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Hunt Valley, MD  (RestaurantNews.com)  United Capital Business Lending, a national business lender specializing in franchised restaurant finance, announced today that it will allocate $42 million to qualified, multi-unit Popeyes franchisees in 2012. The Popeyes® Louisiana Kitchen chain recently designated United Capital as one of its lending partners for the franchisor’s 2012 reimaging initiative.

Qualified Popeyes operators may borrow from United Capital to refinance debt, acquire existing restaurants, develop new locations or reimage stores. Financing for these needs is typically structured as fixed rate loans ranging from $250,000 to $5 million or more, with terms up to ten years.

The decision to increase the available funding to Popeyes franchisees was based on United Capital’s 2012 business strategy to support experienced, multi-unit owners within franchise concepts showing consistent performance. “United Capital is proud to be a part of Popeyes® growth,” says Andrew Jones, Vice President and Business Development Officer at United Capital. “Popeyes® is the world’s second largest quick-service chicken concept, so it’s fitting that we focus our dollars to supporting a winning organization.”

United Capital Business Lending is a subsidiary of BankUnited (NYSE: BKU), the largest bank in Florida with over $12 billion in assets.

In addition to Popeyes®, the United Capital team has financed franchisees for Five Guys® Burgers and Fries, SUBWAY®, Burger King®, Dunkin’ Donuts®, Denny’s® and Buffalo Wild Wings,® among others.

For information about financing for franchise acquisition, new restaurant development, equipment, remodeling or refinancing, call United Capital at 866-218-4793 or visit the company’s website at www.unitedcapitalbusinesslending.com.

AFC Refinancing Eliminates Need for Public Rating

AFC Refinancing Eliminates Need for Public Rating

AFC Refinancing Eliminates Need for Public Rating

Atlanta, GA  (RestaurantNews.com)  As previously announced on December 29, 2010, AFC Enterprises, Inc. successfully refinanced its bank credit facility. The 2010 Credit Facility provides the Company with greater flexibility with respect to cash usage as well as an improved interest rate which is currently 3.8 percent.

As a result of the refinancing, the Company is no longer required to furnish an independent credit rating. The Company therefore requested that Standard & Poor’s (“S&P”) withdraw its rating following S&P’s September 23, 2011 upgrade of the Company’s credit rating from “B+” to “BB-” with a stable outlook. Moody’s credit rating was withdrawn as of March 14, 2011, also at the Company’s request.

AFC Enterprises Chief Financial Officer, Mel Hope, said, “We are pleased with our 2010 Credit Facility and the strong partnership we enjoy with our banks. The facility continues to meet the Company’s needs for growth and recognizes the strong cash flow of our business model. We appreciate the service we have received from both credit rating agencies. We made this decision as part of our on-going company-wide initiatives to gain efficiencies and reduce costs.”

Corporate Profile

Founded in 1972 in New Orleans, Popeyes is a leader in the New Orleans segment of the foodservice industry and is the world’s second largest quick-service chicken concept based on the number of restaurants. As of October 2, 2011, Popeyes had 1,998 operating restaurants in the United States, Puerto Rico, Guam, the Cayman Islands and 27 foreign countries. For more information, visit the Popeyes Louisiana Kitchen Web site at www.popeyes.com.

Contact

AFC Enterprises, Inc.
Investor inquiries:
Rebecca Gardy, 404-459-4673
Director, Finance & Investor Relations
investor.relations@afce.com

or

Media inquiries:
Alicia Thompson, 404-459-4572
Vice President, Popeyes Communications & Public Relations
popeyescommunication@popeyes.com

Brand Transformation and Market Share Growth Drive Need for Messaging Leader

Popeyes Names Richard H. Lynch Chief Global Brand Officer

Popeyes Names Richard H. Lynch Chief Global Brand Officer

Atlanta, GA  (RestaurantNews.com)  Convinced that great tasting food requires slow, careful preparation, in 2008 Popeyes® Louisiana Kitchen, a division of AFC Enterprises, Inc. (NASDAQ: AFCE), embarked on a comprehensive brand transformation that emphasized its almost four decades of Louisiana-inspired home cooking. The initiative included a more contemporary logo, new brand advertising and tagline, distinctive new products, and a powerful messaging platform.

The new positioning, messaging, culinary innovation and Bonafide® chicken promotions are clearly resonating with guests. The brand recently announced third quarter results that reflected a gain in global same-store sales of 1.7% which outpaced the chicken QSR category for the 14th consecutive quarter. Through Q3, the Company’s two year comps were positive 6.9%.

The brand is ready to extend the power of Popeyes “Louisiana” positioning globally and today announced that Richard H. Lynch, currently Chief Marketing Officer, has been named Chief Global Brand Officer.”

“Dick led our brand transformation and now we’re asking him to take on the task of embedding our story into our guest experience and corporate culture. He is an experienced and passionate brand leader who is ideally suited to harness the power of our brand messaging. Effective immediately he is responsible for global marketing and all internal and external communications.” said Cheryl Bachelder, AFC Enterprises Chief Executive Officer.

”I am thrilled to have this opportunity to leverage the incredible assets and talent in our organization to strengthen the Brand’s messaging to enhance engagement with our key constituents,” said Lynch. “In this role and with this new alignment, we will be able to connect with our franchisees, employees, guests and investors in even more compelling and relevant ways.”

Lynch has served as Chief Marketing Officer for Popeyes since 2008. Prior to joining the Brand, he served as principal of GO, LLC, a marketing consulting firm specializing in restaurant and food retail, where he developed brand strategy and innovation plans for concepts including Burger King, Ruby Tuesday and Buffalo Wild Wings. Lynch has also held senior strategic positions with Campbell Mithun Advertising, Tracy-Locke Advertising in Dallas, Texas and Ketchum Communications in San Francisco, California.

Corporate Profile

AFC Enterprises, Inc. is the franchisor and operator of Popeyes® restaurants, the world’s second-largest quick-service chicken concept based on number of units. As of October 2, 2011, Popeye shad 1,998 restaurants in the United States, Guam, Puerto Rico, the Cayman Islands and 27 foreign countries. AFC’s primary objective is to deliver sales and profits by offering excellent investment opportunities in its Popeyes brand and providing exceptional franchisee support systems and services to its owners. AFC Enterprises can be found at www.afce.com.

Contacts

Popeyes® Louisiana Kitchen
Alicia Thompson, 404-459-4572
alicia.thompson@popeyes.com

Fast-food chain Popeyes Louisiana Kitchen has 75 restaurants in Los Angeles, Orange and Riverside counties, and it plans to open 24 more despite the lagging economy.

Chicken-centric Popeyes, however, doesn’t plan on launching the new outlets on its own dime. It’s seeking franchisees – would-be entrepreneurs willing to take on the expense and risk of opening their own businesses.

“We just don’t have the resources to build everywhere ourselves,” said Greg Vojnovic, vice president of development of Popeyes, owned by AFC Enterprises Inc.

Restaurant chain franchising is on a slow but steady increase, and not just at Popeyes.

Yum Brands Inc. this year planned to turn about 400 of its company-owned restaurants into franchises, most of them KFCs. And in September the company agreed to sell two of its chains – Long John Silver’s and A&W – to firms that specialize in franchising.

Continue reading . . .

Popeyes Cajun Style Turkeys Back for Limited Time

Popeyes Cajun Style Turkeys Back for Limited Time

Create new holiday meal traditions this year by adding a little Cajun to your home cooking with Popeyes Cajun Style Turkeys. The limited time only offer is available at participating restaurants through December, or until supplies last.

Popeyes Cajun Style Turkeys, approximately 9 to 11 pounds, are infused with a unique blend of Louisiana seasonings then flash-fried, creating a unique, crispy coating. Roasting finishes out the process and leaves the turkey crispy on the outside while remaining succulent and flavorful on the inside.

“Food and friendship create warm memories during the holiday season,” said Dick Lynch, chief marketing officer, “but the star of the holiday table, the turkey, can often be a source of holiday cooking concerns. With Popeyes’ fried Cajun Style turkeys, we make it fast and easy to enjoy not just an unbeatably moist, delicious turkey but one with the unique Popeyes’ Louisiana flavor our guests love so much. It’s a turkey that’s as memorable as the holiday occasion.”

Sit back, relax and enjoy this holiday season and let Popeyes do the cooking with one of our fully-cooked turkeys — all you have to do is pop the turkey in the oven, heat and serve.

These Cajun turkeys are only available once a year, so stop by or call your local Popeyes today.

Popeyes Celebrates 3rd Annual Crawfish Festival

Popeyes Celebrates 3rd Annual Crawfish Festival

Popeyes gets festive this fall with the return of its Louisiana-inspired Annual Crawfish Festival—going three years strong! No one parties like New Orleans can and no one cooks like Louisiana cooks, so it’s time to party at Popeyes! To celebrate, Popeyes is cooking up a myriad of Crawfish offerings, including its Crawfish Tackle Box with Creamy Horseradish Sauce, Cajun Fries and a biscuit for just $4.99 (price plus tax at participating restaurants). This tasty crustacean will only be available October 24 through November 27.

“Fall is the time for festivals and heart-warming comfort foods. Crawfish, a Louisiana-inspired delicacy, is the perfect way to kick off this festive season. Our Crawfish Tackle Box features succulent, meaty tails fried up crispy the Popeyes way!” said Dick Lynch, Chief Marketing Officer. “Each year our festival is more successful and our fans just can’t get enough, so we are thrilled to bring it back for the third year in a row.”

For the festival, Popeyes offers Cajun and Creole inspired crawfish eats for every guest at participating locations.

  • Crawfish Tackle Box—piled high with Cajun Fries, biscuit and Popeyes very own Creamy Horseradish Sauce. The Crawfish Tackle box is available as a meal or combo.
  • Crawfish Po’Boy—traditional favorite served on a warm baguette with lettuce, pickles and Creamy Horseradish Sauce. Perfect for those who want a hearty meal with a Cajun twist.
  • Crawfish Traveler—served with Creamy Horseradish Sauce. Great addition to any family meal, or for on the go snacking.
  • Crawfish Etouffee—traditional Louisiana “one pot” dish features seasoned rice smothered with a rich sauce of crawfish, veggies and spices. Etouffee is sold alone as a 16oz Big Easy Bowl, or as a regular side.

Hurry in to your local Popeyes today for some mouth-watering Crawfish—this once e a year limited time offer ends soon!

Popeyes Louisiana Kitchen to Expand in Southern California

Popeyes Louisiana Kitchen to Expand in Southern California

Popeyes Louisiana Kitchen, a division of AFC Enterprises, Inc., has launched an aggressive growth plan to increase its presence in Southern California. With the company’s dollar share of chicken QSR sales at a 10-year high domestically, Popeyes is poised to rapidly expand domestically and is seeking bold, passionate multi-unit operators to invest in new restaurants in Los Angeles and San Diego.

