Papa Johns 2006 Annual Report Download - page 10

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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. The operations vice presidents report to one of four division vice presidents.
These team members are eligible to earn performance-based financial incentives.
Training and Education. The Operations Support Services and Training Department is responsible for
creating the tools and materials for the training and development of team members. With these tools and
materials, our field-based trainers train and certify training general managers in all markets. Operations
personnel, both corporate and franchise, complete our management training program and ongoing
development programs in which instruction is given on all aspects of our systems and operations. The
program includes hands-on training at an operating Papa John’s restaurant by a company certified
training general manager. Our training includes new team member orientation, in-store and delivery
training, core management skills training and new product or program implementation. Our ongoing
developmental workshops include operating partner training, advanced operator training and senior
operator training. We provide on-site training and operating support before, during and after the opening
of all Company-owned restaurants and for the first two restaurants per franchise group with additional
support available upon request.
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 several of our international markets. 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. 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 reviews and evaluates daily reports of sales,
cash deposits and operating costs. Physical inventories of all food and beverage items are taken nightly.
Joint Ventures. We operate 117 Company-owned restaurants under two joint venture arrangements.
Under the first arrangement, we own 70% of 38 Papa John’s restaurants located in Virginia and
Maryland. Under the second arrangement, we own 51% of 79 Papa John’s restaurants located in Texas.
We will continue to evaluate further joint venture arrangements on an individual basis as opportunities
arise.
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.
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 31, 2006, there were 2,427 franchised Papa John’s restaurants
operating in 49 states, the District of Columbia, Puerto Rico and 26 countries. As of December 31, 2006,
we have development agreements with our franchisees for approximately 300 additional domestic
franchised restaurants committed to open through 2013 and agreements for 847 additional international