Investor presentation for Wang Gang Asian Eats. Full Business Plan avail upon request.

1. Investor Presentation
August 2009
Contact:
Ryan O’Day, President and CEO
618-655-0888
ryanoday@wanggangasian.com
Edwardsville, IL

2. Multi-unit operator-based restaurant concept that mixes fresh
food, great décor, and a comfortable, welcoming atmosphere
to provide a quick service meal experience not currently
found in the Asian carry-out dining segment.
 First location in Edwardsville, IL opened in February 2009
 Profitable with average of $1,991/day in sales
 Led by team with food franchise and expansion experience
 Seasoned head chef with restaurant operations experience
 Identified second location
 With funding, will roll out 10 stores over next 5 years

3. Upscale dining experience with quick service price
Food Venue Service
•Asian cuisine •Small •Cross-trained
•Fresh •Strategic small staff
•Heart-friendly locations •Order food at
•Unique options •Focus on carry- counter
•Affordable at out & delivery •Food brought to
under $10 for •Unusual pleasing table
food and drink decor •Tip not required

4. Generating an average of $1,991 per day for lunch and dinner
 Open since February 2009
 18 employees; 1,200 SF; 25 seats
 Cash flow positive within 4 months
 Averaging $583/SF in annual sales
 Existing space build out costs were approximately $60,000
 65% of orders are to go (take-out and delivery)
 Located in strip mall in previous Chinese restaurant space
 2 miles from commercial center & 1 mile from college campus
 Many customers are repeat customers
 Strong word of mouth reputation

5. Open 10 locations over next 5 years with funding
Year 1 Years 2-4 Year 5
 Locations will be within 2 hr. radius from existing location
 Target cities include: Carbondale, Champaign, Columbia, & St. Louis
 Roll-out happens within 6-8 months of financing secured
 Locations will be 2,800-3,000SF with 41-65 seats
 Build-out costs will be up to $175K per location
 Each location projected to generate $1,733/day in first year
 Profitability reached within 16 months per location

6. Crowded market but few with Wang Gang model
Snapshot of Asian Restaurant Market
 61,893 Asian restaurants in U.S.
 Chinese (40,889), Japanese (9,383), Thai (2,645), Vietnamese (2,644),
Korean (1,271) and Pan-Asian (1,955)
Types of Chinese Restaurants
 Sit-down dining - order from a menu that is too big to be fresh, more authentic food
 Take-out - convenient outlets for traditional American Chinese dishes, folded and waxed
cardboard boxes
 Buffets - wide variety of food in buffet style, authenticity of the food varies from outlet to
outlet, offer more than just Chinese food

7. Initially enter market through site conversions in college towns
Target Demographic
 College students living on or close to college campus
 Families living within higher-density suburban areas
 Close to military bases w/ high density of people within 18-34 age range
Market Entry Strategy
 College towns – low unemployment, regional health-care, skilled and educated
workforce, new students each year, recession resilient college faculty workforce
 Site conversion – convert previous restaurants at lower cost than building new,
negotiate rents with landlords for vacated space
Marketing/Sales Strategies
◦ Email, text messaging, TV, radio, print, Internet
◦ Up selling, daily specials, promotions

8. Wang Gang offers a unique Asian restaurant concept
 Primary competition: quick service Chinese restaurant chains
 Other competition: independent Chinese restaurants
 Indirect competition: non-Asian national quick service chains
Primary Strengths Weaknesses Wang Gang
Competition Difference
Yan Can, Crazy Time in market, Lack of delivery Heart friendly, unique
Bowls and Wraps, established, service, limited dine food options,
Noodles and locations, market in, sterile/dirty preserve integrity of
Company, Mama penetration, loyal interior, serve frozen food, food not
Fu’s, YoshiNoya, customers, better food, too wide of institutionally
Panda Express, Pei menu/price menu, buffet style, purchased,
Wei,Teriyaki knowledge, low service, dietary homemade sauces,
Experience, Sorabol, continuous challenges, limited no sushi, pleasing
Doc Chey’s, improvement hours, don’t serve décor, counter
Wagamama alcohol service, limited
menu, open 7 days a
week, serves alcohol,
no language barrier