As part of the company’s 2011 growth plans, the Popeyes development team will be hosting a franchise seminar on October 26 in Los Angeles and on October 27 in San Diego to share the benefits of owning a Popeyes restaurant. To register for the event, visit www.ownapopeyes.com or contact Sunny Ashman at 404-459-4668 with any questions.

“For nearly 40 years, Popeyes has passionately delivered its authentic Louisiana food to guests around the world, and after a remarkable 2010 with strong positive results, we are excited about the opportunity to aggressively grow the brand in Southern California,” said Greg S. Vojnovic, CFE, vice president of development, Popeyes Louisiana Kitchen. “We have built a strong foundation and encourage interested entrepreneurs to attend our franchising seminar to learn how to open a Popeyes restaurant in their community.”

In 2010, the Popeyes global system opened 106 new restaurants and total domestic same-store sales increased 2.5 percent compared to 0.6 percent in 2009. In addition, the company announced that Popeyes’ Spicy and Mild Bonafide bone-in-fried chicken beat KFC’s Original Recipe bone-in-fried chicken in a national taste test. This marketing initiative combined with other national media advertising delivered strong guest counts and positive same-store sales for the second consecutive year.

At Popeyes, management is always focused on franchisee results. Sales and service excellence are achieved with a focus on four strategic pillars that guide every decision – build the brand, run great restaurants, strengthen unit economics and ramp up unit growth.

As part of its Strategic Roadmap, Popeyes is determined to give guests a service experience as distinctive and as superior as its food. In 2008, the company implemented its Guest Experience Monitor (GEM) in all U.S. restaurants, which measures a combination of overall guest satisfaction, intent to return and likelihood to recommend. Tracking this data enables management to make smart, fact-based decisions about the brands growth.

For those interested in franchising, Popeyes is seeking candidates that meet a specific franchisee profile to help build its brand and business. Among other things, franchisees should possess a minimum net worth of $500,000 and liquid assets of at least $250,000. Candidates should also have five years proven expertise in owning and operating restaurants.

“Popeyes is a brand with soul, offering a franchise opportunity unlike any other,” said Vojnovic. “It’s not for everyone and requires a leader who believes in accountability and take as much pride in serving the front of the house as managing the back.”

In an effort to keep the brand competitive, Popeyes offers flexible real estate development opportunities, including free-standing and in-line opportunities. Popeyes also develops in airports, shopping malls, universities as well as other retail environments.

As a true extension of its New Orleans roots, Popeyes serves seafood, including shrimp, crawfish and catfish. The company has received wide recognition throughout the franchise industry, including being ranked in Nation’s Restaurant News “Top 100” franchise chains, QSR’s “Top 50” franchises and Entrepreneur Magazine’s “Top 500,” among others.

Restaurant Fall Menus Offer New and Traditional FavoritesWhen Wendy’s began Project Gold Hamburger two years ago, they knew that they couldn’t totally reinvent a classic. However, the new Dave’s Hot N’ Juicy is a drastically updated and improved cheeseburger featuring two patties made from fresh beef, and toppings like fresh lettuce and red onion on a buttered, toasted bun. Crinkle cut pickles were also added while mustard was removed.

Smashburger first introduced the Windy City Burger in Chicago, the town that inspired it. Now its growing popularity has brought it to the rest of the country. The burger, which features a pretzel roll and haystack onions, will be available nationally until October 30th. The 100% Angus Beef patty is included on this Smashburger as well.

Popeyes recently debuted their fourth, limited-time only promotion for the year. The Dip’n Chick’n features Popeye’s signature fresh chicken breast and comes with a Cajun-inspired Blackened Ranch dipping sauce. The promotion will give customers an order of Dip’n Chick’n, fries, a biscuit and dipping sauce for $3.99.

Domino’s has expanded their menu by adding three new Artisan flavor combinations. The high-quality Tuscan Salami & Roasted Veggie, Spinach & Feta and Italian Sausage & Pepper toppings are laid over a square, hand-tossed crust. Domino’s is promoting the new pizzas through television ads and suggestions on their online ordering apps.

Denny’s is serving up a limited time, special menu for serious cheese lovers. The “Let’s Get Cheesy” menu features six new dishes like the Mac N’ Cheese Big Daddy Patty Melt, the Cheese Please Omelette, the Winner Winner Cheesy Dinner, the Chessy Breakfast Sampler, the Say Cheese Sizzlin’ Skillet and the Big Cheese Country-Fried Steak and Eggs.

Participating Cracker Barrel Old Country Store restaurants rolled out special $5.99 lunch options. Each weekday features a different lunch special, including the Country House Salad, Baked Chicken n’ Dressing, Chicken Pot Pie, Meatloaf and Mashed Potatoes and Turkey n’ Dressing.

Ling & Louie’s Asian Bar & Grill will be celebrating Oktoberfest in an unusual way. The “Woktoberfest” will combine the beer and bratwurst of the German festival and combine it with fresh Asian flavors. Dishes like Wokin’ Hot Brats will be served with Widmer Brothers beer.

Twin chains Hardee’s and Carl’s Jr. have added new Steakhouse Burgers to their menus. The Steakhouse Burgers come in Six Dollar Burger and Thickburger options, both topped with blue cheese, A1 steak sauce, fried onion strings and Swiss cheese. Black Angus ground beef is used exclusively for the patties on these burgers.

KFC is promoting their 100% breast meat Popcorn Chicken with a new deal. For a limited time, customers can pick up a large order of bite-sized Popcorn Chicken for just $2.99.

Del Taco introduced its new slow simmered, shredded Pork Carnitas menu, including the Carnitas Combo Burrito, the Carnitas Taco al Carbon and the Carnitas Macho Nachos, for a limited time. Guests who would like to try the new items can pick up a coupon for a free Carnitas Taco al Carbon on Del Taco’s Facebook page.

Red Robin Gourmet Burgers introduced its new Oktoberfest Burger, featuring a pretzel bun, beer mustard, Black Forest ham and sauteed onions on a fire grilled beef patty. Sweet Potato Fries round out the offering.

Genghis Grill is featuring a new protein option on the Khan’s Kitchen food bar through November 6th. The Dr Pepper BBQ Chicken is marinated and covered in the chain’s signature BBQ sauce with the real flavor of Dr Pepper. Guests can combine this new chicken option with 70 other fresh ingredients.

Quiznos brought back their popular Black Angus sub with new toppings and bread. The sub features sliced steak on Rosemary Parmesan topped bread. Two types of melted cheese and sauteed mushrooms and onions finish the sandwich. The sandwich will only be available for a limited time at all Quiznos locations.

Sweet Potato Fries, Naked and Dusted, have returned to Good Times Restaurant & Frozen Custard for a limited time. Customers can enjoy the waffle-cut fries plain or dusted with cinnamon sugar until the end of December. The return of these fries brings the chain’s total fry options to four, with other favorites including the Green Chile Cheese fry.

Burger King added new soft serve dessert items to its national menu. Vanilla soft serve cones and cups come plain for only 89 cents, with premium and traditional sundaes also available. Customers can get a free soft serve cone or cup with purchase of a BK Value Meal through October 9th.

Dunkin’ Donuts has brought back some old favorite flavors and releasing new ones just in time for the beginning of Fall. Customers can enjoy a cup of hot or iced spiced Apple Cider with a new Pumpkin Muffin, Pumpkin Donut or Caramel Apple donut. Pumpkin flavored pre-packaged coffee is also available.

Yogurt Mountain added two new flavors to their national line-up that are inspired by sweet camping treats. The S’mores flavored frozen yogurt and the Graham Cracker flavor blend well together or stand alone. Each flavor has only 120 calories per serving. New toppings also include S’Mores Crunch bits and mini marshmallows.

Restaurant News Bites: Fast Food Deals, Wendy's New Burger, Popeyes New Dip'n Chick'nThe economy’s continued decline and the rise in unemployment among young adults is bringing special offers and value deals back to many fast food chains. Restaurant traffic is dropping drastically for even big name brands, and chains are rolling out special deals to bring the numbers back up. For example, Subway is making all foot long subs available for $5 starting in October.

Wendy’s has re-invented their classic burger to make it even better. The new Dave’s Hot ‘N Juicy Cheeseburger features two patties made from fresh beef, and toppings like fresh lettuce and red onion on a buttered, toasted bun. The shape of the patties remains square, but the rest of the burger has been upgraded.

Popeyes is debuting their fourth, limited-time only promotion for the year. The Dip’n Chick’n comes with a Cajun-inspired Blackened Ranch dipping sauce and features Popeyes signature fresh chicken breast. The promotion will give customers an order of Dip’n Chick’n, fries, a biscuit and dipping sauce for $3.99.

Alcoholic beverages offer a high profit margin to chain restaurants, but local and county restrictions make it hard to make thousands of locations compliant with the law. The higher cost of a drink also doesn’t appeal to value-menu diners. Storing the alcohol and training staff to check ID also complicates the matter.

Domino’s is expanding their menu by adding three new Artisan flavor combinations. The high-quality Tuscan Salami & Roasted Veggie, Spinach & Feta and Italian Sausage & Pepper toppings are laid over a square, hand-tossed crust. Domino’s is promoting the new pizzas through television ads and suggestions on their online ordering apps.

Thomas Monaghan may be 74, but he isn’t letting his age slow him down. After founding Domino’s and Ave Maria University, he’s designing a new gourmet burger brand. His brand will feature delivery, something no burger brand currently offers. He hopes to put any profits made by the new business into the growth of Ave Maria University.

CEC Entertainment, the parent company of Chuck E. Cheese’s, has given Scott McDaniel two new executive titles. He’ll be the Executive Vice President and Chief Marketing Officer for Chuck E. Cheese’s and will be responsible for all marketing, showroom promotions, guest relations and other related issues.

Ling & Louie’s Asian Bar & Grill is celebrating Oktoberfest in an unusual way. The “Woktoberfest” will combine the beer and bratwurst of the German festival and combine it with fresh Asian flavors. Dishes like Wokin’ Hot Brats will be served with Widmer Brothers beer. The chain will also give away a trip to Portland as well.

CiCi’s Pizza has hired Publicis Dallas as their agency of record as part of their dedication to the “Build the Brand” campaign. Within the next decade the chain hopes to increase the total number of restaurants by 100 or more. The campaign will include a $26 million promotional account that Publicis will handle.

Dickey’s Barbecue Pit is expanding their chain again in North Texas. The new location is located in Garland and is under the control of local franchisee Kevin Tran. This is the first franchise location for Tran. The chain is hoping to have 200 total locations by the end of the year.

Dip into Popeyes for New Dip’n Chick’n

Dip into Popeyes for New Dip'n Chick'nInnovation is the name of the game at Popeyes, and it’s culinary “dream” team continues an undefeated season with its fourth new Limited Time Offer for 2011 – Popeyes new Dip’n Chick’n; chicken breast fillets cut into perfect chicken dippers and fried up fresh.

Dip’n Chick’n is tender and juicy chicken breast “scoop” medallions marinated in authentic Louisiana herbs and spices then hand battered and breaded in our unique crispy coating and paired with a new signature dipping sauce.

