Papa Johns 2005 Annual Report Download - page 9

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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. 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 also employ directors of operations who are responsible for overseeing an average of seven
Company-owned restaurants. The directors of operations report to operations vice presidents who are
individually responsible for the management of approximately 100 Company-owned restaurants in
specific geographic regions. 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. With regional training locations across the country, we
are capable of training multiple operators during new program or product introductions. Domestically,
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 a majority of 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. The updated PROFIT System was installed in all domestic Company-owned and franchised
restaurants during 2005. The PROFIT System is also closely integrated with our online ordering system
in all domestic traditional Papa John’s restaurants. This enables Papa John’s to offer nationwide online
ordering to our customers.
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 114 Company-owned restaurants under two joint venture arrangements. Under
the first arrangement, we own 70% of 36 Papa John’s restaurants located in Virginia and Maryland.
Under the second arrangement, we own 51% of 78 Papa John’s restaurants located in Texas. We will
continue to evaluate further joint venture arrangements on an individual basis as opportunities arise.