1

@WeRRestaurants

/RestaurantDotOrg

/NationalRestaurantAssociation Restaurant.org

2

Introductions About A U.S. Chamber of Commerce Best Business of the Year winner located in Tampa, Florida, Fintech provides electronic data and payments to the alcohol industry, eliminating the need to pay alcohol purchases by cash, check, or money order. www.fintech.net

Speakers Rich Verrecchia

Chad Hardwick Senior Vice President of Fintech Sales

Vice President of Fintech Analytics

3

Introductions – Guest Speakers

Adam Billings IMI Agency Director of Technology and Innovation

Ruby Tuesday Restaurant Accounting Manager

Sherri Walker

4

Agenda

• The Basics from the Experts

• Why Alcohol is So Complex

• Purchasing, Payment, & Data

• A One Source Solution

5

Fintech - the Largest Payer of Alcohol Bills in the Nation

• Fintech is the leader in processing regulated invoices since 1991 • U.S. Chamber of Commerce Best Business of the Year Winner • The only EFT provider for alcoholic beverages that is compliant and

available for use in all 50 states • Processing over 20 million invoices & $18 billion annually • Provides services to over 325,000 nationwide relationships • Over 2,300 distributors sending invoices daily • Annual Type II SAS70/SSAE 16 audit

6

CONVENIENCE STORES

Chevron Corp Circle K Cumberland Farms Pantry Sheetz Valero Wawa, Inc.

CVS/Revco Pharmacy Kinney Drugs OscoDrug Rite Aid Sav-Mor Super Drugs Sav-on Drugs Walgreens

Hilton Hotels Hyatt Corporation InterContinental Hotels Marriott International Omni Hotels Ritz Carlton Hotel White Lodging

BJ’s Wholesale Club Cost Plus COSTCO K-Mart Sam’s Club Target Walmart

Aramark Centerplate Compass Group Delaware North HMS Host Levy Restaurants Sodexo

Applebee’s Buffalo Wild Wings Chili’s Outback Steakhouse Ruby Tuesday TGI Friday’s Texas Roadhouse

Giant Eagle Harris Teeter Kroger Publix Supermarkets Trader Joe’s Whole Foods Winn-Dixie Stores

DRUG STORES HOTELS INSTITUTIONAL MASS MERCHANTS

RESTAURANTS SUPERMARKETS

325,000 Customer Relationships

Fintech Clients

7

Navigating the Complexity of Alcohol

8

Three Tier System

Each state sets and abides by their own rules – complying to the Three Tier System

Retailers Restaurants, Hotels, etc.

Distributors

Manufacturers/Suppliers

9

Regulations

• The only product to be the subject of not one, but two amendments to the U.S. Constitution

• Extremely high level of State regulation revealed three

challenges: • Purchasing • Payment • Data

10

Regulations by State

11

The Payment

7 Cash States

17 Term States

26 Mixed States

By State By Product

WINE 18 COD States

28 Term States

4 State Controlled

States

SPIRITS 7 COD States

26 Term States

17 State Controlled

States

BEER 32 COD States

18 Term States

0 State Controlled

States

12

Payment Pitfalls • Managing the Payment

• Alcohol differs from any other part of your business • Payments are made individually to each distributor

• Security with cash, checks, and money orders

• Escrow and Deposits

• Failure to comply with payment terms • Black List consequences • Fines and penalties • Loss of license

13

Challenges in Purchasing: • Limited Territory Options

• Beer • Franchise State • Control States

• Managing orders with par levels and storage

• Understanding SKU Rational • Know your trends • Who are you buying from? • Significant growth in number of wine and beer

distributors

14

Data Challenges in the Alcohol Industry

15

2,300+ Distributors nationwide have voluntarily joined Fintech • 20 – 30 new distributors join each month

OneSource data & payment solution for all of their retailers

• Fintech manages EDI for all retailers wishing to receive it

• Shorter delivery times – no waiting for payment

• More time merchandising

• Lower operating costs

2,300 Distributors

Distributor Participation

16

Where Does Our Data Come From

• Fintech is home to the largest database of on & off premise retailer purchases in the country

• Collects and analyzes data from more than 2,300

distributors (spanning beer, wine, and spirits)

• Data is received daily, and Fintech’s database is updated nightly.

17

Deliveries checked in and signed

for as normally

Distributor sends invoice

information to Fintech

Fintech validates distributor

data

EFT instructions

sent to Federal Reserve

*Fintech does not take title to

the funds

Data files sent to

retailer and distributors

Fintech Process Flow

18

Fintech Reporting

19

Money Left on the Table

2.5% of alcohol purchases

have pricing errors

70% of states charge Broken

Case Fees ranging from $.40-$1.80

per bottle

The Majority of

case discounts are lost when

broken cases are ordered

20

ANALYTIC REPORTING

• Fintech provides automated monthly reporting on

• alcohol pricing

• purchase habits

• top products

21

BROKEN CASE REPORT

22

PRICE DISCREPANCY REPORT

23

TOP 20 PRODUCT REPORT

24

• Create measurable goals for your data strategy

• Reduce purchasing costs • Increase program compliance • Reduce non-program brand share

• A benchmark analysis is important to justify a basis

for the goals

• Begin with high depletion brands and properties for the greatest impact (80/20)

Put your Data to Work – Step 1

25

Define all data sources

• Fintech is a crucial partner for purchasing data

• Map out what additional internal and external data sources will be necessary to achieve the measurable results of your goals

• Many times these are across multiple departments (Finance, Operations, Purchasing, etc.)

Put your Data to Work – Step 2

26

Communicate regular reports

• Consistent reports provide behavioral patterns that tell the most compelling story

• Infographics are a great way to transform heavy data spreadsheets into digestible statistics

• Convert various data results to a common format like letter grades or percentage increase/decrease to provide a basis for comparison

• Share the progress of individual and group impact for motivation

Put your Data to Work – Step 3

27

Information Transparency

• The biggest challenge most companies face is determining the right amount of comparative sales/purchasing data

• Providing their properties that information will motivate them

to improve without overwhelming them with non-essential or confusing data.

• Focusing on only a few of the biggest opportunities will

produce the best results

28

• Automated Electronic Payments • Eliminates payment by cash, check, or money order • Recover pre-paid and escrow deposits

• Ensure Compliance

• All invoices are paid on time and according to State regulations • Increased Security and Control

• Prevents loss and fraud

• OneSource solution for all distributor data • Standardized data in the retailer’s format • Fintech maintains an interface with all distributors for the retailer • 24/7 online access to analytics portal and detailed invoice data

Recap - Retailer Benefits

29

• Automate alcohol payments and eliminate escrow deposits, checks, cash,

and money orders • Stay in compliance with invoices always paid on time and according to

State regulations • Import directly into your back office/accounting system • Track your purchases with in-depth data and automated reporting • Strengthen security and prevent loss and fraud

NRA FREE 30 DAY TRIAL

For more information on Fintech’s services, visit http://go.fintech.net/NRA

30

@WeRRestaurants

/RestaurantDotOrg

/NationalRestaurantAssociation Restaurant.org