The highest quality thanks to:

Our global food safety procedures

Approach to selection and cooperation with suppliers

The Central Kitchen for La Tagliatella brand

Our attention to customer satisfaction Safe food Taking ofcare everyone

We serve quality from the crop field to the table. Food quality and safety is our priority

The key issue for us is the quality and safety of the food Our global procedures we serve. We build customers trust in our brands by offering What do we focus on: Each of the brands we manage has its own strict food them proven and safe products. We want them to be sure safety procedures. They are all additionally verified that the meals they order are always fresh and of the highest ••food quality and safety by AmRest in order to achieve the highest food safety quality. This approach is part of our success. level. We implement global guidelines on food safety ••responsible procurement and sales management: Our most important responsibilities include issues related ••transparency of nutritional value information. to the quality and safety of food products offered by our restaurants. We focus on the highest standards of food safety and quality of products in the entire chain of supplies How do we look and procuring fresh produce from local suppliers. after the food we offer: The foundation for establishing and updating existing food ••We run laboratory tests of key products. safety standards for each brand in every country where we operate and the new markets we enter. ••We supervise our suppliers: our key partners are audited. ••We work to be more transparent about the We improve the nutritional value of our food, quality and safety information of our meals taking care of its quality and safety throughout and products. the entire supply chain as far as possible. ••We develop partnerships with local suppliers. These are global guidelines for product quality monitoring. We cooperate with proven and reputable What is more, each of the brands we operate has its own manufacturers, who are market leaders strict food safety procedures. in product quality.

The principles guiding the process of selecting and approving suppliers, including supplier audit programs and their scope. The process is applied in every country where we operate.

74 75 AMREST's 2018 SUSTAINABILITY REPORT The best suppliers, the greatest attention to products

1. We examine the market and look for the best suppliers of food. To make the food quality perfect. 5. 2. We check suppliers We choose those suppliers who for the certificates meet our standards and invite and standards them to negotiations. required by our brands. This is how We choose the best. we choose our suppliers

We work closely with our suppliers, monitor our distribution centers and the supply chain. We enlist the help of laboratories, research centers, transportation companies, and certification organizations. Our suppliers 4. 3. We check the products offered by We present the terms of cooperation are constantly supervised by the suppliers and their quality. to suppliers and we begin to discuss veterinary services and authorities responsible for sanitation If necessary, we visit manufacturing the details. We are always open to and epidemiology. plants or plantations. negotiations, we never give up on our high standards.

76 77 AMREST's 2018 SUSTAINABILITY REPORT Successful procurement 86,5% LOCAL SUPPLIERS We always make purchases in a transparent manner Our actions and the highest standards and based on procedures and guidelines. This is why We undertake a number of activities in the procurement we choose the best suppliers. Many of them have a long processes to select the best supplier. We check if our The main goal of Food Service is to ensure an efficient supply chain history of cooperation with us. Expenditure made on suppliers in the Spanish current suppliers comply with strict AmRest standards. for the entire AmRest Group. This requires and Polish markets. We transport the ordered food to our distribution centres, for e.g., an intensive development of the Central Kitchen, serving the growing and then deliver it to the restaurant. Everything happens network of our restaurants. Together 2017 2018 Percentage of expenses with the utmost care for the principles of hygiene and food with our business partners, we are constantly safety. For La Tagliatella brand we use the Central Kitchen, looking for solutions that will allow us to increase Suppliers 11 931 13 846 Local suppliers 86,5 % efficiency while respecting sustainability matters. which is described on page 83. of which food suppliers 1 167 1 211 Foreign suppliers 13,5 % We want to develop in a responsible manner, which is why relations with suppliers are our priority. All our suppliers are trusted and carefully selected. Each of Reliability and flexibility are key aspects of the them must have a GFSI food safety certificate, additionally cooperation. Despite the growing scale of our business, the local character of partners is still an important In 2018 all of our suppliers underwent GLOBAL G.A.P. our most important suppliers are audited annually. factor for us. We understand that close cooperation certification for fresh produce delivered to restaurants by The products delivered to our restaurants are monitored brings measurable benefits to both parties. Many of our partners grow with us: they improve produce manufacturers for the Central Europe Division I believe SCM* is focused on partnerships in the supply chain so that we can ensure their quality. and belief in their suppliers is key production processes or invest in logistics, becoming (Poland, Czech Republic, Hungary, Croatia, Slovakia, for them and key to their success. Key products for each brand, such as fries in KFC are tested leaders in their industry. Austria, Serbia). GLOBAL G.A.P. is a system of monitoring Knowing what they believe the real issues several times a year by the quality control department Ramanurup Sen, Food Services President and control of primary production at the produce suppliers. are, honest communication with each for compliance with the specification. other, and working together to remove Find out more in chapter: “Everyday ecology”, p. 116. barriers which would prevent us from being successful. The value of our cooperation is immeasurable in dollars. The value of the partnership cannot be put into dollars and cents. We would have not been successful without clear communication, the support of all of the SCM team, and the belief they have shown in us, even when it seemed that we would never understand the product attributes. They stayed with us unwavering in their belief that we could do it! Paula Marshall, AmRest highest CEO at Bama, supplier of AmRest Group

