#11. Così SIMPLY GOOD TASTE Cosi, Inc. (Nasdaq: COSI) William D. Forrest, Executive Chairman Kevin Armstrong, President & CEO William Koziel, Chief Financial Officer 品 1#2Safe Harbor Concerning Forward Looking Statements Matters discussed in this presentation that relate to events or developments which are expected to occur in the future, including any discussion, expressed or implied, of anticipated growth, new store openings, operating results or earnings constitute forward-looking statements. Forward-looking statements are based on management's beliefs, assumptions and expectations of our future economic performance, taking into account the information currently available to management. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition we express or imply in any forward-looking statements. Factors that could contribute to these differences include, but are not limited to: the cost of our principal food products; labor shortages or increased labor costs; changes in consumer preferences and demographic trends; increasing competition in the fast casual dining segment of the restaurant industry; expansion into new markets; our ability to effectively manage our business with a reduced general and administrative staff; our ability to generate increased revenue from our existing restaurants; the rate of our internal growth; our ability to incorporate a franchising and area development model into our strategy; the availability and cost of additional financing both to fund our existing operations and to grow and open new restaurants Our ability to generate positive cash flow from operations fluctuations in our quarterly results; increased government regulation; supply and delivery shortages or interruptions; market saturation due to new restaurant openings; inadequate protection of our intellectual property; adverse weather conditions which impact customer traffic at our restaurants; and adverse economic conditions. The words "believe," "may," "will," "should," "anticipate," "estimate," "expect," "intend," "objective," "seek," "plan," "strive" or similar words, or the negatives of these words, identify forward-looking statements. We qualify any forward-looking statements entirely by these cautionary factors. A Così SIMPLY GOOD TASTE 2 Ν#3Cosi - We represent "Simply Good Taste" in a restaurant concept Strong concept and brand capitalizing on the Premium Convenience trend Cosi is a premium convenience restaurant Così SIMPLY GOOD TASTE ● ● ● ● Our distinctive menu offerings - sandwiches, salads, pizzas, bagels - feature Cosi Bread, an authentic hearth-baked crackly crust flatbread Cosi provides guests a relaxing, urbane atmosphere that reflects taste and style in a modern, contemporary environment Currently operate 95 units in 17 states and Washington, D.C.; brought in revenues of $110.6 million in 2004 Average check per transaction: $8.46 = an "affordable Luxury" 3#4Ready for Growth An Overview of Cosi Today Strong brand ● 15 consecutive quarters of comparable sales growth - 6.4% comparable sales growth in Q2'05 and maintaining a strong two year comparable sales growth pattern 7.8% comparable sales growth YTD Q2'05 Strong concept - LTM Q2'05 AUV of $1.3 million¹ - 18.6% unit level cash flow margin1 28.5% cash-on-cash return¹ • New generation restaurant design AUV of approximately $1.6 million² - 26.0% restaurant cash flow margin² - 62.0% cash-on-cash return² Così SIMPLY GOOD TASTE 1 Comparable units only 2 Forecasted 12 months results based on a combination of new generation company-owned and franchise units in urban and suburban locations#5Experienced Management Team Since 2003, Cosi has assembled a new, highly capable management team with extensive restaurant company experience Senior Management William D. Forrest Executive Chairman Kevin Armstrong President & CEO William Koziel ● Chief Financial Officer Corporate Team Improvements New Legal Staff New Financial Staff • New Marketing Staff New IT Staff Così SIMPLY GOOD TASTE ● Previous Experience ● ● ● ● ● ● Operational Team Improvements Gilbert Melott, EVP - Operations & People Paul Seidman, VP - Food & Beverage Larry Bader, VP - Franchise Sales Headed the Restructuring Group at Gleacher & Co. CEO of Fine Host Corporation 20+ years of restaurant experience Long John Silver's, Subway, PepsiCo and Burger King 15+ years of executive financial experience Galyan's Trading Company, Homelife Furniture, Evans 4 New District Managers, 3 New Regional Vice Presidents 7 LO 5#6Our Premium Convenience Market Opportunity ● ● Consumers are dining out more frequently - Busier lifestyles - limited time to prepare food Less expensive to eat out vs. dine at home Customers seek both convenience and quality Convenience drives 75% of restaurant meal decisions Consumers are willing to "trade up" - pay more for quality, taste and setting. Sandwich and salad capture 60% of market Panera is only premium sandwich and salad concept with national footprint Clear opportunity for another player to service national demand - Così SIMPLY GOOD TASTE CO 6#7Our Guests Cosi Customer - Large, Attractive Demographic Customer Characteristics Desire for fast and convenient service ● ● ● Higher disposable income More sophisticated food preferences Così SIMPLY GOOD TASTE ● ● ● Premium Convenience Innovative, made-to-order food Sophisticated flavors. Convenient limited or self- service format 40 Million Households Upscale decor Average check of $6 - $9 Adults 18 - 34 without children Upscale suburbanites of all ages Metro elites of all ages Top 25 markets > 1,400 Cosi units Top 75 markets > 1,900 Cosi units 7#8What We Offer Our Guests Menu • Differentiated menu ● and product offerings Signature Cosi bread baked in open hearth in front of customers. Fresh, high quality ingredients designed to appeal to sophisticated tastes Made-to-order New items and LTOs keep offerings fresh Così SIMPLY GOOD TASTE Tos) Così WW 8#9What We Offer Our Guests Restaurant Atmosphere: New Generation Restaurant Relaxing, sophisticated atmosphere Welcoming and comfortable - - Sofas, chairs Music and lighting adjusted throughout the day 366 Così SIMPLY GOOD TASTE HEE 9 CO