Papa John's International, Inc

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International Guild of Hospitality & Restaurant Managers

2002 Papa John's Blvd.
Louisville , KY 40299

Phone: (502) 261-7272
Fax: (502) 266-2925

Papa John's International, Inc. operates and franchises pizza delivery and carry-out restaurants. The Company operates under the trademark Papa John's domestically in 47 states, the District of Columbia and nine international markets, and under the trademark Perfect Pizza in the United Kingdom . The first Company-owned Papa John's restaurant opened in 1985, and the first franchised restaurant opened in 1986. At December 30, 2001 , there were 2,729 Papa John's restaurants in operation, consisting of 611 Company-owned and 2,118 franchised restaurants. In addition, there were 193 Perfect Pizza restaurants in operation, consisting of three Company-owned and 190 franchised restaurants.

The Company's revenues are principally derived from retail sales of pizza to the general public by owned restaurants. Additionally, a significant portion of Papa John's International's revenues for 2001 were derived from the sale to franchisees of food and paper products, restaurant equipment, printing and promotional items, risk management services and information systems equipment and software and related services by the Company; its commissary subsidiary, PJ Food Service, Inc.; its support services subsidiary, Papa John's Support Services, Inc.; its insurance subsidiaries, RSC Insurance Services, Ltd. and Risk Services Corp., and its United Kingdom subsidiary, Papa John's UK.

Papa John's restaurants offer a focused menu of pizza, breadsticks and cheesesticks, as well as canned or bottled soft drinks. Papa John's traditional crust pizza is prepared using fresh dough (never frozen), and the Company's thin crust pizza is made with a prepared crust. Papa John's pizzas are made from spring wheat flour, cheese made from 100% real mozzarella, fresh-packed pizza sauce made with vine-ripened tomatoes (not from concentrate) and a proprietary mix of savory spices, as well as a choice of meat and vegetable toppings. Fresh onions, green peppers and baby portabella mushrooms can be purchased from the Quality Control Center system, which delivers twice weekly. Each traditional crust pizza is served with a container of Papa John's International's special garlic sauce and two pepperoncinis, and each thin crust pizza is served with a container of special seasonings and two pepperoncinis. In addition, the Company may, from time to time, test product variations or new products. Ice cream and chicken wings are two such products tested in various markets during 2001.

Backlit awnings, neon window designs and other visible signage characterize the exterior of most Papa John's restaurants. A typical domestic Papa John's restaurant averages 1,100 to 1,600 square feet, and a typical international Papa John's restaurant averages 900 to 1,400 square feet. Papa John's restaurants are designed to facilitate a smooth flow of food orders through the restaurant. The layout includes specific areas for order taking, pizza preparation and routing, resulting in simplified operations, lower training and labor costs, increased efficiency and improved consistency and quality of food products. The typical interior of a Papa John's restaurant has a red and white color scheme with green striping, and includes a bright menu board, custom counters and a carry-out customer area. The counters are designed to allow customers to watch the team members slap out the dough and put sauce and toppings on pizzas.

A total of 207 Papa John's restaurants were opened during 2001, consisting of 20 Company-owned and 187 franchised restaurants, while 97 Papa John's restaurants closed during 2001, consisting of 17 Company-owned and 80 franchised. During 1999, Papa John's International acquired Perfect Pizza, an operator and franchisor of 206 delivery and carry-out pizza restaurants in the United Kingdom . During 2001, three Perfect Pizza restaurants were opened (one Company-owned and two franchised), eight franchised restaurants were closed, and the Company converted seven franchised-owned Perfect Pizza restaurants to Papa John's units. The conversion of Perfect Pizza restaurants to Papa John's will continue during the next three to four years.

During 2002, Papa John's International plans to open approximately 10 to 15 Company-owned restaurants domestically, and expects franchisees to open approximately 140 to 185 restaurants (95 to 130 domestically and 45 to 55 internationally). The Company also expects approximately 50 to 100 restaurants, primarily franchised, to close during 2002. Domestic unit expansion is expected to spread throughout markets across the United States . International expansion in 2002 is planned primarily in Central and South America, Europe, the Middle East and the United Kingdom . Papa John's International also plans to pursue franchisees throughout the Asia/Pacific Rim region.

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