Papa Johns 2001 Annual Report Download - page 11

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and less volatility than the previous purchasing method. See “Note 11” of “Notes to Consolidated
Financial Statements” for additional information.
Marketing Programs
All Company-owned and franchised Papa John’s restaurants within a developed market are required to
join an advertising cooperative (“Co-op”). Each member restaurant contributes a percentage of sales to
the Co-op for market-wide programs, such as radio, television and print advertising. The rate of
contribution and uses of the monies collected are determined by a majority vote of the Co-op’s members.
The restaurant-level and Co-op marketing efforts are supported by print and electronic advertising
materials that are produced by the Papa John’s Marketing Fund, Inc., a non-profit corporation (the
“Marketing Fund”). The Marketing Fund produces and buys air time for Papa John’s national television
commercials, in addition to other brand-building activities, such as consumer research. All domestic
Company-owned and franchised Papa John’s restaurants are required to contribute a percentage of sales
to the Marketing Fund. The contribution percentage was 1.25% throughout 2001 and is expected to be the
same rate throughout 2002.
Restaurant-level marketing programs target the delivery area of each restaurant, making extensive use of
targeted print materials in direct mail and store-to-door couponing. The local marketing efforts also
include a variety of community-oriented activities with schools, sports teams and other organizations. In
markets in which Papa John’s has a significant presence, local marketing efforts are supplemented with
radio and television advertising.
We provide both Company-owned and franchised restaurants with catalogs for the purchase of uniforms
and promotional items and pre-approved print marketing materials. We also provide direct marketing
services to Company-owned and franchised restaurants using customer information gathered by our
proprietary point-of-sale technology (see Company Operations – Point of Sale Technology).
We have developed a system by which all domestic customers are able to place orders on-line via the
internet. We receive a fee, based on on-line sales, from domestic franchisees for this service.
Company Operations
Restaurant Personnel. A typical Papa John’s restaurant employs a restaurant manager, one or two
assistant managers and approximately 20 to 25 hourly team members, most of whom work part-time. The
manager is responsible for the day-to-day operation of the restaurant and maintaining Company-
established operating standards. The operating standards and other resources are contained in a
comprehensive operations manual supplied to each restaurant and updated regularly. We seek to hire
experienced restaurant managers and staff, provide comprehensive training on operations and managerial
skills, and motivate and retain them by providing opportunities for advancement and performance-based
financial incentives.
We employ area supervisors, each of whom has responsibility for overseeing three to six Company-
owned restaurants. We also employ operations vice presidents and district managers who oversee area
supervisors and managers within their respective markets. These team members are eligible to earn
performance-based financial incentives.
Training and Education. We have a department dedicated to training and developing team members, as
well as assisting with new restaurant openings. We have full-time training coordinators for our markets
and regional training directors located strategically across the country. We provide an on-site training
team three days before and three days after the opening of any Company-owned or franchised restaurant
requesting assistance. Each operations vice president, district manager, area supervisor and restaurant