Famous Dave’s “Pit-mastering BBQ”

1. Famous Dave’s “Pit-mastering BBQ” Diana Purcel CFO

2. Today, I plan to…. • Share my career path as well as some lessons learned along the way • Highlight the Famous Dave’s brand • Encourage you to consider the restaurant industry as a viable career option

3. Diana Who? Grew up in Golden Valley, MN Robbinsdale Armstrong High School – class of 1984 Tulane University – BSM; concentration in accounting – class of 1988 Lives in Corcoran, MN …..Mother of 3: Brandon 18 Laurel 16 Blake 14

4. Lesson #1 Understand what you bring ‘to the table’ “Sought and Brought” Theory

5. Biography in steps... Arthur Andersen & Co., 1988-1993 (Supervisory Senior) Dayton Hudson Corporation (Target), 1993-1998 (Senior Analyst) Sought: Large public company experience Exposure to senior leadership Brought: Banking experience Technical accounting expertise Ability to work in teams Strong work ethic

6. Lesson #2 Volunteer for the assignments or projects that no one else wants

7. Biography in steps... Dayton Hudson Corporation (Target), 1993-1998 (Senior Analyst) Damark Corporation, 1998-1999 (Dir of Reptg and Div Controller of Corp Planning and Reptg) Sought: Supervisory experience Responsibility for own cost center Brought: Public Company experience Large company retail experience Confidence in working with senior management and exposure CPA

8. Lesson #3 Find your ‘line’

9. Biography in steps... Damark Corporation, 1998-1999 (Director of Reporting and Divisional Controller of Corporate Planning and Reporting) Paper Warehouse, Inc., 1999-2003 (Controller/ CFO) Sought: Title Member of senior management Brought: Supervisory experience Retail experience An understanding of ‘my line’ CPA

10. Lesson #4 It takes years to build a reputation and seconds to lose it

11. Biography in steps... Paper Warehouse, Inc., 1999-2003 (Controller/ CFO) Famous Dave’s of America, Inc., 2003-present (CFO) Sought: Operational exposure Board of directors interaction Investor relations experience Brought: CFO title Franchising experience Bankruptcy experience CPA

12. Lesson #5 Energy is everything… Find your passion!

13. Introduction Fortunately…Unfortunately

14. Famous Dave’s of America, Inc. • Headquartered in Minnetonka, MN • Develop, own, operate and franchise barbeque restaurants • First restaurant opened in June 1994 • NASDAQ: DAVE – went public in 1996

15. Famous Dave’s …at a glance 1994- early 2003 • Entrepreneurially –run • Counter Service Restaurants • Board: Friends and family • Franchisees: Former associates, single concept owners • Management team to TAKE a company public Late 2003-today • Professionally –run • Full-Service Restaurants • Board: Functional expertise • Franchisees: Professional, multi concept owners • Management team to RUNa public company

16. Famous Dave’s …at a glance Roseville, MN June 1996 Belaire, MD August 2010

17. Unfortunately

18. When I stepped in… No credibility in the financial community No confidence by franchise system Franchise system out-performing company restaurants 12.2 million shares outstanding, marginal cash Company-owned comparable sales decrease (3.0%) Accumulated deficit ($9,942,000) Net loss ($2,898,000) Diluted net loss per share ($0.25)

19. Fortunately

20. Financial Turnaround • New executive team and founder steps out to take position with Bush administration • Ceased corporate growth & developed real estate strategy • Established Culture of Discipline & Invested in People and Systems • Divestitures, impairments and closures • Stock Repurchase Programs • Commitment to being a public company • Commitment to being a franchisor • Commitment to sound corporate governance

21. Unfortunately

22. 2008 at a glance • December 2007 CEO leaves for personal reasons • Stock decreases from $22.77 July ‘07 to $2.70 Dec ‘08 • Activist investor files 13d • Board member steps in as interim CEO • Board heavily involved in day to day management vs oversight • Franchisees concerned about personal investments • New CEO starts April 2008 - - - leaves September 2008 • September 11, 2008 current President/CEO assumes leadership position……

