1 The National Restaurant Association Educational Foundation. Submitted: December 4, 2003. A MERICAS’ S CHOOLS P ROGRAM Co-Venture Partnership Proposal.

1

The National Restaurant

Association Educational Foundation.

Submitted: December 4, 2003.

AMERICAS’ SCHOOLS PROGRAM

Co-Venture Partnership Proposal

America’s Schools Program 2

Nationally sanctioned K-12 school program

The America’s Schools Program™ (ASP) is a cooperative venture between State School Boards Associations from across the country.

The purpose of the program is to generate additional new dollars for school programs by creating new marketing opportunities for restaurants and retailers who support our schools.

The State School Boards Associations have banded together to use ASP as their exclusive marketing vehicle for designating corporate support to generate national clout for our schools.


Conducted under the governance of the State School Boards Associations across the country.


Education is America’s # 1 concern

A recent Gallup Poll cites education as American’s # 1 concern, over the economy and crime.

A recent Cone/Roper study focusing on consumers and cause marketing found…• 76% of consumers would more likely switch to a retailer associated with a good cause• 76% of consumers would more likely switch to a brand associated with a good cause.• 33% of Americans cite “education” as their top cause.

School budgets are getting decimated in the current round of government budget cuts withmany discretionary programs falling by the way-side.

The emotional pull of helping school children is overwhelming. This community has showntime and time again that they will support the corporations that support their schools.


NRAEF/ASP Proposed relationship

Co-venture can include: National Recycling Programs National Restaurant Education

Month Music CD Program Bottled Water Program National Affinity Credit Card

Program and other opportunities.

“Official Restaurant Partner”Employee incentive participation.Reaches out to schools, families and restaurants nationwide.


FIRST STAGE PROPOSAL

National Recycling Program


ASP / NRAEF Recycling Program

This program is easy to implement and self-sustaining. Potential profit is unlimited, based on your memberships usage of inkjet and laser toner cartridges. Best of all, it enables all who participate to help the environment and our schools.

COST FREE TO MEMBERSHIP!


Industry Background

• 300+million inkjet CARTRIDGES sold at retail with less than 10% collected.

• Over 60 million laser CARTRIDGES with less than 30% collected.

• Over 100 million cell phones retired/year less than 10% collected.

• initialized


Cash for Cartridges & Cell Phones

• Each company will register with ASP via phone or on-line using a designated NRAEF code.

• Participating company’s will receive a starter kit for each location containing:

• Two bins for cartridges one for display and one for reserve to be used when the first bin is filled and shipped.

• An “America’s Schools Recycle Program” poster.

• A custom flyer that can be copied and distributed to employees.

• Two postage-paid UPS shipping labels.

• When the bin is full, company ships the postage paid box to ASP via UPS.

• Once a bin has been received at the warehouse, an empty bin will be returned automatically to that location and the the qualifying cartridges and or phones are registered for credit.

• Once a quarter a redemption report and payment for qualified cartridges received from participating company locations will be forwarded to NRAEF.


• American households and businesses throw away over 300 million laser and inkjet printer cartridges a year.

• Cartridges account for over 200 million pounds of waste in landfills.

• Remanufactured cartridges conserve valuable oil (3 quarts per laser cartridge) and scarce landfill space.

• A wide variety of eligible inkjet and toner cartridge brands and models including: Apple, Brother, Canon, Compaq, Epson, HP, IBM, Lexmark, Okidata, Panasonic,Pitney Bowes, Ricoh, Sharp, TekTronic, and Xerox.

• Cartridges take over 1,000 years to decompose in our landfills.

• No time limitations.

• There is absolutely no cost to participate and no minimum requirements to begin to recycle your used cartridges. Your participation helps improve the environment and convert the thousands of dollars that you are now throwing in the trash into CASH!

• Even the postage for shipping filled bins is prepaid.

Facts and Benefits


Program Economics

TRASH TO CASH

• We offer $1.00 for each qualified inkjet cartridge.

• $.50 for each qualified laser toner cartridge.

• $1.00 per qualified cell phone.

