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ABOUT RSI

Who We Are

Restaurant Services, Inc. (RSI) is the independent supply chain management and distribution cooperative for the BURGER KING® system.

For more than 20 years, RSI has been an instrumental partner working on behalf of BK® restaurants in the United States to secure the best possible commercial terms for food, packaging, promotional products, supplies, equipment, distribution services and more.

In other words, we strive to Ensure Supply at the Best Cost for BURGER KING® operators, to the tune of about $3 billion in purchases of products and distribution services a year... everything from toasters to tongs, freezers to fries and broilers to buns. And, we make sure that these items move smoothly from suppliers through regional distribution centers and each restaurant across the country receives the RIGHT PRODUCT at the RIGHT TIME in the RIGHT AMOUNT.


The Fine Print: RSI Corporate Structure

RSI was incorporated in Delaware in 1991 and operates as a cooperative under Subchapter T of the Internal Revenue Code. Our operations cover the United States and select international markets. The majority of our team is based in Miami, Florida. Our regional managers are field-based and assigned to specific territories in the U.S.

RSI is owned by our members - BURGER KING® franchisees and Burger King Corporation (BKC). Any franchisee operating one or more BURGER KING® restaurant in the U.S. is eligible for membership in RSI and can simply file a membership form to join. We are fully accountable to our members and provide them with the timely business information and supply chain visibility they need to run profitable restaurants.

In addition, we have delivered patronage dividends to our members each year since we began doing business. However, this does not mean that we are exempt from income taxes. RSI is subject to federal and state income taxes with respect to all non-patronage sourced income and any earnings not paid to members.


Working Together: RSI and Burger King

RSI and BKC work together under an Operating Agreement executed in 1992, which outlines the respective roles and responsibilities of each company.

As the "brand owner", BKC is responsible for developing brand strategy, marketing programs, product specifications, food quality and safety standards and the approval and disapproval of suppliers and distributors...basically everything that defines the quality and influences consumer perception of the BURGER KING® brand.

RSI serves as the exclusive supply chain management and distribution cooperative for BURGER KING® restaurants in the U.S. Our main responsibility is to negotiate commercial terms and conditions for a steady supply of specified products at the best cost to help BURGER KING® restaurants operate profitably. We negotiate contracts for basically everything needed to run a restaurant, including food, packaging, equipment, premiums toys and distribution services with BK® approved suppliers in the U.S.


What We Do: The Value of RSI

We are proud of the role we play to support our members and contribute to the growth and success of the BURGER KING® brand.

Our vision is "To be the BEST purchasing and supply chain organization in the foodservice industry" and our mission is "To ensure, at the best cost and at established performance standards, a continuous supply of the products and services necessary to build, operate and maintain BURGER KING® restaurants for the benefit of our members."

In an increasingly competitive environment, cost control at the restaurants’ back door is critical to restaurant profitability. We work closely with our members, BKC, food and packaging suppliers, marketing agencies, equipment vendors, distributors and information systems providers to identify cost savings and continuously improve supply chain efficiency.


Focused and Driven: Our Core Businesses

At RSI, we are focused on running an efficient supply chain for the BURGER KING® system and the four main areas of our business drive our efforts every day:

• Food & Packaging
• Equipment & Facilities
• Distribution & Logistics
• Premiums & Promotional Items

These key departments develop supply and purchasing strategies, implement pricing methodologies for their respective areas, negotiate supplier contracts and manage vendor performance and relationships. And, most importantly, they all work together to increase the competitive advantage of the BURGER KING® brand and the profitability of BURGER KING® restaurants.


Food & Packaging (F&P): On behalf of our members, we purchase hundreds of different food and packaging items. From beef to produce to French fries to ketchup, we source a vast array of food items -- most of the ingredients needed to build the wide variety products on the BURGER KING® menu. Our F&P team manages the development and production of these items through strategic supplier relationships and also works with them to support BKC in new product development and marketing initiatives.

In addition, the F&P team purchases promotional and core packaging used to serve menu items to restaurant guests every day. The cleaning materials and supplies used to maintain a clean and pleasant environment in BURGER KING® restaurants are also sourced by our F&P team.


