Famous Dave’s “Pit-mastering

BBQ”Diana PurcelCFO

• Share my career path as well as some lessons learned along the way

• Highlight the Famous Dave’s brand• Encourage you to consider the

restaurant industry as a viable career option

Today, I plan to….

Grew up in Golden Valley, MNRobbinsdale Armstrong High School – class of 1984Tulane University – BSM; concentration in accounting –

class of 1988Lives in Corcoran, MN…..Mother of 3:Brandon18Laurel 16Blake 14

Diana Who?

Lesson #1

Understand what you bring ‘to the table’

“Sought and Brought” Theory

Biography in steps...

Arthur Andersen & Co., 1988-1993 (Supervisory Senior)

Dayton Hudson Corporation (Target), 1993-1998 (Senior Analyst)

Sought: Large public company experience Exposure to senior leadership

Brought: Banking experience Technical accounting expertise Ability to work in teams Strong work ethic

Lesson #2

Volunteer for the assignments or projects that no one else wants

Biography in steps...

Dayton Hudson Corporation (Target), 1993-1998 (Senior Analyst)

Damark Corporation, 1998-1999 (Dir of Reptg and Div Controller of Corp Planning and Reptg)

Sought: Supervisory experience Responsibility for own cost center

Brought: Public Company experience Large company retail experience Confidence in working with senior management and exposure CPA

Lesson #3Find your ‘line’

Biography in steps...

Damark Corporation, 1998-1999 (Director of Reporting and Divisional Controller of Corporate Planning and Reporting)

Paper Warehouse, Inc., 1999-2003 (Controller/ CFO)

Sought: Title Member of senior management

Brought: Supervisory experience Retail experience An understanding of ‘my line’ CPA

Lesson #4

It takes years to build a reputation and seconds to lose it

Biography in steps...

Paper Warehouse, Inc., 1999-2003 (Controller/ CFO)

Famous Dave’s of America, Inc., 2003-present (CFO)

Sought: Operational exposure Board of directors interaction Investor relations experience

Brought: CFO title Franchising experience Bankruptcy experience CPA

Lesson #5

Energy is everything…

Find your passion!

Introduction Fortunately…Unfortunately

Famous Dave’s of America, Inc.

• Headquartered in Minnetonka, MN

• Develop, own, operate and franchise barbeque restaurants

• First restaurant opened in June 1994

• NASDAQ: DAVE – went public in 1996

Famous Dave’s …at a glance

1994- early 2003

• Entrepreneurially –run

• Counter Service Restaurants

• Board: Friends and family

• Franchisees: Former associates, single concept owners

• Management team to TAKE a company public

Late 2003-today

• Professionally –run

• Full-Service Restaurants

• Board: Functional expertise

• Franchisees: Professional, multi concept owners

• Management team to RUN a public company

Famous Dave’s …at a glance

Roseville, MNJune 1996

Belaire, MDAugust 2010

Unfortunately

When I stepped in…

No credibility in the financial community

No confidence by franchise system

Franchise system out-performing company restaurants

12.2 million shares outstanding, marginal cash

Company-owned comparable sales decrease (3.0%)

Accumulated deficit ($9,942,000)

Net loss ($2,898,000)

Diluted net loss per share ($0.25)

Fortunately

Financial Turnaround

• New executive team and founder steps out to take position with Bush administration

• Ceased corporate growth & developed real estate strategy

• Established Culture of Discipline & Invested in People and Systems

• Divestitures, impairments and closures• Stock Repurchase Programs• Commitment to being a public company• Commitment to being a franchisor• Commitment to sound corporate governance

Unfortunately

2008 at a glance

• December 2007 CEO leaves for personal reasons

• Stock decreases from $22.77 July ‘07 to $2.70 Dec ‘08

• Activist investor files 13d

• Board member steps in as interim CEO

• Board heavily involved in day to day management vs oversight

• Franchisees concerned about personal investments

• New CEO starts April 2008 - - - leaves September 2008

• September 11, 2008 current President/CEO assumes leadership position……

The “Great Recession”

4Q 2008…. economy in shambles• Foreclosures• Unemployment • Collapse of financial institutions• Bail out of banks• Loss of value in the stock market• Consumer confidence at all-time low

Fortunately

Never waste a crisis….

Courageous Decisions

• Cleansed ourselves of the past

• Brought Dave Anderson back as the ‘face’ of the organization

• Took impairment charges on restaurants and/or closed underperforming locations and markets

• Defaulted certain franchise partners

• Reduction in force

• New executive team

• Narrowed the focus

• Strategic plan was a 6-12 month timeframe

“80 Proof” Burger

BBQ Potato Chips

Beef Ribs

Where is Famous Dave’s today and where are we going?