* SCM Sp. z o.o. is an AmRest Group company responsible for cooperation standards? with suppliers and procurement of products.

78 79 AMREST's 2018 SUSTAINABILITY REPORT We collect and transport products from producers AmRest 3 to distribution centres We inspect food and restaurants products 5 in restaurants highest Deliveries from manufacturers are made by specialized zz refrigeration vehicles. and coffee houses zz We monitor the temperature during transport. zz When preparing meals for our guests, standards We check the hygiene and cleanliness we always pay attention to the highest zz We control of the means of transport. standards of food safety and quality. We choose the best suppliers, 2 zz Distribution vehicles are equipped with GPS location with whom we monitoring of the means of transport and control 1 suppliers of products and monitoring of the process of opening the door already cooperate zz During the procurement procedure of the vehicle during unloading. we check the international quality zz We check the validity of international quality zz Additional curtains in the vehicle door prevent certificates held by the manufacturer. certificates held by the manufacturer. temperature from rising during unloading. zz We evaluate equipment, technologies zz We commission and check the results zz We outsource audits of distribution centres and sanitary standards by visiting of additional quality audits according and deliveries to restaurants. the manufacturer’s plant. to specific requirements of a given brand. We store food zz We check the procedures of procuring raw If necessary, the supplier is obliged materials for production, as well as their to implement corrective measures. 4 for our restaurants origin and how they are controlled. zz We conduct random checks. in distribution centres We collect and transport products zz We check the temperature in distribution centres when from producers to distribution centres the products are received from the supplier and during storage and restaurants. and shipping to the restaurant. zz We perform a detailed check of the temperatures of the equipment and products at least twice a day. In the cold store and freezer area we have electronic temperature monitoring. zz We control product expiry dates and product rotation dates in the warehouse so that the restaurants receive products of the best parameters and so that a secure delivery management system is ensured. zz The distribution centres have strictly defined cleaning 80 and hygiene procedures. 81 zz We alsoAMREST' outsources 2018 audits SUSTAINABILITY to third parties.REPORT 100% OF AUDITED RESTAURANTS We manage foods in the Central Kitchen Quality on the plate in an efficient and responsible manner – safe meals in our restaurants In the Central Kitchen of La Tagliatella brand – our manufacturing process generates Everyday, our experienced team works on developing little food waste, which is recycled into unique recipes that draw from tradition as well as the latest fertilizer. trends in Italian cuisine. In this process, the Central Kitchen has introduced the latest technologies of quality assurance We are in contact with many of our current and potential FRESHNESS OPTIMIZATION and safety procedures, which guarantee the preservation suppliers. We receive many food samples from them. Managers of our restaurants STORAGE We operate systems of control We equip our restaurants of natural and traditional properties of the product. This process allows us to constantly improve the menu. and coffee houses are supported of expiry dates and the product and coffee houses with dedicated For years, we have passed these samples to the local food by the procurement system which rotation system in the restaurants. storage rooms – cold stores Unique nature of the La Tagliatella brands bank to help those in need and to reduce food waste. optimizes the necessary quantity of and freezers, with electronic and the Central Kitchen concept: products and ensures that products temperature control are fresh in the restaurant. ••Our chefs prepare new recipes, remembering that these and appropriate equipment dishes must be special for our customers. for product storage. CLEANLINESS ••We use excellent ingredients that come directly from We use professional cleaning and/ the best suppliers. or disinfection high efficiency agents, and use equipment that ••We take care to deliver products from the Central Kitchen guarantees that such agents are AUDITS to La Tagliatella restaurants to preserve their highest We carry out unannounced audits effectively dosed and inspections of restaurants, QUALITY quality and to ensure food safety. – the concentration of agents is We provide regular which are conducted All processes are carried out under the strict supervision constantly controlled to maintain training on hygiene •• by the internal audit department the highest effectiveness. and quality standards. of our quality assurance team to ensure not only and third-party independent excellent but also safe food. auditors.

