Papa John’s Remains Mired in PR Crisis

Papa John’s Remains Mired in PR Crisis

PapaJohn'sWhat a mess. Papa John’s founder and former chairman of the board, John Schnatter, is trying to regain his chairmanship after resigning last month. Schnatter has been controversial. Last year he got into trouble over his comments about NFL protests and then he resigned from the chairmanship last month after admitting to using a racial epithet. Pizza sales and the company stock have been negatively impacted by his behavior. The Goldman Blog covered the story here and at the time noted it would likely get worse. Now the PR crisis has grows as both the company and Schnatter wage a very public PR battle for control. The company is running television commercials acknowledging its problems, as explained in this article on CNN. At the same time, Schnatter is running his own ads trying to explain why he should be brought back to run the company. This Washington Post story describes the PR campaign being undertaken by Schnatter. The reality is this PR crisis needs to be resolved soon, or Schnatter will end up destroying the company he created.