Popeye's 2011 Annual Report Download - page 6

We are passionate about the success of our franchisees – they
are our customers at AFC Enterprises. Our ability to provide
exceptional marketing programs and franchisee support
enhances their ability to make money. So we partner alongside
our franchisees, with cross-functional brand and fi eld support
teams and with Supply Management Services, Inc., our
supply chain purchasing cooperative, to focus on growing
profi ts at the restaurant level.
While growing top line sales is the fastest way to grow
restaurant profi ts, we also remain intent on cutting costs to
benefi t the bottom line. Our strategies include reducing costs
both inside and outside the four walls of the restaurant.
In 2011, higher commodity costs challenged restaurant
profi ts – for Popeyes and the industry – and we redoubled
our focus on cost reduction measures. To drive costs out
of the restaurants, we continue to lower costs of goods
and services coming into the restaurants. By securing
national supply chain savings, adding national procurement
programs, and partnering with our suppliers to control
delivered costs, our teams delivered 0.5 percentage points
in cost savings to the average restaurant bottom line.
*ROP margins are domestic franchise freestanding restaurant operating profi t margins before rent.
We also work to reduce costs incurred inside the four walls
of the restaurants through benchmarking performance,
and by using the right processes and tools. Partnering
with a third-party “software as a service” provider, we have
developed, piloted, and are rolling out a standardized
approach for back-of-house business processes that supports
our efforts to drive waste and costs from restaurant operations.
Our franchisees are extraordinary people, and we continue
to coach, train, and develop them and their crews to achieve
superior results. Our aim is to help franchisees attract, develop,
motivate, and retain employees to provide guests with exceptional
and distinctive service. When we bring our franchisees together
as a group, all are eager to share their best practices, to learn
from others, and to be among the top performers.
Because we are so information-driven, each year we turn
the tables and have our franchisees rate us as a franchisor.
Our 2011 report card showed high marks, with 91 percent
of domestic franchisees rating the franchise from good to
excellent. Internationally, in a leadership transition year, more
than 80 percent said they feel good about the quality of the
Popeyes franchising opportunity. These results attest to our
strong partnership with our franchisees, as we work together
to grow their restaurant profi ts.
“ Until now, we did not have the ability to do theoretical versus
actual inventory. Now, with the software as a service platform,
I have information for all my restaurants at my fi ngertips. With
access to the Internet, I can fi nd out immediately what my
sales are, my weekly numbers; it’s been a big benefi t to us.”
— Danny Gililland
Owns and operates six Popeyes restaurants in the Little Rock, AR market
Grow Restaurant Profi ts
ROP Dollars and Margins*
0
$50
$100
$150
$200
$250
18.4%
$191,000
2009 2010 2011
19.5%
$209,000
18.7%
$211,000
15%
18%
21%
24%
27%
30%
Harry Stafford
Franchisee in Texas
Charles Boyd
Franchisee in Texas, Georgia,
and North Carolina
($ in thousands)
4AFC ENTERPRISES, INC.