Skip to main content

The fallout: Papa John's losing business even after chairman steps down

Image result for The fallout: Papa John's losing business even after chairman steps down

ATLANTA -- The fallout continues for Papa John's Pizza.
After founder John Schnatter resigned this week as chairman, others are still cutting ties with the company.Dozens of sports teams and business have reported that they will no longer partner with the pizza chain.
In Atlanta, AMB Sports and Entertainment is suspending its affiliation with Papa John's. AMB Sports and Entertainment is comprised of the Atlanta Falcons, Atlanta United, and a few other entities. The leadership team met Thursday and made the decision.
Schnatter resigned late Wednesday night, the day after he apologized and admitted to using a racial slur on a May conference call. AMB Sports and Entertainment released the following statement:
"Effective today, AMB Sports & Entertainment has indefinitely suspended its affiliation with Papa John's. The divisive comments made and acknowledged by the company's founder are reprehensible and do not align with our core values. While we have enjoyed a positive relationship with the local franchisee and staff, we will be evaluating the overall relationship between Papa John's and our sports properties over the coming weeks.
Sign up for the daily Speed Feed Newsletter
Sign up for the daily Speed Feed Newsletter
Something went wrong.
This email will be delivered to your inbox once a day in the morning.
Thank you for signing up for the Speed Feed Newsletter.
Please try again later.
Morehouse College tweeted that it would be suspending its campus dining relationship with Papa John's.
RELATED | FORBES: Schnatter, former Papa John's CEO, apologizes after racial comment during call
Schnatter reportedly used the N-word on a call with a public relations firm that was designed to help the company avoid more public relations issues.
At one point, Papa Johns was the third largest take-out pizza and delivery restaurant in the U.S., according to PMQ Pizza Magazine in 2016.
However, in the last few years, the pizza giant has been in the spotlight for other reasons.
The company said it plans to pull founder John Schnatter's image from marketing materials.
11Alive went to one of the metro locations Friday afternoon and saw that his image was still there.
Here's a breakdown of some of the issues that have plagued the company for the past six years.

  • Papa's Johns was sued for allegedly sending over 500,000 unwanted text messages to customers. The company settled to pay $16.5 million, awarding members of the class-action lawsuit up to $50 in damages and a free pizza.
  • Schnatter is accused of making critical comments about the Affordable Car Act to a class on entrepreneurship. In a shareholder conference calls, Schnatter says he oppose the ACA because "Obamacare will cost 11 to 14 cents per pizza." Schnatter says he will pay the costs onto the consumer.

  • 2015

  • Papa John's settles class-action lawsuit for $12.3 million. The lawsuit, originally filed in 2009, sought damages against the company for allegedly under compensating 19,000 delivery drivers in the U.S. The suit said the company did "willfully fail to pay the federal minimum wage to their drivers."

  • 2016

  • Panera Bread sues the company, accusing Papa John's of stealing digital trade secrets by hiring a former Panera executive, Michael Nettles. A judge later issued a restraining order, preventing Nettles from working with the company. Panera later dropped the suit.

  • 2017

  • Schnatter blames the NFL for poor financial performance, saying "The NFL hurt us. We are disappointed the NFL and its leadership did not resolve this," referring to NFL players kneeling during the National Anthem. Papa John's served as the official pizza sponsor of the NFL since 2010. The same day the comment was made by Schnatter, Papa John's announced the NFL sponsorship was removed.
  • Schnatter is replaced as CEO effective Jan. 1, 2018 by COO Steve Richie. Schnatter still appears in the chain's commercials and on pizza boxes and remained on executive board as well as the largest company shareholder.

  • 2018

  • Various news agencies report Schnatter said the N-word during a conference call with marketing agency, Laundry Services. Schnatter resigned from the board the same day and later stepped down from his position on the University of Louisville board of trustees.
  • Several sports teams suspends its affiliation with Papa John's. Papa John's announces it will remove Schnatter's images from ads, and the University of Louisville announces they will remove Papa John's name from football stadium, business school and phone contacts.

  • OTHER |
    © 2018 WXIA


    Popular posts from this blog

    Michelle Rose Exclusive Interview

      Q:  What's it like growing up in Mpls?   Does the city have interesting stories about Prince?     A:  I only lived in Minneapolis until I was three, but I have fond memories of it.  Even now that I live in a suburb of Minneapolis, I still feel like I'm a part of Minneapolis.  I think a lot of Minnesotans have "Minneapolis Pride", even if they don't live in Minneapolis.  Minneapolis has so many fun things to see and do, and the arts are very important here, with so many theaters and live shows.     Prince put us on the map for music.  I hear Prince stories everywhere I go in Minnesota.  I've met so many people who were associated with Prince, including one of his dancers, and even a former Paisley Park employee working as a cashier at the local grocery store, so I've heard many Prince stories.  I wish I could've been a Chanhassen resident when Prince was still alive, because I know that many Chanhassen residents saw him casually riding his bike around

    The Losers Club Releases A New Pop Punk Single And Video

      The Losers Club Releases A New Pop Punk Single And Video Denver based pop punk band The Losers Club has a single release that gets you caught up in its pure rock energy! The song is called "Freak Like Me" and it provides quite an up swing and extremely fun punk sound.  The song has a great video and it's one of the best ways to dig into this single.  What's "Freak Like Me" about? It may be more relatable than you think. Here is what the band says. "Well 'Freak Like Me' is about being really in your own head all the time and feeling stuck. But realizing you're not totally alone and there's a lot of other broken freaks out there who are going through the same thing. " - The Losers Club   Check out "Freak Like Me" along with more from The Losers Club on their  Spotify .  Watch the video  HERE .                                             Website TikTok Instagram YouTube

    Planet Of Rhythm Exclusive interview

      GCoulda you tell us what it's like being from L.A.?   LA is a great city for music, like any other large city.   Of course the downsides are things like traffic etc. but it is a wonderful place to create music, to hear music and experience great performances. Could you name the members in Planet of Rhythm and the roles they play? Doug Hafford (me): songwriter, singer, guitar Greg Thomas: Producer Rhythm Guitar, Bass, backup vocals Chad McKinsey: Producer, Drums, Guitar, backup vocals Juliet Roberts: Lead and backup vocals (what a talent she is) Elliott Jason: Lead Guitars Jorge Orellana:  Bass, Sax    Who inspired you guys to make electric blues rock music; is it something you guys just have in common?   The music comes from our love of the 60’s, 70’s and 80’s style rockers.   Of course much of that was inspired by earlier artists such as Robert Johnson, or Howlin’ Wolf etc.  We love the simplicity mixed with great musical performances, overdriven guitars and a strong driving bea