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What are the biggest challenges for Popeyes in the year ahead?

First, we must continue strengthening our base concept. Our economic model must be as strong as possible. Clearly, when we have strong restaurant economics, the system growth we seek will occur much more quickly. Secondly, now that we are once again developing franchises domestically, we have to approach the process as if it were the first time. We did not sell domestic franchises for almost 14 months; however, we used that time to improve the sales and development process. Inquiries are increasing and agreements are being signed. I think we will see steady progress through 2005, driving toward a much stronger 2006.

What are the biggest opportunities in the year ahead for Popeyes?

We have great opportunities to build frequency. Popeyes has a larger pool of customers than most hamburger restaurants because of the size of our trade areas. We know that the visit frequency of chicken QSR is about half that of hamburger QSR in terms of average visits per month. That means we have a very large pool of customers who love to come to us for our bone-in chicken and unique sides, but they have not discovered other reasons to visit us. We have a great opportunity with some of the menu initiatives currently being tested to really build frequency. I believe very strongly that it is much easier to convince a current loyal customer to visit more frequently than to go out and find people who are not aware of the brand and try to convince them to come in for the first time.

What are some of those menu initiatives?

A key initiative for the brand is the development of boneless products. Our Popeyes Naked Chicken Strips™ product line -- which was successfully launched in January 2005 creating a strong demand from consumers -- is a great example of the products we will bring forward in the boneless arena. We are already making great strides. Second among our menu initiatives is the brand's commitment to providing "better for you" alternatives. We are calling this initiative "Healthy Matters" and it includes testing new and improved salads, wraps, and working with our ingredients and our current products to improve their wholesomeness and healthiness. With these improvements, I feel confident that frequency among our current guests and traffic during lunch and snack day-parts from new customers will increase. Third, we are in the process of strengthening our lunch sandwiches, and have several great tasting test products that should provide lunch customers a reason to visit Popeyes for lunch more often. Once a strong base sandwich program is in place, it will provide a great platform for sandwich LTOs (limited time offers), which can have a significant impact on our effort to increase visit frequency.

What will Popeyes look like a year from now?

I believe Popeyes will continue to become a stronger brand over the next 12 months. By working with our operators, I expect 2006 will bring alignment to brand communications, a larger re-image presence in our existing markets, a menu that is more consistent and relevant to our customers, operations that are responsive to what our guests expect, and a business that provides stronger sales and profits to our franchisees. I am excited about the potential for the coming years and believe strongly that Popeyes is poised for accelerated growth and brand enhancement.