Eater - WTF Is Going on at Papa John’s?https://cdn.vox-cdn.com/community_logos/52682/favicon-32x32.png2018-08-27T10:16:21-04:00http://www.eater.com/rss/stream/175420172018-08-27T10:16:21-04:002018-08-27T10:16:21-04:00Customers Might Forgive Papa John’s If the Chain Separates Itself From Papa John
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<img alt="Papa John’s pizza boxes showing an illustration of founder John Schnatter" src="https://cdn.vox-cdn.com/thumbor/Rtv-nVwvjcyb9KE4r8x3LHR5Zhk=/167x0:2834x2000/1310x983/cdn.vox-cdn.com/uploads/chorus_image/image/61034705/996511678.jpg.0.jpg" />
<figcaption>Joe Raedle/Getty Images</figcaption>
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<p>Plus, Taco Bell wants to give free food to touring bands, and more food news to kick off the week</p> <ul>
<li id="DaHEi4">Papa John’s is working hard <a href="https://www.eater.com/2018/8/24/17777976/papa-johns-schnatter-board-feud-ceo">to separate itself from Papa John Schnatter</a>, the founder and former chief executive officer who brought <a href="https://www.eater.com/2018/2/28/17061626/nfl-pizza-hut-papa-johns">scandal</a> and <a href="https://www.eater.com/2018/7/12/17564002/papa-johns-founder-john-schnatter-out-chairman">shame</a> to the pizza-delivery chain. Since Schnatter’s racist comments and <a href="https://www.eater.com/2018/7/19/17590768/papa-johns-john-schnatter-sexual-harassment-allegations">alleged sexual misconduct</a> were revealed, <a href="https://www.eater.com/2018/8/22/17768294/papa-john-schnatter-pizza-website-thoughts-prayers">sales have fallen off a cliff</a>. There are no guarantees, but if the company is successful, <a href="https://www.wsj.com/articles/play-call-for-papa-johns-go-long-1535364000">the <em>Wall Street Journal </em>believes</a> customers will eventually return to PJ’s. </li>
<li id="7tsaBb">
<a href="https://www.bloomberg.com/news/articles/2018-08-27/life-without-water-sweaty-smelly-and-furious-in-caracas"><em>Bloomberg </em>has a first-person account</a> of what it is like to live in Caracas, Venezuela, a city without water.</li>
<li id="Hm6zbG">To the delight of grocery shoppers in Mexico City, opera singers are performing for free at CDMX supermarkets, <a href="https://qz.com/quartzy/1370275/opera-singers-delight-new-audiences-at-food-markets-throughout-mexico-city/">reports Quartz</a>. </li>
<li id="UlTWc5">It seems Taco Bell wants to become the official fast-food chain of rock and roll. T-Bell is giving away $500 gift cards to up-and-coming bands on tour, <a href="https://thetakeout.com/taco-bell-wants-to-give-touring-bands-500-worth-of-cha-1828578567?rev=1535125271578">according to the Takeout</a>. This publicity stunt is known as <a href="https://feedthebeat.com/news/127/fall-2018-submissions-are-now-open">Feed the Beat</a>, and bands can apply for the free food online.</li>
<li id="D04OyA">McConnel’s Ice Cream started as a small, family-owned dairy operation in Santa Barbara, California. But as<a href="https://www.bloomberg.com/news/articles/2018-08-24/scaling-up-a-santa-barbara-ice-cream-legend"> <em>Bloomberg </em>notes</a>, it has exploded into a massive, family-owned dairy operation.</li>
<li id="p81zK5">Silicon Valley CEO Chris O’Neill, of Evernote, shares a window into his typical day <a href="https://www.nytimes.com/2018/08/24/fashion/mens-style/silicon-valley-ceo-work-life-balance.html">with the <em>New York Times</em></a>. “I have a very light breakfast. Usually for me that’s a banana or an avocado. As my metabolism has slowed, I find what I eat has become far more impactful than my exercise routine. Frankly, I just try to eat less. I’ve experimented with intermittent fasting, but that’s become like Allbirds shoes in the Valley — so much a stereotype that I don’t even want to mention it.”</li>
<li id="QwGj7Y">Now that research is showing breakfast cereals contain traces of dangerous pesticides, <a href="https://www.nytimes.com/2018/08/24/business/epa-pesticides-studies-epidemiology.html">the <em>New York Times </em>reports</a> Donald Trump’s Environmental Protection Agency is curbing studies of pesticides.</li>
