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Franchise Owners, Key Operators & IT Leaders,

As our digital business continues to grow, and our reliance on in-restaurant technology increases, it is absolutely critical that we have robust and reliable connectivity to and within our restaurants. Our current restaurant network served us well for many years, but it is beginning to hinder our ability to advance our digital and in-restaurant technologies. It must be upgraded very soon in order to keep pace with today’s business and prepare us for future growth. As a result, the PHLLC Technology team, in partnership with the Franchise IT Committee, recently began an initiative called “Network of Now” (NeON) to design a new restaurant network and select a new managed network provider.

I’m excited to announce that we have selected Comcast as our new managed network provider. Comcast is a market leader in managed network services, and will bring more reliable connectivity, better service levels and increased security for the technology running in our restaurants. Comcast is also making an investment to expand its coverage near Pizza Hut restaurants where possible.

Benefits of the Comcast Partnership

Comcast will be responsible for facilitating broadband connectivity to all Pizza Hut restaurants. If Comcast does not provide broadband service in a particular area, they will work closely with local providers to find the best available service at a competitive price. Comcast will also be responsible for managing and supporting the networking equipment inside each restaurant. Several key benefits of the new service include:

• Increased bandwidth and speed for many system restaurants
• Increased reliability, including cellular backup for every restaurant
• Increased uptime requirements with financial penalties if not met
• Same day service for issues with in-restaurant networking equipment
• Future option to use Voice Over IP (VOIP) phone technology to reduce the cost of phone lines

Cost of the New Service

• The monthly recurring charge for managed network services will increase by an estimated $35-$75 per restaurant, depending on a variety of factors. This increase will provide significantly increased uptime, cellular backup, modernized equipment, same-day maintenance and improved security.
• The cost of broadband varies widely by geography, bandwidth and local provider. Restaurants will be required to have at least 10MB bandwidth. If this represents an increase in bandwidth for a particular restaurant, there may be an associated cost increase. Comcast has committed to work with local providers for competitive rates on broadband.

What’s Next

Over the coming months, the PHLLC Technology team will be working with each of you on a plan to transition your service to Comcast. The transition will begin with:

• New builds
• Restaurants whose existing network equipment is nearing end of life
• Restaurants who are no longer in contract with our existing providers

Restaurants that are still under contract with the existing providers (Hughes and GTT) will transition once their contracts end.

What This Means For Existing Service With Hughes and GTT

• Hughes and GTT remain committed to serving our restaurants through the life of their contracts. The service expectation for these providers remains the same.
• Restaurants should NOT sign long term agreements, extensions or renewals with Hughes or GTT. If you have a situation that requires this, please reach out to the Pizza Hut NeON Team at NeON@yum.com to discuss options.
• Restaurants interested in transitioning to Comcast prior to contract expiration may have options to do so. Reach out to NeON@yum.com for more details.

If you have any questions, don’t hesitate to reach out to the Pizza Hut NeON team at NeON@yum.com.

The information contained in this document is confidential and intended for use by personnel of Pizza Hut, LLC, its subsidiaries and Pizza Hut franchisees. All rights are reserved, and any transfer or disclosure of this material is prohibited without express written consent of Pizza Hut, LLC. Use of this information by any other persons or company is prohibited.

Information contained in the manuals and documents referenced in this bulletin has been compiled by Pizza Hut, LLC solely for its internal use and based upon the structure and needs of company-owned restaurants. Pizza Hut, LLC does not warrant or represent that information in the manuals and documents are fit or appropriate for use by any parties other than Pizza Hut, LLC. Pizza Hut, therefore, strongly encourages franchisees to seek the advice of their own legal counsel, and asks that franchisees not rely on any information of a legal nature that is being shared with the franchisees.

SENSITIVE MATERIALS - As the manuals and documents referenced in this bulletin may contain sensitive materials, please verify that you have signed the Sensitive Materials Letter before ordering. Please contact Chandra Soule at 972-338-8010.