News

CEO: Popeyes' remodeling efforts contribute to positive guest experience

May 31, 2013

Popeyes Louisiana Kitchen this week announced another strong quarter, including a system-wide sales increase of 10.2 percent.

This brings the brand's two-year Q1 same-store sales growth to 11.9 percent. CEO Cheryl Bachelder attributed the latest results to menu promotions and a growing footprint — with 16 net new restaurants during the quarter.

Three menu promotions were featured during Q1, including the Butterfly Shrimp Tackle Box, Cajun Surf & Turf and Rip'n Chick'n.

"Strong consumer response to these appealing promotional offerings and the impact of national media drove our market share of the chicken QSR category to just over 20 percent," Bachelder said.

Customer experience monitoring

In addition to rolling out strong LTOs, Popeyes also honed in on its guest experience metrics during the quarter.

Bachelder said approximately 70 percent of Popeyes restaurants now consistently achieve service times below 180 seconds at the drive-thru. Popeyes also tweaked its Guest Experience Monitor, or GEM, making several design changes to improve accuracy and reduce the time it takes for customers to complete the survey.

The brand's restaurant remodeling program is also contributing to guest experience improvements.

"This is an important part of our strategy to reinvigorate the brand. Periodically, image programs are vital to keeping any brand fresh and relevant over the long-term," Bachelder said.

At the end of Q1, approximately 35 percent of the domestic system was in the new image. The company expects that to increase to about 60 percent by year end.

Bachelder said sales of the remodeled restaurants are trending 4 percentage points higher than the system average.

Because Popeyes has experienced four years of increasing restaurant profits, she adds, franchisees are better enabled to reinvest back into their businesses, for remodeling, expansion and equipment updates.

"I think it's fair to say the health of our franchise system is better than ever," Bachelder said.

The company expects its fiscal 2013 global same-store sales growth to be at the upper end of its previously stated guidance of 3 to 4 percent. Popeyes also anticipates net restaurant openings in the range of 85 to 115 for the year.

Read more about operations management.