This inventive new product, fresh with a unique scoop shape, Cajun-inspired dipping sauce, and unforgettable eating experience is made for dipping!

Popeyes new Dip’n Chick’n is served with an oversized cup of its new signature Blackened Ranch Dipping Sauce, a traditional buttermilk ranch dressing mixed with onion, garlic, a blend of peppers and Magic Blackened seasoning, which doubles the dipping for those who just love to sauce it up.

“Popeyes culinary team continues to play to its strengths and has created another game changing LTO with Dip’n,” says Dick Lynch, Popeyes chief marketing officer. “Dip’n Chick’n doubles the fun and combines the best of both worlds with Popeyes boneless chicken perfect for scooping and a double dose of a brand new dipping sauce.”

Dip’n Chick’n is served with Cajun fries, a biscuit and a double serving of Blackened Ranch Dipping Sauce – all for only $3.99 (plus tax) through October 23, 2011.  Valid only at participating restaurants for a limited time.

AFC Reports Financial Results for Second Quarter 2011; Reaffirms Earnings GuidanceAFC Enterprises, Inc., the franchisor and operator of Popeyes restaurants, has reported results for its fiscal second quarter which ended July 10, 2011. The Company also reaffirmed its fiscal 2011 earnings guidance and provided a business update on its Strategic Plan.

Second Quarter 2011 Highlights Compared to Second Quarter 2010:

  • Reported net income was $5.5 million, or $0.22 per diluted share, compared to $6.8 million, or $0.26 per diluted share, last year. The prior year included a $0.05 per diluted share impact from the settlement of a federal income tax audit. Adjusted earnings per diluted share were $0.23 compared to $0.21 in 2010. The increase in adjusted earnings per diluted share was primarily due to lower interest expense. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”
  • Global system-wide sales increased 4.8 percent compared to a 2.8 percent increase last year.
  • Global same-store sales increased 0.7 percent compared to a 0.6 percent increase last year. Domestic same-store sales increased 0.5 percent compared to a 0.4 percent increase in 2010. International same-store sales increased 2.3 percent compared to a 2.7 percent increase last year. According to independent data, in the second quarter of 2011, Popeyes domestic same-store sales continued to outpace the chicken QSR category, beating the segment for the 13th consecutive quarter.
  • The Popeyes system opened 30 restaurants during the second quarter, resulting in 62 new restaurants opened in the first half of 2011. The Company permanently closed 39 restaurants through the end of the second quarter, resulting in 23 net openings in 2011 compared to 5 in the same period of the prior year.
  • Through the end of the second quarter, Operating EBITDA was $24.1 million, at 29.4 percent of total revenue, compared to $24.4 million, at 31.2 percent of total revenue last year. The decrease in Operating EBITDA as a percent of total revenue was primarily due to new investments in general and administrative expenses, partially offset by higher revenues. Operating EBITDA is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”
  • The Company generated $12.1 million of free cash flow through the end of the second quarter, which included $0.3 million of other income, compared to $13.8 million in the same period of 2010, which included $0.1 million of other income. The reduction in free cash flow was primarily attributable to the Company’s new 2010 credit facility which required $1.9 million in higher mandatory debt repayments, partially offset by a significantly lower interest rate. Free cash flow is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”
  • Through the second quarter, the Company used $22.3 million of cash to repurchase 1,465,436 shares of common stock under the Company’s current Share Repurchase Program.

AFC Enterprises Chief Executive Officer Cheryl Bachelder stated, “Popeyes delivered on earnings expectations and had another quarter of positive same-store sales and strong new unit openings. Same-store sales gains were modest this quarter, but remain positive at 2.5 percent for the first half of the year. Despite a choppy economy and higher commodity costs, Popeyes continues to gain market share among its competitors. Higher commodity costs exerted downward pressure on operating margins; however, we took modest pricing increases on select menu items to buffer the full effect. Our strategic plan and our 2011 goals remain on track.”

Strategic Plan Update

The Company’s Strategic Plan is built on the foundation of the Four Pillars below.

1. Build the Popeyes Brand

  • The Company continued its promotion of its core Bonafide chicken throughout the second quarter, both in Limited-Time-Only offers such as the “Buy One-Get One” promotion in May as well as a variety of locally priced box and bundle promotions. In addition, the Company delivered innovative seafood and boneless chicken products to its guests, such as Firecracker Shrimp and Wicked Chicken.
  • In June, Popeyes celebrated the launch of its Louisiana Leaux menu and its new Get Up & Geaux Kids Meal, both with lower fat, calorie and sodium content. The new program returns Popeyes’ Naked Chicken Tenders to the menu, and adds two new side items – green beans and apple sauce.
  • During the second quarter, Popeyes International franchisees offered multiple Limited-Time-Only promotions across regions to gain efficiencies and build excitement, driving guests into our restaurants abroad.

2. Run Great Restaurants

  • Popeyes continues to remain focused on improving its Guest Experience Monitor (“GEM”) scores with “% Delighted” and “Speed of Service” scores consistent with first quarter performance and higher over last year. Additionally, by the end of the second quarter, approximately 65 percent of domestic restaurants were reporting drive-thru times at or below 180 seconds.
  • Popeyes’ international team continues to leverage many of the domestic core operating systems with over 40 percent of international restaurants now using GEM. The Company also increased the number of its certified training restaurants in its international markets.

3. Strengthen Unit Economics

  • As with many others in the restaurant industry, Popeyes continued to face commodity inflation in the second quarter, with an approximate 9 percent increase in food costs compared to last year. On a full year basis, the Company now expects food costs to increase by approximately 6 percent, which equates to approximately 200 basis points on restaurant operating profit margins. As previously indicated, management expects these costs to be partially offset by top-line sales growth, additional supply chain cost savings, selective menu pricing and in-restaurant cost controls.
  • Maximizing restaurant profitability and returns on investment in Popeyes’ International markets are areas of continued focus. Efforts continue to address higher food costs through localized product sourcing, regional volume leverage, and alternative equipment opportunities.

4. Ramp Up New Unit Growth

  • With a stronger new opening pipeline and new development incentive program, the Popeyes domestic system opened 30 new restaurants in the first half of 2011 as compared to 11 last year. These new restaurants are opening with average weekly sales performance significantly higher than the Popeyes system.
  • Internationally, the Company is building the foundation to replicate the same development disciplines and methods employed in the brand’s domestic business. Management expects this will lead to a deliberate and sustainable long-term international growth plan.

Second Quarter 2011 Financial Performance Compared to Second Quarter 2010

Global system-wide sales increased by 4.8 percent. System-wide sales were comprised of $447.2 million in franchise restaurant sales and $12.3 million in company-operated restaurant sales.

Global same-store sales increased 0.7 percent compared to a 0.6 percent increase in 2010. Total domestic same-store sales increased 0.5 percent compared to a 0.4 percent increase last year. According to independent data, in the second quarter 2011, Popeyes same-store sales outpaced the chicken QSR category for the 13th consecutive quarter.

International same-store sales increased 2.3 percent and represented the 6th consecutive quarter of positive same-store sales. This increase was primarily driven by strong same-store sales in Turkey and Canada partially offset by a decrease in same-store sales in Korea.

Total revenues were $35.3 million, compared to $34.3 million last year. This increase was primarily attributable to sales from new restaurants opened in the second half of 2010 and higher same-store sales.

Company-operated restaurant operating profit (“ROP”) was $2.0 million, or 16.3 percent of sales, compared to $2.1 million, or 17.4 percent of sales, last year. The $0.1 million decrease in ROP was primarily due to higher food costs as a result of increased commodity costs partially offset by modest pricing increases on select menu items. Company-operated restaurant operating profit is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

General and administrative expenses were $13.6 million, or 3.0 percent of system-wide sales, compared to $12.6 million, or 2.9 percent of system-wide sales, last year. This increase was primarily attributable to new restaurant development support, additional marketing initiatives, and franchise support services.

Other expense, net was $0.2 million, primarily related to the Company’s pending relocation to a new corporate support center in close proximity to its existing offices.

Through the end of the second quarter, Operating EBITDA was $24.1 million, at 29.4 percent of total revenue, compared to $24.4 million, at 31.2 percent of total revenue, last year. The decrease in Operating EBITDA as a percentage of total revenue was primarily due to higher commodity costs and new investments in general and administrative expenses, partially offset by higher revenues. Operating EBITDA is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

Operating profit was $9.6 million, compared to operating profit of $10.2 million last year.

Interest expense, net was $0.9 million, an $0.8 million decrease from 2010. This decrease was primarily due to lower average interest rates under the Company’s new 2010 credit facility, and lower amortization for bank fees recognized in the second quarter of 2010.

Income tax expense was $3.2 million, yielding an effective tax rate of 36.8 percent, compared to an effective tax rate of 20.0 percent in the prior year. In the second quarter of 2010, the Company recorded a tax benefit of $1.4 million, or $0.05 per diluted share, related to the completion of a federal income tax audit. Excluding this tax benefit, the effective tax rate would have been 36.5 percent. The effective rates differ from statutory rates due to adjustments to estimated tax reserves and other permanent differences.

Reported net income was $5.5 million, or $0.22 per diluted share, compared to $6.8 million, or $0.26 per diluted share, last year. The prior year included a $0.05 share impact from the settlement of a federal income tax audit. Adjusted earnings per diluted share were $0.23 compared to $0.21 in 2010. This increase was primarily due to lower interest expense as discussed above. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

The Company generated $12.1 million of free cash flow through the end of the second quarter, which included $0.3 million of other income, compared to $13.8 million in the same period of 2010, which included $0.1 million of other income. The reduction in free cash flow was primarily attributable to the Company’s new 2010 credit facility which required $1.9 million in higher mandatory debt repayments, partially offset by a significantly lower interest rate. Free cash flow is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

During the second quarter, the Company repurchased 1,027,148 shares of its common stock for approximately $15.8 million. Through July 10, 2011, the Company used $22.3 million of cash to repurchase 1,465,436 shares of common stock under the Company’s current Share Repurchase Program. These purchases were made in accordance with the Company’s previous stock repurchase guidance for 2011 of $20-$25 million. As of July 10, 2011, approximately 24.4 million shares of the Company’s common stock were outstanding.

The Popeyes system opened 30 restaurants in the second quarter, which included 19 domestic and 11 international restaurants, compared to 17 total openings in the second quarter of 2010. The Company permanently closed 25 restaurants, including 9 domestic and 16 international restaurants, resulting in 5 net openings during the second quarter of 2011, compared to zero net openings in the second quarter of 2010. Through the second quarter, the Company opened 62 restaurants and permanently closed 39 restaurants, resulting in 23 net openings in 2011, as compared to 5 net openings in the same period last year.