<li id="bSANaF">And finally, hundreds of Los Angeles food obsessives gathered to pay tribute to the <a href="https://la.eater.com/2018/7/21/17597464/jonathan-gold-dead-57-los-angeles-food-critic-obituary">late</a> and <a href="https://www.eater.com/2018/7/23/17602098/jonathan-gold-dies-los-angeles-legacy">legendary</a> critic Jonathan Gold on Sunday. There were gold lampposts, taco trucks, and new outtakes from the <em>City of Gold </em>documentary at the public event in Downtown LA, <a href="https://www.latimes.com/food/la-fo-jonathan-gold-downtown-tribute-20180826-story.html?utm_source=dlvr.it&utm_medium=twitter">per the <em>Los Angeles Times</em></a>.</li>
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https://www.eater.com/2018/8/27/17785904/papa-johns-founder-john-schnatter-disgracedChris Fuhrmeister2018-08-24T10:51:36-04:002018-08-24T10:51:36-04:00Papa John’s to Teach Employees How Not to Act Like Papa John
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<img alt="Papa John’s to Teach Employees How Not to Act Like Papa John" src="https://cdn.vox-cdn.com/thumbor/XxpZh8aR4NkNx8WkEaGKve2hE7A=/319x301:2566x1986/1310x983/cdn.vox-cdn.com/uploads/chorus_image/image/61007387/996511678.jpg.0.jpg" />
<figcaption>Photo illustration by Joe Raedle/Getty Images</figcaption>
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<p>The pizza chain is requiring employees to attend diversity training</p> <p id="YTDoPY">Papa John’s, the pizza chain that’s been bleeding money since its founder, John Schnatter, <a href="https://www.eater.com/2017/11/1/16592474/papa-johns-nfl-sales-john-schnatter-shares">blamed protesting NFL players</a> for the company’s poor earnings last year, is trying to repair its image by requiring that its employees attend diversity training. </p>
<p id="oFmSVB">The company stated its intentions in an open letter from CEO Steve Ritchie to staff, franchisees, and customers, <a href="https://www.wsj.com/articles/papa-johns-mandates-diversity-training-as-founder-continues-push-for-control-1535112000?mod=e2tw">according to the <em>Wall Street Journal</em></a>. “When I became CEO in January, diversity, equity, and inclusion became one of my top priorities,” Ritchie wrote, also claiming that Papa John’s believes in “equity, fairness, respect, and opportunity.”</p>
<p id="JoWYxV">If this sounds familiar, it’s because it’s almost exactly what Starbucks did earlier this year. The coffee company <a href="https://www.eater.com/2018/4/17/17248090/starbucks-closing-racial-bias-education-day-may-29">announced all of its staffers would receive mandatory racial bias</a> training after two black customers were mistakenly arrested at a Philadelphia location after a store manager, under the mistaken belief they were loitering, called the police. That incident spurred a <a href="https://www.eater.com/2018/4/16/17242414/starbucks-arrest-protest-philadelphia">nationwide outcry</a> about <a href="https://www.eater.com/2018/4/27/17263584/starbucks-arrests-third-place">race relations</a> in the U.S., with some calling for a <a href="https://www.eater.com/2018/4/16/17242350/starbucks-arrest-black-men-racist-twitter-reactions">Starbucks boycott</a>. </p>
<p id="rME9xL">For Papa John’s, a company that is trying to distance itself from its increasingly unpredictable former CEO, mandating diversity training among staff is an odd move that looks more like a PR stunt than a sincere effort. Of note: The company isn’t closing stores, <a href="https://www.eater.com/2018/4/17/17248090/starbucks-closing-racial-bias-education-day-may-29">as Starbucks did</a>, in order to focus its attention on this training. And while there’s certainly no harm in having employees receive diversity training, it should be noted that the person that needs it most is Schnatter.</p>
<p id="NJwJnr">Speaking of Schnatter, this week was full of mudslinging between the former CEO and his estranged board of directors. The pizza chain’s founder believes he’s being “silenced” by his own company, so he launched a <a href="http://savepapajohns.com/">website</a> called <a href="http://SavePapaJohns.com">SavePapaJohns.com</a>. It’s directed at franchisees, employees, and press from a man who says he misses his team “very much” and is keeping them all in his “thoughts and prayers.” </p>
