Popeye's 2004 Annual Report Download - page 8

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Given the shift in the bone-in chicken market, how can
Popeyes increase its market share?
Popeyes’ foundation was built on bone-in chicken and the brand
will always remain true to its bone-in chicken heritage. We have
the best bone-in chicken in the marketplace today and we must
continue to communicate that to our customers and keep
delivering on that unique quality. However, over the last few
years, the popularity of bone-in chicken has decreased, while
overall chicken consumption has skyrocketed. For the next few
years, revenue growth is going to come from places other than
bone-in chicken. Popeyes must be smarter about occasions to
increase market share. We have to enhance our boneless
chicken offerings, ensuring they provide the same flavor
superiority that our bone-in chicken delivers. Additionally, we
must provide a variety of boneless chicken — everything from
sandwiches to finger food and snack foods. We also have a
wonderful array of side dishes that are unique and very special.
I think if you combine those sides with the new boneless
products that we’re producing, like Popeyes Naked Chicken
Strips™ and hand-battered tender nuggets, we have a great
opportunity to grow market share and drive our afternoon and
evening snack day-parts.
What are you doing to build momentum at Popeyes?
Momentum-building efforts are an integral part of the brand’s
overall business strategy. Our primary job is aligning brand
communications and making sure that we stay on message.
Consistent brand communications allow us to highlight key
product initiatives, thus driving consumer awareness in the
marketplace and further building brand momentum. The field
services team is doing an incredible job of driving improvements
in operations. In the last half of 2004, we saw a 10 percent
improvement in our mystery shop scores — and we have only
just begun. Obviously, if we are driving mystery shop improve-
ment, we are driving the quality of our customer experience.
Improvements in speed of service, order accuracy, flavor, and
restaurant cleanliness are the primary contributors to the
increased scores. Our restaurant operators are making an effort,
supported by our field services team, to really improve the
quality of operations, which drives the quality of customer
experiences. I grew up on the operations side, so I know that
improving the quality of our operations will drive sales and
improve the profitability of our restaurants. We are also driving
momentum in the development area by building the new store
opening pipeline and reducing new restaurant development
costs. Add to that a new prototype restaurant that costs 10
percent less to build than previous heritage-design restaurants
and our aggressive re-imaging program, and you have a solid
strategy for continued momentum in 2005 and beyond.
Ken Keymer and Popeyes team
member Tinika Harris assist a
customer at the brand’s Roswell
Road restaurant in Atlanta.
-5%
-4%
-3%
-2%
-1%
0
1%
2%
3%
4%
FY 2004 1.3%
FY 2003 (2.6)%
2004 Total Domestic System Comp Sales