Popeye's 2010 Annual Report Download - page 6

2010 ANNUAL REPORT 5
Ramp Up Unit Growth
Returns so good, franchisees can’t wait
to build more restaurants
The rigor we’ve applied to our global development pipeline for
new unit openings continues to return results, with a net of
39 Popeyes restaurants added to our system in 2010. Over
the next fi ve years, we expect to add another 400 to 600 net
restaurants around the world, as our franchisees grow their
business and multi-unit operators of other brands add Popeyes
to their portfolios.
Today, approximately 75 percent of new Popeyes restaurants
are opened by existing operators. Their willingness to reinvest
in our brand speaks to the attractive opportunities and potential
they see in Popeyes.
We’re also attracting quality franchisees from other systems.
Their reasons for joining Popeyes typically include limited
growth potential with their other brands or the desire for
another viable brand to sit alongside their existing operations,
rounding out their business strategy. We asked our multi-brand
owners to rate Popeyes as a franchisor compared with their
other systems, and we were pleased with our positive ratings.
Franchisees like our focus on profi tability, our discipline in
tracking performance, and that we make fact-based decisions
designed to improve their results.
Among the key components to accelerate our unit growth is
making the right selections – the right operator, the right real
estate, the right trade area – which also has been paying off in
terms of higher sales performance at new restaurant openings.
Since the implementation of our domestic site-selection modeling
tool in 2008, Popeyes domestic restaurants are opening at
signifi cantly stronger sales volumes than the system
average. Additionally, restaurants that have been
open more than two years are sustaining
those sales volumes in their second year
of operation. This improvement
demonstrates the quality of
our unit economic model
and upgraded development
processes, which we
believe will allow us to
begin accelerating our
domestic new unit growth.
As always, the Global
Development Team at
Popeyes continues to be a
resource to franchisees, both
new and experienced, throughout
the development process. And when a new restaurant opens, the
Popeyes support center is there to provide a strong infrastructure,
with marketing, operations, training, systems, and fi nance experts.
There’s no mistaking when all the right elements are in place
and the aroma of fl avorful food is coming from the kitchen.
More guests come back, again and again, to feed their passion
for Popeyes, and franchisees become more satisfi ed with
their decision to own a piece of the Popeyes system – many
even add more restaurants. The regional tastes of Louisiana
have proven their global appeal, and so have the profi table
opportunities available for Popeyes franchisees.
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Amish and Ashish Parikh
Franchisees–Ownandoperaterestaurants
intheNewYorkandPhiladelphamarkets