<p id="38mx9C">The board’s response? A <a href="https://www.eater.com/2018/8/22/17768294/papa-john-schnatter-pizza-website-thoughts-prayers">slightly weary, desperate, and to-the-point memo</a> outlining the ways in which “all of our stakeholders want to save Papa John’s from John.”</p>
<p id="naYdYt">• <a href="https://www.wsj.com/articles/papa-johns-mandates-diversity-training-as-founder-continues-push-for-control-1535112000?mod=e2tw">Papa John’s Mandates Diversity Training as Founder Continues Push for Control</a> [WSJ]</p>
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https://www.eater.com/2018/8/24/17777116/papa-johns-diversity-training-john-schnatterDaniela Galarza2018-08-22T15:07:27-04:002018-08-22T15:07:27-04:00Papa John Is Convinced Only Papa John Can Save Papa John’s [Updated]
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<img alt="John Schnatter Papa John’s controversy" src="https://cdn.vox-cdn.com/thumbor/iPywYp6dihCd0nxZ460vxLZ8W9M=/0x116:1769x1443/1310x983/cdn.vox-cdn.com/uploads/chorus_image/image/60980825/133615553.jpg.0.jpg" />
<figcaption>Photo by Jason Merritt/Getty Images</figcaption>
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<p>Disgraced pizza chain founder John Schnatter launched a personal website to rehabilitate his image </p> <p id="Cax3re">The embattled founder of Papa John’s pizza still believes he alone can save the ailing chain — though it’s his behavior that has resulted in the company’s diminishing sales and troubled reputation. This week, John Schnatter — who is banned from his company following the use of inappropriate language and allegations of sexual misconduct — launched a <a href="http://savepapajohns.com/">website</a> called <a href="http://SavePapaJohns.com">SavePapaJohns.com</a>. </p>
<p id="kyeX9c">On it, he writes that as the company’s largest shareholder he knows what’s best for Papa John’s, and encourages all of the company’s workers and franchisees to support him — because the Papa John’s board is trying to “silence” him. </p>
<p id="u9zjGw">Papa John’s employs around 120,000 workers <a href="http://ir.papajohns.com/static-files/2d70f4b4-4006-4fe6-a5cf-6217103f587f">worldwide,</a> according to <a href="https://www.bloomberg.com/news/articles/2018-08-22/papa-john-s-founder-appeals-to-employees-in-fight-against-chain">Bloomberg</a>. The site contains copies of legal documents, links to related press coverage, and a personal note from Schnatter to Papa John’s employees that reads, in part:</p>
<blockquote><p id="42wass">...I miss you all very much. More than words can express! Papa John’s is our life’s work and we will all get through this together somehow, some way. I can only imagine how difficult this entire situation is on you, and I’m very sorry you all have to go through this. Know that in every minute of every day you are all in my thoughts and prayers.</p></blockquote>
<p id="KCgOHL">Schnatter <a href="https://www.eater.com/2017/12/21/16808028/papa-johns-founder-stepping-down-john-schnatter-ceo">stepped down as CEO</a> of his company last December, <a href="https://www.eater.com/2017/11/1/16592474/papa-johns-nfl-sales-john-schnatter-shares">less than two months after blaming protesting NFL players</a> for Papa John’s faltering sales. Then, last month, he <a href="https://www.eater.com/2018/7/12/17564002/papa-johns-founder-john-schnatter-out-chairman">resigned as chairman</a> of Papa John’s board after a racist rant from a phone call with a PR agency leaked to the press. The founder of the 34-year-old chain admitted to using derogatory language, but believes the comments were taken out of context. <a href="https://www.eater.com/2018/7/19/17590768/papa-johns-john-schnatter-sexual-harassment-allegations">Less than a week later</a>, allegations surfaced that Schnatter promoted a “bro-culture” within his company and that he himself had engaged in sexual misconduct. Schnatter denied all accusations, and accused the board of mishandling the issue.</p>
