Popeyes® Louisiana Kitchen, a division of AFC Enterprises, Inc. (NASDAQ:
AFCE), 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
"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
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.
About Popeyes® Louisiana Kitchen
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 operating restaurants in the United States, Guam, Puerto Rico, the
Cayman Islands and 26 foreign countries. For more information, visit the
Popeyes Louisiana Kitchen Web site at www.popeyes.com.
Coltrin & Associates, for Popeyes
Allison Riley, 212-221-1616
Alicia Thompson, 678-429-1179