The revamped warehouse model has fostered an

overall reduction in delivery delays to site, claims,

paying additional on-site labor and loss of product.

Storage Solutions for New Restaurant Openings and Remodels

A Darden Restaurant Group Case Study

Scenario
In 1997, the Darden Restaurant Group asked Suddath Transportation Services (STS) to provide on-site storage solutions for new
restaurant openings and remodels. While this model was perceived as cost effective, it did create issues on site and created extra
expenses as a byproduct of the these issues.

Challenge
While at first the on-site storage solution seemed a more cost-effective option for the Darden Group, STS worked with Darden to
refine an even more cost effective and efficient model that would further reduce on-site issues. During this discovery phase, it was also
determined that the Darden Group needed an efficient software program that would allow them to better track inbound material from
their manufactures and distributors, as well as, manage inventory levels for each project.

Solution
STS proposed to convert the current on-site storage system to a warehouse-based storage solution. STS utilized its extensive warehouse
and last-mile delivery network, offering Just In Time (JIT) solutions to restaurant construction sites. In addition, STS acquired an
inventory management software system, which allowed both STS and Darden keep better track of restaurant equipment inventory
levels at any given point in the supply chain. This web-based system gives Darden visibility to all projects at any stage.

Result
As a result of moving the on-site storage to a warehouse-based system and implementing the new software, Darden has been able to
operate with higher efficiencies when remodeling existing restaurants and opening new locations. The software system helps keep
better track of existing inventory, reducing costly re-ordering of products already on hand. It has also allowed Darden to improve their
accounts payable to vendors, as the ownership of the inventory has
become clearer, giving Darden a bargaining tool to reduce their capital
purchasing expenditure budget.

The revamped warehouse model has fostered an overall reduction in

delivery delays to site, claims, paying additional on-site labor and loss of
product.

STS has completed more than 600 remodels and new openings for more
than 13 years. In addition, STS has handled more 30,000 truckload, LTL
and small parcel shipments for Darden in association with these projects.

Similar STS customers include Chipotle, Church’s Chicken, KFC, Chuck-E-Cheese, Buffalo Wild Wings and Subway.