BlueLemon - The Deck - 2015

BLU E LE M ON D ECK | 2 015

Blue Lemon / August 2015

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pure clean food with a twist.

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bluelemon.com

food enlightened.

Blue bluelemon Lemon / August deck 2015

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[ the story ] Founded in 2009 by Lychelle and Aaron Day in Highland, UT, Blue Lemon is an award-winning, rapidly growing fast-casual restaurant concept serving healthy “pure, clean food with a twist”.

We currently own and operate six restaurants in Utah and Arizona The food quality, fresh ingredients, unique flavor combinations and gourmet plating sets Blue Lemon apart.

Our refined, blended service style provides the table touches of a quality full-service restaurant, yet allows for the speed that would rival some fast-food establishments.

We’ve enjoyed immediate success and rapid growth, further developed and polished our menu, refined our décor, and improved our service and execution over the past 5 years.

Blue Lemon aspires to be more than just a restaurant. We value our place in the community and acknowledge the role we can have in changing the way people think and live. Change must begin within and emanate outward and the same is true with Blue Lemon.

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FOOD WITH A CONSCIENCE. SPECIALTY GOURMET INSPIRED CLASSICS

A

t Blue Lemon we believe in creating a clean food eating experience beyond what you experience at other establishments. Blue Lemon is always family-friendly with plenty of menu options to serve diverse dietary needs. Our delectable menu features only foods that fuel the body in a healthy way without sacrificing taste. After all, what good is the healthiest food in the world if you can’t get it past your lips? Our clean food is all-natural, prepared in a manner designed to maintain and maximize nutrients. Never fried or microwaved, and absolutely never weighed down with anything artificial. We invite you to come and experience a whole new restaurant experience.

This is not your typical place to grab something to eat, rather the ambience and atmosphere will leave you energized, refreshed, and most importantly, satisfied.

Blue Lemon / August 2015

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[ the concept ] Conscious Dining

One of the most powerful words in Blue Lemon branding is ‘consciousness’. Consumers today are seeking out businesses that are focused, not just on making profits, but on making the world a better place. The restaurant industry is beginning to make global consciousness a top priority by showing they care on every level. Again, this is where Blue Lemon shines.

Better restaurants, including Blue Lemon, have taken steps to make a difference by preserving natural resources, designing operations with conservation in mind, building affiliations with non-profit organizations, and by fostering personal growth in the workplace through mentoring, educational and diversity programs. Blue Lemon’s GREEN campaign is a great way to spotlight the care taken to ensure that everything from the food to the boxes and take-out utensils and cups are designed with the planet in mind.

It’s interesting to watch the reinvention scramble considering the erosion of the casual-dining segment. Many big-name, mid-market chains have been forced to rebrand themselves to win back guests who are moving towards fresher, more conscientious offerings like those at Blue Lemon.

Healthy Specialization

Healthy fare is in—a growing trend in the restaurant industry—which continues as a primary factor fueling fast-casual growth. As a result, Blue Lemon has gained the trust and loyalty of a strong consumer base looking for a fresher, more conscientious offering than what is provided by traditional casual dining and quick-service restaurants. While many restaurants struggle to maintain their market relevance, brands that find a following with a single, well-crafted cuisine continue to stand out in the restaurant world and potentially dominate a market niche they help carve out themselves. Blue Lemon’s specialization of clean food with a twist is timely considering the growing emphasis on healthful eating. Americans are seeking products offering health and convenience and foods that provide an enriched healthy lifestyle.

“Talk about enlightened dining—Blue Lemon presents an elevated eating experience available to all.”

~HEALTHY MAGAZINE 6

bluelemon.com

At Blue Lemon, Food Is Art.

ARTICHOKE CHICKEN

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[ the why ] vision:

To be known for defining the fast, healthy gourmet experience.

mission:

To provide exceptional food with exceptional hospitality in an exceptional environment.

motto:

An elevated dining experience, every time!

our core values are guided by these concepts:

FAST HEALTHY

FRESH

Blue Lemon Core Values

INVITING CLEAN

INNOVATIVE GRATITUDE

LOYALTY

UNIQUE

“Blue Lemon is the epitome of epicurean excellence.”

