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On Its 10th Anniversary, UFPC Maintains Value to the System

Louisville, Ky. — May 1, 2009 —

When Unified Foodservice Purchasing Co-op, LLC (UFPC) launched in 1999, the company managed the supply chain for three national brands and oversaw an annual spend of $3.6 billion.

This year, as UFPC celebrates its 10th anniversary, the numbers may be bigger (five brands and $5.4 billion in managed spend), but the original vision and value to members are still in place.

At the outset, the idea of forming a not-for-profit cooperative to serve the food, packaging and equipment needs of all three brands (KFC, Pizza Hut and Taco Bell) was appealing because it would allow UFPC to leverage the combined volume on behalf of all members. A team comprising the best of corporate and franchisee purchasing philosophies, the corporate strategic thinkers and the “street fighters” from the KFC Co-op, would handle the negotiations. Decisions would be based on the democratic principles of governance all co-ops have — one member, one vote — which gave large and small franchisees an equal voice.

These principles have served concept co-op members well over the years and have provided a platform for expansion. UFPC has expanded its supply chain management role to offer more services to members. Introduced in 2004, the commodity risk management team uses strategies and tools to smooth price volatility and assess market risk based on direction from each of the governing concept co-op boards. The resource services team, launched in 2002, offers more than 40 programs in dozens of areas from energy and safety shoes to cell phones and CO2.

“The programs UFPC offers are more valuable than ever in today’s challenging times,” said Daniel E. Woodside, President and Chief Executive Officer. “By viewing the entire store — not just menu items — as a cost center, we can develop programs that deliver more value to the bottom line.”

As UFPC launches its next 10 years, new opportunities for growth and success rest on the horizon. A bar coding program that set the standard for the industry is underway, which will provide unprecedented business intelligence about how a product moves through the restaurant system. Opportunities for international sourcing, which allow UFPC to leverage international volume to negotiate favorable domestic pricing, are being aggressively explored. These system enhancements will keep UFPC strong and ready to meet another decade of business challenges.

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