Papa Johns 2009 Annual Report Download - page 20

13
Employees
As of December 27, 2009, we employed approximately 16,000 persons, of whom approximately 14,000
were restaurant team members, approximately 700 were restaurant management personnel,
approximately 600 were corporate personnel and approximately 700 were QC Center and Preferred
Marketing Solutions, Inc. personnel. Most restaurant team members work part-time and are paid on an
hourly basis. None of our team members is covered by a collective bargaining agreement. We consider
our team member relations to be excellent.
Item 1A. Risk Factors
We are subject to various risks that could have a negative effect on our business, financial condition and
results of operations. These risks could cause actual operating results to differ from those expressed in
certain “forward looking statements” contained in this Form 10-K as well as in other Company
communications. Although we believe that our expectations are based on reasonable assumptions, actual
results may differ materially from those in the forward-looking statements as a result of various factors,
including but not limited to, the following:
Our growth strategy requires the opening of new Papa John’s restaurants. We may not be able to
achieve our planned growth targets due to factors outside of our control, including the current economic
environment.
Our growth strategy depends on our and our franchisees’ ability to open new restaurants and to operate
them on a profitable basis. Planned growth targets and the ability to operate new and existing restaurants
profitably are affected by the current economic conditions and the resulting impact on consumer buying
habits. Our business is susceptible to adverse changes in domestic and global economic conditions,
which could make it difficult and uncertain for us to forecast operating results. Continuing weakness in
the residential real estate and mortgage markets, volatility in commodity and fuel costs, difficulties in the
financial sector and credit markets, and other factors affecting consumer spending, such as continued
higher levels of unemployment, could cause reduced sales of our products or make it difficult for us to
execute our strategy. Insolvency of key suppliers could also negatively impact our business. We expect
this challenging environment to continue in 2010.
The ability of the Papa John’s system to continue to open new restaurants is affected by a number of
factors, many of which are beyond our control. These factors include, among other things, the availability
of financing, the selection and availability of suitable restaurant locations, increases in the cost of or
sustained high levels of cost of food ingredients and other commodities, paper, utilities, fuel, employee
compensation and benefits, insurance and similar costs, availability and negotiation of suitable lease or
financing terms, constraints on permitting and construction of restaurants, higher than anticipated
construction costs, and the hiring, training and retention of management and other personnel.
Accordingly, there can be no assurance that, system-wide, Papa John’s will be able to meet planned
growth targets, open restaurants in markets now targeted for expansion or continue to operate in existing
markets profitably.
We face substantial competition from other food industry competitors, and our results of operations can
be negatively impacted by the actions of one or more of our major competitors.
The restaurant industry is intensely competitive with respect to price, service, location and food quality,
and there are many well-established competitors with substantially greater financial and other resources
than the Papa John’s system. Some of these competitors have been in existence for a substantially longer
period than Papa John’s and may be better established in the markets where restaurants operated by us or