Equipment & Facilities (E&F): RSI’s E&F team uses domestic and international procurement programs with BKC-approved suppliers to negotiate the costs of BK® restaurant dining rooms, kitchens, and facilities.

From broilers to toasters; fryers to dispensers; coffee equipment to ice machines; signage to lighting to drive-thru systems and everything else in between, E&F sources and negotiates the costs of all BK® equipment essentials. And, we make purchasing all of these items easy for our members through the RSI eRedBook, our online e-commerce equipment purchasing guide that provides a virtual marketplace for members to order equipment and learn about the latest E&F news and promotions.

The team also supports BKC in equipment and facilities roll-outs that impact restaurants nationwide, and in construction-related items required in the development and maintenance of new and existing restaurants.


Distribution & Logistics (D&L): RSI negotiates Distribution Services Agreements and manages the performance of BKC-approved distributors on behalf of more than 90% of members’ restaurants in the U.S. Our on-going efforts efficiently reduce or mitigate logistics and distribution expenses for our members.

We work with established Local Distribution Committees comprised of members in that area and/or their authorized representatives, to ensure that regional distribution centers adhere to the performance standards outlined in their distributor service agreements. The D&L team also identifies and recommends new distributors to BKC for approval.


Premiums & Promotions: RSI’s Premiums team works with BKC’s Marketing Department and creative agencies to identify and deliver high quality, safe, and cost effective premiums (toys) and other promotional items to the BURGER KING® system worldwide. RSI negotiates all commercial terms and conditions for premiums and promotional items including tooling and manufacturing in China, ocean freight, import and customs clearance, inland freight to U.S. distribution centers and delivery to restaurants.

Plan, Analyze, Execute: RSI Support Functions

The support functions at RSI are the foundation of our business, providing the business intelligence, critical analytics and essential tools and technology we need to better manage the supply chain and deliver more restaurant-level profitability for our members.

Business Analysis & Promotion Planning (BAPP) Compelling food promotions entice millions of people to visit BURGER KING® restaurants every day, which means RSI supports a a deep and wide BURGER KING® marketing calendar year round. For each promotion window, our BAPP team generates forecasts and analyses of product requirements; collects and interprets menu item sales data and estimates product demand. We manage our suppliers’ timelines to produce exactly what we needed to provide fair and equitable supply to all restaurants in the system and mitigate supply issues as much as possible. Once a promotion gets underway, BAPP tracks and reports sales activity while managing inventory to minimize excess inventory exposure and reduce the costs that could be incurred by the system if excess inventory is not depleted.

For potentially high-volume items with tight production timelines, BAPP creates custom forecasts, by restaurant, based on historical sales, and sets recommended order limits so that every restaurant has equitable supply and can sell the product during the entirety of the promotion.


Commodity Analysis: From the beef in our burgers to the wheat for our buns, commodities play important roles in daily restaurant operations. They have a major impact on our supply chain, and ultimately affect the profitability of the BURGER KING® system. We continue to hone our expertise in the commodities market to manage risk associated with commodity price volatility and seasonality on behalf of our members. Our commodity analysis and risk management strategies enable us to employ a more sophisticated approach to commodity hedging, purchasing, contract provisions and pricing methodologies, which help to reduce the impact of commodity volatility.

Technology: At RSI, we require vast amounts of data and depend on complex technology applications to run the BURGER KING® supply chain effectively. We continuously look for opportunities to upgrade, evolve, enhance and secure our infrastructure and software systems to ensure optimum performance for our members. Through our technological capabilities, we employ advanced planning systems, demand management and forecasting, timely sales data, resource planning, warehouse management, transportation management and electronic commerce. Our partners in the supply chain, including our members, suppliers and distributors, also leverage our tools to communicate and plan more effectively; to make better informed management decisions and, ultimately, to reduce expenses at every level.