On a system-wide basis, Popeyes had 2,000 restaurants operating at the end of the second quarter, compared to 1,945 at the end of the second quarter of 2010. Total unit count in 2011 was comprised of 1,595 domestic restaurants and 405 international restaurants in 27 foreign countries and three territories. Of this total, 1,962 were franchised restaurants and 38 were company-operated restaurants.

The Company announced after the end of the second quarter that it had entered into a lease for a new corporate support center, located in close proximity to its current offices. The new location offers approximately 40 percent more capacity at a lower cost per square foot. Management expects the support center will accommodate its continued global growth and increase productivity throughout the organization. The anticipated move-in date is the fourth quarter of 2011.

Fiscal 2011 Guidance

The Company now expects that Popeyes global same-store sales growth will be in the range of positive 1.0 to 2.0 percent versus prior guidance of positive 1.0 to 3.0 percent, as Popeyes restaurants roll over strong same-store sales from the third and fourth quarters of 2010.

Global new openings are still expected to be in the range of 120-140 restaurants. As previously indicated, international new unit openings are expected to remain on pace with the system’s 2010 growth of approximately 60 restaurants.

Consistent with previous guidance, the Company expects system-wide unit closings will be in the range of 60-80 restaurants, resulting in 40-80 net openings as compared to 39 net openings in 2010.

The Company continues to expect general and administrative expenses will be in the range of $60-$62 million, at a rate of 3.1-3.2 percent of system-wide sales, among the lowest in the restaurant industry. As previously disclosed, this expense includes $1.0 million for a planned corporate office relocation. Absent this unusual item, general and administrative expenses as a percent of system-wide sales would be 3.0-3.1 percent.

Consistent with previous guidance, the Company expects 2011 reported earnings per diluted share will be in the range of $0.87-$0.91. The Company continues to expect that adjusted earnings per diluted share will be in the range of $0.91-$0.95, compared to $0.86 in 2010. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.” Full year 2011 adjusted diluted earnings per share excludes approximately $1.5 million for the corporate office relocation ($1.0 million for general and administrative expenses and $0.5 million for depreciation and other expenses), or $0.04 per diluted share.

Corporate Profile

AFC Enterprises, Inc. is the franchisor and operator of Popeyes® restaurants, the world’s second-largest quick-service chicken concept based on number of restaurants. As of July 10, 2011, Popeyes had 2,000 operating restaurants in the United States, Puerto Rico, Guam, the Cayman Islands and 27 foreign countries. AFC’s primary objective is to deliver superior sales and profits by offering excellent investment opportunities in its Popeyes brand and providing exceptional franchisee support systems and services to its owners. AFC Enterprises can be found at www.afce.com.

AFC Enterprises Names Andrew G. Skehan Chief Operating Officer, InternationalAFC Enterprises, Inc., the franchisor and operator of Popeyes restaurants, has announced that Andrew G. Skehan has been named Chief Operating Officer, International of its Popeyes brand.

Mr. Skehan joins Popeyes with extensive experience in International strategy, operations, development and marketing. From 2009 to 2011, he served as chief operating officer of Wendy’s/Arby’s International. Prior to this position, he served as president, Europe, Africa & Middle East for Quizno’s Restaurants, LLC. Mr. Skehan has a total of 22 years of International, strategic and leadership experience including senior operations, marketing and management positions with Churchill Downs Incorporated; Nabisco, Incorporated; and PepsiCo Restaurants International.

“Andrew is an experienced and enthusiastic international leader who is ideally suited to our company’s global expansion plans and our commitment to helping our franchise partners succeed,” said Cheryl Bachelder, AFC Enterprises Chief Executive Officer. “Andrew has hands-on experience building winning teams and restaurants around the globe; he is a valuable addition to our Leadership Team.”

Prior to joining PepsiCo, Mr. Skehan served as an officer in the United States Navy. He received his Bachelor of Science degree from the United States Naval Academy and his Master’s degree in business administration from the University of Rhode Island.

Restaurant News Bites: Bojangles', Burger King, Red MangoEven the best educated, smartest and most talented restaurant managers and owners are prone to developing blind spots. These blind spots make it difficult to achieve true restaurant success because you can’t even notice that they’re a problem. Asking for the input of an outside source, whether its a friend or a professional consultant, helps work around these problems.

Private equity firm Advent International has purchased the ownership interest held by Falfurrias Capital Partners in the Bojangles’ Restaurant Company. Falfurrias Capital Partners first bought the chain four years ago. Advent International plans to work with the current management team of the company and has no plans for drastic changes to the structure or menu of the chain.

Burger King restaurants have added the BK Minis sandwich packs to their national menu. Each BK Minis set contains four, eight or 12 tiny burgers or chicken sandwiches. Snackers can share a set of mini-sandwiches or chow down all by themselves. The four pack begins at just $2.99, with the 12 pack costing only $7.99.

Red Mango, a quickly growing chain specializing in frozen yogurt and smoothies, has appointed a new CEO. Barry M. Barron will take over as the head of the chain and will bring his extensive experience in the restaurant industry to the chain. He spent six years as the head of expansion at Papa Johns and learned how to be a top-notch CEO at the ACE Cash Express chain.

Popeyes Louisiana Kitchen is making tasty, freshly fried chicken fun again with the new Rip’n Chick’n. The meal features chicken tenders pre-cut so you can tear them apart and dip into the ranch dipping sauce. For just $3.99 diners will receive a buttermilk biscuit, ranch dip, the chain’s signature Cajun fries and a Rip’n Chick’n breast piece.

Chik-fil-A is expanding its breakfast menu across the country with health-conscious consumers in mind. The newest menu addition is the slow-cooked Multi-Grain oatmeal. Four types of grains, including rolled oats and flax, are used to increase fiber and nutrients. Topping choices include mixed nuts, dried fruit and brown sugar with cinnamon.

Domino’s Pizza is taking a unique and daring step to win customer loyalty. The pizza chain is adding a live display in Times Square that shows customer feedback from the online ordering program as it is added. Negative and neutral reviews will be displayed along with positive feedback. Customers also get to use the Domino’s Tracker to see which employees prepared their pizza at each step.

Taco Bell restaurants around the country launched the new Big Box Remixed meal today. The meal also gives consumers access to exclusive music content through a partnership with the upcoming MTV Video Music Awards. A Quick Response, or QR, code on the box gives your smart phone access to a mobile site with music downloads and other exciting content.

Hardee’s and the My Coke Rewards program have teamed again to help diners win one of two $5,000 gift cards. Large fountain drinks, including those with large sized combo meals, feature promotional codes that are redeemable for free menu items and My Coke Reward points. The promotion will run until September 18th.

Growing demand for healthy dining variety has led the Zoup! Fresh Soup Company to grow rapidly. Franchisees Don and Pat Hoag are developing their second location with the brand that will open in October in Cleveland, Ohio. The chain currently has 35 restaurants mainly located in the Midwestern states like Michigan.

Popeyes Introduces New Rip’n Chick’n

Popeyes Introduces New Rip'n Chick'nPopeyes Louisiana Kitchen, a division of AFC Enterprises, Inc., brings “play with your food” fun to mealtime with its all new Rip’n Chick’n—juicy tenders cut into pull-apart strips that are easy to rip and dip! Popeyes Rip’n Chick’n will be available July 25 through August 28 with Cajun fries, buttermilk biscuit and Ranch Dipping Sauce for just $3.99.

Popeyes Rip’n Chick’n is a whole chicken breast cut into tenders only partially, and left intact at the base for rip-able strips. It’s marinated with a blend of cayenne, habañero, white and black peppers, and then is hand battered, breaded, and cooked up in Popeyes signature crispy batter. To cool it off, Rip’n Chick’n is served with a side of buttermilk Ranch Dipping Sauce.

“Popeyes new Rip’n Chick’n creates a fun, interactive, and memorable eating experience that is actionable—it’s made to Rip and Dip!” said Dick Lynch, Popeyes chief marketing officer. “And, Rip’n Chick’n is quick and portable– it’s finger food, yet a generous portion that can easily be eaten for dine-in, or on-the-go.”

Try Popeyes Rip’n Chick’n this August at participating Popeyes nationwide; prices may vary. Visit www.Popeyes.com to search for a restaurant near you to take advantage of this incredible limited time offer.

Founded in 1972 in New Orleans, Popeyes is a leader in the New Orleans segment of the foodservice industry and is the world’s second largest quick-service chicken concept based on the number of units. As of April 17, 2011 Popeyes had 1,997 restaurants in the United States, Guam, Puerto Rico, the Cayman Islands, and 25 foreign countries.

Popeyes Louisiana Kitchen Opens 2000th RestaurantFrom New Orleans to Istanbul, food lovers across the globe love the unique, authentic taste of Popeyes Louisiana Kitchen—the world’s second largest quick-serve chicken concept based on number of units—and on July 16, 2011, Popeyes will celebrate the opening of its 2,000th restaurant. The landmark opening, located in Memphis, Tenn., marks a major growth milestone for Popeyes and highlights the success of the company’s development strategy.

“The 2,000th restaurant opening is proof that our delicious, authentic Louisiana cooking, paired with a very deliberate development strategy is the perfect recipe for success,” said Ralph Bower, chief operating officer for Popeyes. “We are pleased to reach this significant milestone as we approach our 40th year.”

The milestone restaurant, located at 4201 Hacks Cross Road, Memphis, Tenn., is owned and operated by Olive Oil Associates led by President Bob Cook, who brings more than 45 years of franchise and QSR experience to Popeyes. Cook is Popeyes’ 2010 Operator of the Year Award winner.

In celebration, Popeyes will give away 2,000 pieces of FREE chicken for guests attending the grand opening event at the Hacks Cross Road location only. The mouthwatering, one-day promotion is Popeyes way of saying “thank you” to devoted fans and first-time visitors alike.

”This is definitely an exciting moment for our team and we’re proud to be opening the 2,000th restaurant location for Popeyes in Memphis,” said Cook. “We’ve created this offer to give something back to our loyal guests and also to encourage new guests to come in and experience the authentic flavor of Popeyes, Louisiana—Fast!”

The 2000th restaurant also marks a milestone for the Popeyes’ executive team which continues to implement a development strategy that addresses both unit growth and store profitability, bringing a new focus to the quality of new restaurant openings. Popeyes’ development strategy includes extensive analysis of site modeling data that allows the company to better evaluate potential new restaurant sites, as well as decline sites that will not perform at the company’s high standard.

“Popeyes’ commitment to quality begins in our kitchen and extends throughout our entire organization, including operations and development,” said Bower. “With our evaluative measures in place, we are able to look at key factors that affect restaurant performance and profitability and the proof is in the performance. This is critical information and it allows us to continue to work with and attract the best franchisees in the business.”

*Free chicken will be given away as 3 pieces (spicy or mild) with a biscuit until the 2,000 piece limit has been reached. Pieces may vary.

Restaurant News Bites: Applebee's, Popeyes, Friendly's Applebee’s President Mike Archer says that adding new and exciting menu items has turned the chain around. When it was purchased in 2007 by the IHOP chain, DineEquity was formed. The new company noticed that 30% of lost return customers left because of food or menu issues. New items were added on a two month schedule and the American cuisine chain has seen a big rise in repeat sales.

