Noble Roman's, Inc. · OTC:NROM
Noble Roman's — Investor Presentation (July 2023)
53 slides from Noble Roman's's investor presentation, Jul 10, 2023
Slide 1: Business Review Shareholder Presentation July 2023
Exhibit 99.2 mS Business Review Shareholder Presentation July 2023 Noble Romans Inc.
Slide 2: Presentation Outline
Presentation Outline
Slide 3: Current Strategic Business Focus
Current Strategic Business Focus bi Address Company’s Debt Structure Accelerate Growth in the Non-Traditional wv Segment v Improve Margins & Performance in the Craft Pizza & Pub Segment
Slide 4: Follow-On Strategic Objectives
Follow-On Strategic Objectives | Promote the Company and its Stock v Expand the Craft Pizza & Pub Segment (Company Owned & Franchised)
Slide 5: Business Focus
Business Focus
Slide 6: Non-Traditional Segment
Non-Traditional Segment ee P
Slide 7: Convenience Store Venue — General Data
Convenience Store Venue — General Data Over 150,000 Units Nationwide 165 Million Transactions Per Day 90% of Americans Live Within 10 Minutes of a Unit Total Convenience Store Sales are 3.1% of US GDP 70% of Customers Enter When Purchasing Gas 59% of Customers Would Consider Purchasing Food Sources:
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Slide 9: Unique Advantage
Unique Advantage Restaurant Pizzeria Inside a Convenience Store Not a Convenience Store that Sells Pizza Creates a draw Increased customer traffic Increases other sales simultaneously Operates with One Dedicated Employee
Slide 10: Branded Space
|| Branded Space ¢ LED Digital Menu Board System ¢ Warmer Mounted Promo TV Display * Custom Counter Graphics ¢ Up-Front Ordering for Custom Pizzas Yeas a Serene! | ¢ Up-Front Production Area ~ a
Slide 11: Noble Romans Sample Non-Traditional Layouts
Noble Romans Sample Non-Traditional PA ARDWHINNING PIZZA Layouts Option A Option B » XX 11
Slide 12: Program Item Cost
Program Item Cost Equipment $21,335 Interior Signage/Marketing $3,345 Franchise Fee $7,500 Total Program Entry Cost $32,180 Costs as of 3/31/23, subject to change Does not include site- dependent construction, if any necessary.
Slide 13: YTD Development in 2023 Franchise Agreements Signed
| YTD Development in 2023 Franchise Agreements Signed: 41 From Januar y 1, 2023 through June 30, 2023.
Slide 14: Indianapolis, IN (nw side)
Indianapolis, IN (nw side)
Slide 15: Marengo, IL
Marengo, IL
Slide 16: Elba, AL
Slide 17: New Orleans, LA
New Orleans, LA FAMOUSLY DELICIOUS!
Slide 18: Lexington, KY
Lexington, KY
Slide 19: Union Springs, AL
AL . Union Springs
Slide 20: Zionsville, IN
Zionsville, IN FAMOUSLY DELICIOUS! 7
Slide 21: Non-Traditional Revenue Generation
Non- Traditional Revenue Generation Weekly Royalties ¢ Primary Method * Collected Weekly by ACH Fees in Lieu of Royalty * Secondary Method, Now Minimally Used e Mark-Up on Selected Ingredients © Collected by a Noble Roman’s Distributor ¢ Paid by the Distributor to Noble Roman’s Monthly
Slide 22: New Franchise Agreement Clause
New Franchise Agreement Clause For Franchise Agreements Sold After June ‘22 Establishes a Minimum Royalty Regardless of Sales ° Weekly ° ACH © Of Smaller Operations © Of Lower Volume Operators/Locations
Slide 23: Concerns to Overcome
Concerns to Overcome me otatfing mee INflation me ceneral Economy
Slide 24: Selling the Labor Factor
Selling the Labor Factor * Most prospects today recognize value and necessity of food | ¢ If they are not already, they have to be educated on the difference between warehousing retail items and foodservice * Noble Roman’s concept only requires 1 dedicated employee * Differentiated from * Concepts w
Slide 25: Segment Review
Segment Review || Craft Pizza Noble Romans Inc. & Pub
Slide 26: Craft Pizza & Pub
Craft Pizza & Pub * Conceptualizing the Mission aff Creating WOW! rs Exceeding Expectations in Product, yy Features and Service 26
Slide 27: Built-In WOW!