9. Grow by expansion, inexpensive build-out, quick profitability
 Open 10 locations in 5 years with funding
 Each location projected to generate $1,733/day in first year
 Profitability reached within 16 months per location
 Build out costs: $100-175K (depending on space)
Year 1 Year 2 Year 3 Year 4 Year 5
Sales $1,872,000 $3,498,000 $5,448,000 $7,356,000 $8,712,000
Gross Profit $1,085,760 $2,051,340 $3,228,840 $4,401,720 $5,247,600
Operating Income $864,358 $1,691,670 $2,726,902 $3,751,514 $4,525,260
Net Income $895,187 $1,664,091 $2,570,954 $3,472,779 $4,106,733
Cash $1,876,723 $4,027,376 $7,143,441 $11,032,213 $15,368,067
Total Assets $2,445,437 $4,786,947 $8,052,013 $11,935,928 $16,127,496
Store Roll Out 3 2 2 2 1

10. Grow through brand extension, new locations, and franchising
 Brand Extension
◦ Line of bottled Asian sauces and salad dressings
◦ Frozen foods market
◦ Branded merchandise
 Location
◦ Strip malls, stand alone stores, attached within hotels, airport
locations, college cafeterias, hospital cafeterias, sports stadiums,
and any other exclusive tenancy
 Franchising

11.  Ryan O’Day: President and CEO
◦ Franchise owner of Seattle Sutton’s Healthy Eating
 Raised $90K from private capital to purchase and develop franchise in St. Louis
 In 3 years, generated $2.7MM in sales with over 30 distribution locations
 Opened one new distributor location on average every 3 weeks for the first 2 years
◦ Quality Manager for the highest volume Sealed Air Corporation plant
 Jamie O’Day: Executive Vice President, Operations
◦ Franchise owner of Seattle Sutton’s Healthy Eating with Ryan O’Day
◦ Started & sold three of her own top sales tier distributorships within St. Louis territory
 Charles Hammelman: Corporate Chef/ Operations Manager
◦ 13 years experience in restaurant industry – culinary and hospitality
◦ Management role with P.F. Chang’s
 Executive Chef/Culinary Partner of P.F. Chang’s
 Sous chef of P.F. Chang’s China Bistro in Richmond Heights, MO
 Managed daily operation of kitchen and 30 person crew
 Member of regional chef training team and opened 2 new locations

12.  Sherri Whitworth
◦ 30-year veteran of the restaurant and giftwares industry
◦ Operates profitable single unit Josephine’s Gift Shop and Tea Room in Godfrey, IL
 Fred Whitworth
◦ 30-year veteran of the independent sales and marketing industry
◦ Runs operations for Josephine’s Gift Shop and Tea Room in Godfrey, IL
 Michael A. Mitchell
◦ 40-year veteran of the automotive industry
◦ Former President of Global Commercial Operations of Collins and Aikman
 John Caton
◦ 15 years experience in the restaurant industry
◦ Manager of a high volume Hooters, opening sous chef of a P.F. Chang’s China Bistro
◦ Proprietor of own restaurant in St. Louis - Benton Park Café

13.  Previous capital raised: $110K from founders, friends, & family
 Total round: $2.75MM (10 locations, $275K each)
◦ Seeking $825K to open 3 locations over next 12 months
USE OF FUNDS 10 SITES
Equipment $450K
Location Build- $800K
Out
Staff $500K
Marketing/ $500K
Advertising
Other Operating $500K
Expenses
TOTAL FUNDS $2.75MM
 Exit Strategy: Distributions; purchase by firm in casual dining sector

14. Unique American management concept filling need of quality
quick service Asian food at a low price
 Team with industry experience
 Existing location profitable
 Identified second location
 Low cost roll-out of future locations