The PIFA Board and Committees met in Miami in mid-December. During our Executive Committee and our PIFA Board sessions with the Popeyes® Leadership Team, we discussed navigating challenges and seizing opportunities for 2025. From seasonal traffic fluctuations to operational upgrades, staying ahead will require strategic planning and swift adaptability.
As December traffic naturally tapered, many locations saw a dip in check averages, which often ripples through labor costs and overall momentum. To counteract this, Popeyes® is focusing on aggressive valuedriven promotions to resonate with customers while maintaining margins.
With the Super Bowl approaching, wings remain a high-demand item. Franchisees encouraged the brand to consider strong bone-in offerings to start 2025 to maintain momentum and balance it with new and upcoming premium offerings. This dual approach helps attract a variety of customers to build traffic and entice loyal customers to make extra visits to Popeyes.
We did have a lot of conversations around accountability and standards. The brand assured us that enforcing brand standards is paramount.
With 70% of the system’s locations due for remodels, now is the time to execute. For those signing the franchise agreement amendment, remodels will be paced out over 6 years. Otherwise, all remodels will be due by 2027 (for all restaurants that have not remodeled or opened since 2021). Across all remodels, the full Easy to Run operating system will be incorporated. But in the meantime, the system will adopt Easy to Run elements by package with all packages installed by 2026, and the full Easy to Run line at the time of reinvestment.
The transition to Oracle-based systems promises improved functionality, including the ability to run nuanced promotions and test market-specific pricing. While the rollout has has experienced initial challenges, our technology committee at PIFA will continue to keep tabs on this process. Many thanks to Sidney Fulton and Kevin Newell for the inordinate number of hours they spend on the franchisees’ behalf.
There continues to be discussion around digital profitability. Younger audiences are driving digital ordering growth, making it crucial to convert analog customers to digital platforms. The fact of the matter is that if we are not in this game, we will lose market share. PIFA will continue to work with Matt Rubin and his team to manage the profitability of promotions, loyalty redemptions and how we can ensure increased check and upsell to help offset the fees of digital transactions.
(Continued on page 4)
CALENDAR OF EVENTS
PIFA Board & Committee Meetings, Miami FL
April 2-4, 2025
Aug 12-14, 2025
Dec 1-3, 2025
The views expressed in PIFA News are those of the authors and may not reflect the policy of PIFA or the views of Popeyes® Louisiana Kitchen, Inc. or its affiliates. No endorsement of those views should be inferred unless specifically identified as the official policy of PIFA. Material in PIFA News may not be reproduced without the written permission of PIFA.
PIFA News is published by PIFA, Inc., the Popeyes® International Franchisee Association.
Address changes should be sent to PIFA, pifa@dci-kansascity.com
Advertising rates or information on submitting articles for consideration may be obtained by contacting Jordan Bennett, Publications Editor.
Central Office Staff 4919 Lamar Ave. Mission, KS 66202-3929
Franchisee Spotlight: Fastest North American Developer Expands Food Court Footprint to 30 States
Labeling International Restaurant Management Group (IRMG) just a “non-traditional” franchisee of Popeyes® might be considered an understatement. A rare find in the quick service industry, IRMG is not only a franchisee of RBI restaurants and other brands, but also an operator and franchisor of its own distinctive QSR concepts.
Partner Spotlight: C Squared Advisors, LLC: our Preferred Financing Partner for Popeyes® Franchise Success
To
As the leading investment bank and advisory firm for multi-unit franchisees across the restaurant and retail sectors, C Squared’s long-standing relationships within the Popeyes® system have made it a trusted advisor and resource.
CHAIR’S LETTER l Continued from page 1
Most importantly, the brand identified the crucial action Items for 2025.
• Rebuild the Calendar: Incorporate proven promotions while testing new ones to maintain customer interest.
• Focus on Field Teams: Build stronger support structures to assist underperforming locations.
• Plan for Remodels: Plan for Remodels and Implement Easy to Run by packages.
• Enhance Digital Presence: Engage younger customers and optimize delivery and web channels.
• Review Operational Standards: Use audits to identify gaps and implement improvements.
Popeyes® success will rely on proactive adaptation and alignment with evolving consumer trends. By focusing on operational excellence, leveraging digital and technology tools, and maintaining datadriven pricing strategies, franchisees can anticipate steady growth and profitability in the coming year.
This is my final message as your PIFA Chair. It has been my extreme pleasure and honor to serve the Popeyes® franchisee community. I will continue to provide input as your Immediate Past Chair as well as to serve on the SMS Board. As always, I am available to discuss any concerns or issues with you and how PIFA can better serve you. Happy Holidays to each of you, your teams, and your families!
Love that Chicken from Popeyes®!
Mike Burke PIFA Chair
-
CAJUN COOP (EHU4)
UNIT (RFHU-52F)
Darren Vega, PIFA
Denny McDavid VP of Strategic Accounts Larry Cooper Chains Services Specialist
Teia Mertz Customer Success Manager
Development Report
The recent PIFA Development Committee meeting in Miami brought a range of important topics to the forefront, reflecting the shared focus on ensuring growth and success for franchisees. With cost pressures, ROI challenges are being met with new format innovation, better site selection, value engineering and incentives. Here’s a recap of key discussions and next steps:
Renovation Process: The Popeyes Renovation Program launches January 6, 2025. Renovation Guidelines will be published on the Design Portal by January 1 for use by architects, engineers and GCs.
The process is initiated when franchisee signs amendment letter (due by
January 30, 2025). Next steps are:
1. Engage KES for 360 site survey + equipment plans
2. Engage architect/GC for site-specific drawings
3. Submit drawings + scope exception form to PLK Design for approval.
4. Initiate GC for onsite work
5. Monitor onsite progress with PLK Construction Manager
6. Submit photos to PLK CM for final renovation approval.
7. Initiate grand re-opening with PLK Field team.
By Salil Keswani Development Committee Chair Houston, TX
DEVELOPMENT REPORT l Continued from page 6
Any questions along the way or requests for exceptions can be directed to your PLK field rep and/or Remodels@Popeyes.com.
