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QSR and Fast Casual Competition

Benchmark / Feb. 2017

1 Website: http://www.sense360.com Share the knowledge: contents

How To Use This Report 3 “National” Benchmarks

Executive Summary (Premium) #

Share of Visits Score 4

Frequency Score 6 Loyalty Score 8 Brand Draw Score 10

Personalized Analysis (Premium) # “DMA” Benchmarks (Premium)

Los Angeles (Sneak Peek) #

Dallas-Ft. Worth #

Chicago #

Philadelphia # “Per-meal” Benchmarks (Premium)

Breakfast #

Lunch #

Dinner #

Late-night # Appendix

The Sense360 Methodology 14

Competitive Set 15

2 How To Use This Report

Sense360 is an insights firm with a panel of over 2 million anonymous consumers and data on more than 150 million consumer trips per month. By understanding the visits and journeys of millions of people in the real-world, we are able to provide and retailers with detailed competitive and consumer insights.

Below is a description of the performance metrics measured in this report:

Share of Visits Score - This score is a direct measurement of the percentage of all QSR Visits garnered by the speci- fied brand.

Frequency Score - This score is a measurement of how many times the average customer visits the specified brand per month. A score of 1.0 means that guests visit a brand 1 time per month.

Loyalty Score - This score measures customers’ commit- ment to a brand vs. the QSR category. In other words, if a customer visits QSR Brand [x], what percentage of that customer’s visits does Brand [x] account for vs. the rest of the QSR category.

Brand Draw Score - This score is essentially a localized Share of Visits that helps you understand what percentage of QSR visits within 0.5 miles of a brand’s locations were to that specific brand. This helps you understand the ability of a brand to draw customers who are within close proximity of one of its locations.

Our data goes way beyond this benchmark. Schedule a demo.

[email protected] 3 888.531.9198 3 National Share of Visits Score

Measures the percentage of total Visits per brand across the USA during Feb 2017. We observed 5,000+ Visits for each of the following restaurants. Rank Brand/ Visit Share Trending Rank Brand/ Visit Share Trending 1 McDonald's 16 17.5% = 1.3% = 2 17 10.8% = 1.1% = Panda 3 18 Express 7.9% = 1.0% = Steak 'n 4 Bell 19 Shake 5.4% = 0.9% = 5 Wendy's 20 Zaxby's 4.6% = 0.9% + 6 Chick-fil-A 21 Jersey Mike's 4.4% + 0.9% - 7 22 4.3% - 0.9% + Sonic Firehouse 8 Drive-In 23 Subs 3.1% + 0.9% - Dunkin' 9 Donuts 24 Culver's 3.0% - 0.8% = 10 Arby's 25 ' 2.7% + 0.8% + KFC 26 In-N-Out 11 2.6% - 0.7% - Carl's Jr. / 12 Hardee's 27 2.1% = 0.7% = Jack in 13 the Box 28 Jimmy John's 2.0% = 0.7% = 14 29 1.9% = 0.6% = 15 Chipotle 30 Einstein Bros 1.3% = 0.6% =

Visit Share measures the percentage of all QSR Visits garnered by the specified brand.

Trending measures a brand against its prior month ranking. In order to measure trends, we must have observed 5k+ visits for that brand for both months. + Rank improved m/m Rank stayed even m/m - Rank declined m/m N/A Did not qualify for ranking last month Our data goes way beyond this benchmark. Schedule a demo. Our data goes way beyond this benchmark. Schedule a demo.

[email protected] 4 [email protected] 888.531.9198 4 888.531.9198 National Share of Visits Score

Measures the percentage of total Visits per brand across the USA during Feb 2017. We observed 5,000+ Visits for each of the following restaurants. Rank Brand/ Visit Share Trending Rank Brand/ Visit Share Trending 31 46 0.6% = 0.3% - Checkers / Braum's 32 Rally's 47 0.5% = 0.3% + 33 48 0.5% = 0.3% - Long John 34 Silver's 49 White Castle 0.5% + 0.3% = 35 50 Schlotzsky's 0.5% - 0.2% = 36 51 0.4% = 0.2% = Bruegger's 37 Captain D's 52 Bagels 0.4% + 0.2% = 38 53 0.4% - 0.2% = Church's 39 Chicken 54 Taco John's 0.4% - 0.2% + Boston 40 Market 55 TCBY 0.4% + 0.2% - 41 56 Noodles & Co. 0.3% - 0.2% = Moe's 42 Southwest 57 Jason's Deli 0.3% = 0.2% + Tropical 43 Smoothie Cafe 58 WingStreet 0.3% = 0.2% = The 59 Bean 44 0.3% + 0.2% - Raising 45 Cane's 60 Togo's 0.3% + 0.2% =

Visit Share measures the percentage of all QSR Visits garnered by the specified brand.

