(Louisville, KY) – Papa John’s chief executive is promising the pizza chain will recover but admits it will come at a hefty price. CEO Steve Ritchie announced today that sales in the second quarter fell six percent, reaching a low point of ten percent in July because of negative publicity about its founder.
John Schnatter used a racial slur during a May conference call with a marketing firm that led to him stepping down from his chairman position. Ritchie estimated rebranding itself and the losses will cost the company between 30 and 50 million dollars.
Schnatter issued a statement after the earnings report saying he built the company into a success and is still the largest shareholder. He promises he’s not going away and is seeking to regain control.
(Louisville, KY) – The founder of Papa John’s is explaining his use of a racial slur in a conference call. John Schnatter says he was conducting a training exercise when he admittedly used the N word as an example of how not to behave. Schnatter also claims his marketing agency tried to blackmail him for six-million-dollars before leaking the call, as reported by WLKY.
Several sports teams are cutting ties with the company over this recent scandal, meanwhile, executives at Papa John’s are working to re-brand the company’s image and advertisements without Schnatter’s face.
(Louisville, KY) – The founder of Papa John’s is resigning as Chairman after admitting to using racial slurs during a conference call. Forbes reported that John Schnatter made the offensive comments when asked on the call how he’d distance himself from racist groups online.
Schnatter released a statement today admitting the reports are true and apologized, saying “racism has no place in our society.” Schnatter earlier faced backlash for blaming the NFL player protests during the National Anthem for a downturn in sales.