Built-In WOW! Glass Enclosed, Temperature Controlled Dough Rooms Over 40 Toppings from which to Choose Self-Serve Craft Root Beer Keg Open Pizza Making Line Abutting Main Aisle Hand-Made, Hand- Rolled Fresh Breadsticks w/Spicy Cheese Self-Serve, Garden Fresh Salad Bars Ultra Fast Baking Speeds Many
Slide 28: Guest Service WOW!
Guest Service WOW! as Pokkst | 4.5-Star Combined Google Rating 30-Day Moving Average Thru 7/2/23
Slide 29: CPP -vs- Fast Casual
CPP -vs- Fast Casual Craft Pizza & Pub Typical Fast Casual Pizza Concept Broader Menu Limited Menu Personal, Medium & Large Pizzas Often Only Individual Pizzas Extensive Beer & Wine with Bar None or Limited Refined & Relaxing Dining Room Fast Food Ambiance Modern Interior with Entertainment No Speci
Slide 30: Map of Existing and Potential Locations
{ e @ w @evitie E | ore | aves Indianapolis ‘Oo. | ‘a Beech Grove, {le i Li \@ = _/ Greenwood S Location Pe aes : \ Shelbyville M a p @ Martins s StPé 4 j iaertecn } Edinburgh } \ @) / | i Nashwille Gs) Columbus )) ¥ @ Existing Location [1 somington aa 2 Gs) © Potential Location cinctnla 30
Slide 31: 2,400 Sqft Prototype
2,400 Saft Prototype a Ta Simplified Operations for Franchise Growth Decreased Occupancy Costs Decreased Initial Investment Appropriate for Small & Large Markets a1
Slide 32: Prototype C Layout
Prototype C NOBLE ROMAN'S 30’ x 80’ Layout LOCAL CRAFT PIZZA
Slide 33: Guest Behavior Metrics
Guest Behavior Metrics Average Ticket $27.46 $27.13 Percent Dine-In 56.4% 56.7% Percent 3" Party Delivery 13.8% 11.5% Percent Organic Delivery 3.1% YTD Catering & Special Events $92,992 $98,996 6-week averages. Catering & Special Events data as of 6/20/23.
Slide 34: Delivery Service (Delivery Fulfillment by DoorDash)
Delive ry Service (Delivery Fulfillment by DoorDash) Implemented June 2023 * Work out bugs before fall delivery season starts © No promoting yet Order Directly from Craft Pizza & Pub © nrpizzapub.com or by phone * Not from DoorDash Website CPP takes the order then Pushes to DoorDash fi livery DoorDa
Slide 35: Pipeline Projects
Pipeline Projects CPP Ordering App ¢ For Android and Apple e With Loyalty Rewards ¢ Must follow delivery in sequencing New POS System ¢ Current system is not sufficiently robust ¢ Lacks ability to properly integrate services
Slide 36: Popular Feature to Attract Guests
Popular Feature to Attract Guests Salad Bar (Launched in 2022)
Slide 37: Upcoming LTO — Mexican Flatbread Pizza
Upcoming LTO — Mexican Flatbread Pizza Flatbread Recipe with Mexican Oregano, Taco Sauce, 3 Cheeses, Fresh Cilantro, Chorizo Sausage, Fresh Tomato — Tri-Color Jalapeno's Optional!
