Papa Johns 2010 Annual Report Download - page 9

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Internationally, the menu may be more diverse than in our domestic operations to meet local tastes and
customs.
In addition to our fresh dough traditional crust pizza, we offer a thin crust pizza, which is a par-baked
product produced by a third-party vendor. Our traditional crust pizza offers a container of our special
garlic sauce and a pepperoncini pepper. Each thin crust pizza is served with a packet of special
seasonings and a pepperoncini pepper.
We continue to test new product offerings both domestically and internationally. The new products can
become a part of the permanent menu if they meet certain established guidelines.
Efficient Operating System. We believe our operating and distribution systems, restaurant layout and
designated delivery areas result in lower restaurant operating costs and improved food quality, and
promote superior customer service. Our QC Center system takes advantage of volume purchasing of food
and supplies, and provides consistency and efficiencies of scale in fresh dough production. This
eliminates the need for each restaurant to order food from multiple vendors and commit substantial labor
and other resources to dough preparation.
Commitment to Team Member Training and Development. We are committed to the development and
motivation of our team members through training programs, incentive compensation and opportunities
for advancement. Team member training programs are conducted for corporate team members, and
offered to our franchisees at training locations across the United States and internationally. We offer
performance-based financial incentives to corporate and restaurant team members at various levels.
Marketing. Our marketing strategy consists of both national and local components. Our domestic national
strategy includes national advertising on television, through print, direct mail and online. Ten national
television campaigns aired in 2010. Our online marketing activities have increased significantly over the
past few years in response to increasing consumer use of online and mobile web technology.
Our local restaurant-level marketing programs target consumers within the delivery area of each
restaurant through the use of local TV, print materials, targeted direct mail, store-to-door flyers, email
marketing, text messages and local social media. Local marketing efforts also include a variety of
community-oriented activities within schools, sports venues and other organizations supported with some
of the same advertising vehicles mentioned above.
In international markets, we target customers who live or work within a small radius of a Papa John’s
restaurant. Certain markets can effectively use television and radio as part of their marketing strategies.
The majority of the marketing efforts include using print materials such as flyers, newspaper inserts and
in-store marketing materials. Local marketing efforts, such as sponsoring or participating in community
events, sporting events and school programs, are also used to build customer awareness.
Franchise System. We are committed to maintaining and developing a strong franchise system by
attracting experienced operators, supporting them to expand and grow their business and monitoring their
compliance with our high standards. We seek to attract franchisees with experience in restaurant or retail
operations and with the financial resources and management capability to open single or multiple
locations. To ensure consistent food quality, each domestic franchisee is required to purchase dough and
tomato sauce from our QC Centers and to purchase all other supplies from our QC Centers or approved
suppliers. QC Centers outside the U.S. may be operated by franchisees pursuant to license agreements or
by other third parties. We devote significant resources to provide Papa John’s franchisees with assistance
in restaurant operations, management training, team member training, marketing, site selection and