Papa Johns 2004 Annual Report Download - page 8

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Training and Education. We have a department dedicated to training and developing team members, as
well as assisting with new restaurant openings. With regional training locations across the country, we
are capable of training multiple operators during new program or product introductions. 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. Operations personnel, both corporate and franchise, complete
our management training program and on-going development programs in which instruction is given on
all aspects of our systems and operations. The programs include hands-on training and some classroom
instruction at an operating Papa John’s restaurant by a Company certified general training manager. Our
training includes new team member orientation, in-store and delivery training, core management skills
training, new product or program implementation and ongoing developmental programs.
Point of Sale Technology. Point of sale technology (our proprietary PROFIT SystemTM) is in place in all
domestic traditional Papa John’s restaurants and in substantially all Papa John’s international restaurants.
We believe this technology facilitates faster and more accurate order taking and pricing, reduces
paperwork and allows the restaurant manager to better monitor and control food and labor costs. We
believe the PROFIT System enhances restaurant-level marketing capabilities through the development of
a database containing information on customers and their buying habits with respect to our products.
Polling capabilities allow us to obtain restaurant operating information, thereby improving the speed,
accuracy and efficiency of restaurant-level reporting. During 2004, we introduced a new generation of
the PROFIT System to the domestic and international Papa John’s system. This updated version was
designed to improve operational efficiencies at the restaurant level and improve our data collection
process. We expect the updated PROFIT System to be installed in substantially all domestic Company-
owned and franchised restaurants by mid-2005.
Reporting. Management at Company-owned restaurants evaluates daily reports of sales, cash deposits
and operating costs. Physical inventories of all food and beverage items are taken nightly.
Joint Venture. We operate 107 Company-owned restaurants under two joint venture arrangements. Under
the first arrangement, we own 70% of 36 Papa John’s restaurants located in Northern Virginia. We
entered into the second arrangement during 2004 in which we retained 51% ownership in 71 Company-
owned restaurants located in Texas. We will continue to evaluate further joint venture arrangements on
an individual basis as opportunities arise.
Hours of Operations. 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.
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 26, 2004, there were 2,260 franchised Papa John’s restaurants
operating in 49 states, the District of Columbia, Puerto Rico and 17 countries, and 118 franchised Perfect
Pizza restaurants operating in the United Kingdom. As of December 26, 2004, we have development
agreements with our domestic franchisees for approximately 373 additional franchised restaurants
committed to open through 2009 and agreements for 746 additional international franchised restaurants
to open through 2013. 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. There are no formal
development agreements for franchised Perfect Pizza restaurants and we anticipate opening minimal
Perfect Pizza units in the future. Our plan is to attract new franchisees, and to work with existing
franchisees, to open new Papa John’s restaurants in the United Kingdom. During 2004, 167 (97 domestic