Papa Johns 2007 Annual Report Download - page 14

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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
each responsible for the management of approximately 100 Company-owned restaurants in specific
geographic regions. The operations vice presidents report to division vice presidents, who currently
number four. These team members are eligible to earn performance-based financial incentives.
Training and Education. The Operations Support Services and Training (“OSST”) 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. 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, enabling 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 128 Company-owned restaurants under two joint venture arrangements.
Under the first arrangement, we own 70% of an entity operating 48 Papa John’s restaurants located in
Virginia and Maryland. Under the second arrangement, we own 51% of an entity operating 80 Papa
John’s restaurants located in Texas and Oklahoma. 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.