Popeyes Louisiana Chicken is bringing in new health conscious consumers with a new Louisiana Leaux menu. All of these special menu items offer lower calorie counts, fat and sodium content without sacrificing taste. A new healthier kid’s meal, the return of the Naked Chicken Tenders and new sides like applesauce and green beans are all part of the program.

The co-founder of the Friendly Ice Cream Corporation, S. Prestley Blake, has written a new book. “A Friendly Life”, a the autobiography that details the founding of the Friendly’s restaurant chain with his brother Curtis L. Blake. He wanted to share his story of success in business that was based on ethics and hard work.

Somewhere between 90 and 25 percent of restaurants fail in their first year, and by the end of three years 60 percent are gone. Restaurants may seem easy to run from the outside, but new restaurant owners struggle to attract new customers and keep profits above their debts. Even in towns with motivated diners starting a new restaurant brand from scratch is difficult.

Ralph Desiano worked for 25 years in the food industry before opening his own restaurant. He had detailed layouts and menus written up nearly a decade before signing a lease. This proved to be a path to success for the owner of Naples Flatbread & Wine Bar, who opened a second location just months after the opening of the first.

Hurricane Grill & Wings celebrated a period of rapid growth and expansion with their Annual Franchise Conference. It was held this past weekend in Ponte Verde Beach, Florida. New franchisees and tenured restaurant operators listened to inspiring guest speakers and discussed their methods for succeeding in a recession.

Two new locations are about to be added to the Scooter’s Coffeehouse chain, according to the parent company Boundless Enterprises. The first store will be opened in Lincoln, Nebraska. The second will be located in St. Peters, Missouri. Both will be opened by franchisees that already own and operate Scooter’s locations.

July 4th is a major family holiday, but many families are foregoing the traditional cookout and going out to eat instead. The Bill Johnson’s Big Apple restaurant in Phoenix is inviting everyone to their BBQ Blowout event this weekend. It begins on the 4th of July and runs through Sunday. Menu items like pork ribs and spicy hot links will be sold at a discounted price.

The week leading up to the Independence Day celebration is also an important time for Bill Johnson’s Big Apple Restaurant. The restaurant has teamed up with Local First Arizona to create the Independents Week celebration. Consumers who pledge to support the local economy will receive a discount on their meals.

Get Fired up with Popeyes Firecracker Shrimp This JulyPopeyes Louisiana Kitchen, a division of AFC Enterprises, Inc., fires up taste buds with patriotic favorite, Firecracker Shrimp, available June 27 through July 24. Guests can enjoy eight juicy Firecracker Shrimp, Cajun fries, a buttermilk biscuit and new Firecracker Dipping Sauce for only $4.99.

Popeyes Firecracker Shrimp features butterfly shrimp marinated in a spicy cayenne pepper seasoning blend and breaded with New Orleans-inspired seasoning blends. Dip the shrimp in our new Firecracker Dipping Sauce, a blend of honey, Crystal Hot Sauce, Aleppo pepper flakes and apple cider vinegar, for a sweet, tart and spicy kick.

“While Popeyes spices up appetites year-round, it only makes sense that we bring back the heat during the most patriotic month of the year!” said Amy Alarcon, director of culinary innovation for Popeyes. “You can really see the ‘sparkle’ of the firecracker specks in the batter, and the ‘heat’ is offset by our new Firecracker Dipping Sauce—sweet at first bite, followed by a nice subtle heat that permeates the mouth.”

Guests can enjoy several Firecracker Shrimp meal options:

  • Firecracker Shrimp Traveler – eight Firecracker Shrimp in a Traveler Box with Firecracker Dipping Sauce
  • Firecracker Shrimp Tackle Box – eight Firecracker Shrimp, Firecracker Dipping Sauce, regular Cajun Fries, buttermilk biscuit
  • Firecracker Shrimp Tackle Box Combo – eight Firecracker Shrimp, Firecracker Dipping Sauce, regular Cajun Fries, buttermilk biscuit and a regular drink

Also this July, Popeyes will launch Flavoriety™ to quench guests’ thirst for more beverage flavor and variety starting with the new Big Easy Cooler™, a refreshing blend of Minute Maid® Lemonade and Fanta® Strawberry. Guests can transform an ordinary beverage into Popeyes own Big Easy Cooler at the same destination they enjoy their favorite Louisiana-inspired eats.

Pair Popeyes Firecracker Shrimp and New Big Easy Cooler this July at participating Popeyes nationwide; prices may vary. Visit www.Popeyes.com to search for a restaurant near you to take advantage of this incredible limited time offer.

Popeyes Launches "Louisiana Leaux" Better-for-You Alternatives Program with Celebration in the French QuarterPopeyes Louisiana Kitchen, a division of AFC Enterprises, Inc., has launched its Louisiana Leaux (pronounced “low”) program of better-for-you menu alternatives with a dancing-in-the-streets celebration held in the French Quarter of Popeyes’ heritage home, New Orleans. The new program sees the return of Popeyes’ Naked Chicken Tenders to the menu, as well as the addition of two new lower calorie side items – green beans and apple sauce.

The Louisiana Leaux program delivers the quality and flavor Popeyes’ guests expect, while significantly reducing fat, calorie, and sodium content, in comparison with other menu items. It also introduces the new Get Up & Geaux (pronounced “go”) Kids Meal to offer better-for-you eating options for children and their parents.

“We know how much people love Popeyes’ authentic, Louisiana recipe-inspired menu,” said Cheryl Bachelder, president and chief executive officer for Popeyes Louisiana Kitchen. “As part of living a healthier lifestyle, we wanted to provide options for our guests that allow them the opportunity to eat at Popeyes even more often by offering flavorful, better-for-you alternatives.”

Popeyes is celebrating the launch of its Louisiana Leaux – Get up & Geaux! program in The French Quarter today. To promote healthy eating and movement through dance, Popeyes-lovers will participate in a flash mob coordinated dance down Bourbon Street, march along with second line bands and celebrate New Orleans-style.

“We turned Times Square orange last year to announce Popeyes Beat KFC in a national test taste, so it’s only appropriate we launch and celebrate Louisiana Leaux in our birthplace, dance in the streets of the French Quarter and turn IT orange,” said Bachelder.

The new Louisiana Leaux menu features:

  • Naked Chicken Wrap: A cheese tortilla wrap topped with a Naked Tender, lettuce and pickles
  • Naked BBQ Chicken Po Boy: A toasted Po Boy baguette featuring two Naked Tenders and topped with BBQ sauce, lettuce and pickles
  • Naked Tenders Meal: Three seasoned Naked Tenders served with green beans and a toasted baguette roll
  • “Get Up & Geaux” Kids Meal: Two Naked Tenders served with apple sauce, toasted baguette roll and zero calorie drink

All restaurants will be equipped with Louisiana Leaux brochures that provide nutritional information as well as additional meal options so guests can enjoy other flavorful favorites on the Popeyes menu while maintaining a balanced lifestyle.

For Louisiana Leaux nutritional information, please visit www.popeyes.com and click on the Louisiana Leaux logo, or click on Food, Menu, and then the green “Louisiana Leaux” tab.

Restaurant News Bites: Popeyes, Bojangles', Pizza PatronIf you need new ideas on increasing customer traffic, making loyalty programs pay off or improving upselling, try tapping your staff for new information rather than hiring outside consultants. Engaging your employees gathers information from the people who are actually interacting with customers. This encourages organic idea creation that improves your business in surprising ways.

Popeyes Louisiana Kitchen is bringing back their famous Wicked Chicken for a limited time. The Cajun spices mixed into the batter gives the chicken strips a hot kick. Each meal comes with 5 strips, a fresh buttermilk biscuit, ranch dressing and a mini bottle of Tabasco. The special chicken will only be available for a limited time in June.

Real Mex Restaurants is on the search for a new President and CEO after Carlos Angulo gave his resignation. Rick Dutkiewicz is acting as the interim President as the company commits to a nationals search to find the best representative for the position. The chain is the largest casual full service Mexican dining brand in the United States.

Boddie-Noell Enterprises, a franchisee in the Hardee’s brand, has received the coveted 2011 Wilber Hardee Founder’s Award. This award was given to the company for exemplifying the vision of the brand and making a difference in the community. This franchisee company operates 335 locations and is the largest single operator of the Hardee’s chain.

Bojangles’, the national fried chicken fast food chain, awarded its top unit directors and area managers at the annual leadership conference. Jayesh Patel, a unit director in Buford, GA, won a 5 day cruise and a $800 prize as the top Unit Director. Janet Lynch won the Area Director award with the same rewards for her work in the Albemarle area of North Carolina.

Carino’s Italian has a location in tornado damaged Joplin, Missouri and they have announced their plans to donate free food and drinks to all disaster relief workers. Deliveries will be made to clean up sites and to emergency family shelters. Many staff members and regular customers of the Carino’s location were affected by the tornadoes.

Oscar Mayer’s Wienermobile is turning 75. To celebrate the company will be unveiling the new Wienermobile Food Truck. Customers who visit the new Food Truck in Times Square, New York City will receive a free all-beef frank with their choice of toppings. The truck will be traveling to select events throughout the summer and will donate $50,000 to the Feeding America charity.

Another BRIO Tuscan Grille location has opened in San Antonio, making this the 88th location for the BRIO chain. This restaurant combines authentic Tuscan cuisine with a casual but upscale environment. The BRIO brand is owned and operated by the BRAVO | BRIO Restaurant Group that also produces the BRAVO! Cucina Italiana brand.

The newest Pizza Patron location opened last week, bringing the new brand’s total up to 12 restaurants. The Pizza Patron brand uses special Lincoln Quick Cook ovens to produce fresh pizza in a few minutes, making this one of the first Quick Service Pizza chains. Customers won’t have to wait 10-20 minutes or settle for pizza that has sat under a heat lamp for hours.

AFC Reports Financial Results for First Quarter 2011; Reaffirms Fiscal 2011 GuidanceAFC Enterprises, Inc., the franchisor and operator of Popeyes restaurants, today reported results for its fiscal first quarter which ended April 17, 2011. The Company also reaffirmed its fiscal 2011 guidance and provided a business update on its Strategic Plan.