General Renovation Scope Philosophy: Reimage <~10 years old; Remodel <11-~30 years old; Rebuild 31+ years old (final scope contingent upon condition of building revealed in 360 surveys)
Archmill Status: Archmill continues to be an option, however the brand recommends their involvement to lower-scope reimage projects only that can be executed overnight/nights in order to leverage their competencies there. While local GCs will generally still be the best choice for Franchisees, the brand is currently vetting other national execution partners and will share those recommendations on the Design Portal by 1/30/2026.
Easy to Run Kitchen & Remodels: Restaurants required to Remodel before YE 2026 must implement all required elements of Easy to Run at the time of Remodel. The Easy to Run Kitchen elements are now available to implement in four packages:
Hot Holding Equipment: 1 Extended Holding Cabinet, 1 1x3 Forced Air Birdcage, 1 5x2 Mixed Protein PHU, 1 Sandwich PHU, 1 Auto Batter Maker, Digital Drop Charts.
Required to be installed in all restaurants by YE 2026. Self-installation instructions available on The Scoop; optional to hire preferred KES for installation.
Required to be installed in all restaurants by YE 2026. Schedule of installation determined by PLK and installation required by preferred vendors.
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Popeyes Prototype Portfolio
Kiosks: 3 Kiosks, Order Ready Board, Digital Order Shelving, Wayfinding Signage.
Required to be installed in all restaurants by YE 2026. Installation required by preferred vendors.
Easy to Run Packaging Line & Supporting Components: New Packaging Line with integrated sandwich station, Landing zone with KDS, New Sides PHU with digital display, Waterless Sides Cupping Station.
Required to be installed at time of Remodel or by YE 2030 for all restaurants.
Field Calls & Renovations: Franchisees expressed confusion around field calls and renovation processes. To address this, the team is completing the remaining scheduled meetings and implementing office hours for direct franchisee engagement and Q&A.
Webinars will also be considered to answer common questions. If you have not received the scope matrix via email, please contact your franchise business partner or GM.
Operational Clarity: Discussions highlighted confusion around the sequencing of various initiatives like ETR, renovations, and Oracle integration. Leaders are collaborating across committees to clarify these processes.
Infographics & Communication: A request for an infographic on format uses is included below. Similarly, communication improvements are underway for double drive-thru positioning, tank replacement discussions, and supply chain updates.
Franchisee Feedback: Concerns were noted about the rebate structure on (Continued on page 10)
All costs are directional and approximate; FZs should work with their GCs for full quotes and pricing Confidential and Proprietary Information of Restaurant Brands International
DEVELOPMENT REPORT l Continued from page 9
negotiated equipment savings, which will be reviewed further, along with questions about franchisee incentives and proximity to university campuses.
Pop-In Incentive:
• The PLK development team is in the final stages of approval on Pop-In incentives.
• Franchisees approved for development are encouraged to connect with their Real Estate Managers to discuss the incentives available and trade areas that are approved for Pop-In growth.
Pop-In Incentive Eligibility:
• Must open by 12/31/2025.
• Pop-In must be located within a PopIn designated trade area by the REM (and communicated as such in the site approval letter)
• Pop-In must meet specific design criteria (prototype)
• Pop-In FA’s will be 10 years in initial length to provide maximum flexibility and co-terminus with typical in-line initial terms.
• If restaurant’s ARS is below $1.5mm across 4 years of sales, FZ can notify PLK of intent to close at month 48 and close after year 5 without NPV.
• Pop-In will count towards a FZ dev agreement.
• If the FZ is eligible for TODIP, they will defer to the TODIP incentive and will not receive the Pop-In Incentive
2025 Incentive Timing: Franchisees are encouraged to connect with their Real Estate Managers about trade areas to
ensure alignment with the 2025 “Pop-In” incentive timeline. The trade area must be approved in order to qualify for the incentive. An extension into 2026 will be evaluated next year.
Impact Strategy: Franchisees can expect updates in January on strategies to manage digital impacts, restaurant recovery plans, and definitions of significant impact. These discussions will continue into February.
This meeting underscored the commitment to strengthening communication, resolving challenges and driving innovation. Stay tuned for further updates, and don’t hesitate to share your feedback with the Development Committee.
Wishing you, your families, and your teams a wonderful holiday season and a New Year filled with growth and continued success.
ELLEN HUI
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By Howard Mangen MAC Chair
Culver City, CA
MAC Meeting: Strategies for 2025 Success
The Marketing Advisory Council (MAC) recently came together to discuss the brand’s agenda, outline strategic priorities, and map out plans for a successful 2025. Let’s dive into the highlights from this important meeting.
Ad Fund Transparency
Franchisees voiced their concerns about how ad funds are allocated. In response, we’re introducing a new transparency template starting in Q1 2025. This tool will give MAC a detailed look at media investments and ensure regular updates to keep everyone on the same page.
Growth & Guest-Centric Marketing
We know there are challenges, like declining awareness and the need to boost consumer
perception of our product variety. To tackle this:
• We’ll double down on promoting our core products while weaving in complementary items like tenders and sandwiches.
• Our marketing will emphasize our signature marination and preparation processes to make a strong impression.
• Before launching major promotions, we’ll address operational hurdles like improving wings quality and packaging.
Promotions Calendar Highlights
Here’s what’s locked in for Q1 and beyond:
• 3 for $5 (Jan - Early Feb): This offer is expected to drive weekly sales growth. (Continued on page 14)
The engine that drives your business
n SUPERIOR ENERGY SAVINGS
Our heat exchangers are designed to transfer more energy to the shortening, reducing energy waste out the exhaust flue. This translates into energy savings of up to 50% over the competition.
n BETTER TASTING FOOD
With exceptional temperature control and virtually no recovery time, food absorbs less oil creating crispier and more flavorful fried food.
n FASTER COOK TIMES
Our patented phased-array heat exchangers are designed to direct heat through multiple baffles and turns, resulting in highly efficient transfer of energy to the oil and more even heat distribution, virtually eliminating recovery times.
n DESIGNED SPECIFICALLY FOR BONE-IN PRODUCTS
Our P-20 phased-array heat exchangers are designed to handle the longer cook times of bone-in products like chicken. The P-20 maintains precise temperature throughout the cook cycle ensuring a consistent product from batch to batch.
Ultrafryer has been producing high-performance gas and electric deep fryers for over 63 years. Every fryer we produce demonstrates our commitment to quality craftsmanship and delivering the tastiest fried food to your customers. When you purchase an Ultrafryer, you are investing in the world’s most powerful, reliable and cost-effective deep frying solution
• March Madness Bundle: Considering offers to feature wings, tenders, sides, and sauces—perfect for younger, shareable occasions.
