Popeye's 2006 Annual Report Download - page 9

We’re good to grow
At Popeyes®, we’re building on the momentum of 2005
and 2006. In addition to strengthening our franchisee
economic model, we also made improvements to our
supply chain management system. The result: higher
quality, fresher products delivered to our restaurants.
Popeyes franchisees are good to grow, too. And there’s
plenty of room to accommodate them, especially in our
under-penetrated existing markets, both domestically
and internationally. That expansion is already underway.
We opened 142 new restaurants in 2006, a 15.4
percent increase over 2005, and many of them were
higher volume restaurants. We’ve also closed some
underperforming locations. On top of that, we’ve
expanded our range of building types and operating
systems. Put simply, now there’s a Popeyes facility design
for just about every venue.
Putting operations in the driver’s seat
In the QSR industry, no matter how good your food and
service are, the customer’s opinion is the only one that
counts. So, in 2006, we focused on enhancing the guest
experience in our restaurants. Naturally, operators were
critical to the success of that initiative. So much so, that
we named 2006 “The Year of the Operator.” Through
special system-wide initiatives, such as an operations
knowledge competition called the Popeyes Bowl and the
annual Popeyes Operations Meeting, we strengthened
our teamwork with our franchisees. Through these initiatives,
we helped operators improve their system knowledge and
execution. Just as importantly, we reinforced the need for
consistent national quality standards and system-wide
testing throughout the year. Working as a team, we also
developed more efficient kitchen, food preparation and
delivery processes — helping to ensure that Popeyes
guests enjoy their favorite menu selections hot, fresh
and flavorful.
Moving out in front
As a QSR concept, Popeyes breaks away from the pack.
Today, we are using our flavor difference to strengthen
our advertising. Our new broadcast campaign focuses
on the quality and uniqueness of Popeyes flavorful food
as well as our brand’s New Orleans culinary heritage,
something no other restaurant chain in the segment can
claim. Building on the Popeyes “Big FlavaTM” platform, we
launched our “Food with ’TudeTM” advertising campaign
emphasizing Popeyes spicy flavor profile. Together,
the two messages are intended to drive more traffic into
our restaurants.
Adding more to our brand
In the spirit of Lagniappe, Popeyes is exploring and
testing new ways of bringing a little something extra
to our guests. From our “menu of venues” to our new
Popeyes® Louisiana Kitchen test concept, we are
keeping our eye on the horizon, focusing on the
Popeyes of tomorrow.
Popeyes “menu of venues” is a critical component
of our strategy to ensure continued growth of the
brand domestically and internationally. We provide our
franchisees with the options and flexibility to develop
different types of restaurants for different locations.
The traditional freestanding Popeyes restaurant is now
available in 28-seat, 48-seat and 66-seat configurations.
In addition to the traditional freestanding Popeyes
restaurant, franchisees can open smaller walk-up
locations which are ideal for urban settings, or they can
develop in-line formats for a strip mall.
In addition to venue alternatives, we are also exploring
new formats for delivering the flavor our customers
crave. This exploration includes a limited menu approach
designed to give our customers our world-famous chicken
and biscuits faster than ever before!
Popeyes® Louisiana Kitchen, a fast-casual hybrid concept,
is another option we are exploring. Serving as a research
and development platform, the restaurant provides
opportunities to test variations of Cajun cuisine with our
customers, as well as to experiment with new restaurant
technologies, alternative service systems, marketing
approaches, and menu items that have application in our
Popeyes restaurants. The concept also offers an array
of convenient ordering options including front counter,
drive-thru, a self-serve kiosk inside the restaurant,
and call ahead service for car-side “To Geaux” pick-up.
A Popeyes® Louisiana Kitchen test unit opened on
December 12, 2006, in Norcross, Georgia.
As we continue to test venues, menus and technology, we
are gaining valuable insights that will ultimately help the
Popeyes system overall and provide a unique glimpse into
the potential future of Popeyes.
2006 ANNUAL REPORT 7