Popeyes(R) Chicken & Biscuits, a division of AFC Enterprises, Inc. (Nasdaq: AFCE), has signed an agreement with Olive Hospitality Inc. to develop 30 new restaurant locations in the Greater Vancouver area of British Columbia in the next seven years.

“We’re excited to have an international, entrepreneurial-minded group of investors such as Olive Hospitality join the Popeyes team,” said Russ Sumrall, vice president of international new business development for Popeyes. “Olive has a business profile that is very compatible with ours. They also have the type of committed and motivated leaders we’re seeking as we continue with additional Canadian expansion.”


Olive plans to launch their first three restaurants in 2002. The restaurants will be developed in the new Popeyes Heritage image that features architecture and an atmosphere consistent with that found in the historic French Quarter of New Orleans, Popeyes’ birthplace. The restaurants will have bold colors, balconies, awnings, gooseneck lighting, themed murals and the sounds of New Orleans jazz and Cajun-style music.


The restaurants will serve Popeyes’ delicious Cajun-style menu designed to appeal to “flavor seekers” that enjoy flavorful, but not necessarily spicy food. The menu features Popeyes’ signature New Orleans-style spicy and mild chicken as well as a line of side items that include Cajun rice, mashed potatoes with Cajun gravy and the brand’s world-famous red beans & rice. In addition, the award-winning Popeyes Louisiana Legends product line is based on the “one-pot cooking” tradition of southern Louisiana and features gumbos, etouffees and stews.


“Just as the Acadians brought their heritage to New Orleans and established a unique, world-class culture, we regard ourselves as pioneers for establishing this world-class brand in Western Canada, starting with the Greater Vancouver market,” said Jae Yoon Jung, president of Olive Hospitality Inc. “Our mission is to positively impact the fast-food landscape in British Columbia and create over 900 jobs in the process. We are very confident that the multi-cultural Vancouver will embrace the diverse flavors of Cajun cuisine and cheer us on to expand into other markets.”


Popeyes Chicken & Biscuits has over 275 franchised restaurants in 21 international markets that include Korea, Germany, Honduras, Japan and the U.S. territory of Puerto Rico.

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Popeyes is a leader in the Cajun segment of the foodservice industry and is the world’s second-largest quick-service chicken concept. Founded in 1972 in New Orleans, Popeyes has more than 1,540 locations in 41 states, the District of Columbia, Puerto Rico and 20 countries and achieved 2000 worldwide sales of approximately $1.2 billion. Visit Popeyes Chicken & Biscuits’ websites at www.popeyes.com or www.popeyesfranchising.com.


Popeyes Chicken & Biscuits is a division of AFC Enterprises, Inc., the franchisor and operator of over 3,690 restaurants, bakeries and cafes in the United States and 33 countries under the brand names Church’s Chicken(TM), Popeyes(R) Chicken & Biscuits, Cinnabon(R), Seattle’s Best Coffee(R), and Torrefazione Italia(R) Coffee. AFC’s primary objective is to be the world’s Franchisor of Choice(R) by offering investment opportunities in highly recognizable brands and exceptional franchise support systems and services. AFC has system-wide sales of approximately $2.4 billion in 2000 and can be found on the World Wide Web at www.afce.com.


Certain statements in this release, and other written or oral statements made by or on behalf of AFC or its brands, are “forward-looking statements” within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. These forward-looking statements are subject to a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the cost and availability of our principal food products, labor shortages or increased labor costs, our ability to franchise new units and expand our brands, our and our franchisees’ ability to successfully operate existing units and open new units, changes in consumer preferences and demographic trends, competition, general economic, political and regulatory conditions and the risk factors detailed in our Annual Report on Form 10-K for the year ended December 31, 2000 and the other documents we file with the Securities and Exchange Commission. You should not place undue reliance on any forward- looking statements, since those statements speak only as of the date they are made.