Looking further ahead:
• Pickle Platform (March 31): Early focus groups loved this new concept.
Digital Sales & Innovation
We’ve hit some exciting milestones:
• Digital sales are at $1.8 billion and projected to grow to $4 billion.
• Our first-party app is outperforming third-party platforms, which means better margins for everyone.
What’s next?
• Drive-Thru Innovation: AI technology will help boost digital drive-thru order
Expect improved customer retention and
(Continued on page 16)
MARKETING REPORT l Continued from page 14
• Reputation Management: We’re addressing feedback on Google reviews and app ratings
• Operational Pilot: Testing order verification systems to reduce delivery errors.
Media & Local Activation
Here’s where we’re putting our resources:
• A $105M media investment will focus on premium placements, including major sports partnerships.
• We’re testing a hyperlocal advertising tool called HYPE to give franchisees more control over their local campaigns.
In terms of channels:
• Digital: For personalized messaging and incremental revenue.
• Linear TV: Dedicated to promoting our core products, while digital takes on promotions.
Key Challenges & Opportunities
Here’s what we’re focusing on:
1. Wing Strategy Reset: Enhancing product quality and packaging to meet guest expectations.
2. Balancing Margins & Discounts: We’ll limit heavy discounts and use strategic bundling to maintain profitability while offsetting delivery fees.
3. Local Market Testing: Expanding market-specific testing for smaller value bundles and sharing the insights with you to build confidence.
Next Steps
MAC’s insights will help us create a collaborative roadmap for 2025. By aligning our operations with strategic marketing and embracing innovation, we’re setting the stage for a strong year. Stay tuned for updates on ad fund investments, market test results, and new digital tools early next year.
Let’s make 2025 a year of growth and success—together!
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By Kevin Newell Digital & Technology Committee Chair
Adams, TN
Digital and Technology Update
The PIFA Digital and Technology committee met with our brand counterparts in December in Miami. With so much of our business tied to technology, we had a lot of ground to cover.
The POS pilot with Oracle has been extended and we currently have 57 deployments and expect to have 80 completed by end of year. The pilots have highlighted areas of improvement to the process, with a focus on communications, install planning, site surveys/readiness, training and support. For BOH, Data Central and RTI will be supported with Oracle.
The brand presented a performance update. Digital sales continue to grow throughout 2024. Checkmate middleware improved driver wait time from 6.8 minutes down to 5.5 minutes, which brings us in line with our competitors so we can concentrate on missing and incorrect items.
Popeyes had success with maximizing customer lifetime value (CLV) which includes frequency, average check and retention. CLV has consistently grown from less than $300 in 2023 to just under $600 currently. We’re up to 21 million loyalty users with a goal of bringing more users back to Popeyes®.
Next, the brand reviewed key learnings from 2024.
What worked:
• Third-party advertising and promotional strategy maintained topline growth and market share.
• Launch of Checkmate helped improve digital KPIs, including driver wait time, missing & incorrect items, cancellation rates, order injection rates and overall sales.
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• First-party app enhancements have led to significant improvements in the guest experience, translating to improved conversion, app ratings and overall first party sales.
• Initial kiosk results with ~40% utilization and ~15% check uplift support the brand’s business case for ~3 year payback.
• Technology projects like Next Gen networks and POS are laying the foundation for a much stronger technology architecture in years to come.
Areas for improvement include:
highlighting the increased need for segmentation and a more regionalized digital calendar.
• Both Kiosk and Voice AI deployments show us that we cannot force digital adoption with guests. Instead, we need to encourage digital usage without alienating our guests.
PROTECTING WHAT’S VITAL
• We have an opportunity to invest more time into emerging technologies, particularly in the Drive Thru, such as Voice AI, Vision, etc.
• There are ongoing opportunities to:
• Increase in promotional spend putting pressure on digital margins, and
» Further streamline our content management, including POS data, digital creative and recipes.
(Continued on page 20)
DIGITAL REPORT l Continued from page 19
» Expand our single point of contact help desk by migrating from PopIT to the Oracle Help Desk.
» Consolidate deployment vendors to provide better support for NROs, remodels, ETR conversions and technology deployments.
The committee continues to express franchisee concerns about digital profitability. With the heavy promotions, we’ve seen an increase in digital traffic, however, increasing fees are reducing our bottom line. In 2025, we’ve implemented a Finance subcommittee to collaborate with the brand and keep an eye on profit margins.
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Additionally, the committee will put into effect subcommittees for Deployment and New Technology to focus on these important and evolving issues.
We look forward to continuing our work on your behalf to keep franchisee interests front and center with the brand. Wishing you and your loved ones a happy holiday season and a prosperous new year.
By Howard Mangen Beverage Chair Culver City, CA
The Recipe for Beverage Success
When it comes to Popeyes®, beverages often play an underappreciated but pivotal role in driving sales and enhancing the guest experience. At our recent beverage committee meeting, discussions with our partners at Coca-Cola and Dr Pepper have highlighted opportunities to reimagine beverage offerings. Let’s dive into the strategies and insights that can help franchisees boost beverage sales and improve customer satisfaction.
Dr Pepper: A Missed Opportunity?
Dr Pepper, the second most popular regular soft drink in the U.S., remains underutilized in many of our restaurants. Here are key takeaways:
• Leverage Pairings: National limitedtime offer (LTO) pairings with Dr Pepper have proven successful in the past but haven’t been utilized for over two years. “Sell what you merchandise” is a mantra worth revisiting.
• College Football Tie-Ins: Dr Pepper’s strong association with college football presents a unique opportunity to create promotions centered on tailgating and game-day bundles. Think wings, chicken, and beverages—a winning combination.
• Innovative Ideas: Dr Pepper’s culinary team is eager to partner on creative menu innovations that deliver experiences guests will remember.
Coca-Cola Lemonade Opportunities: A Premium Platform with Potential
Popeyes® took our eye off the prize when we backed off promoting our premium Lemonade platform. The focus for 2025 might consider:
• Strategic Promotions: Align lemonade launches with summer campaigns or pairings that highlight its refreshing qualities.
• Pricing Adjustments: Conducting elasticity studies can help set competitive but profitable price points for lemonade and other beverages.