~STARDOCS MEDIA

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Where Creative Cuisine is Born.

IRON SEARED SALMON Blue Lemon / August 2015 9

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[ the accolades ]

Blue Lemon continues to be a brand leader in the marketplace

FastCasual.com Movers & Shakers 2014, 2015

NetBase Top 5 Most Loved Brands 2014

Ones to Watch 2014

NRN Breakout Brands 2013 10

Favorite Healthy Restaurant 2013 - 2015

Utah’s Best of State: 2011 - 2012

URA: Best New Concept 2012

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Where Blue Goes Green.

RASPBERRY CHICKEN SALAD Blue bluelemon Lemon / August deck 2015

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[ the menu ]

GOURMET ENTREES

BLUE LEMON TAKES FINE DINING ELEMENTS—PRESENTATION, SERVICES, AND ATMOSPHERE—AND MIXES IT WITH FAST CASUAL DELIVERY. WE UPDATE OUR MENU FOR SPRING / SUMMER AND FALL / WINTER TO PROVIDE NEW AND SEASONAL OPPORTUNITIES ALONG WITH FLEXIBILITY TO ADJUST PRICING AND MAINTAIN A DISCIPLINED COST STRUCTURE.

COCONUT CHICKEN CURRY

MANGO SHRIMP TACOS

SPECIALTY SALADS

SLOW BRAISED BEEF SHORT RIBS

ORIENTAL SALAD

PEAR & GORGONZOLA

SANDWICHES

MANGO MINT

CHIPOTLE BBQ BRISKET

GRILLED BALSAMIC CHICKEN

BREAKFAST

ROASTED TURKEY AVOCADO

BREAKFAST CREPES

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SIGNATURE OMELET

EGGS FLORENTINE

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Food, Enlightened.

BLACK BEAN RAVIOLI Blue bluelemon Lemon / August deck 2015

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[ the décor ] POLISHED DÉCOR PROVIDES AN ELEVATED FAST CASUAL ATMOSPHERE AND SUPPORTS OUR HIGH QUALITY FOOD OFFERING. CONTINUED DESIGN REFINEMENT HAS PROVIDED SUPERIOR CUSTOMER EXPERIENCE WHILE INCREASING EFFICIENCY.

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Blue bluelemon Lemon / August deck 2015

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[ the timeline ] FROM OUR HUMBLE BEGINNINGS IN HIGHLAND TO NOW SIGNING AN LOI FOR OUR 7TH LOCATION AND A LEASE FOR OUR 8TH LOCATION, WE CONTINUE OUR EXCITEMENT OF OPENING NEW STORES AS IF IT WERE OUR FIRST. WE HAVE BEEN WELCOMED

BY THE MARKETPLACE AND CONTINUE TO HAVE TREMENDOUS INBOUND INTEREST FROM REAL ESTATE DEVELOPERS.

Blue Lemon is born.

Opened 1st Restaurant in Highland, Utah (February 2009)

2009

Opened 2nd location in Salt Lake City, Utah (May 2010)

2010

2014 Opened 5th location in Sandy, Utah (September 2014)

Opened 3rd location in Cottonwood Heights, Utah (February 2012)

2013

2012 2016

2015

Opened 6th location in Ogden, Utah (January 2015)

Opened 4th location in Gilbert, Arizona (January 2014)

Signed LOI for 7th location in Orem, Utah (2Q 2016)

Signed lease for 8th location in Farmington, Utah (3Q 2016)

Coming Soon!

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Coming Soon!

bluelemon.com

Blue Lemon Is On The Move.

