Papa Johns 2014 Annual Report Download - page 19

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The manager is responsible for the day-to-day operation of the restaurant and maintaining Company-
established operating standards. We seek to hire experienced restaurant managers and staff and provide
comprehensive training programs in areas such as operations and managerial skills. We also employ
directors of operations who are responsible for overseeing an average of seven Company-owned
restaurants. Senior management and corporate staff also support the field teams in many areas, including,
but not limited to, quality assurance, food safety, training, marketing and technology. We seek to motivate
and retain personnel by providing opportunities for advancement and performance-based financial
incentives.
Training and Education. The Global Operations Support and Training department is responsible for
creating tools and materials for the operational training and development of both corporate and franchise
team members. We believe training is very important to delivering consistent operational execution.
Operations personnel complete our management training program and ongoing development programs,
including multi-unit training, in which instruction is given on all aspects of our systems and operations.
Domestic Point-of-Sale Technology. During 2014, we began the roll out of our next-generation point-of-
sale system, which we refer to as FOCUS, to the majority of our corporate and franchised restaurants.
Approximately 75% of our restaurants were on FOCUS as of the end of the year, with the Company-
owned restaurants completed. Substantial completion of the remaining franchisees is expected to occur by
the end of the first quarter of 2015.
Our new FOCUS system facilitates faster and more accurate order-taking and pricing, and allows the
restaurant manager to better monitor and control food and labor costs, including food inventory
management and order placement from the domestic QC Centers. The system allows us to obtain
restaurant operating information, providing us with timely access to sales and customer information. The
FOCUS system is also integrated with our digital ordering solutions in all domestic traditional Papa
John’s restaurants, enabling Papa John’s to offer nationwide digital ordering to our customers.
Domestic Hours of Operation. Our domestic restaurants are open seven days a week, typically from
11:00 a.m. to 12:30 a.m. Monday through Thursday, 11:00 a.m. to 1:30 a.m. on Friday and Saturday and
12:00 noon to 11:30 p.m. on Sunday. Carry out hours are generally more limited for late night, for
security purposes.
Franchise Program
General. We continue to attract franchisees with significant restaurant and retail experience. We consider
our franchisees to be a vital part of our system’s continued growth and believe our relationship with our
franchisees is good. As of December 28, 2014, there were 3,928 franchised Papa John’s restaurants
operating in all 50 states and 36 countries and territories. During 2014, 374 (132 North America and 242
international) franchised Papa John’s restaurants were opened. As of December 28, 2014, we have
development agreements with our franchisees for approximately 240 additional North America
restaurants, the majority of which are committed to open over the next two to three years, and agreements
for approximately 1,000 additional international franchised restaurants, the majority of which are
scheduled to open over the next six years. There can be no assurance that all of these restaurants will be
opened or that the development schedule set forth in the development agreements will be achieved.
Approval. Franchisees are approved on the basis of the applicant’s business background, restaurant
operating experience and financial resources. We seek franchisees to enter into development agreements
for single or multiple restaurants. We require each franchisee to complete our training program or to hire
a full-time operator who completes the training and has either an equity interest or the right to acquire an
equity interest in the franchise operation. For most non-traditional operations and for operations outside
the United States, we will allow an approved operator bonus plan to substitute for the equity interest.