The Power of Combos
Competitors like Raising Cane’s and Firehouse Subs have demonstrated the value of integrating beverages into combo meals. This strategy not only boosts beverage incidence but also enhances the perceived value of meals.
• Bundle Smartly: Consider including beverages in family feasts or large catering packs.
(Continued on page 24)
BEVERAGE REPORT l Continued from page 22
• Test and Learn: Experiment with pricing strategies to determine what resonates best with customers.
Digital Menu Boards: A Missed Connection
Digital platforms offer immense potential to enhance beverage sales, yet they remain underutilized.
• Highlight Pairings: Use digital menus to suggest beverages that complement specific menu items.
• Loyalty Programs: Incorporate beverages into loyalty activations and seasonal campaigns to drive repeat purchases.
• Visual Appeal: Refreshing digital menu designs can draw attention to beverage options and their value.
Snacking & Late-Night Opportunities
Younger consumers are driving demand for snacking occasions, creating an opening for premium beverages to shine.
• Snacking Bundles: Pair beverages with smaller food items to create valuedriven snack deals.
• Late-Night Push: Highlight premium and customizable beverages as part of a late-night offering.
Equipment & Execution
Success isn’t just about what you sell—it’s also about how you serve it. An audit of equipment across locations is overdue, ensuring consistency and quality in beverage dispensing.
• Standardized Equipment: Invest in consistent equipment to minimize variability and improve the customer experience.
• Carrier Innovations: Upgrade cup carriers to reduce spills and errors, particularly for digital and delivery orders.
Wrapping It Up
The roadmap to boosting beverage sales lies in innovation, strategic pricing, and flawless execution. Whether it’s leveraging our beverage partners’ assets, jumping on the latest trend, or boosting lemonade sales, the opportunities are within reach. By focusing on the fundamentals and aligning marketing with operational capabilities, franchisees can unlock new levels of success in the beverage category.
As you gear up for 2025, remember: beverages aren’t just add-ons—they’re an integral part of the meal experience. Let’s raise our cups to a year of growth and innovation!
Culinary Innovation Committee Report
Your CIC met in Miami on Wednesday, December 11. It was good to be back in the test kitchen to see, taste and smell our amazing food! As usual, Amy and team planned an informative & productive meeting, which truly tested the expansion capabilities of our waist bands!!
The first two hours we were joined by MAC to review the Marketing Calendar and the Innovation Pipeline of products. Of course, we were excited to touch & taste all the amazing products that currently are ready and some that will be ready later in 2025. Please believe me when I tell you that we ate about 20 different variations of nine different items. We have some amazing new sauces, and seasonings for our Wing & Sandwich platforms. We have a couple of “new and improved” items. Lots of good stuff coming our way!
MAC went back to their meeting, and we continued our meeting topics including, Commercialization Updates, Clean Ingredients, Modified Tenders, Biscuit Reformulation & Pre-seasoned Spicy BIC update.
• Commercialization - Nick showed us the new packaging for Mayo and Spicy Mayo. They will be coming in pouches with the same amount of product that will fill a squeeze bottle. This will be very helpful in reducing waste.
• Clean Ingredients – Amy and team are working hard to have all our products at NACIP standards, which is “No colors or flavors from artificial sources.” They are making great
progress and are continuing to source the proper ingredients AND maintain our great Popeyes® flavors.
• Modified Tenders – upgrading the size and shape of the tenders to be more consistent in appearance for the entire Popeyes® system, Codename “The Cigar Cut.” This will also ensure food safety guidelines are reached in the cook process. Another benefit will be to reduce unusable pieces, large pieces, small pieces or trim/waste in bags. But, most importantly, our guests love these modified tenders! Still more testing and tweaking to do…stay tuned!!
• Biscuit Reformulation – the goal was to Improve Rise, have less dense crumb, softer, fluffier interior, increased exterior crispiness and the
By Danny Gililland CIC Chair Little Rock, AR
same great buttery flavor. We think Amy and her team have been hugely successful! The Louisiana markets already have them in restaurant and are very happy with the “new” biscuit. You should start to see them in your locations early spring in 2025.
• Our guests love our new biscuit too! When comparing it to our current biscuit our guests said it outperforms it in many areas, overall texture, liking, quality, flavor and crave-ability. There were 52%, a 10% increase, in those willing to make a special trip to Popeyes® for the new biscuit. That means more transactions!
Our guests love our new biscuit too! When comparing it to our current biscuit our guests said it outperforms it in many areas, overall texture, liking, quality, flavor and crave-ability.
• All this good news about our new biscuit, and guess what? It costs less too!
• Pre-Seasoned Spicy – It’s coming, but it’s going to take a little time to have our suppliers get new equipment in place & fully test supplier procedures. Then it’s time for large market tests in Q4 2025, consumer testing and then adding more markets until the full system has pre-seasoned spicy chicken in their restaurants by end of year 2026.
(Continued on page 28)
CIC REPORT l Continued from page 19
Amy and her team did a fantastic job of preparing and presenting all the information and products for our meeting. A BIG THANK YOU to all of them!
This was my last meeting serving as your CIC Chairman and Committee member. For nearly 30 years I have served PIFA as a committee member for PAT, PPR&D, CIC, Technology and OPS. Most of that time has been on CIC and OPS. I have served on the PIFA Board for 12 years and chairman of OPS or CIC during that time. It has been an honor to serve you, the Popeyes®
Franchisees. Thank you for your trust to represent you as a member of the PIFA Board.
Nikhil Mehta, nikhil@eatoutnow.net, PIFA Board Member from Omaha, Nebraska, will be the new Chairman for CIC. I know that he will do a fabulous job working with Amy and her team to keep our product true to our New Orleans Heritage.
Love That Chicken from Popeyes®!
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Fastest North American Developer Expands Food Court Footprint to 30 States
Labeling International Restaurant Management Group (IRMG) just a “non-traditional” franchisee of Popeyes® might be considered an understatement. A rare find in the quick service industry, IRMG is not only a franchisee of RBI restaurants and other brands, but also an operator and franchisor of its own distinctive QSR concepts. IRMG opened its first Popeyes® in 2016 in Concord Mills Mall in Concord, North Carolina. Over the last two and a half years, IRMG has been Popeyes® largest North American developer, adding a total of 62 new stores and garnering Developer of the Year honors for two years in a row. “In our first four years in the system we only opened five mall locations,” stated Tony Napoliello, CEO and President. “When we saw the chicken sandwich increase sales by 40 to 60 percent and we had a product more conducive as a to-go item, we started looking for more mall space to become available.”