BLUE LEMON IS BEGINNING TO HIT ITS STRIDE AND IS GAINING RECOGNITION AS A DIFFERENTIATED FAST CASUAL RESTAURANT WITH STRONG, BROAD APPEAL. BLUE LEMON HAS EXPERIENCED IMPRESSIVE, STEADY GROWTH OVER THE LAST FEW YEARS. IT’S A NEW INNOVATION AND BLUE LEMON IS RIPE TO TAKE ROOT AND BEGIN PRODUCING MUCH DESIRED FRUIT. Just as consumers have grown tired and bored of traditional casual dining, Blue Lemon emerges at an opportune time with its unique gourmet offerings. Pure clean food with a twist — a brilliant summation—Blue Lemon arrives into a dining market driven by consumers who demand health, taste, convenience and overall value. Based on the belief that food is the foundation of health, Blue Lemon presents an upscale family-friendly environment with a tantalizing menu. What can you expect from your Blue Lemon experience? Amazing food in a vibrant, uplifting atmosphere, where the food is never fried or microwaved, and absolutely never weighed down with anything artificial. You can expect maximum nutritional value. Maximum taste. You will leave energized, refreshed, and most importantly, satisfied. In essence, Blue Lemon is the epitome of epicurean excellence.

“This is seriously one of my favorite places to eat. I love the variety and healthy entrees.”

~NICIA DEGERING, GOOD THINGS UTAH

Blue Lemon / August 2015

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[ investment highlights ] BLUE LEMON IS AN ATTRACTIVE UPSCALE FAST-CASUAL CONCEPT DELIVERING SOLID RESULTS WITH SIGNIFICANT UNIT GROWTH POTENTIAL WHILE PROVIDING CUSTOMERS A HIGHLY DESIRABLE ALTERNATIVE GOURMET DINING EXPERIENCE AT REASONABLE PRICES.

Uniquely Positioned within Fast Casual

Year Over Year Revenue Growth

Growing Brand Awareness

Strong Financial Performance

Broad Consumer Appeal

Multiple Growth Levers

Highly Attractive Unit Economics

Significant Unit Growth Potential

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Why invest in Fast Casual? Very simple:

Why invest in Blue Lemon? Very simple:

Fast Casual continues to dominate restaurant growth.

No one does fastcasual like Blue Lemon.

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[ industry highlights ] OVER THE PAST 60 YEARS, THE RESTAURANT INDUSTRY HAS ALMOST DOUBLED ITS SHARE OF EVERY DOLLAR SPENT ON FOOD IN THE UNITED STATES, FROM 25% IN 1955 TO 47% TODAY. This growing portion of consumer spending on food has led to the restaurant industry creating jobs at a faster rate than the overall economy for the 15th consecutive year. The megatrend toward consumers eating out more often should come as no surprise, but it is often useful to point out these statistics as a reminder of the huge opportunity for successful restaurant concepts. For those that prefer a visual, the sales trend of the overall restaurant industry illustrates this tremendous growth: Source: www.qsrmagazine.com

$683.4 $586.7

$379.0

Restaurant Industry Sales In Billions of Dollars

$239.3 $119.6

$42.8 1970 1980 1990 2000 2010 2014

Source: National Restaurant Association. Restaurant.org/forecast

RESTAURANT TRAFFIC GROWTH BY SEGMENT 10% 8%

8%

6% 6% 4% 2%

0%

-1%

-2%

0% -2%

QSR

Fast casual Casual dining

Source: The NPD Group, 2014.

Midscale

Fine dining

Fast casual leads the pack within a growing industry Within the larger trend of restaurant growth is an equally powerful sub-trend favoring fast casual restaurants. These restaurants, led by companies such as Chipotle Mexican Grill (NYSE: CMG) and Panera Bread (NASDAQ: PNRA) hit the sweet spot for consumers by providing quality food, reasonable prices, and quick service. This value proposition resonates with many consumers that are looking for a quick meal that is healthier than the fast food brands and less expensive than casual and fine dining options. For five consecutive years, traffic at fast casual restaurants has outpaced all other classes. In 2013, this growth in traffic was a strong 8%.

Source: www.qsrmagazine.com

Blue Lemon / August 2015

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[ unique positioning ] BLUE LEMON IS UNIQUELY POSITIONED

BY PROVIDING DIVERSE GOURMET MENU OPTIONS AT A TREMENDOUS VALUE, WITH IMMENSELY PASSIONATE CUSTOMERS.