To begin with, local produce means value. The closer the supplier is to us, the better. CONTROL However, our main area of specialization are products SAFETY We have implemented control We use procedures for handling systems for thermal treatment of Italian origin, which means frequent use of products products in restaurants HYGIENE We use hand wash and/or processes – among others frying with DOP4 certification. These include Parmigiano Reggiano to maintain the highest quality disinfection systems and roasting to ensure the highest and safety of the products. or Gorgonzola cheeses, which we obtain directly from for the employees. quality and safety of foods. our suppliers in Italy.

4 Denominazione di Origine Protetta means Protected Denomination of Origin.

82 83 AMREST's 2018 SUSTAINABILITY REPORT Local suppliers Well-established cooperation with local suppliers is very important to us. We still cooperate with many of our We started to talk about cooperation Cooperation between MLEKOVITA in 1990. In 1992 we fulfilled the first and SCM sp. z o.o. is based on mutual suppliers from when we first opened our first Pizza Hut order. Production was carried out at the trust, which is a pillar of partnership restaurant in Wroclaw. For many years we have supported Warsaw plant, in Żerań. Early cooperation business, built on the wide range of was based on a small range of products, products offered by MLEKOVITA. each other and together we’ve built our success. but every year the range of products has To ensure our mutual development, grown. The production value has grown we take care of customer satisfaction Direct purchases from local suppliers (which are over 80% rapidly year on year. The rate is now in double by offering them products tailored to their needs digits and we still have the potential for growth and tastes. We set ambitious goals for each other of suppliers for the Central Europe division) are carried out – not only in Poland. and we successfully achieve these goals. MLEKOVITA through our company - SCM, which is responsible for all offers the highest quality of products and supplies In 2017 we manufactured more than 60 dedicated UHT milk, which includes lactose-free milk, UHT cream, processes in the purchasing procedure. sauces. cheeses and cottage cheeses, which include cheese In 2006 we moved to a new plant in Radonice near fingers, butter, fat, and yoghurt. Warsaw. Thanks to cooperation with AmRest, we were SCM is responsible for selling these products at its the first company in Poland which focused on shops. The cooperation is based on partnership, and specialized in the catering market. taking care of mutual business and respect for mutual Thanks to cooperation with AmRest, Fanex received needs in fulfilment of the goals set. BRC&IFS certificates as the first company in Poland. Dariusz Sapiński, Current cooperation has been developed over 26 years President of the Management Board and is based on top quality guarantee, availability, of the MLEKOVITA Group flexibility and trust. We are your loyal producer and will continue to invest all of our skills and knowledge in developing this cooperation. Przemysław Olczak, Fanex Sourcing Manager

* SCM Sp. z o.o. is an AmRest Group company responsible for cooperation with suppliers and procurement of products

84 85 AMREST's 2018 SUSTAINABILITY REPORT Satisfaction of our guests

Our commitments Information about the ingredients of our products One of the important topics regarding our food is and allergens are published on the websites of brands that Activities pursued by AmRest brands the transparency of information on the nutritional value we manage. In Burger King restaurants, such information of our products. We have introduced many changes is stated on the boards, and in KFC on paper trays. We plan Still working Currently that have provided our customers with greater choice to make such information available in the KFC app as well. Level of implementation of our commitment In progress Completed on it implemented and knowledge about our food. We are in the process In Starbucks coffee houses, customers may ask the barista of implementing our commitments and setting new goals for the full information. so that the products we offer meet their expectations.

We do not use palm oil for frying. For products which contain palm oil as an ingredient, this must be the RSPO palm oil.

We will eliminate cage eggs which we use for breakfast in KFC.

For the existing or new products which contain eggs or are made with eggs as ingredients, we will strive for eliminating the use of cage eggs.

We will introduce paper packaging made of 100% fibre procured from sustainable forests (FSC, PEFC, SFI) or recycled packaging.

Minerals containing gold, tin, tantalum and tungsten will not be used as raw material in toy products or promotional materials.

