Papa Johns 2013 Annual Report Download - page 13

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5฀
administering฀ advertising฀ and฀ promotional฀ programs฀ for฀ all฀ participating฀ domestic฀ restaurants.฀ PJMF฀
produces฀and฀buys฀air฀time฀for฀Papa฀John’s฀national฀television฀commercials,฀buys฀digital฀media฀such฀as฀
banner฀ advertising,฀ paid฀ search-engine฀ advertising,฀ mobile฀ marketing,฀ social฀ media฀ advertising฀ and฀
marketing,฀ and฀ SMS฀ text฀ and฀ email,฀ in฀ addition฀ to฀ other฀ brand-building฀ activities,฀ such฀ as฀ consumer฀
research฀and฀public฀relations฀activities.฀Domestic฀Company-owned฀and฀franchised฀Papa฀John’s฀restaurants฀
are฀required฀to฀contribute฀a฀certain฀minimum฀percentage฀of฀sales฀to฀PJMF.฀The฀contribution฀rate฀to฀PJMF฀
can฀ be฀ increased฀ above฀ the฀ required฀ minimum฀ contribution฀ rate฀ if฀ approved฀ by฀ the฀ governing฀ board฀ of฀
PJMF฀up฀to฀3%฀of฀sales,฀and฀beyond฀those฀levels฀if฀approved฀by฀a฀supermajority฀of฀domestic฀restaurants.฀
The฀contribution฀rate฀has฀been฀4.0%฀since฀2011.฀
฀
We฀provide฀both฀Company-owned฀and฀franchised฀restaurants฀with฀pre-approved฀marketing฀materials฀and฀
catalogs฀for฀the฀purchase฀of฀uniforms฀and฀promotional฀items.฀We฀also฀provide฀direct฀marketing฀services฀to฀
Company-owned฀ and฀ franchised฀ restaurants฀ using฀ customer฀ information฀ gathered฀ by฀ our฀ proprietary฀
point-of-sale฀technology฀(see฀“Company฀Operations฀–฀Domestic฀Point-of-Sale฀Technology”).฀In฀addition,฀
we฀provide฀database฀tools,฀templates฀and฀training฀for฀operators฀to฀facilitate฀local฀email฀marketing฀and฀text฀
messaging฀through฀our฀approved฀tools.฀
฀
Our฀ proprietary฀ digital฀ ordering฀ platform฀ allows฀ customers฀ to฀ order฀ online.฀ Our฀ eCommerce฀ platforms฀
include฀“plan฀ahead฀ordering,”฀Spanish-language฀ordering฀capability,฀and฀enhanced฀mobile฀web฀ordering฀
for฀ our฀ customers,฀ including฀ Papa฀ John's฀ iPhone®฀ and฀ Android®฀ applications.฀ We฀ also฀ have฀ a฀ Papa฀
Rewards®฀program,฀which฀is฀an฀eCommerce฀customer฀loyalty฀program฀designed฀to฀increase฀loyalty฀and฀
frequency฀of฀consumer฀use฀of฀our฀eCommerce฀ordering฀platform.฀We฀receive฀a฀percentage-based฀fee฀from฀
U.S.฀ franchisees฀ for฀ online฀ sales,฀ in฀ addition฀ to฀ royalties,฀ to฀ defray฀ development฀ and฀ operating฀ costs฀
associated฀with฀our฀eCommerce฀ordering฀platform.฀฀
฀
Our฀domestic฀restaurants฀offer฀customers฀the฀opportunity฀to฀purchase฀a฀reloadable฀gift฀card฀marketed฀as฀
the฀“Papa฀Card.”฀The฀Papa฀Card฀is฀sold฀as฀either฀a฀plastic฀gift฀card฀purchased฀in฀our฀restaurants,฀or฀an฀
online฀ digital฀ card฀ purchased฀ at฀ our฀ web฀ site.฀ We฀ sell฀ Papa฀ Cards฀ to฀ consumers฀ through฀ third-party฀
retailers฀ and฀ bulk฀ orders฀ of฀ cards฀ to฀ business฀ entities฀ and฀ organizations.฀ We฀continue฀to฀ explore฀ other฀
Papa฀ Card฀ distribution฀ opportunities.฀ The฀ Papa฀ Card฀ may฀ be฀ redeemed฀ for฀ delivery,฀ carryout,฀ and฀
eCommerce฀orders฀and฀is฀accepted฀at฀all฀Papa฀John’s฀traditional฀domestic฀restaurants.฀
฀
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,฀ social฀ media,฀ mobile฀ 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.฀
฀
Company฀Operations฀
฀
Domestic฀Restaurant฀Personnel.฀฀A฀typical฀Papa฀John’s฀Company-owned฀domestic฀restaurant฀employs฀a฀
restaurant฀ manager฀ and฀ approximately฀ 20฀ to฀ 25฀ hourly฀ team฀ members,฀ many฀ of฀ whom฀ work฀ part-time.฀
The฀ manager฀ is฀ responsible฀ for฀ the฀ day-to-day฀ operation฀ of฀ the฀ restaurant฀ and฀ maintaining฀ Company-
established฀operating฀standards.฀We฀seek฀to฀hire฀experienced฀restaurant฀managers฀and฀staff฀and฀provide฀
comprehensive฀ training฀ programs฀ in฀ areas฀ such฀ as฀ operations฀ and฀ managerial฀ skills.฀ We฀ also฀ employ฀
directors฀ of฀ operations฀ who฀ are฀ responsible฀ for฀ overseeing฀ an฀ average฀ of฀ seven฀ Company-owned฀
restaurants.฀Additional฀levels฀of฀operations฀senior฀management฀and฀corporate฀staff฀also฀support฀the฀field฀
teams฀in฀many฀areas,฀including,฀but฀not฀limited฀to,฀quality฀assurance,฀food฀safety,฀training,฀marketing฀and฀
technology.฀฀We฀seek฀to฀motivate฀and฀retain฀personnel฀by฀providing฀opportunities฀for฀advancement฀and฀
performance-based฀financial฀incentives.฀