Wednesday, November 1, 2017

Papa John Blames NFL For Low Pizza Sales

Papa Johns pizza sales and stock price have been falling recently, and company executives think they know why. "Papa" John Schnatter, founder and CEO of Papa John's International Inc puts the blame squarely on the controversy over NFL players kneeling during the National Anthem. Papa Johns, the official pizza company of the NFL, has a deal with the league and with 23 teams. Company executives believe that fallout of the National Anthem controversy has resulted in many NFL fans boycotting the pizza chain "The NFL has hurt us", Schnatter said during an earnings call on Wednesday. "We are disappointed the NFL and its leadership did not resolve this." This coming from the guy that complained that the Affordable Care Act forced him to raise prices and then a week later promoted a one million pizza give away. Company executives also blamed the increasingly competitive restaurant environment and temporary store closures caused by hurricanes for weak sales.

Personally, I think that while boycotts may have been a small factor, the overall cause of declining sales at Papa Johns is due to the fact that it has become a sub-par product. One of the first things a company needs to do when sales decline is to look inward. Domino's Pizza is a fine example. Here's a company that realized it was putting out a below middling product and allocated the time and capital necessary to improve upon it. And they ended up making a product that tastes good (for a chain store) and can be cheaply and quickly produced. They also implemented some technological innovations. Their web ordering app is the standard by which similar companies are judged.

Papa Johns needs to do some research on how to improve their product and update their ordering process. And, while they're at it, they need to do something with their commercials. Maybe hire a spokesman. I'm personally tired of seeing that douche-nozzle Papa John on every commercial they company does. It worked when the first did it ages ago when the touted Papa John's as a one-man success story, but the guy has become a caricature.

1 comment:

  1. As someone who lives in a pizza-starved desert, I can tell you it is a quality issue with Papa Johns. It is the one pizza place we won't order from because the entire family doesn't like it. I suspect it is also due to the many promos they run which highly discount pizza prices.

    ReplyDelete