In recent news, Mashed takes a look at recent history regarding Papa John's and the possible reasons why their sales have gone down and stocks has also gone down greatly as well. Here are a few things that Papa John's has done in recent history that you may want to avoid doing with your restaurant or as the face for your restaurant:
The pricing of their pizza may be a bit over priced. Due to the nature of the deals that Little Ceasars or Domino's puts out, Papa John's and its pricing may be last to consider. Even loyal customers to the big pizza brand go to its competitors during tight times. As consumers, what do we mainly look for during tight financial times, quality or quantity?
2.) POLITICAL CONTROVERSY:
Political statements gone wrong. During the announcement of Obamacare, Schnatter, CEO of Papa John's had mentioned that his business would suffer greatly and also shared how other businesses in the industry are not too excited about Obamacare. For those who may be unfamiliar, Obamacare would force businesses to offer healthcare coverage to its employees and because that would lead to more expense towards emloyees, there would have to be cut backs on 'quality' ingredients. Not to mention, Schnatter with his 7 million dollar mansion complaining to provide more for employees was harshly criticized for his remarks.
3.) NFL CONTROVERSY:
NFL kneel down and Schnatter displeased with how business gets affected. Due to the attention that NFL players had from taking the knee to support the mission to end police brutality, the pizza restaurant takes a direct hit in profit due to the pizza chain being the official pizza for the NFL around that time. Making public remarks stating that the loss of business for his pizza chain is due to the controversial nature of taking the knee during the NFL games, then him cutting ties with the NFL as the official pizza for the NFL resulted in a loss of even more clientele.
4.) HATE GROUPS:
White supremacist to the rescue, not. Never involve hate groups to support your chain or restaurant if you would like to continue profiting with more clientele. After this recent incident with the NFL, white supremacist groups coming to the forefront and saying that they support your pizza restaurant does not help at all. Rather it put more fuel to the fire that Papa John's was already in.
5.) DON'T CHEAT GLUTEN FREE:
Don't say you're going gluten free if you're not making sure to go all the way with it. Papa John's announced that they would be going gluten free with their crust made of quinoa and they claimed it was processed in a different location than the other ingredients, but the cross contamination stopped when at the pizza chain itself. Without proper ways of handling gluten free crust, there was greater risk of cross contamination which inevitably defeated the purpose of having gluten free pizza, especially when it poses risk to those with severe gluten free intolerances.
No hate for Papa John's, we love Papa John's, but we can definitely still take a piece of their history and learn from it as well.
To conclude, there is much to learn from Papa John's and its CEO Schnatter. As a restaurant owner or business owner, please remember that your business wouldn't exist without the people. The people are definitely paying attention.