86 87 AMREST's 2018 SUSTAINABILITY REPORT Still working Currently Still working Currently Level of implementation of our commitment In progress Completed Level of implementation of our commitment In progress Completed on it implemented on it implemented

If we use palm oil, it comes only from controlled We are working on eliminating artificial colouring crops that do not destroy rainforests. and flavourings as well as monosodium glutamate.

We will replace ingredients coming from cage eggs We strive to completely remove palm oil or, with cage-free eggs. if that is not possible, replace it with oil from RSPO sources. We will eliminate artificial colouring and flavourings, we will also cooperate with suppliers on the modification of recipes, substitution of ingredients or replacement of products.

We will not introduce new products that Still working Currently Level of implementation of our commitment In progress Completed do not meet requirements of the Starbucks brand. on it implemented

We are committed to eliminating certain food additives, including artificial colourings, flavourings and preservatives

88 89 AMREST's 2018 SUSTAINABILITY REPORT Customer feedback is important to us Channels of communication We do not let our customers wait too long. The maximum Opinions from guests who visit restaurants that we manage time of our response to queries is 72 hours. and their satisfaction is an important element that influences with AmRest which may be used decisions in the process of continuous improvement. by customers After visiting our restaurant, we invite our guests to fill Results of the overall customer satisfaction survey The information obtained by testing the level of satisfaction out an online survey5. Each operating leader at the shop in 2018, broken down by brands of our customers helps us improve restaurants of all contact form on KFC, Pizza Hut, Starbucks, manager level has personal access to results. With reports Brand Result6 brands worldwide. Customer satisfaction is the best Burger King, www.amrest.eu websites based on customer feedback, every week the management indicator of likelihood that they will visit AmRest restaurants team sets weekly priorities to increase customer satisfaction 83 in the future and a valuable tip on what we should pay in the restaurant or the entire region. attention to at the level of brand or single restaurant. With our internal communication culture, results 82* hotline of customer satisfaction are elevated during operating meetings to the top tiers (Presidents of brands) 75 to the restaurant level (restaurant managers). All results of customer satisfaction from the online 72 reporting 73 Customers, their satisfaction and experience survey available in each restaurant tool facilitate easy and adequate decision-making at the restaurant are always the center or on-line on the brand website, and continuous improvement of the restaurants managed 72 of our attention. by us. 71 e-mail sent to the e-mail addresses 71 of individual brands

69

individual talk with the restaurant 72 h team MAXIMUM RESPONSE TIME

contact via social media 5 for individual brands Depending on the specific frequency of visits recorded in the POS system. 6 The result means % of awarded highest score of overall satisfaction level (where the maximum score = 100% of awarded highest scores for overall satisfaction level). * data collected in the period from November to December 2018.

90 91 AMREST's 2018 SUSTAINABILITY REPORT AmCare – effective management of guest opinions In 2018 we deployed AmCare, the customer opinion management system. It is a unique tool that aggregates The number of queries made by customers in 2018, opinions, complaints, comments or ideas of customers, broken down by brand which is available on all devices, including smartphones. The tool supports collection of feedback from Brand Number of queries various sources, such as online forms on websites, Facebook comments, email opinions, AmRest customer 185 000 satisfaction surveys worldwide.

90 000 In 2018 AmCare offered a 7-day customer service support in Poland and Starbucks in Germany. We plan to provide 70 000 7-day support for customer service in other markets as soon as in 2019. 60 000

25 000 As Customer Care Team, in 2018 we launched the Global Customers Feedback Management Online system – AmCare. All types of Customer Feedback 20 000 from all brands and different resources - emails, contact forms, Google reviews, 1 000 phone calls, brand online surveys in Poland, Czech Republic, Slovakia, Hungary, Romania, Germany, Russia - are tracked by AmCare & the TEAM with daily online reporting reflected by Global Customer Feedback data. We’ve trained more than 1 200 AmCare users across AmRest to ensure a fast quality resolving process to make our Customers happy In 2018 more than 1 000 of our restaurants and win their hearts back! 2018 was an outstanding and challenging year! We are energized and ready could benefit from AmCare, and more to continue Customer Care growth by bringing digital than 1 200 employees and AmCare users solutions (chatbots, voice to text & etc) and enhancing were trained and use the tool everyday. further Customer Care alignment to ensure 24 hour quality support for our Customers across AmRest! Marina Dragunas, Global Performance Management & Compensation Lead

92 93 AMREST's 2018 SUSTAINABILITY REPORT