All 67 Popeyes® are uniquely positioned within retail shopping malls from the East to the Pacific coast. IRMG has more than 200 restaurants in malls across 30 states. Exclusively operating in nontraditional locations, managing multiple brands and rapid growth haven’t hindered operational excellence either as IRMG held North America’s highest metrics scores in multiple Popeyes’® data points last year.
“Our founder, Kelly Yeung, created what I hesitate to call an empire in IRMG,” said Napoliello, who has known Yeung since he was 15. “He is the epitome of the American Dream and the entrepreneurial success story. Kelly came here with a few dollars in his pocket and built a legacy.”
Yeung emigrated from Hong Kong in 1968, first settling in Canada before realizing
“Our founder, Kelly Yeung, created what I hesitate to call an empire in IRMG. He is the epitome of the American Dream and the entrepreneurial success story. Kelly came here with a few dollars in his pocket and built a legacy.”
-Tony Napoliello
the weather was too cold. A year later he moved his family to the warmer climate of South Florida, where IRMG’s U.S. offices are still headquartered today.
In 1975, Yeung opened his first full-service restaurant in Miami Beach, opening three more different full-service concepts over the next 12 years.
In 1987, he tried something new: opening a new QSR concept, Chinese Cafes restaurant in Miami’s Bayside Marketplace, an outdoor shopping mall. He soon opened several additional stores located in malls across four different states.
Then Yeung opened the first “World Famous Bourbon Chicken” concept, Kelly’s Cajun & Grill, in Sawgrass Mills Mall in 1991. Seeing an opportunity to fuel growth of the brand to meet the high consumer demand, Yeung formed Kelly’s Cajun Grill Franchise Corporation in 1996.
The concept quickly went international, opening stores in Mexico, Ecuador, Guatemala, and Canada.
Shortly after the success of Kelly’s Cajun Grill, Yeung created Yeung’s Lotus Express Franchise Corporation to help accelerate the growth of another mall staple, Yeung’s Lotus Express, a Chinese food concept. In 1998, International Restaurant Management Group was established to serve as franchisor of Yeung’s other successful brands. Yeung’s concepts include Suki Hana, Wok A Holic and others.
Burger King was IRMG’s first venture as a franchisee, opening a location in Dolphin Mall, Miami-Dade County’s largest shopping center, in 2007. IRMG operates almost all the mall’s concessions; in many other malls it also operates multiple restaurants.
(Continued on page 32)
FRANCHISEE SPOTLIGHT
Continued from page 31
In 2024, IRMG was awarded Developer of the Year, an award earned by the top developer across the United States. It continues to grow its BK footprint as well, almost doubling store count. IRMG’s mall BK’s are in the Top 5% of system restaurants for performance metrics.
Last year, IRMG became a franchisee of Firehouse Subs. In 2024, IRMG signed on to partner with Starbucks as a licensee. Alongside Yeung for the growth has been Napoliello.
Napoliello had the entrepreneurial spirit as a child, detailing cars, and mowing lawns for extra money. At age 15, he started his first job at the Chicken Kitchen in Bayside Marketplace, where he met Kelly Yeung at one of his neighboring food court concessions. Napoliello became the managing partner of the Chicken Kitchen
location at the age of 21 while working on his B.S. and MBA at Barry University. Yeung invited him to join IRMG when he was 23 and Napoliello has been an integral part of its growth for 27 years.
Initially, Napoliello was tasked with developing IRMG’s footprint in Washington, D.C. After succeeding there, he returned to Miami to assist in the Company’s expansion across the country. Napoliello has been intricately involved with all aspects of the business from managing store openings to negotiating lease, vendor, and development agreements to overseeing construction and crafting IRMG’s strategic vision. After serving as V.P. for almost 20 years, Yeung promoted him to CEO and President in 2020.
While Napoliello runs the day-to-day operations of the company, Yeung is still
“Tony and I clicked because we had similar visions on how to treat people. Treat them like family and as if they are the most important thing in the world. The customer experience should never exceed the employee experience.”
-Ignaciao Cajigas
very present and involved in the business, said his daughter Stephanie Yeung. “My siblings were both involved in the business at one time and laid the foundation for growth. I’m now following in their footsteps.”
She is Napoliello’s right hand as project manager of new development. To expedite Popeyes® expansion, Napoliello added two seasoned veterans of the system to the IRMG Popeyes® team, Ignacio Cajigas and Chris Arias, former Controller with Sailormen Inc. Both came from backgrounds with mostly traditional, freestanding restaurants.
Cajigas’ restaurant experience spans over 30 years. Prior to joining IRMG, Cajigas was the Director of Operations for another large Popeyes® franchisee. In 2021, he came to IRMG as the Senior Director of Operations. He now serves as Vice President of Operations for IRMG’s Popeyes® restaurants.
“Tony and I clicked because we had similar visions on how to treat people,” Cajigas said. “Treat them like family and as if they are the most important thing in the world.”
When Napoliello summed up IRMG’s company culture, he described it this way: “The customer experience should never exceed the employee experience.”
The company is working hard to improve employee benefit plans, strives to promote from within, recognizes top performers and has a decentralized management style. “Our managers are making local decisions because different regions are unique and we let them be the CEO of their individual restaurant,” added Napoliello.
“Food court restaurants are way different from traditional Popeyes® with many advantages,” Cajigas explained. “You don’t have drive-thrus, sidewalks or bathrooms to worry about. It is much easier to hire team members as they really like the mall hours.” IRMG’s average food court location
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FRANCHISEE SPOTLIGHT
Continued from page 33
employs 12-18 employees depending on volume.
“The ROI of a mall location is extremely attractive; you are able to recoup your investment much sooner,” Arias discussed.
“You are much nimbler in this situation and openings happen much faster. There is less liability when you don’t have a dining room or restrooms to deal with. Of course, it’s also nice to have a captive audience.”
He admits that there are challenges to operating in 30 states, especially when it comes to labor laws and state regulations. States with the largest Popeyes® footprint include California, Florida, Texas, and Ohio.
