Papa John's: The Pizza Chain That Rose, Fell, and Rose Again ????

Introduction

Hey, corporate professionals! Let's talk pizza, specifically Papa John's. This pizza chain has had its share of ups and downs, but it's a story of resilience and adaptability. So, grab a slice and let's dive into the rollercoaster journey of Papa John's.

The Humble Beginnings: A Tavern and a Broom Closet ??

Papa John's started in a broom closet in a tavern owned by John Schnatter's father. John sold his car to buy pizza-making equipment and started serving pizzas to tavern customers. The pizzas became so popular that they moved to a separate building, marking the official start of Papa John's.

Franchising and Rapid Growth ??

The business took off when they started franchising. They were doubling in size every year throughout the '90s. Their focus on quality ingredients and a simple menu helped them stand out. Remember their slogan, "Better Ingredients, Better Pizza"?

The NFL Sponsorship and the Recession ????

Papa John's became the official pizza sponsor of the NFL, which was a significant boost for them. However, the 2008 recession hit them hard. John Schnatter returned as CEO to steer the ship, and they managed to recover.

The Controversial Fall: John Schnatter's Remarks ???

Things took a turn for the worse in 2017 when John Schnatter made controversial remarks about the NFL protests. This led to a public backlash, causing him to step down as CEO. Later, he used a racial slur during a conference call, leading to his resignation as chairman and further damaging the brand's image.

The Aftermath: Losing the NFL and Public Trust ???

The NFL ended their sponsorship deal with Papa John's, and the company found itself in a PR crisis. They had to distance themselves from Schnatter, who had become a liability.

The Comeback: Pandemic and New Leadership ??????

The pandemic turned out to be a blessing in disguise for Papa John's. Their focus on takeout and delivery, along with a robust online ordering system, made them a go-to choice during lockdowns. They also introduced new menu items like the Epic Stuffed Crust Pizza, which became instant hits.

The Turnaround Experts ??

They brought in Rob Lynch, known for his role in turning around Arby's, as the new CEO. Starboard Value LP also invested $200 million in the company, bringing in much-needed expertise in restaurant turnarounds.

Conclusion ??

Papa John's has shown incredible resilience. They've navigated through controversies, economic downturns, and leadership changes to come out stronger. Their story is a testament to the power of adaptability and the importance of crisis management.