Papa Johns 2009 Annual Report Download - page 11

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Of the total 2,781 domestic units open as of December 27, 2009, 588 or 21% were Company-owned
(including 127 units owned in joint venture arrangements with franchisees in which the Company has a
majority ownership position). The Company expects the percentage of domestic Company-owned units
to decrease below 20% over the next few years, because future net openings will be more heavily
weighted toward franchise units.
Restaurant Design and Site Selection
Backlit awnings, neon window designs and other visible signage characterize the exterior of most Papa
John’s restaurants. A typical inline or endcap domestic Papa John’s restaurant averages 1,100 to 1,500
square feet. Papa John’s restaurants are designed to facilitate a smooth flow of food orders through the
restaurant. The layout includes specific areas for order taking, pizza preparation and routing, resulting in
simplified operations, lower training and labor costs, increased efficiency and improved consistency and
quality of food products. The typical interior of a Papa John’s restaurant has a vibrant color scheme, and
includes a bright menu board, custom counters and a carryout customer area. The counters are designed
to allow customers to watch the team members slap out the dough and put sauce and toppings on pizzas.
Most of our international Papa John’s restaurants are between 900 and 1,400 square feet; however, in
order to meet certain local customer preferences, many international restaurants have been opened in
larger spaces to accommodate both dine-in and restaurant-based delivery service, typically with 35 to 100
seats. We will utilize dine-in service as part of our international growth strategy based on a country-by-
country evaluation of consumer preferences and trends.
We define a “traditional” domestic Papa John’s restaurant as a delivery and carryout unit that services a
defined trade area. We consider the location of a traditional restaurant to be important and therefore
devote significant resources to the investigation and evaluation of potential sites. The site selection
process includes a review of trade area demographics, target population density and competitive factors.
A member of our development team inspects each potential domestic Company-owned restaurant
location and substantially all franchised restaurant locations and the surrounding market before a site is
approved. Our restaurants are typically located in strip shopping centers or freestanding buildings that
provide visibility, curb appeal and accessibility. Our restaurant design can be configured to fit a wide
variety of building shapes and sizes, which increases the number of suitable locations for our restaurants.
“Non-traditional” Papa John’s restaurants do not generally provide delivery to a defined trade area but
rather serve a captive customer group on a continuous operation or an event-driven service (e.g., airports,
stadiums, entertainment venues, military bases, university food service, etc.). Non-traditional units are
designed to fit the unique requirements of the venue.
We provide layout and design services and recommendations for subcontractors, signage installers and
telephone systems to Papa John’s franchisees. Our franchisees can purchase complete new store
equipment packages through an approved third-party supplier. We sell replacement smallwares and
related items to our franchisees through our support services subsidiary, Preferred Marketing Solutions,
Inc.