First Quarter 2011 Highlights Compared to First Quarter 2010:

  • Reported net income was $7.2 million, or $0.28 per diluted share, compared to $5.8 million, or $0.23 per diluted share, last year. Adjusted earnings per diluted share were $0.27 compared to $0.23 in 2010. This improvement was primarily due to stronger same-store sales and lower interest expense. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”
  • Global system-wide sales increased 6.9 percent compared to a 2.1 percent increase last year.
  • Global same-store sales increased 3.9 percent compared to a 0.3 percent decrease last year. Domestic same-store sales increased 3.9 percent compared to a 0.4 percent decrease in 2010. According to independent data, in the first quarter 2011, Popeyes same-store sales outpaced the chicken QSR category for the 12th consecutive quarter and the QSR category for the 4th consecutive quarter. International same-store sales increased 4.1 percent compared to a 1.2 percent increase last year.
  • The Popeyes system opened 32 restaurants and permanently closed 14 restaurants, resulting in 18 net openings compared to 5 net openings last year.
  • Operating EBITDA was $13.3 million, at 28.4 percent of total revenue, compared to first quarter 2010 of $13.3 million, at 30.4 percent of total revenue. The decrease in Operating EBITDA as a percent of total revenue was primarily due to investments in general and administrative expenses. Operating EBITDA is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”
  • The Company’s free cash flow was $6.9 million, which included $0.5 million of other income, compared to $6.3 million in 2010, which included $0.1 million of other income. The Company used $6.5 million of cash to repurchase 438,288 shares of common stock under the Company’s current Share Repurchase Program. Free cash flow is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

AFC Enterprises Chief Executive Officer Cheryl Bachelder stated, “We delivered another strong quarter of positive results operationally and financially. This growth was primarily driven by global top-line sales momentum from both same-store sales and new unit growth, as we continue to focus on our strategic roadmap. Our restaurants are managing in a tough commodity environment by keeping sales strong, selectively raising prices, and tightly controlling labor. We remain on track to deliver our 2011 goals.”

Strategic Plan Update

The Company’s Strategic Plan is built on the foundation of the Four Pillars below.

1. Build the Popeyes Brand

  • In March, Popeyes promoted its signature Butterfly Shrimp Tackle Box featuring 8-pieces of Butterfly Shrimp with Cajun fries and a buttermilk biscuit for only $4.99. This promotion was supported with national media advertising.
  • On March 23, the Popeyes system offered its customer appreciation “Pay Day” promotion for the third consecutive year. This one-day event featured 8-pieces of Popeyes famous Bonafide chicken for only $4.99.
  • In May, to continue the celebration of Popeyes spicy and mild bone-in fried chicken beating KFC’s Original Recipe bone-in fried chicken in a national taste test, Popeyes launched a Buy One, Get One free Bonafide chicken promotion. This Limited Time Offer (“LTO”) featured a free 2-piece meal with the purchase of a 3-piece meal at regular menu price.
  • Starting May 30, Popeyes will promote Wicked Chicken, one of its most successful LTOs. Supported with national media, this promotion will feature Wicked Chicken, Cajun fries, a buttermilk biscuit, ranch dipping sauce and a mini bottle of Tabasco Pepper Sauce for only $3.99.
  • International franchisees also continue to successfully leverage marketing strategies of innovation and value, such as “Pay Day”, to drive guests into Popeyes restaurants.

2. Run Great Restaurants

  • During the first quarter, Popeyes restaurants continued to experience steady improvements in Guest Experience Monitor (“GEM”) scores with “% Delighted” and “Speed of Service” scores both up approximately two percentage points over year end 2010.
  • Since system-wide adoption of Popeyes Speed of Service initiatives, restaurant average weekly drive-thru times have improved significantly, reducing the time by approximately 30 seconds.
  • Popeyes is also implementing measurement tools around core operating systems across the Company’s international markets. At the end of the first quarter, GEM was in place in approximately one third of the Company’s international restaurants.

3. Strengthen Unit Economics

  • In the first quarter, Popeyes restaurants experienced an approximate 6 percent increase in food costs compared to last year, primarily the result of higher commodity costs. On a full year basis, the Company now expects food costs to increase by 4-5 percent which equates to approximately 150 basis points on restaurant operating profit margins. As previously indicated, management expects these costs to be partially offset by top-line sales growth, additional supply chain cost savings, selective menu pricing and in-restaurant cost controls.
  • The Company is also focusing on restaurant profitability in its international markets, where food costs are typically higher. Some of the activities include localized product sourcing, regional volume leverage and stronger strategic supplier partnerships. These cost-reducing activities are being implemented to make Popeyes’ restaurant cost structure more competitive around the globe.

4. Ramp Up New Unit Growth

  • The Company’s global development pipeline for new unit openings continues to strengthen, with both a greater number of projects underway and a more balanced schedule of expected openings throughout the year.
  • Internationally, the Company is now applying the same successful strategic discipline and approach evidenced in the brand’s domestic business. Management expects this will lead to a deliberate and sustainable long-term international growth plan.

First Quarter 2011 Financial Performance Compared to First Quarter 2010

Global system-wide sales increased by 6.9 percent. System-wide sales were comprised of $575.4 million in franchise restaurant sales and $17.6 million in Company-operated restaurant sales.

Global same-store sales increased 3.9 percent compared to a 0.3 percent decrease in 2010. Total domestic same-store sales increased 3.9 percent compared to a 0.4 percent decrease last year. According to independent data, in the first quarter 2011, Popeyes same-store sales outpaced the chicken QSR category for the 12th consecutive quarter and the QSR category for the 4th consecutive quarter.

International same-store sales increased 4.1 percent and represented the 5th consecutive quarter of positive same-store sales. This increase was primarily driven by strong same-store sales in Turkey, Latin America and Canada partially offset by Korea and U.S. military bases abroad.

Total revenues were $46.8 million, compared to $43.8 million last year. This increase was primarily attributable to positive same-store sales and sales from new restaurants opened in 2010.

Company-operated restaurant operating profit (“ROP”) was $3.4 million, or 19.3 percent of sales, compared to $3.2 million, or 19.9 percent of sales, last year. The $0.2 million increase in ROP was primarily due an increase in same store sales of 6.4 percent partially offset by higher food costs as a result of increased commodity costs. Company-operated Restaurant Operating Profit is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

General and administrative expenses were $18.5 million, or 3.1 percent of system-wide sales, compared to $16.8 million, or 3.0 percent of system-wide sales, last year. This increase was primarily attributable to selective investments to support global new restaurant development.

Other income was $0.5 million, primarily due to a net gain on the sale of two real estate properties.

Operating EBITDA was $13.3 million, at 28.4 percent of total revenue, compared to first quarter 2010 of $13.3 million, at 30.4 percent of total revenue. The decrease in Operating EBITDA as a percentage of total revenue was primarily due to investments in general and administrative expenses, partially offset by revenue from stronger same-store sales. Operating EBITDA is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

Operating profit was $12.5 million, compared to operating profit of $12.2 million last year.

Interest expense, net was $1.1 million, a $1.7 million decrease from 2010. This decrease was primarily due to lower average interest rates under the Company’s new 2010 credit facility, and lower amortization for bank fees and swap settlement charges recognized in first quarter 2010.

Income tax expense was $4.2 million, yielding an effective tax rate of 36.8 percent, compared to an effective tax rate of 38.3 percent in the prior year. The effective rates differ from statutory rates due to tax credits.

Reported net income was $7.2 million, or $0.28 per diluted share, compared to $5.8 million, or $0.23 per diluted share, in 2010. Adjusted earnings per diluted share were $0.27 compared to $0.23 last year. This improvement was primarily due to stronger same-store sales and a decrease in interest expense, net. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

Free cash flow was $6.9 million, which included $0.5 million of other income, compared to $6.3 million in 2010, which included $0.1 million of other income. Free cash flow is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.”

During the first quarter, the Company repurchased 438,288 shares of its common stock for approximately $6.5 million.

During fiscal year 2011 through May 25, 2011, AFC has repurchased 1,085,036 shares of common stock for approximately $16.2 million. These purchases were made in accordance with the Company’s previous stock repurchase guidance for 2011 of $20-$25 million. As of May 15, 2011, approximately 24.8 million shares of the Company’s common stock were outstanding.

The Popeyes system opened 32 restaurants in the first quarter, which included 11 domestic and 21 international restaurants, compared to 17 openings last year. The Company permanently closed 14 restaurants, resulting in 18 net openings compared to 5 net openings in the first quarter of 2010. The 14 closures in 2011 included 6 domestic and 8 international restaurants.

On a system-wide basis, Popeyes had 1,997 restaurants operating at the end of the first quarter, compared to 1,944 at the end of the first quarter 2010. Total unit count was comprised of 1,587 domestic restaurants and 410 international restaurants in 25 foreign countries and three territories. Of this total, 1,959 were franchised restaurants and 38 were Company-operated restaurants.

Fiscal 2011 Guidance

The Company reaffirms its expectation that Popeyes global same-store sales growth will be in the range of positive 1.0 to 3.0 percent. This guidance reflects stronger same-store sales in the first half of the year and softer in the second half, as Popeyes restaurants roll over strong same-store sales from the third and fourth quarters of 2010.

Global new openings are still expected to be in the range of 120-140 restaurants. As previously indicated, international new unit openings are expected to remain on pace with 2010 growth of approximately 60 restaurants.

Consistent with previous guidance, the Company projects system-wide unit closings will be in the range of 60-80 restaurants, resulting in 40-80 net openings as compared to 39 net openings in 2010.

The Company continues to expect general and administrative expenses will be in the range of $60-$62 million, at a rate of 3.1-3.2 percent of system-wide sales, among the lowest in the restaurant industry. As previously disclosed, this expense includes $1.0 million for a planned corporate office relocation. Absent this unusual item, general and administrative expenses as a percent of system-wide sales would be 3.0-3.1 percent.

The Company now expects 2011 reported earnings per diluted share will be in the range of $0.87-$0.91, which includes $0.5 million of other income, net, recognized in the first quarter primarily from the sale of two real estate properties; compared to the previous guidance of $0.86-$0.90. The Company continues to expect adjusted earnings per diluted share will be in the range of $0.91-$0.95, compared to $0.86 in 2010. Adjusted earnings per diluted share is a supplemental non-GAAP measure of performance. See the heading entitled “Management’s Use of Non-GAAP Financial Measures.” Full year 2011 adjusted diluted earnings per share excludes approximately $1.5 million for the corporate office relocation ($1.0 million for general and administrative expenses and $0.5 million for depreciation and other expenses).

Corporate Profile

AFC Enterprises, Inc. is the franchisor and operator of Popeyes restaurants, the world’s second-largest quick-service chicken concept based on number of units. As of April 17, 2011, Popeyes had 1,997 operating restaurants in the United States, Puerto Rico, Guam, and the Cayman Islands and 25 foreign countries. AFC’s primary objective is to deliver sales and profits by offering excellent investment opportunities in its Popeyes brand and providing exceptional franchisee support systems and services to its owners.

Popeyes Announces Partnership to Benefit ProStart ProgramPopeyes Louisiana Kitchen, a division of AFC Enterprises, Inc., has announced its philanthropic arm, The Popeyes Foundation, Inc., and its franchisees will partner with the National Restaurant Association Educational Foundation’s (NRAEF) ProStart program. The two-year high school program unites industry and the classroom to introduce students nationwide to career opportunities available in the industry. By partnering with ProStart, the Popeyes Foundation will further its mission to develop the next generation of passionate, food-zealot Popeyes restaurateurs while providing mentoring, internship, and training opportunities for ProStart students and teachers.

