The Trend Is Toward Takeout TODAY’S CONSUMER: TRENDING TOWARD DELIVERY & TAKEOUT

TAKING IT TO GO The trend is toward takeout TODAY’S CONSUMER: TRENDING TOWARD DELIVERY & TAKEOUT

Cell phones have allowed consumers to order a meal as easily as hailing a ride from anywhere, creating a must-have revenue opportunity. Some 37% of restaurants offer online ordering, according to the National Restaurant Association. Especially in urban markets, people can get their food where they want it, when they want it. Busy lifestyles demand takeout dining. This makes the quality of takeout packaging important so that the foods and beverages stay put, and also maintain temperature. Today’s consumers, led by young adults, use restaurants differently. Online services, which provide a platform for ordering with or without a delivery option, tout their ability to expand a restaurant’s reach and increase delivery sales as a result. Examples include Grubhub, which gives a small percentage of each order it takes to the partnering restaurant, and ChowNow, a monthly subscription service that includes a marketing launch campaign. ChowNow says it typically increases takeout sales by an average of 20%.

BENEFITS OF ONLINE ORDERING – THE FUTURE IS NOW FOR TAKEOUT

Employees no longer Online ordering is By requiring an email have to spend time automatic and leaves little address to order, on the phone, which room for human error. you can build up a takes them away from contact list for email giving personal service marketing campaigns. to dine-in customers. ON-DEMAND DELIVERY TO GROW Consumers are expected to increase usage of on-demand delivery during the next year. The National Restaurant Association notes that 70% of restaurant traffic will be off-premise in three years. Consulting firm Morgan Stanley suggests that there is clearly some unmet demand for delivery – especially among those who pick up their food instead of using delivery. The potential food delivery market is $210B of the nearly $500B restaurant industry, according to the firm. Breaking this down, the delivery market is $30B and non-QSR takeout food is another $30B. The next $150B of the market is off-premise fast food – while two-thirds of this, or $100B goes through the drive-thru, there’s $50B that does not. Source: Morgan Stanley/Debate 4: Can restaurants profitably offer online food delivery? January 2017

REASONS FOR EXPECTED INCREASE IN USAGE OF ON-DEMAND DELIVERY 38% 39% More options Rely on the available for delivery convenience than before 38% 32% 27% More favorite places Delivery is faster More places nearby offer delivery than it used to be offer delivery

ON-DEMAND DELIVERY TRENDS THE TYPICAL DELIVERY ORDER

THIRD-PARTY DELIVERY TRADITIONAL DELIVERY Top Four Entrée Pizza Salad Appetizer Pizza Entrée Salad Appetizer Foods 39% 25% 24% 23% 54% 25% 14% 14% Top American Italian Mexican Italian American Chinese Cuisines 38% 26% 12% 37% 35% 9% Restaurant Casual Fast Fast Family Upscale Fast Fast Casual Family Upscale Type FSR Casual Food Style FSR FSR Food Casual FSR Style FSR FSR 34% 27% 21% 14% 4% 39% 24% 22% 14% 1%

Source: Consumer Direct–Next Gen. Food Sourcing & Delivery, Technomic 2017 BENEFITS OF IMPLEMENTING A TAKEOUT PROGRAM

Increase revenue and market share Customers dine in their homes, Extend your brand message with minimum impact on labor instead of your dining room, which into your diner’s home is a benefit on busy shifts TIPS TO START A SUCCESSFUL TAKEOUT BUSINESS MENUING MARKETING • Decide which items from your menu will work best • Encourage repeat business with every takeout order for takeout. Reasons for not offering an item are: by including rebates or special orders on their next higher price for takeout, travel would compromise takeout purchase. quality or the portion is too small for takeout. • Most packaging can be personalized to help further • Design and order new takeout menus. A professional brand your business. Ask your U.S. Foods Sales approach can actually save you money in the long Representative for details. Since the price and run. For world-class design from creative experts, minimums increase with custom printing, you can consider the US Foods® Menu Program. Access also try printing your logo on labels to place on bags, it at usfoods.com/menu or contact your U.S. Foods utensils and containers. Sales Representative.

MANAGING • Talk to your U.S. Foods Sales Representative about • Reserve counter space inside dedicated for takeout packaging and container options and see which one best customers. A well-marked separate entrance can also fits your budget. Current packaging may need updating to increase the efficiency of getting to-go customers in and be of suitable quality for takeout food. out quickly. • Do your homework! Take note of restaurants that are • Practice suggestive selling techniques to encourage running a successful takeout program and use that takeout guests to purchase beverages, dessert, sides and knowledge to help you make it. enhancements. • To avoid product loss, teach your staff the importance • Customers use takeout as a convenient solution, so be of portioning food, utensils, napkins and condiments. Try sure to provide that experience through fast, accurate and asking customers if they will need utensils or condiments pleasant service. Time is crucial – when you tell a customer with their meal to reduce unnecessary waste. that their order will be ready in 15 minutes, it should be ready in 13 or less.