Trending measures a brand against its prior month ranking. In order to measure trends, we must have observed 5k+ visits for that brand for both months. + Rank improved m/m Rank stayed even m/m - Rank declined m/m N/A Did not qualify for ranking last month Our data goes way beyond this benchmark. Schedule a demo.

[email protected] 5 888.531.9198 5 National Frequency Score

Measures the frequency with which the average customer visited each brand during Feb. 2017. We observed 5,000+ Visits for each of the following restaurants.

Rank Brand/Freq. Trending Rank Brand/Freq. Trending 1 McDonald's 16 Einstein Bros 2.07 = 1.54 + Tropical 2 Starbucks 17 Smoothie Cafe 1.92 = 1.52 - 3 Tim Hortons 18 Smoothie King 1.85 = 1.52 = Sonic Bruegger's 4 Drive-In 19 Bagels 1.76 + 1.52 + Dunkin' 5 Donuts 20 Wendy's 1.75 - 1.52 + 6 Whataburger 21 Jamba Juice 1.74 = 1.52 + 7 Chick-fil-A 22 Burger King 1.72 + 1.51 - Braum's 8 Bojangles' 23 Ice Cream 1.69 - 1.51 + 9 Subway 24 El Pollo Loco 1.67 = 1.50 + Jack in 10 the Box 25 Zaxby's 1.60 = 1.50 - 11 26 Culver's 1.56 = 1.49 = Carl's Jr. / 12 Hardee's 27 Quiznos 1.56 + 1.48 + 13 Del Taco 28 Togo's 1.56 + 1.48 + The Coffee Bean 29 TCBY 14 1.56 + 1.47 - 15 Blimpie - 30 Taco John's 1.54 1.47 -

Frequency easures the average number of times each guest visits a brand per month. 2.0 = 2x p/month.1.5 = 1.5x p/month.

Trending measures a brand against its prior month ranking. In order to measure trends, we must have observed 5k+ visits for that brand for two months in a row. + Rank improved m/m Rank stayed even m/m - Rank declined m/m N/A Did not qualify for ranking last month Our data goes way beyond this benchmark. Schedule a demo. Our data goes way beyond this benchmark. Schedule a demo.

[email protected] 6 [email protected] 888.531.9198 6 888.531.9198 National Frequency Score

Measures the frequency with which the average customer visited each brand during Feb. 2017. We observed 5,000+ Visits for each of the following restaurants.

Rank Brand/Freq. Trending Rank Brand/Freq. Trending Moe's 31 Southwest 46 Popeyes 1.46 = 1.40 + 32 Taco Cabana 47 Captain D's 1.46 - 1.40 + 33 Dairy Queen 48 Qdoba 1.46 - 1.40 + Checkers / 34 Krystal 49 Rally's 1.46 + 1.39 - 35 Jersey Mike's 50 Jimmy John's 1.45 - 1.39 - Panda 36 WingStreet 51 Express 1.45 + 1.39 = 37 Arby's 52 Jason's Deli 1.44 - 1.38 = 38 In-N-Out 53 Wingstop 1.43 - 1.37 + Steak 'n Raising 39 Shake 54 Cane's 1.43 - 1.37 + 40 White Castle 55 Noodles & Co. 1.43 + 1.36 - Long John KFC 56 Silver's 41 1.43 - 1.36 + Boston 42 Panera Bread 57 Market 1.43 + 1.35 + 43 Chipotle 58 Schlotzsky's 1.42 - 1.35 - Church's 44 Chicken 59 Five Guys 1.42 = 1.33 = Firehouse 45 Subs 60 Krispy Kreme 1.41 - 1.29 =

Frequency easures the average number of times each guest visits a brand per month. 2.0 = 2x p/month.1.5 = 1.5x p/month.

Trending measures a brand against its prior month ranking. In order to measure trends, we must have observed 5k+ visits for that brand for two months in a row. + Rank improved m/m Rank stayed even m/m - Rank declined m/m N/A Did not qualify for ranking last month Our data goes way beyond this benchmark. Schedule a demo.

