TA Petro Overview of SVC Leases and Financial Upside
Full & Quick Service Restaurants - Appealing To Audience
TA's Full Service Restaurants and some QSRs may no longer be satisfying motorists, particularly private
drivers. Action is being taken to provide a product offering that appeals to the current demographics.
Full Service Restaurant (FSR) Conversion
IHOP
Black Bear Diner
Quick Service Restaurant (QSR) Conversion
CHARLEYS
PHILLY STEAKS
TACO
BELL
• TA has approximately 160 FSRs under its proprietary Iron Skillet
and Country Pride brands
• In 2019, TA entered into a multi unit franchise agreement with
IHOP to rebrand and convert up to 94 of its FSRs
• The first months of our initial conversion to IHOP saw a 40%
increase in FSR sales
-
Also saw a 10% increase in convenience store sales, and 8%
increase in gas sales at those sites
• Two FSR conversions from proprietary brands to Black Bear Diner
led to the realization of 120% increase in sales
• TA has identified a number of underperforming QSRs in its
portfolio that it could look to rebrand
- Internal estimates include 21 Subway and Carl's Jr. stores that
would be good candidates for better performing brands
Charley's Philly Steaks and Taco Bell stores perform better than
most brands in TA's franchise portfolio; TA expects to look into
converting the identified underperforming stores into such
brands based on on similar size constraints
(1)
(2)
25
25
$341mm
Restaurant Sales
(LTM Ended 9/30/2020)(1)
X
1% Margin
Improvement (2)
=
II
~$4mm of
EBITDA / EBITDAR
Based on $341 million of last twelve months ended September 30, 2020 Restaurant Sales as sourced from Travel Centers of America's FY 2019 10-K and 3Q 2020 10-Q.
Represents an assumed hypothetical 1% increase in margin on restaurant sales. While management believes a 1% increase in margn on restaurant sales is reasonable based on ongoing and contemplated initiatives, it is not a guarantee of
future performance, and we may fail to achieve such increase.
Stopping Centers
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