FACTORS RATED “VERY IMPORTANT” IN FOOD DELIVERY Factors directly related to food containers rank high 81% 80% 79% in importance among consumers. The best carryout Orders are fulfilled Food delivered in good Food is well containers have thermal insulating properties to accurately condition (Packaging prepared ensure that food arrives hot (or cold) when desired. that keeps food hot Container sizes and shapes vary – many have and intact) dividers to help keep food from mixing. The goal is to provide an excellent presentation upon arrival. Source: Technomic, June 2016 Delivery Technology 73% 54% High-quality food Quick delivery time (Ease in loading) MAKE US FOODS® YOUR GO-TO SERVE GOOD™ FOR TO-GO PRODUCTS The US Foods® Serve Good program highlights Monogram® and Valu+Plus™ brands supply everything products that are responsibly sourced or contribute to you need for the delivery or to-go order. From bags, boxes waste reduction. According to the National Restaurant and containers to napkins, souffle cups, cutlery kits and Association, a majority of consumers are likely to choose wipes, we have you covered. We offer options in carryout a restaurant based on its environmental friendliness. containers – foil, paper, foam and plastic, in a number of sizes. Some are plain white, some come in stock prints, while those in green leaf stock print are compostable, part of our Serve Good program.

APN DESCRIPTION PACK SIZE BRAND LABEL Bags – Paper 8658343* 10x6.75x12" Kraft Paper Carryout Shopping Bag 250 ea Monogram 1259170* 12x9x15.75" Kraft Paper Carryout Shopping Bag 200 ea Monogram 8690061* 13x7x17" Kraft Paper Carryout Shopping Bag 250 ea Monogram Bags – Plastic 5928093* 11.5x7x21" Plastic White Think Green Stock Print 500 ea Monogram Carryout T-Shirt Bag 9189087 11.5x7x21" Plastic Red & White Thank You Stock Print 1000 ea Monogram Carryout T-Shirt Bag 5466183 11.5x6.5x21" Plastic Red & White Thank You Stock Print 1000 ea Valu+Plus Carryout T-Shirt Bag Boxes 6807853* 8.5x5.5x3.5" Catering Box Clay Coated Meadows Stock 150 ea Monogram Print Barn Carryout Container 6807879* 9x5.93x6.5" Catering Box Clay Coated Meadows Stock 150 ea Monogram Print Barn Carryout Container 6807895* 7x4" Catering Box Clay Coated Meadows Stock Print 2/250 ea Monogram Tuck Top Carryout Container 6807911* 9x5" Catering Box Clay Coated Meadows Stock Print 2/200 ea Monogram Tuck Top Carryout Container

*Serve Good item. Serve Good is a US Foods program, highlighting our products that are responsibly sourced or contribute to waste reduction. For more information, please visit https://usfoods.com/food/serve-good/serve-good-disposables-brochure.html APN DESCRIPTION PACK SIZE BRAND LABEL Carryout Container – Foil 6822613 7" 1-Compartment Round Aluminum Foil Container 500 ea Monogram® 7773328 7" 1-Compartment Round Aluminum Foil Container 2/125 ea Monogram 9360512 7" 1-Compartment Round with Board Lid Combo 200 ea Monogram Aluminum Foil Container 0103796 9" 1-Compartment Round Aluminum Foil Container 500 ea Monogram 7773435 9" 1-Compartment Round Aluminum Foil Container 2/150 ea Monogram 7360514 9" 1-Compartment Round with Board Lid Combo 200 ea Monogram Aluminum Foil Container 7737596 7" 1-Compartment Round with Board Lid Combo 200 ea Valu+Plus™ Aluminum Foil Container 7737620 9" 1-Compartment Round with Board Lid Combo 200 ea Valu+Plus Aluminum Foil Container 7773278 8.68x6.13x2.13" 2.25 lb., 1-Compartment Rectangle 400 ea Monogram Aluminum Foil Container Carryout Container – Paper 1565282 #1 Black 4.375x3.5x2.5" Catering Box Single Poly Coat- 9/50 ea Monogram ed Cardboard Carryout Container 1558873 #1 Kraft 4.9x3.5x2.5" Catering Box Single Poly Coated 9/50 ea Monogram Cardboard Carryout Container 1568252 #2 Black 7.8x5.5x1.9" Catering Box Single Poly Coated 4/50 ea Monogram Cardboard Carryout Container 1683424 #2 White 7.8x5.5x1.9" Catering Box Single Poly Coated 4/50 ea Monogram Cardboard Carryout Container 1697804 #3 Black 7.8x5.5x2.5" Catering Box Single Poly Coated 4/50 ea Monogram Cardboard Carryout Container 1562867 #3 Kraft 7.8x5.5x2.5" Catering Box Single Poly Coated 4/50 ea Monogram Cardboard Carryout Container 1558337 #3 White 7.8x5.5x2.5" Catering Box Single Poly Coated 200 ea Monogram Cardboard Carryout Container 1568344 #4 Black 7.8x5.5x3.5" Catering Box Single Poly Coated 4/40 ea Monogram Cardboard Carryout Container 1697853 #4 White 7.75x5.5x3.5" Catering Box Single Poly 4/40 ea Monogram Coated Cardboard Carryout Container 1564145 #4 Kraft 7.8x5.5x3.5" Catering Box Single Poly Coated 4/40 ea Monogram Cardboard Carryout Container 1564541 #8 Kraft 6.75x4.75x2.5" Catering Box Single Poly Coated 6/50 ea Monogram Cardboard Carryout Container 7846140* 9x9" 1-Compartment Natural Molded Fiber Container 4/50 ea Monogram 7839731* 6x6" 1-Compartment Natural Molded Fiber Container 6/50 ea Monogram 7845936* 8x8" 1-Compartment Natural Molded Fiber Container 4/50 ea Monogram 7852932* 9x9" 3-Compartment Natural Molded Fiber Container 4/50 ea Monogram 7846934* 8x8" 3-Compartment Natural Molded Fiber Container 4/50 ea Monogram

