Popeye's 2014 Annual Report Download - page 12

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4) GROW RESTAURANT PROFITS
We have a fanatical focus on growing restaurant profits that differentiates us in
the quick service restaurant industry. Our relationship with our franchise owners
is more aligned and collaborative than anyone in the business, giving us a real
competitive advantage.
GROWING TOGETHER
Over the years we have built a solid, trust-based relationship with our franchise owners. This is the
direct result of our decision to make franchisees our number one priority — because as our results
show, their success determines ours. Today our uniquely strong alignment with our franchise owners,
together with our powerful brand, continues to set us apart from the competition. In fact, 96 percent
of our franchisees responding via our annual survey indicate they are satisfied with the Popeyes
franchise system, up from 75 percent five years ago.
During that time, we have helped franchisees improve the profitability of their restaurants significantly.
Last year alone, the average restaurant operating profit before rent of Popeyes’ domestic freestanding
franchised restaurants increased to 22.4 percent or approximately $300,000 per store, up from
21.6 percent and $279,000 in 2013.
BIGGER MARGINS, BETTER SALES
With our highly franchised model, growing restaurant-level profitability is just as important to us as
improving same-store sales. That’s why we focus intently on the health and profits of our franchisees.
To grow restaurant profits, we give franchisees the support, tools and training they need.
For example, we have helped to develop an integrated software system to handle scheduling, ordering
and inventory management. This lets franchisees improve speed of service, reduce food waste and run
their operations better than ever. Through our third party cooperative, we also negotiate favorable
pricing on chicken to help them control costs. At the same time, we drive sales with our menu
innovation, high-impact advertising and increasingly, online and social media outreach. By working
together, we are growing our powerful brand.
We are most proud of our relationship with our franchisees, our same-store sales growth and our
expanding footprint. We have 20-year franchise agreements with each franchise owner, so we
are always looking not just at the next quarter but years down the line. We take the long view,
aligned with the interests of our owners, to invest in our future growth, sales momentum and
restaurant-level profitability.
10
POPEYES LOUISIANA KITCHEN, INC. 2014 ANNUAL REPORT