Popeyes continues steady international expansion

Popeyes Louisiana Kitchen last week celebrated the opening of the chain's 2,500th restaurant, which was a significant development milestone for the global Popeyes brand. Located in Hatillo, the store is one of the first restaurants to model Popeyes' new international design, which was introduced to communicate the company's brand to a growing global audience.

"We have taken a design approach that communicates the Popeyes brand whether you know Louisiana cuisine or not," said Dick Lynch, chief brand officer for Popeyes Louisiana Kitchen. "We are calling this the global interpretation of Louisiana," he said.

With last week's addition, Popeyes now has 10 restaurants in Puerto Rico. "Each employs about 75 people, so the entire operation has about 750 employees," Lynch said. The Hatillo location, as well as nine other restaurants in the Puerto Rico market, are owned and operated by Brodersen Management, an award-winning Popeyes franchise owner. Six restaurants around the world utilize a version of the new international design, and two of them are in Puerto Rico, Lynch revealed.

The restaurants in the lower 48 states are handled by the company's domestic team. Those outside that region are handled by the Popeyes international team. "We have restaurants in Hawaii, Alaska and Puerto Rico that, while technically in the U.S., are handled internally by the international team," Lynch indicated.

While the company is in a quiet period until it releases its new guidance in February 2016, Lynch recapped some of Popeyes international expansion plans. "We have announced that we plan to build 85 to 95 international restaurants this year, and we are well on our way toward doing that."

The company has restaurants in three territories and 27 countries, with about 500 restaurants outside the U.S. "We have had a lot of success internationally. The food inspired by Louisiana— Cajun and Creole cuisines—which are the essence of the Popeyes brand—are universally loved."

In the U.S. and around the world, Popeyes is one of the best-performing fast-food restaurants, Lynch stated. "By some, 'the best' by any measure means 'one of the best performing.'" The chain executes what Lynch referred to as deliberate expansion. "Some restaurant concepts expand almost overnight and that can create problems."

Translating the brand for a broader audience

Popeyes' new international design leverages global trends in quick-service restaurants (QSRs) by featuring a contemporary design and a more upscale look and feel. "About five years ago, we reimaged the U.S. restaurants," Lynch said. "The objective was to make them fresh and new but also to communicate our Louisiana heritage. One of the reasons the brand has been so successful in the U.S. and the rest of the world has been our laser-like focus on Louisiana."

After implementing a new U.S. design, the company set its sights on international markets and decided to use the restaurant design as a platform to translate the Popeyes brand for global audiences. Popeyes and the Tesser design firm found QSRs internationally tend to be more upscale, contemporary and more of a destination, Lynch explained. "We tried to reflect that in the restaurant's exterior and interior," Lynch said. "Our QSRs now become more of a destination than in the U.S."

The new design is more anchored in rural Louisiana and contemporary architecture seen in the lower ninth ward area, which was previously destroyed by Hurricane Katrina, Lynch explained. "There's a new interpretation of Louisiana architecture. It still relies on balconies, angles and very interesting architectural features. It is a more contemporary design."

Not only has the exterior changed but the interior as well. "Our signature orange, inspired by Popeyes spices and marinades, has become a defining architectural feature. Our Louisiana heritage is visible in the artwork, in the spice jars that separate the dining space and in the materials used in the building. We know this design will capture the imagination of our guests wherever they are."