<p id="62DRmV">Meanwhile, Papa John’s sales continue to slide. The chain reported a loss in July and told shareholders it was <a href="https://www.wsj.com/articles/papa-johns-offers-financial-assistance-to-help-struggling-franchisees-1533947532">offering its franchisees financial assistance</a> during this ongoing controversy to prevent stores from closing as a result of weak sales. If only Schnatter realized that the best thing he could do for his restaurant chain, at least right now, is GTFO.</p>
<p id="P7Yn2A"><em><strong>Update, August 22: </strong></em>Papa John’s released a statement in response to the Schnatter stunt, noting that “all of our stakeholders want to save Papa John’s from John.” The statement, in full: </p>
<blockquote><p id="gIKP6y"><em>“We are not, nor should we be, dependent on one person. Papa John’s is 120,000 corporate and franchisee team members around the world. Stakeholders, including customers, franchisees, employees, and investors, have expressed strong support for the actions we have taken to separate our brand from Mr. Schnatter. No matter what John does, he will not be able to distract from the inappropriate comments he made. We appreciate this support and are confident we are taking the right steps to move the company forward.”</em></p></blockquote>
<p id="GSFXKB">• <a href="https://www.wsj.com/articles/papa-johns-offers-financial-assistance-to-help-struggling-franchisees-1533947532">Papa John’s Offers Financial Assistance to Help Struggling Franchisees</a> [WSJ]<br>• <a href="https://www.eater.com/2018/7/23/17602668/papa-johns-poison-pill-john-schnatter-takeover">Papa John’s Moves to Prevent Hostile Takeover From Disgraced Founder</a> [E]</p>
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https://www.eater.com/2018/8/22/17768294/papa-john-schnatter-pizza-website-thoughts-prayersDaniela Galarza2018-08-02T10:35:20-04:002018-08-02T10:35:20-04:00Papa John’s Taps the Man Who Inspired Ari From ‘Entourage’ to Save Its Image
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<img alt="A Papa John’s Pizza box" src="https://cdn.vox-cdn.com/thumbor/tGQPyvvA3o7E-tNRDE11zSRwuEU=/34x0:2701x2000/1310x983/cdn.vox-cdn.com/uploads/chorus_image/image/60704123/996511678.jpg.0.jpg" />
<figcaption>Joe Raedle/Getty Images</figcaption>
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<p>Plus, Americans now prefer cocktails over beer, and more food news</p> <ul>
<li id="IYatnu">Mass-market pizza chain Papa John’s has <a href="https://www.eater.com/2017/11/1/16592474/papa-johns-nfl-sales-john-schnatter-shares">a</a> <a href="https://www.eater.com/2018/7/12/17564002/papa-johns-founder-john-schnatter-out-chairman">bad</a> <a href="https://www.eater.com/2018/7/19/17590768/papa-johns-john-schnatter-sexual-harassment-allegations">reputation</a> these days. The company figures hiring a guy who inspired a sleazeball character on a sleazeball television show will turn things around. PJ’s is tasking the ad agency owned by Ari Emanuel, the inspiration for Ari Gold on HBO’s <em>Entourage</em>, to turn its image around, <a href="https://money.cnn.com/2018/08/01/news/companies/papa-johns-endeavor-ari-emanuel/index.html">reports CNN Money</a>. </li>
<li id="jae1f5">An ingenious moocher <a href="https://www.vice.com/en_us/article/d3exgq/i-used-san-franciscos-multi-million-dollar-open-houses-as-my-own-buffet">tells Vice</a> about his exploits visiting fancy San Francisco open houses just for the free food. This guy must have been a big fan of the Paul Rudd-Jason Segel bromance flick, <em>I Love You Man</em>.</li>
<li id="YAOHD7">In an effort to compete with Walmart and the new Amazon-Whole Foods juggernaut, Ohio-based supermarket chain Kroger is launching a delivery program, <a href="https://www.wsj.com/articles/kroger-to-launch-grocery-delivery-service-1533117720">according to the <em>Wall Street Journal</em></a>.</li>
<li id="416bDn">A woman in Buffalo, New York, is suing Canada Dry over alleged false claims that the ginger ale contains actual ginger, <a href="https://munchies.vice.com/en_us/article/8xbmy3/lawsuit-alleges-that-canada-dry-ginger-ale-contains-no-actual-ginger">per Munchies</a>.</li>