Minority Suppliers: RSI is committed to increasing the number of products and services purchased from diverse suppliers that meet the high quality standards required in the BURGER KING® system. We devote considerable resources to actively seek and promote minority- and women-owned suppliers that are competitive in price, quality, and service to other approved suppliers within the system. We have a fully integrated supplier diversity process that includes, when possible, at least one minority- or woman-owned supplier in our request for proposals. Our goal is to increase the percentage of our total purchases from diverse suppliers and to add significant new diverse suppliers to our portfolio every year.

Work with Us: How to Become BK® System Supplier

All of the vendors we work with and products we purchase for the BURGER KING® system are approved by BKC, which means that they have passed a rigorous series of testing and evaluations.

Suppliers: All suppliers must meet BKC’s specifications for the services, products and/or equipment; meet and maintain certain quality and safety standards; and satisfy any other BKC approval criteria on an ongoing basis.

The process begins when RSI proposes a new supplier. BKC considers the current or potential need for a new supplier in the system. If BKC determines within its sole discretion that a new supplier is necessary or appropriate, it will evaluate the proposed supplier under its current criteria. The evaluation and decision making process typically takes from 90 to 160 days and BKC then contacts the proposed supplier with its decision.

Once approved, BKC monitors suppliers and may require third-party audit and testing to determine their compliance with BKC’s specifications and other requirements. Approved and proposed suppliers are normally required to assume costs for BKC’s testing, audit and other costs associated with the company’s evaluation and review of a supplier.

In addition to meeting BKC’s approval requirements, approved suppliers must meet RSI’s commercial requirements to ensure continuous supply of the approved products to BURGER KING® restaurants at competitive prices. When considering a new supplier, both BKC and RSI evaluate the supplier’s ability to meet all of their respective criteria.

As a routine component of developing and implementing supply agreements for existing products, RSI will typically consider new suppliers for existing products. A new supplier that has the potential to produce an existing BURGER KING® approved product at the required standard can contact us to establish a business rationale for recommendation. If we are comfortable that this supplier can produce the BURGER KING® product to the established specifications, offer competitive pricing, and ensure continuous supply, we may recommend this supplier to BKC consideration and approval.


Distributors: As with suppliers, distributors to the BURGER KING® system must also meet BKC’s strict quality and safety standards and be able to meet RSI’s requirements to ensure continuous and reliable supply to BK® restaurants at competitive distribution rates.

The approval process for a new distributor begins when RSI, in concert with BKC, identifies a need for a potential new distribution center in the designated service region. Working with our Local Distribution Committees across the country, RSI identifies qualified companies that have foodservice experience, a proven track record and financial viability. RSI then submits its recommendations to BKC, which has the exclusive authority to approve distributors. Once BKC approves a distributor and a Distribution Services Agreement is finalized, RSI and the Local Distribution Committee work together to transition restaurants to the new facility and closely monitor the ongoing performance of the new distributor.


Working Together: RSI Subsidiaries

Supply Chain Services, LLC: Established in 2003, Supply Chain Services, LLC ("SCS") provides purchasing and distribution solutions to small, growing, multi-unit brands outside of the BURGER KING® system. SCS leverages RSI’s established network of 300+ suppliers and distributors to lower costs of goods and services, create an efficient supply chain and deliver enhanced brand profitability for its clients. The net income SCS generates accrues to RSI members and is distributed through RSI’s patronage process. Click here to learn more about SCS.

Restaurant Services Canada Inc.: Restaurant Services Canada Inc. ("RSCI") was established in 2005 to provide food & packaging purchasing, distribution and supply chain management services for BURGER KING® restaurants in Canada. RSCI combines the collective purchasing power of BURGER KING® restaurants in Canada and the U.S. to achieve significant and sustainable cost savings for the BK® system in Canada.

What’s Next: The Future for RSI

Our mission shapes everything we do at RSI. We are committed and steadfast in our efforts to Ensure Supply at Best Cost for our members and believe that creating and maintaining a "Best in Class" efficient and responsive supply chain is the key to long-term, sustainable competitive advantage for the BURGER KING® brand. Working in concert with BKC, we will continue identifying ways to bring the BURGER KING® system cost savings opportunities throughout the supply chain that will not only meet our current needs, but also continue to sustain profitable restaurants into the future.


©2014 Restaurant Services, Inc.  All Rights Reserved