According to the National Restaurant Association, the restaurant industry accounts for 12.8 million jobs, or 10 percent of the nation’s total work base. This figure is projected to increase by 1.8 million jobs in the next decade. Despite the significant job opportunity represented by restaurant and foodservice management, the industry has experienced a recent decline in new entrants.

“The viability of the restaurant industry depends on the development, commitment and skill of the next generation of restaurant professionals,” said Cheryl Bachelder, president and chief executive officer for Popeyes. “To this end, we re-invigorated the Popeyes Foundation around a mission that reflects our brand’s strong heritage of entrepreneurship. Our hope is that this partnership will help advance the next generation of dedicated, passionate leaders – not only for our brand, but for our entire industry.”

By bringing industry and the classroom together, ProStart gives students a platform to discover new interests and talents and opens doors for fulfilling careers. It all happens through a curriculum that teaches all facets of the restaurant and foodservice industry, inspires students to succeed and sets a high standard of excellence for students and the industry. With national and local support from industry members, educators, the National Restaurant Association Educational Foundation and state restaurant associations, ProStart reaches 90,000 students in 1,700 schools nationwide.

As part of the Popeyes Foundation partnership, Popeyes will offer restaurant training for ProStart educators, as well as mentored work opportunities and internships with franchisees for ProStart students. Through ProStart’s curriculum and hands-on experience with Popeyes, students will develop the culinary and management skills needed to become successful business owners and restaurant professionals.

“Real-world experience with the industry’s best-known companies is an exciting and effective way to strengthen the caliber of the future leaders of the restaurant industry,” said Dawn Sweeney, president and CEO of the National Restaurant Association and NRAEF. “Through strategic partnerships with established and well-respected foodservice brands, our ProStart students gain practical skills that help shape their futures. Further, our partners have the opportunity to connect students’ present performance with their future potential, and recruit long-term employees who are already committed to pursuing a rewarding career in the restaurant industry. ”

Founded in 1972 in New Orleans, Popeyes is a leader in the New Orleans segment of the foodservice industry and is the world’s second largest quick-service chicken concept. As of December 26, 2010 Popeyes had 1,977 restaurants in the United States, Guam, Puerto Rico, the Cayman Islands, and 26 foreign countries.

Restaurant News Bites: Mother's Day, Popeyes, Luby'sOver 75 million diners will enjoy a brunch or dinner on Mother’s Day at a favorite restaurant according to estimates released by the National Restaurant Association. Over 50% of mothers surveyed indicated that they would like to dine out to take a break from cooking and cleaning on May 8th. Restaurant gift cards are also a top gift for this Mother’s Day due to the flexibility and choice offered.

India has become the focus for many restaurants and fast food chains as they search for international growth opportunities. A growing middle class and a developing taste for American fare like burgers, ice cream and coffee are giving many chains unrivaled opportunities in metro areas like New Delhi. Chains like Kentucky Fried Chicken and Pizza Hut are already enjoying great popularity in India.

Popeyes is famous for their Louisiana style fried chicken, and they want everyone to get a taste. From now until the end of May all customers who purchase a Bonafide three piece chicken dinner will receive a free two piece meal. Both meals feature a side and a biscuit, making this a perfect deal for big eaters or couples who are looking for a inexpensive but tasty meal.

The COO of Luby’s, Harris J. Pappas, has retired at 66 and will be replaced by Peter Tropoli. Pappas will remain a important member of the Board of Directors for the restaurant chain. Benjamin Coutee will take over Tropoli’s current role of Senior Vice President. Chris Pappas will remain the CEO of the company until at least August 2012.

As restaurants look for new ways to reduce waste and promote environmentally friendly methods, some are turning to composting their food waste. Restaurants generate thousands of pounds of food each month that can’t be sold or eaten, and composting takes this waste and converts it into eco-friendly fertilizer. A number of companies are starting up around the country to help food establishments compost their waste.

Desert Island Restaurants, the parent company of Asian fusion fast casual chain Ling & Louie’s Asian Bar and Grill, has announced plans for aggressive expansion with their top brand. The company recently opened its 5th location in Idaho and wants to develop new restaurants from coast to coast by the deadline of 2013. The West Coast will soon be secured by a Anchorage, Alaska location opening next week.

YUM! Brands is a international restaurant company that owns brands like Pizza Hut, Taco Bell and KFC. The company is making a offer to the Chinese based Little Sheep Group Limited to buy the Little Sheep restaurant brand as well. Little Sheep is a chain of hot pot restaurants operating mainly in China and Mongolia, and the acquisition would cement YUM Brands’ position in Asia.

The newest KFC restaurant has been designed with energy conservation and environmentally friendly practices in mind. Located in Indianapolis, Indiana, the restaurant was built with recycled and sustainable building materials and water conservation equipment. It also uses 25 percent less electricity than traditional KFC locations due to efficient cooking equipment and LED lighting.

A new restaurant in Phoenix, Arizona has combined indulgent meals with healthy ingredients to make a delicious menu. Tryst Cafe uses organic, gluten free and hormone free ingredients to create great sandwiches, breakfast items like pancakes and waffles and entrees like Seared Ahi Tuna. Even the wine and beer to accompany your meal is organic.

Church's Chicken Beat Popeyes in a National Spicy Chicken Taste TestChurch’s Chicken announced today that its renowned Spicy Chicken won a national, independent Spicy Chicken taste test against Popeyes Spicy Chicken. The QSR chain celebrated in its birthplace of San Antonio, Texas at an event with hundreds of Church’s Chicken fans and all its corporate and field employees who flew in to commemorate the big win.

Hosting the event today was Hulk Hogan, a huge fan of Church’s Chicken who knows all about competition and winning big. Crowds gathered early in the heart of San Antonio at the historic Main Plaza to wait for the big announcement and indulged in the free lunch of Church’s winning Spicy Chicken. Hogan presided over the festivities that looked like a political rally with hundreds of fans holding placards that read CHURCH’S BEAT POPEYES IN A NATIONAL SPICY CHICKEN TASTE TEST. He also led the crowd in a huge celebration chicken dance and cheer.

“I’ve been a fan of Church’s for a long time,” said Hulk Hogan, of TNA Wrestling. “And beating the competition is always fun. My fans and Church’s fans won big today too. Church’s treated everyone to a free lunch. I’ve never seen so much Spicy Chicken and biscuits in one place!”

Church’s is sharing its winning news with its first national advertising campaign in ten years. The campaign makes its debut starting today on network, national cable, syndicated programming and in local markets.

The campaign stars the brand’s recurring two characters – restaurant team member Doug, the Chicken Genius and his Manager. They are seen in an RV wrapped with signage — Church’s Beat Popeyes in a National Spicy Chicken Taste Test — traveling around the country and getting the attention of Church’s fans. The :15 and :30 second television and radio spots, in both English and Spanish tout the winning news in a fun and engaging manner. The campaign will also be supported by direct mail and outdoor billboards.

“This will be the first time for many people coast-to-coast to see our advertising campaign and learn more about Church’s winning Spicy Chicken,” said CEO and president Mel Deane. “Taste buds don’t lie. The participants in the taste test preferred Church’s Spicy Chicken to Popeyes Spicy Chicken. The heat is on to continue to win over all the Spicy Chicken fans out there who crave great taste and low prices.”

In addition, the RV made its first real stop in San Antonio where Church’s leadership team delivered Church’s Chicken meals to several local shelters in need of support. The RV will be traveling to cities across the country with Church’s Chief Chicken Officer Kirk Waisner to celebrate the brand’s success, share the winning news and deliver meals to shelters.

“We have extremely loyal Spicy Chicken fans at Church’s,” said Kirk Waisner, Church’s Chief Chicken Officer. “Our Spicy chicken is marinated for twelve hours and has the perfect balance of heat and flavor. Winning this national taste test only confirmed what all of us at Church’s Chicken already knew and now America does too.”

Popeyes Restaurants Offering BOGO Free Bonafide Chicken DinnersFor a limited time only at participating Popeyes restaurants, from April 25 through May 29, customers who buy a 3-piece Bonafide Chicken dinner (3 pieces of chicken, a side and a biscuit) at the regular menu price, will receive a 2-piece dinner (2 pieces of chicken, a side and a biscuit) for FREE!

“The August 2010 national taste test comparing Popeyes to category leader KFC proved that consumers can taste the difference, and truly prefer chicken from the land of good cooking – Popeyes’ culinary roots of Louisiana,” said Dick Lynch, Popeyes Chief Marketing Officer. “This BOGO offer is our way of further thanking our customers for loving our Popeyes chicken. And for those that haven’t yet tried our Bonafide chicken, we invite you to do so and decide for yourself.”

Popeyes Bonafide chicken is marinated for 12 hours in Louisiana spices, then hand-battered and fried fresh.

Founded in 1972 in New Orleans, Popeyes is a leader in the New Orleans segment of the foodservice industry and is the world’s second largest quick-service chicken concept based on the number of units. As of December 26, 2010, Popeyes had 1,977 restaurants in the United States, Guam, Puerto Rico, the Cayman Islands, and 26 foreign countries.

Popeyes Louisiana Kitchen Announces $16 Million in Supply Chain SavingsPopeyes Louisiana Kitchen, a division of AFC Enterprises, Inc., today announced the Popeyes restaurant system achieved a supply chain cost savings of approximately $16 million in 2010. The benefit to franchisees was estimated at one full percentage point improvement in restaurant operating profit margins before rent, compared with the prior year.

“At Popeyes, we are very data centric – collecting and analyzing key information, and identifying those cost-saving solutions that directly and indirectly impact each restaurant’s bottom line,” said Cheryl Bachelder, president and chief executive officer for Popeyes Louisiana Kitchen. “In the quick-serve restaurant business money is made in slivers of percentages and it is critically important to manage those costs.”

A cross-functional team, comprised of Popeyes’ supply chain management and finance teams, as well as Supply Management Services (SMS), a supply chain cooperative serving the Popeyes restaurant system, evaluated aspects of company and restaurant-level profitability, from packaging prices and commodity costs to vendor relationships. The team successfully renegotiated key vendor contracts and implemented restaurant efficiency initiatives to achieve the savings.

“Our team works with and seeks valuable input from all aspects and functions of our organization to identify cost-savings opportunities. Working in this cross-functional team allowed us to consider additional costs and raise questions that had never been raised,” said Alice LeBlanc, chief global supply chain officer for Popeyes. “We delivered significant savings and while we may not be able to match it every year, we will continue to pursue savings with the same fervor moving forward, while maintaining the high quality food advantage our guests enjoy.”

The supply chain cost savings initiative is an integral part of the Company’s strategy for greater franchisee and company success. Popeyes’ framework for success is centered on four strategic brand pillars: building a distinctive, relevant brand; running great restaurants; strengthening unit economics; and ramping up new unit growth.