*Serve Good™ item. Serve Good is a US Foods® program, highlighting our products that are responsibly sourced or contribute to waste reduction. For more information, please visit https://usfoods.com/food/serve-good/serve-good-disposables-brochure.html APN DESCRIPTION PACK SIZE BRAND LABEL Carryout Container – Foam 6617609 6x6" 1-Compartment White 3"H Hinged Lid 4/125 ea Monogram® Foam Container 3569589 7.25x3" 1-Compartment White 2"H Hinged Lid Hot Dog 6/84 ea Monogram Foam Container 5865522 8x8.5" 1-Compartment White 3"H Hinged Lid Intellilock 150 ea Monogram Foam Container 5865118 8x8.5" 3-Compartment White 3"H Hinged Lid Intellilock 150 ea Monogram Foam Container 8667149 9.18x6.5" 1-Compartment White 2.7"H Hinged Lid 150 ea Monogram Foam Container 5865159 9x9" 1-Compartment White 3"H Hinged Lid Intellilock 150 ea Monogram Foam Container 6617419 9.12x9" 1-Compartment White 3.25"H Hinged Lid Dual 150 ea Monogram Tab Vented Foam Container 5865399 9x9" 3-Compartment White 3.25"H Hinged Lid Intellilock 150 ea Monogram Foam Container 6617443 9.12x9" 3-Compartment White 3.25"H Hinged Lid Dual 150 ea Monogram Tab Vented Foam Container 6617708 9.5x10.5" 3-Compartment White 3.25"H Hinged Lid 2/125 ea Monogram Intellilock Foam Container 7804594 8x8.5" 1-Compartment White 3"H Hinged Lid Dual 150 ea Valu+Plus™ Tab Optional Venting Foam Container 7804578 8x8.5" 3-Compartment White 3"H Hinged Lid Dual 150 ea Valu+Plus Tab Optional Venting Foam Container 7804644 9x9" 1-Compartment White 3.25"H Hinged Lid Dual 150 ea Valu+Plus Tab Optional Venting Foam Container 7804677 9x9 3-Compartment White 3.25"H Hinged Lid Dual Tab 150 ea Valu+Plus Optional Venting Foam Container APN DESCRIPTION PACK SIZE BRAND LABEL Carryout Container – Plastic 6859144 6" Hexagon 1-Compartment Black 3" H Hinged Lid 2/60 ea Monogram® Carryout Plastic Container 6861488 7" Hexagon 1-Compartment Black 3" H Hinged Lid 3/40 ea Monogram Carryout Plastic Container 6861538 9" Hexagon 1-Compartment Black Hinged Lid Carryout 110 ea Monogram Plastic Container 5886775 5x5" 1-Compartment Clear 2.5" H Hinged Lid Intellilock 375 ea Monogram Intellilock Carryout Plastic Container 5865282 6x6" 1-Compartment Clear 3" H Hinged Lid Carryout 500 ea Monogram Plastic Container 4954194* 6x6" 1-Compartment Clear 3" H Hinged Lid Compostable 3/80 ea Monogram Carryout Pla Plastic Container 6634190 8x8" 1-Compartment 2.75" H Hinged Lid Intellilock 200 ea Monogram Carryout Plastic Container 4954434* 8x8" 1-Compartment Clear 3" H Hinged Lid Compostable 2/80 ea Monogram Carryout Pla Plastic Container 5865266 9x9" 1-Compartment Clear 3" H Hinged Lid Intellilock 200 ea Monogram Carryout Plastic Container 9823631 8 oz., 1-Compartment Polypropylene Clear Round Deli 10/50 ea Monogram Plastic Carryout Container 5341531 12 oz., 1-Compartment Polypropylene Clear Round Deli 10/50 ea Monogram Plastic Carryout Container 3563815 16 oz., 1-Compartment Polypropylene Clear Round Deli 10/50 ea Monogram Plastic Carryout Container 1839871 24 oz., 1-Compartment Polypropylene Clear Round Deli 20/25 ea Monogram Plastic Carryout Container 3073455 32 oz., 1-Compartment Polypropylene Clear Round Deli 20/25 ea Monogram Plastic Carryout Container 9275051 8-32 oz., Flat Polypropylene Clear Deli Plastic Cover Lid 10/50 ea Monogram Napkins 2653384 17x17" 2-Ply 1/8 Fold Black Dinner Napkin 8/125 ea Monogram 8648073 17x17" 2-Ply 1/8 Fold White Dinner Napkin 8/125 ea Monogram 8647091 15x17" 2-Ply 1/8 Fold White Dinner Napkin 20/150 ea Monogram 7634157 15x17" 2-Ply 1/8 Fold White Dinner Napkin 20/150 ea Valu+Plus™

