Restaurant Brands Corporate Social Responsibility 2014 About this Report: A First Step Towards Establishing a CSR Framework and Programme Our vision is to be an enduring, innovative company, respected as the leading operator of great brands. To achieve this there are four interdependent elements that sustain the health and vitality of our company – People, Food, Planet and Progress. We recognise our responsibility to make a positive contribution and to manage the impacts our operations have on people and the planet. That’s why we’re committed to operating our businesses in a manner that’s professional, responsible and sustainable. This document outlines our current position with a view that we will work towards establishing a more robust CSR framework and programme with CSR goals embedded into our business strategies, operations and culture.

PEOPLE

Restaurant Brands depends on the support of Kiwi consumers and partnerships with employees, suppliers, franchisees, franchisors, communities and investors to grow a sustainable, innovative and enduring company. Employees Training and Development Our employees are at the heart of our business We have trained thousands of new employees and critical to its success. That’s why our values from basic food handling skills to restaurant are an important part of our induction process manager level and beyond. It’s one of our and the way our staff work every day. strengths, developing our people and their skills at every level. Our focus is on developing the people we have and reducing turnover. We’re doing this by being a good employer that: • Offers competitive remuneration to attract and retain skilled employees. We are one 3691 of several other large retail employers staff nationwide applauded for the decision not to reintroduce youth rates. • Constantly updates training and education programmes for employees across all our brands. • Invests in new programmes for our managers to improve their knowledge and capabilities. • Provides greater job security through the improved scheduling of labour shifts in our stores to maximise individual hours. • Identifies talented employees and provides clear paths for their career development.

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Safe Healthy Workplaces Equality and Diversity The health and safety of our employees and Restaurant Brands is an equal opportunity customers is paramount. We have an excellent employer and our employees celebrate and record for workplace health and safety. reflect the diversity of the communities we serve. They range in age from “We have set ourselves the goal of zero loss of work days [from injury] across all our brands.” Everyone in our organisation has a responsibility for health and safety. All employees working in • 23 years average age of our employees our stores must complete Health and Safety and Food Safety (Unit Standard 167) training, as well • 1st job for many people as demonstrate ongoing competency. Communities Our primary contribution to the communities we we’re serve is through our business operations. Jobs, wages/salaries, tax payments, dividends, goods proud and services purchased, investment in existing and new stores.

Tertiary level member of ACC Accredited Employers Programme.

Member of Business Leaders’ Health and Safety Forum.

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Along with our economic contribution, we’re also involved in the community supporting

Surf Live Saving NZPWG Anita Boon Pro-AM In October 2012, we launched our KFC Through our sponsorship of the 2013 partnership with Surf Life Saving New Zealand tournament a Golf Scholarship will be provided aiming to keep Kiwis surf safe. As well as raising to a budding Kiwi woman golfer and money funds for the charity, KFC runs a multi-lingual donated to the New Zealand Gynaecological water safety education campaign communicating Cancer Foundation. water safety messages to prevent drowning and injury at our beaches. $2 $10k donated from every golf scholarship KFC Surf Safe Variety Bucket sold $10,000 donated to • $174,000 raised in 2014. NZ Gynaecological Cancer Foundation • 600,000 tray mats printed with water safety messages • 73 SLSNZ Clubs in NZ. Partnered with their local KFC store to raise funds. Condor Sevens KFC is a proud sponsor of the Condor Sevens, a secondary school level regional tournament, supporting sevens at a grassroots level.

3 | Restaurant Brands – Corporate Social Responsibility 2014 PEOPLE(continued)

World Hunger Relief Starbucks Global Month Global of Service Through our affiliation with Yum! Brands, Throughout the year, Starbucks global we support the annual World Hunger Relief employeesMonth and customersof Service volunteer on campaign by raising funds for the World projects to create positive change in their Food Programme through our and local neighbourhoods. KFC stores. In New Zealand this year we • $63,000 raised in 2013 in NZ supported four Starbucks employees in the Oxfam • 120 countries $3688 Trailwalk raising funds for raised for Oxfam NZ • 38,000 KFC, Pizza Hut and Oxfam New Zealand. stores globally Starbucks also supports CanTeen • 1 million employees globally by hosting their monthly support meetings for families affected by cancer. Starbucks provides the venue and complimentary beverages for these meetings.

4 | Restaurant Brands – Corporate Social Responsibility 2014 FOOD

Everyday we serve high quality, delicious food to over 60,000 customers in our stores.

Food Safety Wellbeing

From our trusted suppliers, We recognise that obesity is a serious health through our kitchens and issue in New Zealand. Both the cause and the onto your plate our food solution to the issue are complex, requiring safety system and external everyone to play their part. That’s why we audits deliver great tasting, continue to focus on making improvements to safe food in our stores. the nutritional composition of our food.

