Loyalty Programs: Customers Love Them, But Do They Create Value For the Enterprise

Transcription

1 Loyalty Programs: Customers Love Them, But Do They Create Value For the Enterprise The Boston Consulting Group Allan Hickok Tom Lutz Dylan Bolden

2 Allan Hickok Senior Advisor The Boston Consulting Group 520 N. Kinsbury Street, Unit 3301 Chicago, IL (612) Allan is an experienced Wall Street professional with over 25 years of capital markets experience as a consumer focused investment banker, equity research analyst specializing in the restaurant and specialty retail food industry segments, senior advisor to a global management consulting firm and chain restaurant CEO. An industry veteran, Allan has deep experience advising restaurant, food and specialty retail concepts on a wide variety of strategic, capitalization and liquidity alternatives. Client advisory experience includes development, tactical evaluation and implementation of growth strategies, public and private capital formation, financial advisory including valuation and fairness, mergers and acquisitions, corporate Wall Street positioning strategies and financial restructuring. Chain concept clients range from small startups to the largest full service restaurant chains in America. Mr. Hickok has cultivated strong relationships among public and private institutional investors active in the consumer sector. Allan is a senior advisor with The Boston Consulting Group, a global management consulting firm and the worlds leading advisor on business strategy. BCG operates from over 70 offices in 41 countries and has deep restaurant and food industry experience. Allan is currently on assignment as the CEO of a private specialty food retailer. Prior to this assignment he was the chief executive officer for Redstone American Grill, a privately held upscale casual dining restaurant chain. Previously, Allan was a managing director and group head, restaurant industry for Houlihan Lokey, an investment bank serving the middle market for strategic and financial advisory that also operates the largest financial restructuring practice in the country. In 2003 he founded a successful strategic advisory consulting firm active in a wide variety of strategic, financial, corporate positioning and liquidity transactions. Prior to starting his consulting firm, Allan spent eighteen years at Piper Jaffray as an investment banker and equity research analyst, and in 1991 founded the dedicated Piper Jaffray Restaurant Industry Investment Banking platform. During his long tenure as a Piper Jaffray managing director, Allan was widely acknowledged within the restaurant industry and by institutional investors as one of the most influential industry analysts in America. Allan quarterbacked the growth of Piper Jaffray s Restaurant Industry platform to a national level and one of the most successful practices on Wall Street. He was directly involved in the placement of almost $2 billion of public and private equity and a similar amount of merger and acquisition assignments. He is a five-time All Star Analyst as chosen by The Wall Street Journal, including Best Stock Picker and Best Earnings Accuracy multiple times, was ranked by other industry agencies and is a recipient of other honors.

3 Dylan Bolden Partner & Managing Director The Boston Consulting Group 2501 N. Harwood, Suite 2200 Dallas, TX (214) Dylan joined the Dallas office of The Boston Consulting Group in 2002 and currently is a partner. Dylan has deep expertise in consumer insight driven strategy and shareholder value topics with a specific focus on hotels, restaurants and retail. Specific experience includes: Consumer insight driven strategy: Bottoms up development of brand ladder and strategy for several hotel, restaurant and retail brands including global branding. Developed and authored BCG s approach to Data Driven Branding Translated all elements of the brand into detailed brand playbooks (e.g., menu, price promotion, marketing projection, messaging, store-level employees, performance metrics) for several hotel, restaurant and retail brands Implementation of consumer and shopper insights into action: short-term tactical improvements, longer-term strategic initiatives and deeply experienced in development of business cases/plans from raw ideas Deep experience with on-site/in-store testing of leading-edge products, services and operating models to improve operational efficiency, increase customer satisfaction and boost sales Innovation in pricing and pricing communications, including extensive statistical/quantitative analysis, pricing model redefinition and development of POS creative Shareholder value strategy and corporate development: Portfolio strategy development with focus on long-term shareholder value creation for several restaurant, hotel, and retail companies Integrated financial plan and value-based management design and implementation for several restaurant and retail companies Investment strategy and megatrend review for multiple private equity funds Significant level of private equity due diligence support within consumer space Prior to BCG, Dylan worked at Royal Dutch Shell in Houston, Brunei, and Nigeria. Dylan earned an M.B.A. with highest honors from Columbia Business School, graduating Beta Gamma Sigma, and a B.S. in Chemical Engineering with honors from Florida State University.

4 Tom Lutz Senior Partner & Managing Director The Boston Consulting Group 2501 N Harwood, Suite 2200 Dallas, TX (214) Tom began work at The Boston Consulting Group (BCG) in He is the leader of BCG s Global Restaurant Practice, runs the Private Equity Practice in the Americas, and manages the South office system (Dallas, Houston, Atlanta, and Miami). He also serves on the Americas Management Team. Tom has worked with a variety of restaurant, retail (big and small box), and consumer goods clients. In the restaurant sector, Tom has worked extensively (>25 separate entities) in the industry (casual dining, fast casual, and QSR; franchise-led and company-owned systems). Some example initiatives include: Developed a portfolio strategy for a casual dining restaurant company; work included closing stores, selling an under performing concept, and decreasing overhead for the remaining entity Created a value strategy (pricing, menu, etc.) for a national QSR; result was a 40% market cap appreciation Performed portfolio review and value management review for casual dining restaurant company; resulted in portfolio changes and new value-based metrics; share price increased 30% within six months Repositioned a national casual dining brand turnaround; changed marketing functions and marketing plan Helped franchise-driven pizza QSR to 1) determine root causes of SSS issues, 2) develop heavy-user strategy, and 3) determine new menu platforms Assisted a fast-growth QSR chain in evaluating and improving store performance Reviewed fast casual opportunity for a large QSR Assessed major merger between casual dining chains; developed detailed view of synergies and risks Completed acquisition due diligence for PE firm considering the purchase of a microbrewery concept Performed post-merger integration for QSR which purchased two smaller chains; achieved 90% of identified synergies within 8 months of start date Transformed convenience store chain to a 100% franchise-owned business model Working to create a franchise-able casual dining concept for a portfolio player (work in progress) Tom s retail experience includes both large and small box: convenience retailing (corporate strategy, partner strategy), apparel (time-to-market, assortment), grocery (merchandising strategy, consumer insight, category management, micro-merchandising), home center (M&A, pricing), general merchandise (category expansion, post-merger integration, M&A), tires (store profitability, manufacturer alignment), copy and print (strategy), jewelry (growth strategy, portfolio strategy, supply chain, customer experience), crafts (segment strategy), energy (channel strategy, segmentation), and online travel (portfolio strategy, cost reduction). His category experience includes cookies, pastries, salty snacks, soft drinks, juice and juice drinks, shampoo, personal care, office supplies, tuna fish, lodging, automobiles, automotive accessories, satellite television services, and telephone equipment. Areas of functional expertise include growth strategy, portfolio strategy, innovation management, category management, trade spending, and micro-merchandising.

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