• The ASP website is available for entering and tracking your shipments, and verifying your payment status.


NRAEF Revenue & Participation Potential

Participation of only 10% of 60,000 Member Base

20 inkjet cartridges per quarter per member.

20,000 cartridges per quarter/ 480,000 per year.

$120,000 dollars per quarter/ $480,000 per year


NRAEF & State Restaurant Association

State Association adopts ASP/NRAEF Recycle program and shares in program commissions.

“XYZ” State Association - 1,000 members

10% of membership participates 100 members with 20 inkjet cartridges per quarter

2,000 inkjet cartridges recycled 50/50 split

$8,000 Dollars Total $4,000 dollars for NRAEF

$4,000 dollars for “XYZ” State Association

$8,000 dollars for America’s Schools

State can use annual trade show, golf outings, board and membership meetings as recycle drives to solicit more donations.


Co-Branded Marketing Tools

Direct Mailer Poster


Collection Bins & Bags

Collection BagSmall Office Bin

Business Bin


Millions in Outdoor Media Support

Metro Bus King boards

Freeway /City billboards

Phone booth Signs


National / State Restaurant Association Benefits

Why Participate?

To create an Additional Source of Revenue.

While You Are Increasing Revenues:

YOU ARE:• Helping fund America’s Schools.• Increasing consumer awareness of the associations’ community

involvement.• Protecting the environment.• Increasing positive visibility with future employees of the

Industry.• Increasing Industry awareness of the State Restaurant Associations,

The National Restaurant Association, and your Educational Programs and Membership Benefits.


Suggestions for NRAEF Implementation

• Place an article or insert brochure/flyer explaining the program and its benefits for America’s Schools and the Association Education Scholarships and Programs in your next Association newsletter.

• Use your membership list as a call sheet and/or mailing list to sign members up for the recycle program.

• Display the boxes, bins, flyers and posters at your office, next trade show, board and membership meetings.

• Introduce the program to your allied membership, as they may be your biggest contributors.

• Highlight the program on the website.


SECOND STAGE PROPOSAL

“National Restaurant Education Month”


Restaurants Supporting Our Schools

• With education as America’s # 1 concern, the “National Restaurant Education Month” promotion enables restaurants to help raise money for schools and reap the benefits of school-focused cause-related marketing.

• State School Boards Associations across the country have banded together to create this vehicle to promote school-focused cause-related corporate marketing nationally.

• This national school promotion offers the NRA / NRAEF a NO COST, NO RISK way to link their associate members to the cause of supporting America’s schools.

• The 2004 school promotion involves:• Customers at participating restaurants being offered the opportunity to give

their change to support America’s Schools.• Participating restaurants leveraging the America’s Schools symbol in their

marketing materials in-store and across media as they see fit.• Massive PR support and public service announcements.


No cost. No risk.

• No fee.• 10% commission paid.• No required investment.• No minimum contribution.• No required activities.• No opportunity cost.

Restaurants can participate if they want, when they want, how they want, with whatever resources they want, layering this promotion on top of whatever they’d normally do during the time period.

RESTAURANT TABLE TALKER


How it works

• Customers are offered the opportunity to give their loose change to support America’s Schools during time of each purchase.

• Participating restaurants leverage the America’s Schools symbol in their marketing materials in-store and across media as they see fit.


Next steps

• Back ups• Agree to participate• Receive materials and idea packet• Determine how best to leverage program,

while receiving 10% of all dollars raised.• Put in place implementation and logistics

plan to capture funds• ASP runs media/school promotion• Reap benefits of goodwill and increased

sales• Forward funds raised• Bask in public recognition• Every participating location will receive an

official state certificate of merit for their support.


THIRD STAGE PROPOSAL

Music for America’s Schools


Overview The program - “Music for America’s Schools” (MAS) is a music industry-wide supported CD compilation series featuring today’s most popular recording artists. All major labels will participate in this groundbreaking fundraising initiative to benefit the severely cut-back music education programs in America’s schools. MAS will be created and distributed 2 to 4 times per year. The CD’s will contain 12-14 tracks by artists such as: Justin Timberlake, Jennifer Lopez, Jay-Z, Coldplay, Beyonce’, Sheryl Crow, Outkast, Clay Aiken, Hillary Duff, Dido, Chingy, Linkin Park and Norah Jones. The project is designed to appeal to a broad audience, and especially to the youth in America.

