RISE - Menu Monitor

Papa John's
Headquarters
2002 Papa John's Blvd., Louisville, Kentucky 40299 USA
Tel: (502)261-7272 Fax: (502)266-2925
www.papajohns.com
Ownership: Public
Segment: Limited Service Pizza
System Characteristics 2006 2005 2004
U.S. Systemwide Sales ($000) 1,958,404 1,817,347 1,714,876
Company-owned ($000) 447,938 434,525 412,676
Franchised ($000) 1,510,466 1,382,822 1,302,200
U.S. Number of Units 2,657 2,599 2,565
Company-owned 577 502 568
Franchised 2,080 2,097 1,997
International Sales ($000) 141,018 104,805 111,309
International Units 358 439 382
Average Sales/Unit ($000) 754 711 669
Concept Positioning |
Papa John's is a national limited-service chain of pizza restaurants that offer high quality, value-priced pizzas and sides for
delivery or carry-out only. Fresh (never frozen) dough, real cheese, pizza sauce made with fresh tomatoes and a proprietary
seasoning/spice mix enables it to concentrate on product consistency and quality. Papa John’s is known for its wide variety of
specialty pizzas at affordable prices.
Units range in size from 900–1,200 sq. ft. and are generally located in strip shopping centers or as freestanding locations.
Each unit has backlit awnings, neon window designs and other visible signage. Interiors are a vibrant red and white with green
striping. Menu boards are included for easy customer ordering and counters are designed to allow customers to watch dough
spinning and other parts of the preparation process. Units are open seven days a week from 11:00 a.m. to 12:30 a.m. during
the week and until 1:30 a.m. on Friday and Saturday nights. In addition, customers have the ability to place orders online 24
orders a day, seven days a week. Online orders can be placed up to 21 days in advance. Papa John's is the only nationwide
pizza chain that offers online ordering for all of its locations. The chain also offers catering services in most markets.
A commissary system supplies pizza dough as well as food and paper products to both company and franchised restaurants.
There are currently a dozen commissaries that serve the system.
The company opened its first restaurant in 1985 and commenced with franchising in 1986. It went public in 1993. In 2005,
Papa John's agreed to sell nearly 85 company-owned stores in Colorado and Minnesota to franchise group PJCOMN
Acquisition Corporation for an undisclosed sum. In 2006, Papa John's announced a partnership with Six Flags to sell its pizza
at 60 locations within the company's 29 North American Six Flags' theme parks. Terms were not disclosed.
Papa John's current expansion strategy is to cluster units in targeted markets as well as move out in concentric rings from its
commissary system. Co-development with franchisees also helps to achieve a more rapid penetration. In late 1999, the
company announced it had acquired 205-unit Perfect Pizza Holdings Ltd., the largest independent delivery and carry-out pizza
chain in the United Kingdom, for some $32.5 million. Papa John’s began to convert its Perfect Pizza system in the U.K. to the
Papa John’s brand. Papa John's later sold the 112-unit Perfect Pizza chain to London-based investment group Smartfirst
LTD., for $13 million. In more international activity, the company launched its first unit in the Southern region of China in 2005.
This unit was the first of several new units planned for this region in China. International markets are hotspots for the chain’s
growth. India has also been identified as a major growth market for Papa John's, as the company projects that it will open 500
new locations in India by 2016. Two units are currently operating in New Delhi and Noida, India. Other international markets
include the U.K., China, Mexico, Russia and South Korea—where nearly 100 units are in operation or under construction.
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