[email protected] 7 888.531.9198 7 National Loyalty Score Measures how loyal the average guest was to each brand vs. the competitive set during Feb 2017. We observed 5,000+ Visits for each of the following restaurants. Rank Brand/Loyalty Trending Rank Brand/Loyalty Trending The Coffee 1 McDonald's 16 Bean 36.2% + 25.5% + 2 Starbucks 17 Taco Bell 35.6% - 25.5% - Dunkin' 3 Donuts 18 Jamba Juice 33.9% = 25.4% + 4 Tim Hortons 19 Burger King 33.3% = 25.3% - 5 Subway 20 Wendy's 29.8% = 25.1% - Bruegger's 6 Bagels 21 Chipotle 28.3% = 24.9% + 7 Culver's 22 Smoothie King 27.7% + 24.9% + 8 Chick-fil-A 23 Dairy Queen 27.6% + 24.8% + Sonic 9 Drive-In 24 Noodles & Co. 27.4% + 24.8% - 10 Taco John's 25 Qdoba 27.0% - 24.7% - Moe's 11 Whataburger 26 Southwest 26.2% = 24.6% - Tropical 12 Smoothie Cafe 27 Quiznos 26.2% + 24.5% + Jack in 13 Einstein Bros 28 the Box 25.8% + 24.4% = Blimpie 29 TCBY 14 25.8% - 24.4% - 15 Panera Bread - 30 Bojangles' 25.8% 24.4% - Loyalty measures the percentage of all QSR Visits garnered by the specified brand but limited to only those customers who visited the specified brand at least once. Trending measures a brand against the prior promo period. In order to measure trends, we must have observed 5k+ visits for that brand for both periods. + Rank improved m/m Rank stayed even m/m - Rank declined m/m N/A Did not qualify for ranking last month Our data goes way beyond this benchmark. Schedule a demo. Our data goes way beyond this benchmark. Schedule a demo.

[email protected] 8 [email protected] 888.531.9198 8 888.531.9198 National Loyalty Score Measures how loyal the average guest was to each brand vs. the competitive set during Feb 2017. We observed 5,000+ Visits for each of the following restaurants. Rank Brand/ Visit Share Trending Rank Brand/ Visit Share Trending 31 Jersey Mike's 46 El Pollo Loco 24.3% = 22.6% + 32 Jimmy John's 47 Togo's 24.1% = 22.6% = Carl's Jr. / 33 Hardee's 48 Zaxby's 23.9% + 22.3% - 34 In-N-Out 49 Popeyes 23.8% + 22.2% - Checkers / 35 Five Guys 50 Rally's 23.7% - 22.1% - Panda 36 Arby's 51 Express 23.3% = 21.8% = Boston 37 Market 52 Wingstop 23.3% + 21.7% + Steak 'n 38 Shake 53 Taco Cabana 23.1% - 21.5% = Long John 39 KFC 54 Silver's 23.1% + 21.3% = Church's 40 White Castle 55 Chicken 23.0% + 21.1% - Firehouse Raising Subs 56 Cane's 41 22.9% - 20.5% + 42 WingStreet 57 Schlotzsky's 22.8% + 20.4% - 43 Del Taco 58 Captain D's 22.8% + 20.3% = Braum's Ice Cream 59 Krystal 44 22.7% - 20.2% + 45 Jason's Deli + 60 Krispy Kreme - 22.7% 19.7% Loyalty measures the percentage of all QSR Visits garnered by the specified brand but limited to only those customers who visited the specified brand at least once. Trending measures a brand against the prior promo period. In order to measure trends, we must have observed 5k+ visits for that brand for both periods. + Rank improved m/m Rank stayed even m/m - Rank declined m/m N/A Did not qualify for ranking last month Our data goes way beyond this benchmark. Schedule a demo.

