PR Crisis at Papa John’s Gets Complicated

PR Crisis at Papa John’s Gets Complicated

PapaJohn'sBy now you’ve likely heard that Papa John’s founder and chairman John Schnatter has resigned from the company after it became known that he used a racial slur while doing media training with his public relations firm. Schnatter has had public controversy follow him before this incident and Papa John’s is facing stiff competition from other fast food pizza delivery companies. With his image plastered on most things Papa John’s, a quick remake of the company is no easy feat. Now, according to The Wall Street Journal, Schnatter thinks his resignation was an overreaction and he wants to come back. Claiming the company’s board didn’t do its due diligence before asking for his resignation, he is taking to the media to make his case. Universities and other charitable organizations where Schnatter has given money have also moved quickly to disassociate themselves with him according to The Street. On top of all this, CNBC notes Schnatter has claimed the public relations firm doing his media training tried to extort $6 million from him to not speak about the incident. This Papa John’s PR crisis isn’t going away time soon even though the company’s board and charities acted swiftly. This is a situation where the founder is going to exact a toll on all involved, including himself. Schnatter may actually destroy the company he founded in the process.