QSR Interview | By Sherri Daye Scott
Just more than a year has passed since Cheryl Bachelder took over as president and CEO of AFC Enterprises and to those paying attention the changes are already evident. New menu items. New customer feedback program. New marketing campaign.
Yet the day QSR sat down with veteran foodservice executive to discuss her plans for the brand, Bachelder’s team scurried about the office preparing a third-quarter earnings release that went out the next day bearing the news that Popeyes’ profits dropped $2.5 million from the year before.
There is no easy fix at a brand that focused on food at the expense of all else for too many years. Bachelder is well aware of that fact. And she’s in it for the long haul.
When you were first approached about the job with Popeyes what was your impression of the brand?
I’ve been in the restaurant business since 1993. And when you’re in the restaurant business, you’re watching all the restaurants. But my close association began in the fall of 2006 when I joined the board of directors of AFC Enterprises. I was one of two board members brought on at the time to bring industry experience to the board. I made that decision [to join the board] based on the belief in Popeyes and its potential.
I saw the brand as having highly distinctive food, very loyal customers willing to drive a long way to get the food. I saw the opportunity to dramatically grow, believing we could double in size in the United States and triple in size internationally.
Those same qualities drew me to accept the position as CEO when it was offered a year later.
Are your growth plans based on company stores or franchisees?
We are a franchisor. We today own 57 company restaurants in the United States. But we are first and foremost about providing the program, support, and tools for franchisees to be successful. We, in fact, do all our testing of new products and innovations and operations with franchisees. We are very focused on being a franchisor.
How does the state of the credit markets impact Popeyes’ expansion plans?
Every chain is right now trying to figure out where the financial markets are going and what the availability of credit is going to be. We don’t know the answer to that yet.
It’s way too early to know what government policy is going to be, to know how the bank bailouts are going to turn out, and how that’s going to impact that credit environment. But I can tell you that right now, there is not a good source of credit financing in the restaurant business.
As long as the banks are talking about 10 percent interest rates, 50 percent down in personal guarantees, we’re going to be waiting on the sidelines.
I’m hopeful that the policy makers of our country understand there is a stall in entrepreneurship until we get the momentum back in our economy.