Slide 38: Upcoming LTO — Monster Pizza
Upcoming LTO — Monster Pizza 50% More Cheese & Topping than a Regular Pizza for Just $2 More! 38
Slide 39: Management & Labor Challenges
| Management & Labor Challenges * Continued Wage & Salary Inflation * Management Talent Exited Industry During COVID and has Under-Returned ¢ Hourly Employee Pool has Significantly Returned
Slide 40: Average Hourly Wage
Despite Average Hourly Wage 12.60 12.40 12.20 12.00 11.80 11.60 11.40 11.20 11.00 11.59 June '22 12.43 June '23 7.4% Annual Increase
Slide 41: Average Annual Management Salary
Despite Average Annual Management Salary $55,000 $54,500 $54,000 $53,500 $53,000 $52,500 $52,000 $51,500 $51,000 $50,500 $50,000 $51,704 June '22 $54,600 June '23 5.6% Annual Increase a
Slide 42: Additional Factors
Additional Factors . Competitive Factors A No Perceived Room for a Ee-] . . oo. Economy Price Increase at this Time . ae Price Sensitivity | Significant Manufacturer Pricing Pressure Delivered at the End of 2022 for 2023
Slide 43: Increased Productivity & Lower Costs
Increased Productivity & Lower Costs Sales Per Non-Management Labor Hour $86.00 $85.00 $84.00 $83.00 $82.00 $81.00 $80.00 $79.00 $78.00 $77.00 $76.00 $79.19 June '22 $84.65 June '23 6.9% Annual Increase 43
Slide 44: Increased Productivity & Lower Costs
Increased Productivity & Lower Costs Total 9-Unit Weekly Salary Load $27,000 $26,000 225,052 $25,000 $24,000 14.7% Annual Decrease $23,000 $22,054 $22,000 : $21,000 $20,000 June '22 June '23
Slide 45: Increased Productivity & Lower Costs
Increased Productivity & Lower Costs Average Sales Per Labor Hour (salaried & Hourly) $58.00 $57.00 $56.00 $55.00 $54.00 $53.00 $52.00 $51.00 $50.00 $49.00 $48.00 $51.73 June '22 $57.20 June '23 10.6% Annual Increase 45
Slide 46: CPP Margin Contribution
CPP Margin Contribution 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% — 0.0% — 8.4% Jan thru Mar, 2023 15.1% Apr thru May, 2023 6.7 Point Increase 46
Slide 47: Food Cost Control Systems — Pizza Cheese
Food Cost Control Systems — Pizza Cheese Change in Measuring Cup Design for Pizza Cheese Reduced Frequency of Cheese Cups per Pizza Daily Cheese Usages vs Sales Staffing Stability Increases Procedure Conformance NO CHANGE IN TOPPING QUANTITY STANDARDS
Slide 48: Importance of Controlling Cheese
Importance of Controlling Cheese Percentage Cost of Pizza Ingredients Large Sicilian Pepperoni Pizza Cost data from 6/17/23 and using the 10- year average Dough Pizza Cheese PizzaSauce — Pepperoni cheese price.
Slide 49: Cheese: Pre & Post COVID Averages
Cheese: Pre & Post COVID Averages Five-Year Average Cheese Price 15.1% Increase in the ______ average in just 4 years! 1 ™2019 ™ 2023 49
Slide 50: Cheese Price Trend — Tailwind?
Weekly CHeese Price/Lb Cheese Price Trend — Tailwind? 2.400 2.300 2.200 2.100 2.000 1.900 1.800 1.700 1.600 1.500 1.400 1.300 1/6 1/27 2/17 3/10 3/31 4/21 5/12 6/2 6/23 7/14 8/4 8/25 9/15 10/6 10/27 11/17 12/8 12/29 —2022 — 2023 10 ¥r Ave
Slide 51: Challenges
Challenges Ce) MANAGEMENT QUALITY CONTINUING CONSUMER SPENDING & RECRUITING INFLATIONARY WEAKNESS/MACRO PRESSURES ECONOMICS SL
Slide 52: Craft Pizza & Pub
S. CRAFT PIZZA & PUB NOBLE ROMAN’ 52
Slide 53: End of Presentation
Noble Roman§ Inc. End of Presentation The statements contained in this presentation concerning the company’s future revenues, profitability, financial resources, market demand and product development are forward-looking statements (as such term is defined in the Private Securities Litigation Reform