|
| Search for Cases |
|
Case Details |
|
Case Code: HROB198
|
| Case Length: 16 Pages |
| Period: 1984-2018 |
| Pub Date: 2019 |
| Teaching Note: Available |
| Price:Rs.400 |
| Organization : Papa John’s International Inc.’s |
| Industry : Pizza |
| Countries : US |
| Themes: Leadership |
|
|
|
Crisis at Papa John`s Pizza: Fall of John Schnatter |
|
|
|
|
| <<Previous Page |
EXCERPTS |
|
| |
| The company’s pizza was more expensive than those of its competitors. With consumers willing to pay a little more for the company’s slogan, “better ingredients, better pizza.” Papa John’s had long prided itself on maintaining a ‘premium’ position. Year 2017, however, was a challenging one for Papa John’s. The sales of the pizza chain were declining. Experts attributed the fall to the company’s declining pizza quality and the rapid expansion of better-quality pizza chains..
|
| |
 |
| or |
 |
| or |
PayPal (9 USD)
|
|
|
| |
| |
| The sales and the stock price of Papa John’s which were at an all time high in December 2016, reportedly fell nearly 13 percent after Schnatter’s comments. Finding itself mired in controversy, Papa John’s had to apologize for the comments made by Schnatter blaming sluggish pizza sales on the NFL players’ protest. On November 15, 2017,.. |
| |
| |
| On July 11, 2018, Forbes reported that Schnatter had used the ‘N-word’ during a conference call in May. The conference call, which was arranged between Papa John’s executives and its media agency Laundry Service, was designed to be a role-playing exercise and was intended to help ensure that Schnatter wouldn’t make incendiary remarks and cause public-relations flare-ups in the future. Schnatter, . |
| |
| |
| There seemed to be no end to the controversies dogging Papa John’s even after Schnatter left the company. On July 19, 2018, an investigative article in Forbes reported that Papa John’s suffered from a ‘toxic’ culture. The article stated that the problems at the company extended well beyond the founder’s PR crisis. Based on interviews with 37 current and former employees of Papa John’s, Forbes accused Schnatter of numerous allegations ranging from spying on his workers to sexually inappropriate conduct.. |
| |
| |
| On July 22, 2018, The Wall Street Journal reported that the Board members of Papa John’s had voted to adopt a ‘poison pill’ to block Schnatter from taking a controlling interest in the company. Schnatter owned about 30 percent of the company’s shares. The company announced,.. |
| |
| |
| On July 27, 2018, Schnatter sued the company accusing it of failing to produce internal files related to his ouster. Reportedly, he had demanded to be given documents including internal communications by directors, officers, and attorneys relating to him from October 31, 2017,through July 15, 2018,.. |
| |
| |
| Experts opined that the need of the hour was to restore the reputation of the company. Analysts issued sell recommendations on the stock and dropped earnings projections, citing damage to the brand and a projected decline in pizza sales. As of August 2018, the company’s net income had fallen to US$11.7 million.. |
| |
| |
| The management of Starbucks said the racial bias training program was an ongoing process and would be continued in the future. Schultz said that this training would form part of Starbucks’ employee onboarding program, and over the next one year, the partners at its 7,000 licensed stores would also participate in the training program. Georgina Dodge (Dodge), Associate Provost for diversity, equity, and inclusion, Bucknell University, observed,.. |
| |
| |
Exhibit I: Papa John’s Core Values
Exhibit II: Papa John’s Worldwide Sales 2012 to 2017 (in billion US$)
Exhibit III: Number of Papa John’s Restaurants Worldwide (2007- 2017)
Exhibit IV: Papa John’s International, Inc. Stock Chart
Exhibit V: John Schnatter’s Letter to Board Members
Exhibit VI: Steve Ritchie’s Note to Employees
Exhibit VII: Sales Decline in Papa John’s Franchises |
| |
|
|
|
