Founder of Papa John’s Pizza comes to agreement – lawsuits dropped.
The third largest Pizza delivery outlet in the United States saw its founder come under pressure on a conference call as he repeated some horrible comments – not his – that were in fact racial slurs. However, the explosion of blowback caused the CEO and Founder to leave the firm, of course waves of law suits followed.
Many in the business community feel that he was treated unfairly as he was quoting a horrible comment by another person – using as an example of what not to say.
The lawsuits and public battle that followed caused a 12 percent reduction in revenue as the firm saw sales remain somewhat firm at 1.57 billion dollars. Mr Steve Ritchie, chief executive officer, said that Papa John’s was rolling out a new marketing system, changing the loyalty scheme and improving ingredients to revive the firm. Profits were lower in 2018, after showing a 102 million dollar profit in 2017. It seems that this solid name or brand is still one the top recognized firms in its space.
Mr John Shnatter who founded the firm, has agreed to give up all lawsuits and other baggage that he brought on after being exited, in return for deciding the next CEO and leader of the very firm he founded.
His face that was the face of the firm in all major marketing campaigns has now been pulled off, and the firm is now rebranding itself for the future. The firm has a poison pill system in place that will prevent the former owner from taking over the stock and of course having any say in it future. So he cannot buy the firm – at least under normal means – in the future.