Popeye's 2012 Annual Report Download - page 8

Our passion runs deep for our Louisiana
cuisine, but we are just as committed
to delivering superior results for our
franchisees. 2012 marked the fourth
consecutive year of growing profi tability.
Popeyes domestic franchisees of
freestanding restaurants realized their
highest profi tability yet.
At 20.4 percent of revenue, average
restaurant operating profi ts before rent
increased by approximately $40,000 in
2012. This performance was driven by
strong sales volume on the topline and
our ongoing focus on proactive cost-
saving initiatives both inside and outside
the four walls of our business.
In order to enhance our franchisees’
ability to collect information inside the
restaurant and analyze it in a common
format, we continue to roll out our
“software as a service” platform in
partnership with a third-party provider.
Along with new training and coaching
opportunities, the software allows us to
provide benchmarking and analytical
data in a way that is easy to understand
and actionable for the franchisee. In
2012, more than 400 restaurants were
reporting using this system.
Outside the four walls, we are constantly
striving to drive costs out of the
restaurants by lowering costs coming
into the restaurants. In 2012, we achieved
$12 million in U.S. supply chain cost
savings, which helped offset commodity
infl ation of approximately 2 percent for
the full year 2012.
At Popeyes, we know that when we
provide our number one customer—our
franchisee—with exceptional support
that includes actionable insight, reduced
costs, strong operations systems, and
successful marketing programs, they
make money. And when that happens,
they become enthusiastic operators
who are building more Popeyes.
2013 Popeyes International Franchisee Association Board of Directors. From left to right:
Tony Smith, Matt Hunt, Nareg Amirian, Salil Keswani, Rob Antoon, Mark Rinna, Steve Wemple,
Conrad Roberts, Danny Gililland, Tanathan Nelson
Record Restaurant Operating Profi t
HELPING FRANCHISEES PROSPER
(1) Restaurant Operating Profi t, before Rent, or “ROP” in
dollars for domestic free-standing restaurants as reported
by franchisees. (2)“ROP Margin” is calculated as ROP as a
percentage of restaurant sales.
2009
ROP Margins2
ROP Dollars (in thousands)1
2010 2011 2012
20.4%
18.7%
19.5%
18.4%
$251
$211
$209
$191
Grow
Restaurant
Profits
6AFC ENTERPRISES, INC.