<li id="uiKQ9w">Condolences to Keith Jordan, who, <a href="https://thetakeout.com/moped-riding-man-busted-with-170-of-stolen-ribeye-stea-1828028046">according to the Takeout</a>, was arrested for allegedly stealing $170 worth of Walmart steaks and trying to hide them in his pants. Next time he tries to pull this stunt, Keith should go with a wider leg on his Jncos.</li>
<li id="q2EftZ">Kris Yenbamroong, chef at the excellent Los Angeles Thai restaurant Night + Market, is shilling for expensive casual men’s clothing brand Bonobos <a href="https://www.instagram.com/p/Bl-OzibBzjW/?utm_source=ig_twitter_share&igshid=132kgoqpvl5rq">on Instagram</a>.</li>
</ul>
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</div> <p style=" margin:8px 0 0 0; padding:0 4px;"> <a href="https://www.instagram.com/p/Bl-OzibBzjW/?utm_source=ig_embed" style=" color:#000; font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:normal; line-height:17px; text-decoration:none; word-wrap:break-word;" target="_blank">Have you seen the ads? Proud to participate in the latest @Bonobos campaign! I’m into their patterned shirts and their mission to challenge the definition of masculinity. #BonobosPartner #EvolveTheDefinition</a></p> <p style=" color:#c9c8cd; font-family:Arial,sans-serif; font-size:14px; line-height:17px; margin-bottom:0; margin-top:8px; overflow:hidden; padding:8px 0 7px; text-align:center; text-overflow:ellipsis; white-space:nowrap;">A post shared by <a href="https://www.instagram.com/ntmrkt/?utm_source=ig_embed" style=" color:#c9c8cd; font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:normal; line-height:17px;" target="_blank"> NIGHT+MARKET</a> (@ntmrkt) on <time style=" font-family:Arial,sans-serif; font-size:14px; line-height:17px;" datetime="2018-08-02T10:00:43+00:00">Aug 2, 2018 at 3:00am PDT</time></p>
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<ul>
<li id="U25TcK">Say it ain’t so: <a href="https://www.texasmonthly.com/bbq/kreuz-market-sauce/?utm_source=Web+Social"><em>Texas Monthly</em> reports</a> Kreuz Market in Lockhart now offers customers — gasp — utensils and barbecue sauce. The change comes after more than a century of Kreuz operating as a sauceless, forkless business.</li>
<li id="rcDHbB">Oakland’s most exciting restaurants prioritize activism, <a href="https://mic.com/articles/190416/in-oaklands-most-exciting-restaurants-incredible-food-and-social-activism-go-hand-in-hand#.d2BhHolL8">according to Mic</a>. “When you have all these artists, activists, chefs, really racially and economically diverse people driven by change, with an attitude of ‘We can fucking do it ourselves,’ that’s the type of environment that creates great restaurants,” chef Preeti Mistry tells the publication.</li>
<li id="7MADo9">All of those ubiquitous craft cocktail programs at new restaurants across the country are making an impact. Americans are now drinking more mixed drinks than beer, <a href="https://www.wsj.com/articles/americas-long-love-affair-with-beer-is-on-the-rocks-1533133041">reports the <em>Wall Street Journal</em></a>.</li>
<li id="ovj5RU">Starbucks wants to offer delivery at more than 2,000 locations in China. The coffee giant is partnering with Chinese retail conglomerate Alibaba Group to get the project off the ground, <a href="https://www.cnbc.com/2018/08/02/starbucks-ceo-confirms-alibaba-partnership-china-delivery-expansion.html">per CNBC</a>.</li>
<li id="NU0aHt">Finally, a <em>Golden Girls </em>cookbook is on the way. Recipes in the book will be inspired by the show, <a href="https://www.babble.com/entertainment/golden-girls-cheesecake-recipe/">according to Babble</a>, and fans can expect it to hit shelves in 2020.</li>
</ul>
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https://www.eater.com/2018/8/2/17642584/papa-johns-hires-ari-emanuel-advertising-firmChris Fuhrmeister2018-07-23T13:13:55-04:002018-07-23T13:13:55-04:00Papa John’s Moves to Prevent Hostile Takeover From Disgraced Founder
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<img alt="John Schnatter, formerly of Papa John’s, wears a red zip-up and stands in front of blue and green graphics when ringing the opening bell at NASDAQ." src="https://cdn.vox-cdn.com/thumbor/PsVIh1KiOz84hpGT1QGU7dUE4og=/97x0:2981x2163/1310x983/cdn.vox-cdn.com/uploads/chorus_image/image/60459679/466110201.jpg.0.jpg" />
