Papa Johns 2007 Annual Report Download - page 9

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In addition to our fresh dough, we offer a thin crust pizza and Papa’s Perfect Pan Pizza, which features a
square, thick buttery-tasting crust made with olive oil, and a zesty robusto pizza sauce with chunks of
tomato and flavored with garlic, Italian herbs and spices. Both the thin and pan crusts are par-baked
products produced by third-party vendors. Each traditional crust and pan pizza offers a container of our
special garlic sauce and a pepperoncini pepper. Each thin crust pizza is served with a packet of special
seasonings and a pepperoncini pepper.
We will continue to test new product offerings both domestically and internationally. The new products
can become a part of the permanent menu if they meet certain established guidelines.
Efficient Operating System. We believe our operating and distribution systems, restaurant layout and
designated delivery areas result in lower restaurant operating costs and improved food quality, and
promote superior customer service. Our domestic QC Center system takes advantage of volume
purchasing of food and supplies, and provides consistency and efficiencies of scale in fresh dough
production. This eliminates the need for each restaurant to order food from multiple vendors and commit
substantial labor and other resources to dough preparation.
Commitment to Team Member Training and Development. We are committed to the development and
motivation of our team members through training programs, incentive compensation and opportunities
for advancement. Team member training programs are conducted for corporate team members, and
offered to our franchisees at training locations across the United States and internationally. We offer
performance-based financial incentives to corporate and restaurant team members at various levels. Our
management compensation program is designed to attract and retain highly motivated people.
Marketing. Our marketing strategy consists of both national and local components. Our domestic national
strategy includes national advertising on television, through print and direct mail and via the Internet.
Seven national television campaigns aired in 2007 to support new product launches and DVD
promotions.
Our local restaurant-level marketing programs target consumers within the delivery area of each
restaurant, making extensive use of print materials including targeted direct mail and store-to-door
couponing. Local marketing efforts also include a variety of community-oriented activities within
schools, sports venues and other organizations. Local marketing efforts are supplemented with radio and
television advertising, produced both locally and on a national basis.
Additionally, we have developed joint cross-marketing plans with certain third-party companies. For
example, we entered into marketing and partnership agreements with Six Flags theme parks and Live
Nation amphitheaters, which provide for cross-marketing activities. We will continue to explore
additional cross-marketing opportunities with third-party companies.
In international markets, we target customers who live or work within a small radius of a Papa John’s
restaurant. Certain markets can effectively use television and radio as part of their marketing strategies.
The majority of the marketing efforts include using print materials such as flyers, newspaper inserts and
in-store marketing materials. Local marketing efforts, such as sponsoring or participating in community
events, sporting events and school programs, are also used to build customer awareness.
Franchise System. We are committed to maintaining and developing a strong franchise system by
attracting experienced operators, supporting them to expand and grow their business and monitoring their
compliance with our high standards. We seek to attract franchisees with experience in restaurant or retail
operations and with the financial resources and management capability to open single or multiple
locations. To ensure consistent food quality, each domestic franchisee is required to purchase dough and