Experiencing double digit growth since opening, the Arundel Mills food court
location in Hanover, Maryland is IRMG’s top grossing Popeyes® store with over $2.5 million in sales.
“By operating in high quality mall venues, we consistently have stores with AUVs of $1.25 million, comparable to most freestanding restaurants in the system. Most of our other stores have been open less than two years and are extremely profitable. Restaurants open a year or longer have AUVs of $1.4 million,” concluded Arias.
“After 35 years in retail malls, we know the big developers in this niche and many times they come to us with opportunities,” stated Napoliello. “We are very selective in our development searches and only seek out
quality properties, so they are becoming more limited.” IRMG isn’t focused on expanding Popeyes® outside the U.S. for now, with the possible exception of Canada.
“Often times the nearest Popeyes® may be ten to fifteen miles away from our food court store, so these new locations are the first introduction to the brand for many customers,” he continued. Napoliello has an unwavering commitment to broadening the reach of IRMG to new locations and new audiences.
Most IRMG Popeyes® openings are highly anticipated events with the same type of lines you’d expect from a traditional opening. They usually go off without a hitch. One of the most memorable openings occurred on New Year’s Eve in late afternoon, which was crazier than most, when a vendor was not able to pull up to loading station, remembered Cajigas. Unfazed, Cajigas and his team met the driver in the parking lot, unloading the truck in the parking lot and bringing it into the store.
“Our opening teams are usually there early before the barrier comes down to create buzz,” Cajigas added. “We also offer mall employees a 10 percent discount. Our goal is to make that first amazing impression that will keep them coming back for more.
“When I walk into a location, it pretty much has the same feel as other locations because our teams are all working for a common community and pride themselves in presenting a superior product,” he commented. “Our success is due to the people we surround ourselves with. Skill can be trained, but we believe in discovering the hidden talent of every individual.”
With so many brands, locations, and the ability to open more than one concept at a
given mall, IRMG can operate with greater economies of scale, reducing operating costs and overhead. This is just one of the many reasons Popeyes® Corporate suggested Napoliello join the PIFA Development Committee for 2024.
“We managed to be quite creative with suppliers to get us through the supply chain issues of recent,” he said. “For example, we agreed to make deposits a year in advance for fryers guaranteeing availability when needed.
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FRANCHISEE SPOTLIGHT
Continued from page 35
“IRMG certainly brings a non-traditional voice to PIFA, along with Ignacio’s knowledge of operating in small spaces similar to inlines. This is helpful for the Committee as we navigate our WingStopper Pop-In prototypes to address competitors like Wing Stop for the Wings market.” These innovative locations are ideal for high-retail, high-traffic, densely populated areas with limited or restricted drive-thru availability, an operating scenario IRMG knows all too well. This 1,400 sq. foot inline concept facilitates third-party delivery, carryout, as well as dine-in guests with the ease of kiosk ordering.
Outside of Napoliello’s business role, he is involved in his community and is an endurance athlete, competing in Ironman Races, multi-stage cycling and half and full marathons. He believes every step makes a footprint, a mantra he and the IRMG team practice through the company’s
philanthropic arm IRMG Cares. Established in 2020 during the pandemic, IRMG Cares continues to serve its communities by serving over 200,000 meals since inception.
“I’m proud of our accomplishments since 2021 considering the fast pace of openings and how many new managers and leaders we assimilated into the fold,” concluded Napoliello. As development normalizes, IRMG’s focus will be on driving their already impressive operational metrics to a new standard. This is evidenced by the company’s operating mantra that “the difference between water and steam is one degree so every little bit is impactful.” IRMG’s mission is to be the top institutional player and brand ambassador within the mall space. It is a philosophy Napoliello is taking to heart after reading Small Giants: Companies That Choose to Be Great Instead of Big by Bo Burlingham.
C Squared Advisors, LLC: Financing Partner for Popeyes® Franchise Success
If you had a chance to stop by C Squared Advisors, LLC’s booth at the recent PIFA Member Meeting, you likely met the team of seasoned investment banking professionals who power this Preferred Vendor. A regular at Popeyes® Conventions, Foundation Golf Tournaments, and other key franchisee events, C Squared and Pete DiFilippo are dedicated to supporting the growth and achievements of Popeyes® franchisees. As the leading investment bank and advisory firm for multi-unit franchisees across the restaurant and retail sectors, C Squared’s long-standing relationships within the Popeyes® system have made it a trusted advisor and resource.
With over 100 years of combined experience, C Squared Advisors delivers highly customized solutions for those looking to buy, sell, expand, or restructure their restaurant businesses. Their services include:
• Mergers & Acquisitions
• Capital Raising
• Valuations
• Refranchising
• Restructuring
• Financial Advisory
“At C Squared, we see our clients as more than just participants in a transaction — we build lasting relationships,” says firm Principal Pete DiFilippo. “Our diverse, seven-member team, consisting of former bankers, brand executives, and CPAs, collaborates to structure each transaction with your success as the priority.
Beyond the numbers, we are committed to providing honest representation and sound guidance to ensure successful outcomes. We attend these events to connect with you and the system because we truly care about your success and well-being.”
DiFilippo’s background includes a distinguished 25-year tenure in banking, investment banking and finance, specializing in Tier 1 restaurant brands. Previously, a Senior Lender and Relationship Manager for Restaurant Franchise Finance at TD Bank, he began focusing on Popeyes® over eight years ago, drawn by the brand’s culture, people, and growth potential. His deep experience includes structuring and closing over $2 billion in transactions. DiFilippo joined C Squared in 2021, bringing with him a wealth of knowledge and strong relationships from his Popeyes® portfolio.
C Squared was founded by industry veteran Carty Davis in 2016. Before establishing the firm, Davis was a copartner in an industry leading firm, providing financial solutions for multiunit franchise operators for almost 20 years and served as an area developer for Sports Clips, playing an instrumental role in its expansion from 100 to over 1,800 units. Joining them, with his extensive experience in the Popeyes franchise system is Principal Brent Elsass, known for his expert analytical skills, making him a trusted advisor within the franchise industry.
C Squared’s diverse team share backgrounds in public accounting, lending them a deep understanding of financial intricacies and the highest standards of professional integrity. Their extensive network of buyers and lenders, combined with insider knowledge, ensures they can align clients with the right capital sources, delivering tailored, timely solutions for every franchisee’s needs. As members of franchisee associations and former franchisor leaders, C Squared’s team brings unique insights and connections to the table.