AFC Enterprises Names Lynne Zappone Chief Talent OfficerAFC Enterprises, the franchisor and operator of Popeyes announced today that Lynne Zappone has been named Chief Talent Officer of its Popeyes brand. Ms. Zappone, will be responsible for sourcing, integrating and retaining high quality talent to deliver Popeyes’ business plan.

“With her 20 years of global human resources experience, Lynne is ideally suited to lead the talent initiatives for Popeyes as we continue our growth around the globe,” said Cheryl Bachelder, AFC Enterprises Chief Executive Officer. “She is a highly regarded leader with a wealth of strategic experience, and an impressive record of accomplishment. Lynne is a valuable addition to our Leadership team and we welcome her to Popeyes.”

Ms. Zappone joins Popeyes with extensive experience in talent development and learning, human resources, and business management. From 1998 to 2011, Ms. Zappone served in a number of senior human resources positions with InterContinental Hotels Group (IHG), most recently as Senior Vice President, Global Learning and Americas Human Resources. Prior to joining IHG, Ms. Zappone enjoyed 10 years of strategy and leadership experience including consulting with Phillips Associates and organizational development and training roles with Fidelity Federal Bank and Sheraton Universal Hotel.

In her new role, Ms. Zappone will be responsible for performance optimization, organizational development, as well as the company’s diversity and cultural change initiatives. Ms. Zappone will also ensure the development and implementation of all human resource policies and programs, including compensation, benefits, and risk management.

Ms. Zappone holds a Bachelor’s of Arts in Education from Flagler College and Master’s of Arts in Organizational Leadership from the University of Phoenix.

AFC Enterprises, Inc. is the franchisor and operator of Popeyes restaurants, the world’s second-largest quick-service chicken concept based on number of units. As of December 26, 2010, Popeyes had 1,977 operating restaurants in the United States, Guam, Puerto Rico, the Cayman Islands and 26 foreign countries. AFC’s primary objective is to deliver sales and profits by offering excellent investment opportunities in its Popeyes brand and providing exceptional franchisee support systems and services to its owners.

Restaurant News Bites: Popeyes, Pizza Hut, Lone Star SteakhousePopeyes Louisiana Kitchen has begun a plan for aggressive growth in the Orlando and Tampa, Florida area. With sales in the chicken fast food market at a 10 year high, Popeyes is hoping to take advantage of the boost to power location growth. Over 100 restaurants were opened by the franchise across the country in 2010.

Pizza Hut’s popular Stuffed Crust Pizza, featuring a layer of mozzarella hidden in the crust, has received a timely upgrade. The new Ultimate Stuffed Crust Pizza adds a customer’s favorite toppings, including pepperoni or olives, in with the layer of cheese. Customers can also win free pizza by telling Pizza Hut their favorite choice in toppings through the company’s Twitter page.

Member’s only shopping group ShopRunner and Domino’s Pizza have teamed up to give away $1,100 dollars worth of free pizza in the form of gift cards. The contest was designed to celebrate the partnership recently formed between the two companies. One winner will be selected per week through April 25th. You can enter by joining ShopRunner for a free 30-day trial of their service.

Chipotle’s gold foil burrito wraps were instituted to draw attention to their quality ingredients, but now customers can use them to win a new contest. Customers must wrap what they love in a gold wrapper and upload the photograph to the Chipotle website. The most popular and creative submission will win a grand prize of $10,000.

The Triple Chocolate Miracle Cake at Lone Star Steakhouse may be an indulgence, but now you can give back by buying one. Lone Star plans to donate part of each sale of this dessert to the Children’s Miracle Network. They hope to raise over $100,000 for the foundation’s hospitals that treat children with fatal and life threatening diseases.

Dunkin’ Donuts may be famous for their sweet donuts and pastries, but now they want you to visit for savory lunch meals as well. To meet this goal they are introducing a new Chicken Salad Sandwich served on a fresh croissant, toasted bagel or English muffin in the New York state area. Locations around the country recently added savory snack options to their all-day menus as well.

Red Mango, a frozen yogurt chain focused on probiotics and fruit smoothies, has partnered with the athletic department at Baylor University. Fresh yogurt products will be available to all athletes at the university and faculty and students through an on-site chain location. The retail chain has never had a university campus presence prior to this opening.

Ruby Tuesday has reported their third quarter earnings for the 2011 fiscal year, and things are looking slightly down for the company. Small losses occurred in same-store sales and overall net income. However, the company did acquire 7 new franchise partnerships and opened their first seafood chain restaurant, Marlin & Ray’s and first Truffles conversion as well.

Long Island Restaurant Week has begun, and diners can find a variety of price fixe entree options at famous Long Island eateries. For $24.95 guests will receive their choice of an appetizer, entree and dessert from three menu options for each course. Long Island’s restaurant week will end on April 10th.

Scooter’s Coffeehouse has opened in Omaha, Nebraska, bringing their seven state total to over 90 locations. 35 other locations are found within the general Mid-Western region, including 3 other recent Nebraska openings. This coffee shop chain focuses on drive-through service for busy professionals and a varied drink menu.

Popeyes Targets Orlando, Tampa for Restaurant ExpansionPopeyes Louisiana Kitchen, a division of AFC Enterprises, Inc., announced today the launch of an aggressive growth plan to increase its presence in Tampa and Orlando, Fla. With the company’s dollar share of chicken QSR sales at a 10-year high domestically, Popeyes is poised to rapidly expand domestically and is seeking bold, passionate multi-unit operators to invest in new restaurants in Tampa and Orlando.

As part of the company’s 2011 growth plans, the Popeyes development team will be in Tampa to host a franchise seminar on April 12 and Orlando on April 14 to share the benefits of owning a Popeyes’ restaurant. To register for the event please visit www.ownapopeyes.com/tampa or www.ownapopeyes.com/orlando or contact 512.436.1770 with any questions.

“For nearly 40 years, Popeyes has passionately delivered its authentic Louisiana food to guests around the world, and after a remarkable 2010 with strong positive results, we are excited about the opportunity to aggressively grow the brand in Tampa and Orlando,” said Greg S. Vojnovic, CFE, vice president of development, Popeyes Louisiana Kitchen. “We have built a strong foundation for our domestic business and encourage interested entrepreneurs to attend our franchising seminar to learn how to open a Popeyes restaurant in their community.”

In 2010, the Popeyes global system opened 106 new restaurants and total domestic same-store sales increased 2.5 percent compared to 0.6 percent in 2009. In addition, the company announced that Popeyes’ Spicy and Mild Bonafide bone-in-fried chicken beat KFC’s Original Recipe bone-in-fried chicken in a national taste test. This marketing initiative combined with other national media advertising delivered strong guest counts and positive same-store sales for the second consecutive year.

At Popeyes, management is on a mission to increase franchisee results in every facet of the business. Profitability and service excellence are achieved with a focus on four strategic pillars that guide every decision – build the brand, run great restaurants, strengthen unit economics and ramp up unit growth.

As part of its Strategic Roadmap, Popeyes is determined to give guests a service experience as distinctive and as superior as its food. In 2008, the company implemented its Guest Experience Monitor (GEM) in all U.S. restaurants, which measures a combination of overall guest satisfaction, intent to return and likelihood to recommend. Tracking this data enables management to make smart, fact-based decisions about the brands growth.

For those interested in franchising, Popeyes is seeking candidates that meet a specific franchisee profile to help build its brand and business. Franchisees should possess a minimum net worth of $500,000 and liquid assets of at least $250,000. Candidates should also have five years proven expertise in owning and operating restaurants.

“Popeyes is a brand with soul, offering a franchise opportunity unlike any other,” said Vojnovic. “It’s not for everyone and requires a leader who believes in accountability and takes as much pride in serving the front of the house as managing the back.”

In an effort to keep the brand competitive, Popeyes offers flexible real estate development opportunities, including free-standing and in-line opportunities. Popeyes also develops in airports, shopping malls, universities as well as other retail environments.

As a true extension of its New Orleans’ roots, Popeyes serves seafood including shrimp, crawfish and catfish. The company has received wide recognition throughout the franchise industry, including being ranked in Nation’s Restaurant News “Top 100” franchise chains, QSR’s “Top 50” franchises and Entrepreneur Magazine’s “Top 500,” among others.

Restaurant News Bites: Popeyes, Cracker Barrel, Bruegger'sPopeyes is again offering their famous Pay Day Deal due to consumer demand. On March 23 Popeyes’ restaurants will sell eight pieces of fried chicken for $4.99. The deal will not be available at any other time, and the meal is only available at participating locations. Customers can add four biscuits and a large side for an additional $5.

To celebrate the start of the new season, homestyle restaurant chain Cracker Barrel is revealing a new, revamped Spring menu. New offerings include Sweet Southern Peach Iced Tea, shrimp and grits, multi-grain pancakes and salads featuring fresh berries. Over 10 new dishes were added with the Spring menu, and they will only be available until May 22nd.

The company that owns and operates Bruegger’s bakeries has been acquired by Le Duff America. The chain restaurants feature sandwiches, salads and soups as well as desserts and coffee. Currently the second largest bakery chain in North America, Bruegger’s brands include Timothy’s Coffees of the World, Michael’s Baguettes and the Canadian mmmuffins. Le Duff America is a branch of the French Company Le Duff SA.

Schedulefly has released a new book that compiles the experience and knowledge of 21 North American restaurant owners. The book, titled “Restaurant Owners Uncorked”, contains interviews and success stories from restaurants in the U.S and Canada. The book covers many of the topics new restaurant owners are confused by, such as the importance of bookkeeping, the problems with chain restaurants and many other issues.

Burger King‘s seven year run with ad agency CP&B has ended after a string of controversial ads and slow growth. With six consecutive quarters of dropping sales, the company must now make some critical moves to maintain their position as the second largest burger chain against Wendy’s. Ads with religious and sexual content caused trouble with franchisees and consumers.

The popular ButterBurger at Culver’s restaurant, named for its buttered bun, now comes in the new Three Cheese ButterBurger option as well. Cheddar, Swiss and American cheeses made fresh in Wisconsin all top the beef patty. Other ButterBurger options include the Cheddar ButterBurger and the Cheddar ButterBurger with Bacon.

The family of Katelyn Carlson, a seventh-grader who died last year after consuming peanuts at a school party, has decided to sue the restaurant that provided the meal. The school system claims that the teachers advised the Chinese restaurant to use no peanut products in the food due to the student’s severe peanut allergy. The family is pressing charges for wrongful death.

Red Robin chain restaurants are holding their annual Tip-A-Cop fund raising event on March 26. Local police officers will serve restaurant guests to raise money for the Special Olympics. Nearly 350 restaurant locations will participate in the event. The company will also donate .50 cents from any bill that contains both a Gourmet Burger and a Coca Cola product throughout the week.

Fried chicken chain restaurant Chester’s has opened another international location in the new airport in the Dominican Republic. Adding a restaurant in the Las Americas JFPG International Airport helps bring the Chester’s brand to customers from around the world. IMC Caribe helped develop the new food court based location.