[email protected] 9 888.531.9198 9 National Brand Draw Measures the percentage of total QSR Visits within 0.5 mile of a brand’s locations that were to that brand. We observed 5,000+ Visits for each of the following restaurants. Rank Brand/Draw Trending Rank Brand/Draw Trending Carl's Jr. / 1 McDonald's 16 Hardee's 31.4% = 17.4% - 2 In-N-Out 17 Taco John's 29.4% = 17.1% + 3 Culver's 18 Taco Bell 27.8% + 16.8% - 4 Starbucks 19 Dairy Queen 27.6% - 16.6% + Bruegger's 5 Chick-fil-A 20 Bagels 26.9% = 16.0% = Tropical 6 Whataburger 21 Smoothie Cafe 24.1% = 15.8% = Sonic 7 Drive-In 22 Subway 21.4% + 15.5% - 8 Tim Hortons 23 Del Taco 21.3% - 15.4% - 9 Bojangles' 24 Wendy's 21.2% - 15.2% - Steak 'n Church's 10 Shake 25 Chicken 19.9% - 14.8% = Dunkin' 11 Donuts 26 Einstein Bros 19.3% = 14.8% = Braum's 12 Ice Cream 27 Jamba Juice 18.9% + 14.6% = The Coffee 13 Bean 28 Popeyes 18.7% - 14.3% + Raising Zaxby's 29 Cane's 14 17.6% + 14.1% + Jack in 15 the Box - 30 Blimpie 17.4% 14.0% = Draw measures the percentage of all QSR Visits garnered by the specified brand when limiting the addressable market to those Visits within 0.5 miles of all the specified brand’s locations. Trending measures a brand against the prior month. In order to measure trends, we must have observed 5k+ visits for that brand for both months. + Rank improved m/m Rank stayed even m/m - Rank declined m/m N/A Did not qualify for ranking last month Our data goes way beyond this benchmark. Schedule a demo. Our data goes way beyond this benchmark. Schedule a demo.

[email protected] 10 [email protected] 888.531.9198 10 888.531.9198 National Brand Draw Measures the percentage of total QSR Visits within 0.5 mile of a brand’s locations that were to that brand. We observed 5,000+ Visits for each of the following restaurants. Rank Brand/Draw Trending Rank Brand/Draw Trending Boston 31 Taco Cabana 46 Market 13.9% = 11.0% = 32 Burger King 47 Panera Bread 13.8% - 10.3% + Long John 33 Arby's 48 Silver's 13.7% + 10.3% + 34 TCBY 49 Chipotle 13.6% - 10.3% = 35 Krystal 50 Schlotzsky's 13.6% - 10.2% - 36 El Pollo Loco 51 Jason's Deli 13.2% = 10.0% + Panda 37 Smoothie King 52 Express 12.9% + 10.0% - Moe's 38 White Castle 53 Southwest 12.9% + 9.6% = 39 Jersey Mike's 54 Quiznos 12.9% = 8.7% + 40 Krispy Kreme 55 Qdoba 12.8% + 8.7% - Checkers / 41 Rally's 56 Noodles & Co. 12.7% - 7.8% = Firehouse 42 Subs 57 Five Guys 12.6% - 7.3% = 43 KFC 58 WingStreet 12.4% - 6.9% = 44 Captain D's 59 Jimmy John's 12.2% = 6.4% = 45 Togo's 60 Wingstop 11.9% = 6.0% = Draw measures the percentage of all QSR Visits garnered by the specified brand when limiting the addressable market to those Visits within 0.5 miles of all the specified brand’s locations. Trending measures a brand against the prior month. In order to measure trends, we must have observed 5k+ visits for that brand for both months. + Rank improved m/m Rank stayed even m/m - Rank declined m/m N/A Did not qualify for ranking last month Our data goes way beyond this benchmark. Schedule a demo.

[email protected] 11 888.531.9198 11 Upgrade for Complete Access If you enjoyed this report, consider an upgrade to earn Complete Benchmark Access and much more! Complete Access gives you a significant competitive edge by unlocking access to Sense360’s entire benchmark database. Members receive:

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[email protected] 12 Sense360 Insights

Appendix

13 The Sense360 Methodology

Sense360’s sensor technology is on more than 2 million devices in the US. Our panel generates over 1.5 terabytes of anonymous movement and location data every single day and provides a Our Panel detailed view of over 150 million user-visits a month.

Our panel is highly representative and we are constantly refining our weighting to ensure the highest confidence interval possible. Representative We monitor the representativeness of our panel geographically, and by demo.

Our sensor tech uses mobile sensors built into smartphones to understand user location and activity while maintaining user privacy/ anonymity. We’ve trained our algorithms with more than 100,000 Our Tech labeled data points and incorporate data from the GPS, accelerometer, gyroscope, barometer, wifi, ambient light, and many other sensors.