Passion Intensity Index

Source: Netbase

$25

Average Check $20 $16

$15 $14 $12

$11 $10 $10 $10 $10 $10

$9

$8

$8

$7

Source: Wall Street research, Company Filings, FactSet, Technomic.

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[ broad consumer appeal ] BLUE LEMON’S ‘PURE CLEAN FOOD WITH A TWIST’ PROVIDES A FOUNDATION FOR OUR BROAD APPEAL AND ATTRACTIVE AVERAGE UNIT VOLUMES.

$3840

Average Unit Volumes $2720

$2478

$2472

$2000

$1900 $1831 $1800

$1501

$1147 $1000

1 Non-Manhattan Shacks only Source: Wall Street research, Company Filings, FactSet, Technomic. Note: $2M is Year 3 Target.

Blue Lemon / August 2015

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[ growth potential ] BLUE LEMON HAS SIGNIFICANT UNIT GROWTH POTENTIAL WITH OUTSTANDING UNIT ECONOMICS.

Unit Count 1926

1878

Significant Growth Potential

472

416

378 173

147

144

118

66

Source: Wall Street research, Company Filings, FactSet, Technomic.

Highly Attractive New Unit Economics

Average Unit Volume 4-Wall EBITDA Margins Cash on Cash Returns Sales to Cash Investment

$2M ~20% 45-50% 2.0 - 2.5x

Note: Year 3 Target.

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[ strong financial performance ] BLUE LEMON HAS EXPERIENCED SIGNIFICANT REVENUES FROM MULTIPLE GROWTH LEVERS AT THE RESTAURANT LEVEL.

Blue Lemon Revenue $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 2009A

STORE COUNT 1 REVENUE GROWTH RATE

2010A* 2011A 2 2

60%

84%

2012A 3

147%

2013A 3

3%

2014A* 5

23%

2015E 6

43%

2016P 10

45%

2017P 14

49%

2018P 20

44%

2019P 27

36%

*City Creek (2010), Sandy (2014) were not open for 12 months in their respective years. USD in thousands.

MULTIPLE GROWTH LEVERS • • • • • •

Increase catering sales Menu innovation Operational efficiencies Improved inventory systems New employee training & development program New supply contracts / Economies of scale

STRONG BRAND • • • • •

High Net Promoter Score 63 Tied for top place on “Passionate Intensity Index” “Full-service-like” check averages High inbound interest from real estate developers High inbound interest from interested Franchisees

Blue Lemon / August 2015

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[ expansion plan ] BLUE LEMON PLANS ON EXPANDING THE BRAND AND VISION TO ARIZONA, NEVADA, COLORADO, AND TEXAS 2015 is the year we’re investing in our culture, employee training & development, menu, infrastructure, financial systems, purchasing processes, and vendor relations to expand margins, continue building a stronger brand, and grow a profitable business model. Our plan is to open 21 new stores over the next 48 months.

NEW STORE EXPANSION SUMMARY: BLUE LEMON - 4-YEAR GROWTH PLAN

2016 2017 2018* 2019* UTAH ARIZONA NEVADA COLORADO TEXAS

TOTAL

New as of Total 2015

Grand Total

2 2 1 3

1 1 1 3

1 1 1 1 3

4 5 5 4 3

5 1

9 6 5 4 3

4

6

7

21

6

27

4

*Blue Lemon will consider other locations for expansion this year.

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[ our perfect partner ] BLUE LEMON IS LOOKING FOR A PARTNER TO PROVIDE GROWTH CAPITAL WITH DEEP INDUSTRY EXPERTISE AND ACCESS TO TOP INDUSTRY TALENT FOR C-LEVEL AND BOARD POSITIONS Our objective is to have the smartest people in the industry around our table that have passion for an elevated dining experience, fuel and support our rapid growth, increase our top and bottom line, help us deliver above average returns to its shareholders, and can help guide us into becoming “the national fast casual brand” Thank you!

Blue Lemon / August 2015

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