Papa Johns 2009 Annual Report Download - page 14

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7
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 four division vice presidents, who also have
responsibility for franchise restaurant operations in their respective regions. These team members are
eligible to earn performance-based financial incentives.
Training and Education. The Operations Support and Training (“OST”) 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 System
TM
) 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. We
have begun the process of evaluating next-generation point of sale technology and expect to begin pilot
tests with a selected third party system in a limited number of restaurants in 2010.
Joint Ventures. We operate 127 Company-owned restaurants under two joint venture arrangements.
Under the first arrangement, we own 70% of an entity operating 52 Papa John’s restaurants located in
Virginia and Maryland. Under the second arrangement, we own 51% of an entity operating 75 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. Carryout hours are generally more limited for late night security purposes.
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 27, 2009, there were 2,855 franchised Papa John’s restaurants
operating in all 50 states, the District of Columbia, Puerto Rico and 29 countries. As of December 27,
2009, we have development agreements with our franchisees for more than 200 additional domestic
franchised restaurants, the majority of which are committed to open over the next four years, and