• 184184 stores stores routinely audited routinely by Environmental audited by Health Officers Ministry of Primary Industries andEnvironmental NZ Food Safety Authority Health administer Officers our Food Control Plan. • Ministry for Primary Industries and NZ Food 10% Safety Authority administer our Food less sodium Control Plan

• 2010 – overall reduction of 10% sodium in all KFC products • 2011 – KFC & Pizza Hut move to canola and sunflower oil • 2012 – Cut sugar content in KFC burger buns by more than ½ and dinner rolls by 2/3 • Sugar content in buns and rolls now 3g/100g • Less than 0.1gms of trans fats in KFC and Pizza Hut products • Only Sugar Free beverages promoted Transparency We provide detailed nutritional information in store and on our website so customers know exactly what’s in our food so they can choose what’s right for them.

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Responsible Marketing Ingredients We don’t advertise or market our products directly to kids. 90% sourced locally

• 90% of ingredients sourced locally Member NZ Food Industry Group, QSR Forum • 100% grain-fed and barn raised chickens • As a member of the Forum each year we We’re proud to support our trusted local participate in a survey about what’s in our suppliers as part of our ethical purchasing and food, which is reviewed by Government procurement. agencies, like Health Promotion Agency. • KFC chicken is delivered fresh daily from Inghams and Tegel who we have worked closely with for many years. All our chicken is grain-fed and barn raised under tightly regulated and monitored standards overseen by PIANZ, the Ministry for Primary Industries and the National Animal Welfare Committee (NAWAC). • Starbucks has the C.A.F.E (Coffee and Farmer Equity) Practices, which are designed to create a better future for coffee farmers. C.A.F.E is based on a shared interest to sustain the production of high quality coffee produced in environmentally and socially responsible ways.

6 | Restaurant Brands – Corporate Social Responsibility 2014 PLANET

As a business we are conscious of our environmental responsibilities and the careful use of resources.

Packaging Waste We source all packaging from sustainable One of our biggest waste products is cooking timbers grown locally and overseas. This year oil. All oil used by KFC, Pizza Hut and Carl’s Jr. we moved to replace plastic bags with recycled is collected by Transpacific for recycling. Grease paper bags. traps are installed in all our stores to ensure oil does not enter the waste water system. 100% sustainable 10% timber bio-diesel • 70% of packaging sourced locally • 100% cooking oil is recycled • 100% KFC packaging sourced from sustainable timber • 10% used in the manufacture of bio-diesel for local use • Zero packaging sourced from Asian pulp and paper • 90% exported to make soap Recycling Energy Use All our stores sort, compact and collect their We actively participate in Yum! Energy Saving cardboard and paper for recycling each week. initiatives. Yum! has set up a world-class operations team to work on energy efficient At Starbucks we recycle our coffee grounds by opportunities, which we benefit from in packaging them up for free so our customers New Zealand. can take them home to use as garden compost. • We’re always looking to reduce our energy footprint through the way we work, the technology we use and the buildings 80% we create. recycled • Since 2005 we have monitored live power usage in our KFC stores to reduce peak • 80% of cardboard and paper from our stores load and encourage employees to turn off is recycled each week equipment when it’s not in use. Future improvements to this system are underway to gain remote access to all sites to ensure power shedding parameters are accurate. • We recently developed an in-house system to compare KFC stores sales versus power usage, highlighting any potential inefficiencies in energy use.

7 | Restaurant Brands – Corporate Social Responsibility 2014 PROGRESS

Restaurant Brands is the NZX listed New Zealand operator of some of the world’s most famous QSR brands with 176 stores throughout the country.

Restaurant Brands At A Glance Growth and Investment We continue to expand in New Zealand by investing in existing or new brands with plans for further capital expenditure across the KFC, $18.9m Pizza Hut, Starbucks and Carl’s Jr. restaurants. net earnings KFC Transformation Programme (excluding non-trading items) KFC has been part of New Zealand for more • 3691 employees nationwide than 40 years. Since the launch of our ambitious transformation programme in 2004, we have • Tax payments equivalent to $17.7m GST been building and refurbishing our stores across and $7.4m Income Tax New Zealand. • $15.7m dividend payments • $83.8m paid in salaries and wages • $206m worth in goods and services 79% • $20.6m capital expenditure with local new or transformed suppliers and contractors

• $71 million total investment • 79% KFC stores new or transformed • 10 new KFC’s built since 2004 with $13 million total investment • 40 new jobs created per new store

8 | Restaurant Brands – Corporate Social Responsibility 2014 PROGRESS (continued)

Carl’s Jr. Investment Growing Pizza Hut Franchisee Community We opened our first Carl’s Jr. restaurant in Since 2010 we’ve been selling existing Pizza Hut November 2012. We’re committed to building at restaurants to local operators in regional towns least five new stores each year. giving local business people an opportunity to be part of our business. $10m investment 33 per annum restaurants owned by franchisees

• $10 million estimated investment each year in new restaurants • 33 restaurants now in local ownership • $2 million investment in each new restaurant • Up to 60 new jobs created in each new restaurant

For more information about Restaurant Brands visit us at www.restaurantbrands.co.nz

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