23. The “Great Recession” 4Q 2008…. economy in shambles • Foreclosures • Unemployment • Collapse of financial institutions • Bail out of banks • Loss of value in the stock market • Consumer confidence at all-time low

24. Fortunately

25. Never waste a crisis…. Courageous Decisions • Cleansed ourselves of the past • Brought Dave Anderson back as the ‘face’ of the organization • Took impairment charges on restaurants and/or closed underperforming locations and markets • Defaulted certain franchise partners • Reduction in force • New executive team • Narrowed the focus • Strategic plan was a 6-12 month timeframe

26. Where is Famous Dave’s today and where are we going? Beef Ribs “80 Proof” Burger BBQ Potato Chips

27. Company Restaurants Franchise Restaurants 180 Restaurants in 37 states

28. Total restaurants 52 company-owned and 128 franchise-operated 2010 System-wide sales $471.6 million Franchise-operated Company-owned

29. Business Model Restaurant Sales* Dine-In: 69% To-Go /Catering: 31% • Retail** • CAGR: 16% * Fiscal 2010 ** 2003 - 2010

30. Dave’s Distinctions • Scratch Cooking • Fresh every day, unlike competitor’s pre-prepared foods • Smoked Meats • Slow cooked for up to 8 hours; no parboiling or baking • 5 Regional Sauces • Tout our expertise in regional BBQ variations • Product Innovation • Frequently updated menu; wide room for creativity • Authentic Founder • Dave Anderson; gives us legitimacy • Franchise model • – Leveraging growth with experienced franchise candidates • Off-premise Revenue Levers • “To Go” and catering sales compliment in-house dining • Value • High quality food, distinctive atmosphere, superior service, competitive prices • BBQ Expertise • 25 years in BBQ R&D and methodology • Rib Team • Traveling billboard

31. Award Winning & Segment Defining Over 500 Awards Just some of the Awards recently won…. Best BBQ Best of Long Island Westbury, NY Judge Memphis Rib Fest Best BBQ Daily Herald Reader’s Choice Chicago, IL 1st place – St. Louis-Style Spare Ribs Ultimate Rib Fest of SW Florida JP’s Bar-B-Que People’s Choice Best BBQ Safeway National Capital Barbecue Battle 1st Place – Ribs, Pork, Brisket Smokin’ on the Strip Barbecue Cook Off Branson, MO Best BBQ Reader’s Choice Minneapolis City Pages

32. External Brand = Internal Brand Brand Promise: Authentic, Genuine, Legendary Pit BBQ

33. Guest Experience “Like having good friends over for a backyard BBQ”

34. Guest Satisfaction 2010 2009

35. Comparable Sales = Company- Owned = Franchise- Operated

36. Revenue (in millions) * 53 weeks

37. Diluted Earnings Per Share * 53 weeks

38. NASDAQ: DAVE Strong board and executive team Real Founder – Real story Solid balance sheet and access to capital RAVING fans

39. Lesson #6 Be responsible for your own career

40. The Restaurant IndustryA Great Career Opportunity • Nearly ½ of all adults have worked in the restaurant industry at some point in their lives • 80% of restaurant owners’ first job was an entry level position • 88% of restaurant employees said restaurants often provide the opportunity to start at the bottom and move up to management Source: NRA

41. The Restaurant Industry – small businesses with a large impact • Restaurant industry sales are projected to total $604 billion in 2011 = 4% of U.S. GDP • The overall economic impact of the restaurant industry is expected to exceed $1.7 trillion in 2011 • The restaurant industry is projected to employ 12.8 million jobs over the next decade, with employment reaching 14.1 million by 2021 Source: NRA

42. Lesson #7 Never stop investing in yourself or in your education – be a life learner

43. Lesson #8 No one can ever take your education away from you

44. Lesson #9 “Thank you” and “I’m sorry” are two of the most important words yet are the most infrequently used

45. Lesson #10 Start building your network now; be purposeful; make it a priority; and pay it forward

47. Thank Que….Que & A?