PSA ad campaign featuring participating recording artists asking America to support America’s schools and buy the CD. Similar to MTV’s “Rock the Vote” media campaign.

Music for America’s Schools


School Focus on Restaurant Industry

MAS will create strong linkage between America’s Schools’ students and the featured recording artists: Students at all grade levels (rotating) compete to create the cover art for each CD.

Journalism students compete to interview participating artists for MAS website, school newspapers and television media.

Leverage the popularity of popular recording artists as role models. Artists can stress the importance of education and reflect on their own personal experiences in school.


Potential Economic Benefits

Initial production/royalty costs underwritten by corporate sponsor (with branding on the CD cover). NO COST to NRAEF participating restaurants. $10.99 retail sale price will net at least $2.00 per unit to the restaurant, $1.00 per unit to NRAEF and at $1.00 per unit to the State Restaurant Association. (Retail sale price could be higher). Current retail sales of “Now That’s What I Call Music” most recent release are over 5 million units ($18.99 list price). “Now That’s...” CD compilation series is an appropriate comparison model. There have been 15 CD’s released, each selling at least 1 million units, some many more. With MAS sales of 10% of NRAEF’s 60,000 membership base per quarter, this would conservatively generate $90,000 a quarter, for the individual restaurants, state and NRAEF to share. New CD’s can be released as often as quarterly.


Restaurants receive self-shipper boxes (see Golden Slumber’s, A Father’s Lullaby example) containing 50 CD’s and point of purchase display.

Restaurants simply open the box, attach P.O.P. display and place by the cash register for easy purchase.

After selling through box of CD’s, restaurant keeps their portion and sends remaining proceeds to NRAEF for distribution. Restaurant re-orders CD’s as much and as often as they like.

NO COST to restaurants who participate in the MAS generic music program.

How MAS works


FOURTH STAGE PROPOSAL

CO-Branded Bottled Water Program


America’s Schools Bottled Water Program

• Availability for Restaurants and Chains to use the America’s Schools Bottled Water Program.

• Private Label Bottled Water for Restaurants generating $0.25 cents per case for the NRAEF.

• All bottlers are NSF certified and are strategically located throughout the United States and Canada.

• Bottlers are one or several of the following: Military approved, AIB rated and NSF certified.


FIFTH STAGE PROPOSAL

America’s Schools Credit Card Program


Affinity Credit Card Program

• The America’s Schools credit card that offers consumers, educators and parents a way to support their schools.

• Currently teachers nationwide spend over $1.3 billion of their own money on school materials per year.

• The more employees and parents use the ASP credit card the more money is given to the K-

12 public school system.


• Credit card applications can be placed on the counter of participating restaurants, as an impulse take one opportunity to support education:

• Local restaurant will receive $5.00 on every approved credit card application.

• State Restaurant Association $5.00 on every approved credit card application.

• Nat’ Restaurant Association $5.00 on every approved credit card application.

• Credit card applications can be co-branded showing active roll of National Restaurant Association Education Foundation in supporting our nation’s schools.

• Individual state mailings list can be orchestrated to schools and parents to promote restaurants recognized as helping to support our schools.

Affinity cardapplications


Credit Card Revenue

Using the 60,000 NRA Membership with 10% participation, (6,000) - one ASP credit card application approved per quarter and the individual restaurants, State and National Restaurant Association would share in a net income of $90,000 per quarter and $360,000 annually.


Questions and Open Discussion

1 The National Restaurant Association Educational Foundation. Submitted: December 4, 2003. A MERICAS’ S CHOOLS P ROGRAM Co-Venture Partnership Proposal.

Documents

program poster

school programs

inkjet cartridges

laser cartridges

school children

school budgets

qualified cartridges

qualifying cartridges