To date, C Squared has facilitated the purchase, sale, refranchising, and recapitalization of over 10,000 franchised locations, with numerous Popeyes® projects in progress. As an exclusive offering, C Squared provides a complimentary business valuation to help franchisees assess potential opportunities or strategies they might be considering.
“We equip you with the tools to make wellinformed decisions for your business,” DiFilippo adds. “Planning for the future starts now. Even if you’re not ready to act immediately, you’ll have the foundation to come back to us when the time is right.”
C Squared’s commitment goes beyond transactions. DiFilippo and the team actively contribute to the community through sponsorships, association ads, and donations to the Popeyes® Foundation. In 2019, the firm launched its C Squared Gives Back program to support causes meaningful to both the firm and its clients. To date, C Squared Gives Back has donated over $200,000 to various initiatives, and the firm remains committed to increasing that number.
“Now is the ideal time to reach out for your complimentary evaluation,” DiFilippo concludes. “Although the M&A and lending environment has been challenging in the past couple of years, we are very optimistic about favorable trends on the horizon. As a dedicated restaurant and national investment banking firm, C Squared is well positioned to help clients capitalize on the upward momentum as it arrives.”
www.c2advisorygroup.com
Peter J. DiFilippo, Principal C Squared Advisors, LLC 401.525.6771 pete@c2advisorygroup.com
By Donna Eskew SMS Atlanta, GA
Reflecting on 2024 and Building Momentum for 2025
As 2024 draws to a close, SMS celebrates a year of remarkable achievements, operational progress, and strengthened partnerships—all driven by an unwavering commitment to franchisee profitability. By navigating challenges and delivering on strategic initiatives, SMS has laid a strong foundation for continued success in 2025.
A Year of Progress and Achievement
This year, SMS achieved several significant milestones that exemplify its role as a reliable and dedicated partner to franchisees and suppliers. A highlight of 2024 was the more than $60 million in cost savings delivered to franchisees. These savings were achieved through close
were several major RFPs executed across critical categories, including sauces, brioche, seafood, boneless poultry, turkey, paper products, and furniture, fixtures, and equipment (FF&E). These RFPs not only enhanced supplier relationships but also generated meaningful cost savings, ensuring franchisees received high-quality products at competitive prices.
In addition to procurement successes, SMS played a pivotal supporting role in the launch of the boneless Wings platform in 2024. By aligning supply chain resources and strengthening supplier partnerships, the team ensured seamless execution of this high-profile initiative, demonstrating the co-op’s ability to support key product launches effectively.
Supply stability was another priority for SMS, highlighted by the negotiation of a long-term production deal on small bird
bone-in chicken. This agreement not only secures a reliable supply for years to come but also mitigates future market risks, providing franchisees with peace of mind amid an unpredictable landscape.
The distribution network was further strengthened in 2024, with transitions to new distribution centers, including Cheney Bros. Ocala and Lineage Conklin. These transitions enhanced supply chain capabilities and created opportunities for cost efficiencies.
Process innovations were also a hallmark of the year. The implementation of the Ironclad contracts management system and an audit verification process marked significant advancements in transparency, compliance, and operational efficiency. These tools enable SMS to respond proactively to market demands, ensuring franchisees benefit from streamlined operations.
Collaboration with the brand took center stage in 2024, as SMS worked closely with its partners to streamline processes, reduce redundancies, and focus on shared objectives. This alignment has been instrumental in driving operational improvements and reinforcing franchisee profitability.
The year also saw significant investment in team growth and development. The addition of new leaders, such as Randy McAdoo as Senior Director of Procurement, Andrew Key as Director of Freight, Nicole Ellison as Office Manager and Megan Brown joining our Supply Management team, brought fresh perspectives and expertise. Training sessions focused on goal-setting further strengthened the team’s capabilities, fostering a culture of continuous improvement.
Rounding out 2024’s accomplishments were several successful Distribution Roundtables held at several distribution centers across the country. These sessions offered an important opportunity to collaborate with our distribution partners and franchisees directly, strengthened relationships, and provided valuable insights into enhancing our overall distribution strategies.
Looking Ahead to 2025
Building on the successes of 2024 and with new construction and remodels on the horizon for many, SMS is poised to deliver even greater value to franchisees in the year ahead. A key focus will be the execution of an aggressive 18-month
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Claxton Poultry Contact: Scott Brady 678-640-1622
Scott_Brady@claxtonpoultry.com
RFP calendar targeting cost savings across multiple high impact categories which includes Furniture, Fixtures, and Equipment categories. We’ve already seen some of those results which will be realized in 2025, including a 5.5% average reduction in furniture and millwork costs and a significant reduction on the lighting package with approved vendors. In signage, savings range from $1,200 to $2,600 per package, and we are working with our décor vendors on additional limited time discounts to drive more value and support for new construction and remodels in 2025.
Operational efficiencies and other services are an additional savings and support area SMS is exploring for 2025. Dar Pro, our approved Used Cooking Oil
Collection supplier, will update all outdoor oil tanks at no charge in the second half of the year. These upgrades will make the tanks easier to clean and theft-resistant, further supporting franchisee operations. Be on the lookout for more information from SMS and Dar Pro on when these tanks will be replaced. Active kitchen equipment rebate programs, such as those offered by Winston C-Vap and Duke Hot Holding Equipment, are available to make equipment upgrades more accessible and cost-effective.
SMS wants to support your growth journey and will be launching a second version of the Easy to Run Catalog in early January with pricing updated for 2025 and inclusive of the new Hot Holding Equipment package which was announced SMS UPDATE l Continued from page 41
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SMS UPDATE l Continued from page 42
recently as part of the optional phased approach to ETR conversions. We are also introducing a second catalog with specifications, approved suppliers, and pricing information for the NOLA Makers prototype in February. Look for details on all of these exciting programs and savings opportunities in the Chicken Wire.
A Shared Journey Forward
As SMS moves into 2025, its mission to be a trusted profitability partner to franchisees, the Popeyes® brand, and suppliers remains steadfast. By strengthening collaboration, driving efficiencies, and focusing on steadfast supply, SMS is not just keeping pace with the industry but aiming to lead the way forward. Collaboration and alignment remain at the forefront of SMS’s priorities. By working closely with the Popeyes® brand and the SMS Board, SMS aims to streamline decisionmaking processes, providing you with more options, information, and visibility - ensuring everyone is aligned on shared goals of efficiency and profitability.
