The slide began before John Schnatter’s high-profile resignation.
Papa John’s has had a rough summer, but it seems the pizza chain’s troubles began even before the ouster of founder and former CEO John Schnatter made headlines in July.
The franchise has announced its second-quarter earnings, and as Nation’s Restaurant News points out, revenue was down by 6.2 percent and net income fell by nearly 50 percent in the quarter, which ended on July 1. CNCB notes that same-store sales growth has been on the decline for the brand since Q3 of 2016 and began seeing negative growth in Q4 of 2017.
Steve Ritchie, Papa John’s president and CEO, says the brand has already initiated operational and marketing changes, as well as an external audit of the brand’s culture, to help get the franchise back on track.
“Earlier this year, we began implementing key changes in how we operate and market our products to refocus on quality and better connect with customers,” said Ritchie in the earnings report. “While results have been challenged by recent events, we are committed to these strategic priorities and continue to believe that they will lead to enhanced performance. We have also begun an external audit of Papa John’s culture and will address any improvements that are recommended at its conclusion. Our entire leadership team understands the importance of getting our culture and business improvements right. We have important work ahead of us, and I feel certain that with the collective efforts of our 120,000 corporate and franchise team members that the best days for Papa John’s are ahead.”