180 Restaurants in 37 states

Company RestaurantsFranchise Restaurants

Total restaurants

1996 1997 1998 1999 2000 2001 2002 2003 today0

20

40

60

80

100

120

140

160

180

200

3 14 22 30

42 56

73

92

18052 company-owned and 128 franchise-operated

2010 System-wide sales $471.6 million

Franchise-operated

Company-owned

Business Model

Franchise-related Fees**

CAGR: 16%

Restaurant Sales*Dine-In: 69%

To-Go /Catering: 31%

* Fiscal 2010** 2003 - 2010

Retail** CAGR: 16%

Dave’s Distinctions

• Scratch Cooking– Fresh every day, unlike competitor’s

pre-prepared foods• Smoked Meats

– Slow cooked for up to 8 hours; no parboiling or baking

• 5 Regional Sauces– Tout our expertise in regional

BBQ variations• Product Innovation

– Frequently updated menu; wide room for creativity

• Authentic Founder– Dave Anderson; gives us legitimacy

• Franchise model– Leveraging growth with experienced

franchise candidates• Off-premise Revenue Levers

– “To Go” and catering sales compliment in-house dining

• Value– High quality food, distinctive

atmosphere, superior service, competitive prices

• BBQ Expertise– 25 years in BBQ R&D and methodology

• Rib Team– Traveling billboard

Award Winning & Segment Defining

Just some of the Awards recently won….

JudgeMemphis Rib Fest

Best BBQ

Daily Herald Reader’s Choice

Chicago, IL

1 st Place – Ribs, Pork,

Brisket

Smokin’ on the Strip

Barbecue Cook Off

Branson, MO

Best BBQ

Best of Long Island

Westbury, NY

People’s Choice Best BBQ

Safeway National Capital

Barbecue Battle

Best BBQReader’s ChoiceMinneapolis City Pages

1st place – St. Louis-

Style Spare Ribs

Ultimate Rib Fest of

SW Florida

JP’s Bar-B-Que

Over 500 Awards

External Brand = Internal Brand

Brand Promise:Authentic, Genuine, Legendary Pit BBQ

Guest Experience

“Like having good friends over for a backyard BBQ”

Guest Satisfaction

50%

55%

60%

65%

70%

75%

80%77.8%

76.3%77.1%

74.4%

77.3%74.9%

Franchise-Operated Total SystemCompany-Owned

2010

2009

Comparable Sales

2004 2005 2006 2007 2008 2009 2010-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%2.2%

2.9% 2.9%2.1%

(2.0%)

(6.3%)

0.7%

(1.4%)(0.6%)

(1.2%)

(3.3%) (3.6%)

(8.5%)

(0.8%)

= Company- Owned

= Franchise- Operated

Revenue (in millions)

2004 * 2005 2006 2007 2008 2009* 2010$0

$20

$40

$60

$80

$100

$120

$140

$160

$99.3 $102.4$116.6

$125.9$140.4 $136.0

$148.3

* 53 weeks

Diluted Earnings Per Share

$0.67

$0.67

2007 2008 2009* 2010

$0.59

$0.04

$0.62

$0.82

$0.53

$0.67$0.60

* 53 weeks

NASDAQ: DAVEStrong board and executive teamReal Founder – Real storySolid balance sheet and access to capitalRAVING fans

Lesson #6

Be responsible for your own career

The Restaurant IndustryA Great Career Opportunity

• Nearly ½ of all adults have worked in the restaurant industry at some point in their lives

• 80% of restaurant owners’ first job was an entry level position

• 88% of restaurant employees said restaurants often provide the opportunity to start at the bottom and move up to management

Source: NRA

The Restaurant Industry – small businesses with a large impact

• Restaurant industry sales are projected to total $604 billion in 2011 = 4% of U.S. GDP

• The overall economic impact of the restaurant industry is expected to exceed $1.7 trillion in 2011

• The restaurant industry is projected to employ 12.8 million jobs over the next decade, with employment reaching 14.1 million by 2021

Source: NRA

Lesson #7

Never stop investing in yourself or in your education – be a life learner

Lesson #8

No one can ever take your education away from you

Lesson #9

“Thank you” and “I’m sorry” are two of the most important words yet are the most infrequently used

Lesson #10

Start building your network now; be purposeful;

make it a priority; and pay it forward

Thank Que….Que & A?