*Serve Good™ item. Serve Good is a US Foods® program, highlighting our products that are responsibly sourced or contribute to waste reduction. For more information, please visit https://usfoods.com/food/serve-good/serve-good-disposables-brochure.html APN DESCRIPTION PACK SIZE BRAND LABEL Side And Soup Containers – Paper 1767805* 8 oz., PLA Plastic Coated Green Leaf Stock Print 1000 ea Monogram® Compostable Soup Cardboard Carryout Container 1768001* 12 oz., PLA Plastic Coated Green Leaf Stock Print 500 ea Monogram Compostable Soup Cardboard Carryout Container 1737410* 16 oz., PLA Plastic Coated Green Leaf Stock Print 500 ea Monogram Compostable Soup Cardboard Carryout Container 6807481 8 oz., Double Poly Coated White with Lid Combo 250 ea Monogram Paperboard Carryout Container 6807796 12 oz., Double Poly Coated White with Lid Combo 250 ea Monogram Paperboard Carryout Container 6808018 16 oz., Double Poly Coated White with Lid Combo 250 ea Monogram Paperboard Carryout Container 5833637 8 oz., Symphony Stock Print with Lid Combo 10/25 ea Monogram Carryout Container 5833645 12 oz., Symphony Stock Print with Lid Combo 250 ea Monogram Carryout Container 5833652 16 oz., Symphony Stock Print with Lid Combo 10/25 ea Monogram Carryout Container 5833660 32 oz., Symphony Stock Print with Lid Combo 10/25 ea Monogram Carryout Container 6807465* 8 oz., Double Poly Coated Meadows Stock Print 250 ea Monogram with Lid Combo Paperboard Carryout Container 6807754* 12 oz., Double Poly Coated Meadows Stock Print 250 ea Monogram with Lid Combo Paperboard Carryout Container 6807986* 16 oz., Double Poly Coated Meadows Stock Print 250 ea Monogram with Lid Combo Paperboard Carryout Container 6808042* 32 oz., Double Poly Coated Meadows Stock Print 250 ea Monogram with Lid Combo Paperboard Carryout Container Side And Soup Containers – Foam 0791558 4 oz., Squat White Foam Container 25/40 ea Monogram 0791566 4 oz., White Foam Container 40/25 ea Monogram 6883961 6 oz., Squat White Foam Container 25/40 ea Monogram 0791574 8 oz., Squat White Foam Container 20/25 ea Monogram 0791582 8 oz., White Foam Container 20/25 ea Monogram 0791590 12 oz., Squat White Foam Container 20/25 ea Monogram 0791608 12 oz., White Foam Container 20/25 ea Monogram 6883912 16 oz., Squat White Foam Container 20/25 ea Monogram 1573286 16 oz., White Foam Container 20/25 ea Monogram 1573260 16 oz., Squat White Foam Container 20/25 ea Monogram 6883698 16 oz., White Foam Container 20/25 ea Monogram 9954348 8-16 oz., Vented Plastic Translucent Lid 10/100 ea Monogram 6884001 8 oz., White Foam Bowl 20/50 ea Monogram 1561679 8 oz., White Unlaminated Foam Bowl 20/25 ea Monogram 6884050 10 oz., White Foam Bowl 25/40 ea Monogram