Papa John’s founder has criticized the company he founded and suggested the pizzas are now made differently due to cost-cutting measures.
John H. Schnatter stepped down as the company’s chief executive in December 2017, after drawing criticism for blaming disappointing sales on the NFL’s handling of player protests during the national anthem.
Six months later, reports emerged that the founder had used the N-word during a media training call about avoiding PR blunders.
During the call with media agency Laundry Service, Schnatter tried to downplay his NFL remarks, saying ‘Colonel Sanders called blacks n*****s’ as he complained that the KFC founder never faced public backlash.
Papa John’s founder John H. Schnatter, (pictured), has criticized the company he founded and suggested the pizzas are now made differently due to cost-cutting measures
John H. Schnatter stepped down as the company’s chief executive in December of 2017, after drawing criticism for blaming disappointing sales on the NFL’s handling of player protests during the national anthem
He resigned as board chairman soon after those reports came out and subsequently went through a public fightback, where he sued the company and hired a public relations team to launch a website to tell his side of the story.
Now Schatter has claimed that the business – which he still has a 16.7% stake in – is being poorly managed and argued that he was ‘pushed out’ as CEO in January 2018.
In a piece for the New York Post he claimed: ‘In August 2018, I tried warning my fellow directors and put out a news release that the performance of the company was bound to get worse. My prediction has been proved right for four quarters since then and still today.
‘More important, what I’ve observed in the months since then is that the Papa John’s management may be emphasizing cost-cutting over product quality. Even the pizzas don’t appear to be made the way that I made them just a few years ago.’
In June Papa John’s International Inc, which has been struggling to boost sales, said said it would spend $80 million to boost its brand image and support its franchisees in the United States.
The pizza chain began removing Schnatter’s image from its logos, pizza boxes and restaurants after it was revealed that he used the N-word on a conference call during a media training session.
In the piece, Schnatter said he was expressing ‘disdain for racism’ at the meeting, which he claimed was ‘quite productive and demonstrated Papa John’s commitment to a diverse, positive and enriching environment.’
Schnatter claimed that he was not ‘given the benefit of the doubt’ as New York Governor Andrew Cuomo was when he used a racial slur during on a radio show earlier this month
He added: ‘Ironically, Gov. Andrew Cuomo used a racial comment during a live radio interview last week, and African American state leaders rushed to defend him, showing their understanding of the intent and context of his words while also considering his character.
‘Cuomo’s situation is in stark contrast to the irrational overreaction and internal exploitation of my comments. The double standard is jarring.’
The New York Governor was discussing racism against Italian-Americans during a call with WAMC radio on Tuesday when he used the n-word.
Schnatter claimed he have hoped to have been given the benefit of the doubt, just as Cuomo was.
Papa John’s, which is based in Louisville, Kentucky, began operations in 1984 and has more than 5,200 locations globally. Schnatter is pictured making a surprise quality check at a restaurant
He added: ‘Instead, unnamed sources reversed the meaning and intent of my words to damage me.’
He said that recent economic declines make it ‘extremely difficult’ to increase earnings for shareholders, now or in the immediate future.
He added: ‘I hear from store managers, franchisees and employees, and I believe that their morale is at an all-time low.
‘Some are taking out additional loans and putting off future plans as they tighten their belts based on the current performance of the company.
‘Franchisees tell me that banks are even hesitant to lend them money to buy and build more stores. This troubles me deeply.’
Schnatter admitted he had used the slur in a statement issued to Forbes in July 2018.
‘News reports attributing the use of inappropriate and hurtful language to me during a media-training session regarding race are true,’ he said.
‘Regardless of the context, I apologize. Simply stated, racism has no place in our society.’