RAVE Restaurant Group ICR XChange January 12, 2015

www.raverestaurantgroup.com 2 Company Overview

• RAVE Restaurant Group is a multi-brand restaurant holding company

• Founded 1958 • Created 2011 • Primarily buffet concept • Leading Fast Casual pizza concept • 251 restaurants open U.S. & International • 400+ restaurants under development

• Also operate a food and supply distribution business, Norco Restaurant Services • Internal procurement • Outsourced warehousing and distribution

• Holding company recently renamed RAVE Restaurant Group, Inc. • Publicly traded company on NASDAQ, approximately $75 million equity market capitalization • Ticker “PZZI” changed to “RAVE” • Dallas-based investment firm Newcastle Capital Management and affiliates own approximately 33% of shares and plays an active role in board oversight and developing the growth strategy New Name… New Expectations

• Recruited a world class restaurant operating and development team

• Restored growth to 57 year old brand

• Leading growth and development of the emerging Fast Casual Pizza segment

• Established infrastructure to support rapid growth.

Pie Five Brand

• Created in 2011 to capitalize on rapid growth of fast casual concepts

• Features: handcrafted, custom, artisan baked in 145 seconds

• “Chipotle-style” service system – customer controls process

• Unlimited toppings: “our pie” or “your pie” one price. ($6.99 most markets)

• Choose from: 4 crusts - 7 sauces - 4 cheeses - 28 toppings

• 2,200 s.f., 75 seats, ≈2:1 sales to investment ratio

• 31 restaurants open as of December 28, 2014 (15 company-owned and 16 franchised) Pie Five TV Commercial Mike Modano Superior Restaurant Level Economics

Restaurant Level Economics* Annual Unit Sales $0.9 to $1.1 Million Based on recent openings

Total Prime costs 57 – 59% of net sales Food, paper, hourly and fully loaded management Marketing 5% of net sales Invest to build brand understanding and trial

Restaurant Cash Flow 18 – 22% margin Occupancy and other fixed operating costs drive variability

Build Out Investment* Size 2,000 – 2,400 s.f. 2,200 is ideal

Location Retail strip center end cap Leased space

Construction $400,000 - $450,000 Pre landlord T.I. allowance

Payback Targets 2:1 sales/investment ratio 2-1/2 year cash on cash return target

*targets calibrated on recent company and franchise restaurant openings Average Weekly Sales by Fiscal Year Opened

• Represents sales results for the first 6 months of Fiscal Year 2015 (Fiscal Years end in June)

19,000

18,000 17,742

17,000 15,869 16,000

15,000

14,000

13,000 12,519 12,000

11,000

10,000 Pre - FY14 FY14 FY15* 9 stores 9 stores 13 stores • as of December 2015 Domestic Retail Sales

6000

5000

4000

3000

2000

1000

0 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15

Franchise Corporate

* Dollars in Thousands Sales Trends Year Over Year

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

-5.0% Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15

Comparable Store Sales Growth Average Weekly Sales

• Fiscal years ended June Franchise Commitments vs Franchise Stores Open

350

300

250 313

200

219

150 181

100 136

127

50 81 56 16 0 1 3 5 6 7 10 FY 13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15

Fran Stores Opened Fran Store Commitments Pie Five Development by State

Legend Corporate Development Markets Signed Franchise Development Agreements Making History – Coast to Coast, Border to Border

Store Count First 3 Years Following Acceleration of Growth

70

60

50

40

30

20

10

0 ‘07 ‘08 ‘09 ‘11 ‘12 ‘13 ‘10 ‘11 ‘12 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 Kona Grill Chuy's Habit Burger Zoe's Kitchen Pie Five Year Founded 1998 1982 1969 1995 2011 Key Difference vs. Other Fast Casual Pizza Concepts

Concept Points of Difference Company Point of Difference

1. Crust choice & preference 1. First mover status

2. Product consistency (oven tech) 2. Management team

3. No table wait 3. Processes & systems

4. Build out cost 4. Public company

5. Established infrastructure and 5. Company owned restaurants pizza expertise

Pizza Inn Brand

• Approximately $95 million of annual retail sales in US • Primarily a franchise system with greatest density in and the South/Southeast • In the US, 103 buffet restaurants with $850,000 average annual sales and approximately 78 express/delivery restaurants with $115,000 average annual sales • Also 71 franchised restaurants in international markets, primarily Middle East Renewed Growth of Iconic Brand

Comparable Store Sales Growth Drivers 8.00% • Strong partnership with 6.00% franchisee leadership 4.00% • Improved product quality 2.00%

0.00% • Aligned system marketing

-2.00% • Updated training and -4.00% operations standards

-6.00% Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 • Commitment to tools and training to sustain growth Deep Management Team Oriented for Growth

• Randy Gier – CEO • Joined November 2012 • Previously CEO of Savvy Fare Restaurant Group, a new concept incubator operating start-up restaurant concepts. Global CMO for Yum Restaurants International operating and franchising 13,000 restaurants across 109 countries under the KFC, , and Brands. 20 year career in PepsiCo and Yum Restaurants. • Tim Mullany – CFO • Joined May 2014 • Previously CFO of Restaurants Unlimited Inc., owning and operating over 20 brands. CFO of and parent Consumer Capital Partners. • Chris Smith – Sr. VP of Pie Five Operations • Joined January 2013 • Previously Regional Director of Southern U.S. for Smashburger. Director of Operations at . • Steve Link – V.P. Pizza Inn Operations • Joined August 2011 • Previously Managing Partner with at Outlets, LLC.

• Perry Jones – VP of Real Estate Development • Joined March 2014 • Previously Senior Director of Real Estate for Einstein Noah Restaurant Group. Managing Director at J&B Commercial, LLC. • Patty Scheibmeir – VP of R&D and Product Innovation • Joined October 2014 • Previously spent 18 years at Yum Brands in New Product Development R&D of Pizza Hut and the Innovation Team at KFC. RAVE Restaurant Group Investing for Growth

Overall trends reflect business in transition • Profitable base business – Pizza Inn Franchise and Food Sales • Improving trends at Pizza Inn • Investment in management infrastructure, support systems and pre-opening expenses at Pie Five • Pie Five beginning to contribute to profitability in Fiscal Year 2015

Fiscal Year Ended Three Months Ended September September Revenues($000) June 29, June 30, 28, 29, 2014 2013 2014 2013 Food and supply sales $ 28,810 $ 30,095 $ 7,468 $ 6,961 Franchise revenue 3,443 3,588 1,018 838 Restaurant sales 9,971 7,498 2,820 2,268 Total revenue $ 42,224 $ 41,181 $ 11,306 $ 10,067

Adjusted EBITDA $ (468) $ 605 $ 111 $ (105) are you ready for the next BIG THING?

Non-GAAP Reconciliation: Net Income to Adjusted EBITDA

Fiscal Year Ended Three Months Ended September September June 29, June 30, 28, 29, 2014 2013 2014 2013 Net Income $ (1,567) $ (1,261) $ (266) $ (351) Interest Expense 142 244 107 43 Income Taxes--Continuing Operations (760) (504) (115) (154) Income Taxes--Discontinued Operations (58) (94) (14) (22) Stock compensation expense 68 150 23 15 Impairment of long-lived assets and other lease charges 253 766 Depreciation and amortization 1,454 1,304 376 364 Adjusted EBITDA $ (468) $ 605 $ 111 $ (105)