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Customers liked the brand, and the company was enjoying 14 straight years of positive or flat growth. It had plans to roll out digital innovations and continue to win over new customers. But then things took a turn. During a call with analysts in November that year, founder and then-CEO John Schnatter controversially blamed slowing — but still positive — sales on the NFL leadership's handling of athlete protests. After that, sales fell.
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The following summer, news broke that Schnatter had used the N-word on a conference call. From that summer until March , when the company reached a settlement deal with Schnatter, Papa John's PZZA desperately tried to distance itself from the founder while he lobbed repeated, pointed attacks at the company. Papa John's spent much of that month period dealing with the fallout, which became an unfortunate distraction for top managers. They could have used the time, instead, to focus on improving the business and planning for the future.unriruno.cf
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The company had to adjust to "not creating success," he said. Its sales fell for five straight quarters , including the most recent one. While Papa John's was losing sales and scrambling to staunch its growing PR crisis, its competitors were charging ahead with tech stunts and value deals. It's "not a time to be losing ground," said Morningstar analyst R. In such a competitive sector, "one or two lost years can be very difficult" for a company to overcome.
But Papa John's, armed with a hefty investment from a hedge fund , a change in leadership and a renewed focus on quality pizza, is planning a rebound.
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It's not going to be easy. Papa John's sales plummeted after news that founder John Schnatter had used a racial slur.
Schnatter stepped down as CEO in December but remains the company's largest shareholder. Even before Papa John's had a public relations crisis on its hands, its sales were slipping. In the previous quarter, that figure was 1.
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While Schnatter blamed the NFL, Ritchie — then the company's president and chief operating officer — told a more complicated story. Ritchie mentioned the NFL when explaining the slowdown, but he also said that bad weather, which temporarily closed some stores, and a competitive environment suppressed sales. At the time, the company said that investments in technology, including a "complete redesign of our entire digital platform," could help it compete. But by the following quarter, after Schnatter's controversial comment, the company's financial situation further deteriorated.
North American sales fell 3. Then the next scandal hit. After Schnatter's use of the racial slur became public, same-store sales in North America plummeted 9. Papa John's suddenly had a major reputation problem.
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Papa John's has finally found a way to move past its controversial founder. Rather than focus on digital improvements, the company had to fixate on salvaging its brand.
It rolled out a new marketing campaign , conducted an internal audit into the company's culture and ran mandatory anti-bias training for employees — all while fending off vicious attacks from Schnatter, who said Ritchie wasn't fit for the CEO job , accused him of creating a culture of intimidation and set up the "Save Papa John's" website to spread his message. After the company reported another round of disappointing quarterly sales, Schnatter released a statement blaming poor results on management.
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The "results highlight the further deterioration of Papa John's financial performance under the tenure of Steve Ritchie," he wrote, adding that the company "declines when I step away. Ritchie saw that year as a time of productive reflection.
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There are even create-your-own pizza options available. In addition to pizzas, their menu also features drinks, desserts, sides and extras. This means that there is something for anyone to enjoy from this pizza chain. Food orders can be made online, through the official app or by calling the local franchise near you. You can also use the website to conveniently locate the closest franchise to your home or workplace when placing an order. Delivery is available in many locations for a small delivery fee.