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Papa John's realigns field management structure

January 15, 2003

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LOUISVILLE, Ky. -- Papa John's International, Inc. (NASDAQ: PZZA) has realigned its field management structure over its domestic company-owned stores.

According to a news release, the new structure establishes directors of operations positions as points of supervision for general managers and their restaurant teams across the country.

The new positions replace supervisor and district manager positions, effectively eliminating one layer of field management.

On average, directors of operations will oversee seven stores.

According to the release, all supervisors and district managers who lost their positions due to the change were offered alternative positions within the company.

The reorganization is expected to save the company $4.5 million, which, according to the release, will be reinvested back into the company's stores via increased staffing and bonus opportunities for general managers and assistants.

The change will shift some general and administrative (G&A) expenses to restaurant salaries and benefits. The result is expected to be a drop of 0.5 percent in G&A expenses, and a 1 percent increase in restaurant salaries and benefits costs.