SMS will be investing in team development with ongoing training to help ensure our team is well-equipped to navigate the challenges of an evolving
supply chain landscape, maintaining a culture of excellence and supportive of innovation.
Here’s to a strong finish to 2024 and an even brighter year ahead!
By David Damato Operations Chair
Driving Innovation and Efficiency in the Drive-Thru: A Vision for the Future
The fast-food industry is evolving rapidly, and businesses are racing to integrate innovative solutions to stay ahead of the curve. At the latest PIFA Operations Committee meeting, we gathered with our brand counterparts to brainstorm cutting-edge initiatives aimed at enhancing drive-thru service, improving customer experiences, and optimizing operations. We examined all facets, from advanced technology partnerships to equipment upgrades and customer service training. Here is a look at some of our discussion.
Revolutionizing Service with Hi Auto and AI Solutions
One of the most discussed topics was the future of drive-thru technology, specifically the expansion of Hi Auto—an AI-powered
system designed to streamline order taking. This year, the company plans to roll out Hi Auto to 10 more of its locations, building on the successful integration at current sites. Hi Auto is not fully automated yet; human staff still intervene when necessary, but the technology is rapidly evolving, with plans to integrate ChatGPT for more scalable, AI-driven solutions. Although the system currently costs $1,250 per month per restaurant due to the need for human intervention, the price is expected to drop as the technology becomes more self-sufficient.
However, technology alone won’t cut it. To make sure the customer experience remains top-notch, leaders are exploring partnerships with companies like Checkmate and Oracle, and evaluating
Miami, FL
ways to refine their existing systems. As Hi Auto becomes more widespread, the company is betting on digital ordering and “listening” technologies to improve order accuracy, even as AI and human interaction work hand-in-hand to perfect the process.
Prioritizing Initiatives for Maximum ROI
When considering technological upgrades and operational changes, it’s crucial to focus on initiatives that offer the highest return on investment. Drive-thru (DT) speed, for example, remains a top priority. Improving menu board designs, reducing unnecessary items, and refining holding equipment are all strategies aimed at reducing wait times and enhancing overall efficiency.
Investing in holding equipment is the fastest way to speed up DT time. The
conversation also touched on improving credit card processing times, which will be reduced by ~75% with the integration of Oracle payments—a change that may seem small but has the potential to impact customer satisfaction significantly.
Building the Future: Employee Training and Equipment Upgrades
Behind every technological breakthrough is the need for a trained, motivated team. As Popeyes® looks toward the future, training remains a major focus. Our new training platform will focus on fewer learning stations and provide more streamlined, user-friendly experiences for employees, enabling faster onboarding and improved service standards.
In addition, upcoming equipment enhancements will help streamline food (Continued on page 48)
preparation processes. Changes like safer fryers and smarter cooking systems will help ensure that food quality remains high while improving speed. There’s also an emphasis on keeping equipment easy to maintain, reducing reliance on thirdparty suppliers for troubleshooting, and ensuring that restaurant managers are empowered to solve problems directly. A very exciting development is that elements of the ETR kitchen will be available in smaller packages, so there is no need to install the full ETR kitchen at the same time. This means you can start off by installing the most “bang for your buck” from the beginning and proceeding as you’re able while abiding by brand timelines.
Focusing on Customer Experience: From Accuracy to Friendliness
At the heart of all these innovations is the desire to improve the customer experience. Discussions revolved around ways to enhance order accuracy, friendliness, and the overall environment at each location. Poor service is a major concern, with order accuracy, with an emphasis on missing and incorrect items, and food quality cited as the main culprits. Moving forward, each restaurant will be held to higher standards of service, with an emphasis on friendly team interactions and a welcoming atmosphere.
A New Approach to Performance: Setting Higher Standards
The company is also looking to enhance its performance evaluation system, particularly in light of its competitors, such as Chick-fil-A, who have set high standards for customer satisfaction. By improving internal scores and achieving better ratings from industry benchmarks, the goal is to position the brand as a leader in both service and food quality.
The Road Ahead: Staying Agile and Competitive
As the company moves into 2025 and beyond, the ETR initiative remains a key focus. The introduction of new
As the company moves into 2025 and beyond, the ETR initiative remains a key focus. The introduction of new technologies, equipment, and customer service strategies will be rolled out gradually across the 210 restaurants slated to open by year’s end.
technologies, equipment, and customer service strategies will be rolled out gradually across the 210 restaurants slated to open by year’s end. Ensuring smooth conversions and change management during this transition will be vital to long-term success, with an emphasis on training and support for stores undergoing upgrades.
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OPERATIONS REPORT l Continued from page 49
Meanwhile, the conversation around third-party delivery and curbside pickup continues to evolve. The company is investigating ways to streamline these services, ensuring that delivery drivers have the best possible experience and minimizing disruptions to drive-thru operations.
Looking Ahead: The Future of QSR
The strategies and innovations discussed in this meeting represent a clear vision for the future of Popeyes®. By combining cutting-edge technology, a relentless focus on operational efficiency, and
a commitment to top-tier customer service, the company is positioning itself for long-term success in an increasingly competitive market.
As the year progresses, the focus will be on refining these strategies, continually raising the bar, and ensuring that every customer leaves with a smile. The drivethru of the future is faster, more efficient, and more customer-friendly—setting the stage for a new era at Popeyes®.
Thank you all for the opportunity to serve you. I wish you and your families and teams a very happy and profitable holiday season!
As the year progresses, the focus will be on refining these strategies, continually raising the bar, and ensuring that every customer leaves with a smile.
National Footprint. Local Service.
Full-service provider trusted by foodservice operators since 1896.
TriMark is a proud Popeyes ETR Partner and is one of the nation’s largest provider of design services, commercial equipment, and supplies to the foodservice industry.
popeyessupport@ trimarkusa.com
TD Bank has deep restaurant industry experience and the banking products to assist your restaurant’s life cycle: Acquisitions, Equipment, Real Estate, Relocations, Remodels, Refinancing. Reach out to our team today or learn more by visiting tdbank.com/pifanews