The sensor-data provides us with an anonymous but highly Passive Insights accurate understanding of where, how, and when people visit physical locations and businesses.

We also survey users based on the underlying sensor data to confirm visits and to understand why they did what our sensor Surveys data observed.

We are constantly checking ourselves, our methodology, and our tech for accuracy. As an example, we have a group of dozens of Fact-Checking “mystery counters” who physically go to locations and manually count traffic so that we can compare and validate our data. 14 Competitive Set

Below is the full set of QSRs and Fast Casuals that were considered for the Competitive Benchmark Report.

A&W Restaurant American Burger Bakers Square American Carl’s Jr. / Hardee’s Burger American Checkers / Rally’s Burger Camille’s Sidewalk Cafe American Burger Chop’t American Burger Cosi American Culver’s Burger Denny’s American Burger Farmer Boys American Five Guys Burgers and Fries Burger Flowers Company American Fuddrucker’s Burger Freshii American Good Time Burgers Burger Noodles & Company American In-N-Out Burger Burger Saladworks American Burger Steak ‘N Shake American Jack’s Burger Sweetgreen American Burger American Krystal Burger Zoe’s Kitchen American Burger Asian McDonald’s Burger Asian Roy Rogers Restaurant Burger Asian Burger Shophouse Southeast Asian Asian Burger WaBa Grill Asian Sonic Drive-In Burger Arctic Circle Burger Burger Burger The Habit Burger Blake’s Lotaburger Burger Wendy’s Burger Burger King Burger Whataburger Burger Burgerfi Burger White Castle Burger

15 Competitive Set (Page 2)

Below is the full set of QSRs and Fast Casuals that were considered for the Competitive Benchmark Report.

Bojangles’ Chicken The Coffee Bean & Tea Leaf Coffee Chick-Fil-A Chicken Tim Hortons Coffee Chicken Tully’s Coffee Coffee Church’s Chicken Chicken Braum’s Ice Cream & Dairy Dessert Crown Chicken Dairy Queen Dessert Chicken Dessert KFC Chicken Dessert Nando’’s Peri-Peri Chicken TCBY Dessert PDQ Chicken Jamba Juice Popeyes Famous Fried Chicken Chicken Drink Raising Cane’s Chicken Fingers Chicken Smoothie King Drink Wingstop Chicken Drink Zaxby’s Chicken L&L Hawaiian Hawaiian Coffee Mexican Grill Mexican Coffee Mexican Bruegger’s Bagels Coffee Mexican Coffee Chronic Mexican Coffee Del Taco Mexican Coffee El Pollo Loco Mexican Dunkin’ Donuts Coffee Freebirds Mexican Einstein Bros Bagels Coffee Hot Head Mexican It’s a Grind Coffy House Coffee Moe’s Southwest Grill Mexican Krispy Kreme Coffee Qdoba Mexican Grill Mexican Peet’s Coffee & Tea Coffee Rubio’s Mexican Seattle’s Best Coffee Coffee Taco Bell Mexican Starbucks Coffee Coffee Mexican

16 Competitive Set (Page 3)

Below is the full set of QSRs and Fast Casuals that were considered for the Competitive Benchmark Report.

Taco Cabana Mexican McAlister’s Deli Mexican Subs Grill Sandwich Taco John’s Mexican Panera Bread Sandwich Mexican Penn Station East Coast Subs Sandwich Taco Tico Mexican Pit Sandwich Tacotime Mexican Sandwich Blaze Pizza Sandwich Donatos Pizza Quiznos Sandwich MOD Pizza Pizza Sandwich Pieology Pizzeria Pizza Schlotzsky’s Sandwich / WingStreet Pizza Sub Station II Sandwich Pizzeria Locale Pizza Subway Sandwich Arby’s Sandwich Togo’s Sandwich Bread Company Sandwich Which Wich Sandwich Blimpie Sandwich Captain D’s Seafood Restaurants Seafood Charley’s Grilled Subs Sandwich Long John Silver’s Seafood Seafood Corner Cafe Sandwich D’Angelo Sandwich Eegee’s Sandwich Sandwich Great Harvest Bread Co Sandwich Great Steak Sandwich Jason’s Deli Sandwich Jerry’s Subs & Pizza Sandwich Jersey Mike’s Subs Sandwich Jimmy John’s Sandwich

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