Popeye's 2009 Annual Report Download - page 9

2009 ANNUAL REPORT 7
what’s being done to effect change. It’s clear
that we’ve been able to transfer accountability
for improvements to each individual restaurant.
The managers and crews embrace the changes,
and they’re eager to see their scores rise.
In 2010, we are serious about improving our
speed of service, and we have started tracking
times at drive-thru windows. We’ve installed
drive-thru headsets and timers in the majority
of our U.S. restaurants, and we’ve implemented
a training program for employees in every
domestic market. The faster we can take a food
order and serve the guest, especially in the
drive-thru, the more satisfied the guest—and
the more guests the restaurants can serve, the
more sales we can generate.
As one of our franchisees reminds his
employees every day, in big letters written
above the drive-thru window, “We can’t grow if
we’re slow.” By measuring the right things, we
are getting results for our guests, with steadily
improving guest scores on hustle and speed
of service. Our goal is to make our “service as
distinctive as our food.”
Positive Restaurant Margins
Restaurant profitability is a key measure of
our success—and that of our franchisees.
We continue to work diligently on improving
unit economics. In 2009, the Popeyes system
restaurant operating profit margin improved
by approximately one percentage point over
the prior year. The gains primarily came from
lower costs for commodity products. The
overall benefit was partially offset, however, by
increases in national minimum wage.
During 2009, we also completed a
comprehensive diagnostic analysis of our
supply chain system that has allowed us to
identify further cost-saving opportunities, which
are expected to benefit the Popeyes system
in 2010 and beyond. The same disciplined
approach is now being applied to international
markets to secure savings for those restaurants.
Positive Net Openings
The people who become our franchisees are
those who are truly passionate about our food.
In 2009, we had 14 net global restaurant
openings. The Popeyes system opened 95
new restaurants globally, with 56 international
restaurants and 39 domestic restaurants. It
doesn’t matter whether guests live in the U.S.
or in Turkey or Korea, they quickly come to
appreciate Popeyes’ Louisiana heritage of
flavorful foods.
In 2010, we are generating a strong pipeline of
current and new franchise developers to open
new restaurants and enter new markets, and
we will be better positioned to accelerate new
unit development as the economy recovers. We
will focus on finding the ideal real estate and
matching it to the best-prepared operator to
bring strong financial returns to those who build
new restaurants.
Popeyes has momentum. We are moving our
sales, our guest traffic, our profits, and our
returns in a positive direction, which makes
Popeyes an attractive, smart investment for our
current and new franchisees to come aboard
and help us grow.
We’re excited about what we’ve been able to
achieve; however, our feet are firmly planted on
the ground. In the restaurant business, there is
no room for complacency, and 2010 will remain
intensely competitive. We must continue to
deliver a traffic-building menu, a delightful and
fast-paced guest experience, and steady gains
in restaurant profitability, all of which will help in
making sure our plan to accelerate global unit
growth is accomplished.
In my third year as CEO, I am most proud of how
Popeyes has flourished in spite of a challenging
economic environment. My sincere thanks to the
entire Popeyes team for making 2009
a strong year: the restaurant
operators and their crews, the
franchise entrepreneurs who
invest their time and money, and
all the members of the support
center team who keep finding
ways to take our performance to
the next level.
And thanks to you, our
shareholders, for your confidence in
our team and our plan. We intend to
keep this positive momentum going
in 2010 and into the future.
Sincerely,
Cheryl A. Bachelder
CEO, AFC Enterprises, Inc.
President, Popeyes® Louisiana Kitchen