Virginia.

Leadership Team

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Heather Atkinson | Treasurer, Secretary and CFO Heather Atkinson is the Chief Financial Officer, Secretary and Treasurer of SCRG. Prior to her role with SCRG, Ms. Atkinson was the controller of Accredited Members Acquisition Corporation and subsidiaries and its predecessor, Accredited Members Holding Corporation. Ms. Atkinson has over 17 years of accounting, finance and financial reporting experience in both public and private companies, including consolidations, shareholder relations, SEC reporting, internal and external financial statement reporting, budgeting, cash forecasting, mergers and acquisitions, restructuring and international accounting while working closely with the outside audit and legal firms. She is a licensed CPA and holds a Bachelor of Science degree in Accounting from Evangel University.

Shawn Owen | COO Shawn Owen is the Chief Operating Officer for SCRG. With over 19 years of experience in restaurant operations and management, most recently as the General Manager at Southern Hospitality Denver, Mr. Owen brings an entrepreneurial spirit, dynamic leadership, team building, extensive culinary knowledge, and problem solving skills to the SCRG team. Prior to working with SCRG and Southern Hospitality, Mr. Owen worked in management at Walnut Brewery, New Berlin Ale House, StoneFire Pizza Company, and Dave and Buster's.

Gary Tedder | Co-Founder and Sr. Vice President of Business Development Gary Tedder is Sr. Vice President of Business Development and a Co-Founder of SCRG. Prior to SCRG, Mr. Tedder had devoted substantially all of his time and expertise to Smokin Concepts Development Corporation, occupying the roles of President and Director. He previously served as Sr. Vice President of Business Development for Accredited Members, Inc. Prior to his five years of service with Accredited Members, Inc., Mr. Tedder was a self-employed consultant for numerous business initiatives. Mr. Tedder has over 35 years of experience as an entrepreneur and business development director and creative advisor for various companies, from real estate to the entertainment industry.

Lexie Rayburn | Marketing Manager Lexie Rayburn is the Marketing Manager for SCRG. Her role consists of creating and managing marketing materials and objectives. Prior to working with SCRG, she assisted a creative marketing and public relations agency with their expansion into the Denver market. There she was the head of Denver business development and worked on marketing creatives on a per client basis. Ms. Rayburn holds a Bachelor’s degree in Print Journalism from the Walter Cronkite School of Journalism and Mass Communication and a Bachelor’s degree in Environmental Sustainability from the Global Institute of Sustainability at Arizona State University.

Corporate Information

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PUBLIC COMPANY INFORMATION Stock Symbol: RIBS Exchange: OTC:QB Cusip: 84264D106 Shares Outstanding: 56,425,000 LEGAL Burns, Figa & Will, P.C. 6400 S Fiddlers Green Circle Greenwood Village, CO 80111 Phone 303.796.2626 | Fax 303.796.2777 www.bfw-law.com AUDITOR Crowe GHP Horwath, P.C. 1801 California Street, Suite 2200 Denver, Colorado 80202 Phone 303.831.5000 www.crowehorwath.net

CORPORATE ADDRESS 2 North Cascade Avenue, Suite 1400 Colorado Springs, Colorado 80903 INVESTOR RELATIONS Liolios Group 20371 Irvine Avenue, Suite A-100 Newport Beach, California 92660 Phone 949.574.3860 | Fax 949.574.3870 www.liolios.com TRANSFER AGENT Corporate Stock Transfer 3200 Cherry Creek Drive South , Suite 430 Denver, Colorado 80209 Phone 303.282.4800 | Fax 303.282.5800 www.corporatestock.com


Principal Shareholders Table

INSIDER SHAREHOLDERS AS OF JUNE 30, 2015 SECURITY

PERCENTAGE OF COMMON STOCK OUTSTANDING¹

Mitchell Roth, CEO & Co-‐Chairman 228,034 Series A Preferred Stock 0.4%

Heather Atkinson, CFO 456,068 Common Stock 0.8%

Shawn Owen, COO 23,302 Common Stock 0.04%

Richard Steward, Director 1,590,692 Common Stock 2.8%

Rob Cohen, Director 499,996 Common Stock 0.9%

James Fenlason, Co-‐Chairman & Director 333,333 Common Stock 0.6%

Brent Wood, Director 66,666 Common Stock 0.1%

Total Insider Holdings 3,198,091 5.7%

Total Shares Outstanding 56,515,652 100%

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1)  Based on 56,515,652 total shares outstanding as of June 30, 2015, including 4,884,859 Series A Preferred and 51,630,793 Common
