Papa Johns 2012 Annual Report Download - page 8

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2
Quality Control Center (“QC Center”) system, which delivers to individual restaurants twice weekly. To
ensure consistent food quality, each domestic franchisee is required to purchase dough and tomato sauce
from our QC Centers and to purchase all other supplies from our QC Centers or other approved suppliers.
Internationally, the menu may be more diverse than in our domestic operations to meet local tastes and
customs. QC Centers outside the U.S. may be operated by franchisees pursuant to license agreements or
by other third parties. We provide significant assistance to licensed international QC Centers in sourcing
approved quality suppliers.
In addition to our fresh dough traditional crust pizza, we offer a thin crust pizza, which is a par-baked
product produced by a third-party vendor. Our traditional crust 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 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 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 and recognition programs and
opportunities for advancement. Team member training programs are conducted for corporate team
members, and offered to our franchisees electronically and at training locations across the United States
and internationally. We offer performance-based financial incentives to corporate and restaurant team
members at various levels.
Marketing. Our marketing strategy consists of both national and local components. Our domestic national
strategy includes national advertising via television, print, direct mail, digital and social media channels.
Our online and digital marketing activities have increased significantly over the past several years in
response to increasing consumer use of online and mobile web technology.
Our local restaurant-level marketing programs target consumers within the delivery area of each
restaurant through the use of local TV, radio, print materials, targeted direct mail, store-to-door flyers,
digital display advertising, email marketing, text messages and local social media. Local marketing efforts
also include a variety of community-oriented activities within schools, sports venues and other
organizations supported with some of the same advertising vehicles mentioned above.
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, in-
store marketing materials, and to a growing extent, digital marketing such as display, search engine
marketing, email, and SMS text. Local marketing efforts, such as sponsoring or participating in
community events, sporting events and school programs, are also used to build customer awareness.
Strong Franchise System. We are committed to developing and maintaining 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