Popeye's 2014 Annual Report Download - page 14

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5) ACCELERATE QUALITY
RESTAURANT OPENINGS
We have the opportunity to double the number of our U.S. locations and expand
our brand around the world. As we grow, we are committed to developing new
restaurants located on superior real estate — and then capturing the highest
sales volumes once they open.
LOCATION, LOCATION, LOCATION
Last year we opened a total of 201 restaurants — a new milestone for the Popeyes system — including
121 domestically and 80 internationally. We are growing our footprint by partnering with our franchisees,
and securing dominant real estate for our newest locations.
When we execute on our other strategic pillars — Develop Servant Leaders, Build a Distinctive Brand,
Create Memorable Experiences and Grow Restaurant Profits — we attract high-quality franchisees who
bolster our ability to Accelerate Quality Restaurant Openings because they see the long-term value of
being a part of the Popeyes system.
We are focused on opening new restaurants in the best locations. In the U.S., more than 20 percent of
our system is less than five years old, which helps build the brand and improve the guest experience.
First-year average unit volume was $1.6 million for new domestic freestanding restaurants last year,
compared to a $1.34 million average unit volume across all U.S. locations. We also continue to
implement operational best practices to sustain sales well beyond the first year.
STEADY GROWTH
For franchisees, our steady restaurant development program and attractive unit economics provide an
opportunity to grow with Popeyes. We want to deliver returns so good they can’t wait to open more
Popeyes restaurants. During 2014, 85 percent of our new U.S. restaurants were built by existing
franchisees, demonstrating their confidence in our Brand’s future.
At the same time, we are carefully expanding our company-owned restaurant footprint into two new,
underpenetrated markets, Indianapolis and Charlotte. Our deliberate approach gives us a real estate
pipeline that meets our goals for growth. While company-owned restaurants make up 3.5 percent of
our domestic system, they allow us to showcase the success of our business model, grow our bottom
line and deliver more value to our stockholders.
Internationally, we are bringing our brand to more places than ever before. To compete effectively, we
continue to work with growth-focused franchisees. We believe that market success depends on strong
brand awareness, which is deeply influenced by restaurant location. Our goal is to increase our global
market share by building high-volume restaurants on the best sites adjacent to current markets or
high-potential countries. Around the world, the untapped opportunity is vast.
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POPEYES LOUISIANA KITCHEN, INC. 2014 ANNUAL REPORT