Article

Popeyes' president: The most successful brands focus on people development

No matter how good a product tastes, if you don't have a good operations process, it's not going to work, exec says.

November 15, 2013 by Alicia Kelso — Editor, QSRWeb.com

Popeyes turned in its 14th consecutive quarter of positive results this week, including a 5.1-percent jump in same-store sales. These results outperformed the domestic QSR chicken category for the 22nd consecutive quarter, and the overall QSR category for the eighth consecutive quarter.

The third quarter was largely driven by Chicken Waffle Tenders and "Love That Chicken Month" promotions. The Chicken Waffle Tenders LTO launch was the brand's most successful in the past five years. The company's "pillar" strategy, put into place in 2008, continued to yield results as well. The pillars include: "build a distinctive brand; run great restaurants; grow restaurant profit; accelerate quality openings; and create a culture of servant leadership."

QSRweb.com had the opportunity today to talk with Ralph Bower, president of Popeyes' U.S., about what is working for the chain, the competitive landscape in QSR and consumer sentiment heading into 2014.

QSRweb.com: How has Popeyes been able to outpace the QSR category for so many consecutive quarters?

Ralph Bower:I think it comes down to the pillars. Since the beginning of 2008, our strategies have not changed. We are still focused on great marketing and running great restaurants and growing restaurant profits and accelerating quality openings. If there is a silver bullet, it's probably consistency. We haven't changed our strategic colors every year. We've stayed on the course with our same objectives.

QSRweb.com: How has your LTO strategy helped in the increasingly competitive environment?

RB:New product innovation has certainly made a difference, along with the increase in national marketing, which has been helpful. We focus on new product news and innovation, and we have a great culinary team. We're fortunate that with our Louisiana heritage and culinary expertise, we haven't had to resort to value. We create value by having the best-tasting products you can have at any QSR restaurant.

QSRweb.com: What has been your strategy in response to more competition, with burger concepts focusing on chicken, fast casual, c-stores, etc.?

RB:We always say your character is revealed by how you perform under pressure. It's easy to stay the course when things are going well. But what really reveals character is if you can stay the course in tough times. I think that there are a couple of things that differentiate us to help us, too.

QSRweb: What is an example of something that differentiates Popeyes?

RB:We probably don't get enough credit for our relationship with our franchisees. We have really made that a priority. The brands that are aligned with their franchisees have good results. I have been in this business for 24 years, and I can't remember when there was a company that had a discord between franchisor and franchisees and had positive results.

QSRweb: Has there been any pushback from franchisees as the company continues to introduce new LTOs more frequently, as there has been at other companies?

RB: Our take is to never have multiple promotions running at the same time. We minimize the new, so that helps us. We try to be three years out in our pipeline because — with competition or the economy or something else — you can't panic. You need to realize that these new products you bring to your restaurants have to be operationally sound. For the Chicken Waffle Tenders, we prepped for that rollout for three months, training restaurant by restaurant. It doesn't matter how good a product tastes, if you don't have a good operations process, it's not going to work.

QSRweb: Can you paint any color on the 2014 pipeline? Will there be more breakfast tests?

RB:I can say unequivocally that we have no plans to do breakfast. The test [earlier this year] was unique to Charlotte [N.C.]. We're good at LTOs. I think you'll continue to see LTOs as a big part of our marketing calendar and not much change from the past few years. With our Louisiana heritage, seafood is also a no-brainer for our brand, and the amount of seafood on our menu has increased every year for the past four years. I think that will continue.

QSRweb: With the growing focus on mobile, how does Popeyes approach this channel?

RB:It's something we're exploring. I don't think there is a great benefit to being an early adopter in that area. Some competitors have been and are doing a good job. It's certainly an area where we have a lot of opportunity. But I'll let others prove the technologies. There will be a lot of bumps in the road for early adopters and when the time is right, we'll take advantage of it.

QSRweb: Do you expect any changes from the consumer environment in 2014, or will it continue to be challenging?

RB: Consumers today are brittle. You have to listen to them and charge them a fair price. You have to make sure you know what they're looking for. We will never have the value 99-cent meals and those types of things; we've differentiated ourselves with the quality of our food. But we need to make sure there is a fair price and good value, and our value is set by the food quality. Any brand in QSR that doesn't keep in mind the brittle environment probably does so at their own peril.

QSRweb: With the recently-added pillar of creating a culture of servant leadership, what are some best practices the company follows?

RB:In the restaurant industry as a whole, and for Popeyes in particular, we've always known how important our people are. The most successful brands five years from now don't have the best food or service, but the best people. The most successful brands today have a focus on people development. People in our restaurants get it: They serve our customers for a living. The old model of top-down leadership just doesn't work anymore. Most are already servant leaders. Until you treat your teams like you want your guests to be treated, you're always going to have a mediocre experience.

Read more about operations management.

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