Papa Johns 2015 Annual Report Download - page 15

Download and view the complete annual report

Please find page 15 of the 2015 Papa Johns annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

2
special garlic sauce and a pepperoncini pepper. 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. Each thin crust
pizza is served with a packet of special seasonings and a pepperoncini pepper.
Domestically, all ingredients and toppings can be purchased by our Company-owned and franchised
restaurants from our 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. Most QC Centers outside the U.S. are operated by
franchisees pursuant to license agreements or by other third parties. The Company operates three
international QC Centers in Mexico, the United Kingdom and China. We provide significant assistance to
licensed international QC Centers in sourcing approved quality suppliers. All of the QC Centers are
required to meet food safety and quality standards and to be in compliance with all applicable laws.
We continue to test new product offerings both domestically and internationally, including limited time
offering pizzas. 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 restaurant
team members, and operational training is offered to our franchisees. We offer performance-based
financial incentives to corporate team members and restaurant managers.
Marketing. Our domestic marketing strategy consists of both national and local components. Our national
strategy includes national advertising via television, print, direct mail, digital, mobile marketing 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. Local
advertising programs include television, radio, and print materials. We strive to efficiently allocate
resources among television, print, digital, and other media. We also integrate social media into our
various marketing campaigns.
In international markets, our marketing focuses on reaching customers who live or work within a small
radius of a Papa John’s restaurant. Our international markets use a combination of advertising strategies,
including television, radio, digital, and print depending on the size of the local market.
Technology. We use technology to both enhance the customer experience and improve efficiencies in our
Company-owned and franchised restaurants. Our proprietary digital ordering platform allows customers
to order online. Our mobile ordering iPhone® and Android® applications support payment options such as
Google Wallet® and PayShare, a first-of-its-kind digital solution in the pizza industry that lets customers
immediately split their pizza bill. Our Papa Rewards® program is an eCommerce customer loyalty
program designed to increase customer loyalty and frequency. In 2015, we upgraded our domestic
proprietary point-of-sale technology, which we refer to as “FOCUS”. We believe this technology
facilitates fast and accurate order-taking and pricing and is an easy tool for restaurant operators to learn