<figcaption>John Schnatter in 2014 | Rob Kim/Getty Images</figcaption>
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<p>John Schnatter will not be able to increase his 29 percent stake in the pizza company</p> <p id="ATCRla">Papa John’s founder John Schnatter<strong> </strong>continues his professional downfall, as his pizza company’s board is now attempting to block him from increasing his ownership stake in the chain.</p>
<p id="nJgg73">Per the <em>Wall Street Journa</em>l, <a href="https://www.wsj.com/articles/papa-johns-board-vote-to-adopt-poison-pill-against-founder-1532303394">the Papa John’s board adopted a “poison pill” on Sunday</a>, a motion that is occasionally used to keep an investor from gaining a majority stake in a corporation (in particular, to block a hostile takeover); Schnatter currently owns 29 percent of the company’s shares. </p>
<p id="WfKiM0">Unsurprisingly, the company did not call the move a “poison pill,” issuing an official statement calling it a “<a href="https://ir.papajohns.com/news-releases/news-release-details/papa-johns-adopts-limited-duration-stockholder-rights-plan">limited duration stockholder rights plan</a>,” stating that the action aims to “protect the interests of the company and its stockholders.” <a href="https://www.bloomberg.com/news/articles/2018-07-23/papa-john-s-adopts-poison-pill-to-thwart-any-schnatter-takeover">An attorney for Schnatter told <em>Bloomberg</em></a> that the board’s actions are making Schnatter into a “scapegoat,” implying that the company is unfairly treating its founder. </p>
<p id="uPqdOF">It’s not the board’s first move against Schnatter in recent days: a week before, another vote severed some of Schnatter’s ties to the company, including stripping him of his office at the pizza chain’s Louisville headquarters. The WSJ also reports that the company has suggested that Schnatter should resign from the board. Alternatively, a meeting of shareholders <a href="https://www.bloomberg.com/news/articles/2018-07-23/papa-john-s-adopts-poison-pill-to-thwart-any-schnatter-takeover">could vote to remove Schnatter from the board</a>.</p>
<p id="eJiusl">Much of Schnatter’s undoing stems from an incident earlier this month where he <a href="https://www.eater.com/2018/7/11/17560700/papa-johns-founder-john-schnatter-racial-slur">used a racial slur</a> while on a phone call with a public relations agency, ironically as part of an exercise to help Schnatter <em>avoid </em>that exact kind of PR disaster. That <a href="https://www.eater.com/2018/7/12/17564002/papa-johns-founder-john-schnatter-out-chairman">led him to resign</a> as company chairman, a move that Schnatter <a href="https://www.eater.com/2018/7/17/17581166/papa-johns-john-schnatter-resigned-mistake-investigation">then said he regretted</a> days later. On top of that, <a href="https://www.eater.com/2018/7/19/17590768/papa-johns-john-schnatter-sexual-harassment-allegations">Forbes dropped an exposé</a> reporting on a toxic company culture that allowed Schnatter and other men at the company to allegedly harass female staff.</p>
<p id="f0ddd6">All that comes six months after Schnatter resigned from his position as CEO of Papa John’s following widely-criticized remarks where he blamed the company’s falling sales on NFL players protesting police violence at football games. (At that time, Papa John’s was the NFL’s official pizza, but has since been replaced with Pizza Hut.) </p>
<p id="qYUdv3">The Schnatter drama is obviously not helping the pizza company: Papa John’s shares <a href="https://quotes.wsj.com/PZZA?mod=chiclets">continue to drop</a> following the board’s decision. </p>
<p id="o05m8I">• <a href="https://ir.papajohns.com/news-releases/news-release-details/papa-johns-adopts-limited-duration-stockholder-rights-plan">Papa John’s Adopts Limited Duration Stockholder Rights Plan</a> [Papa John’s]<br>• <a href="https://www.eater.com/2018/7/11/17560700/papa-johns-founder-john-schnatter-racial-slur">Papa John’s Founder Used Racial Slur on Conference Call</a> [E]<br>• <a href="https://www.eater.com/2017/12/21/16808028/papa-johns-founder-stepping-down-john-schnatter-ceo">Papa John’s Founder Resigns After Racist Rant Leaks</a> [E]</p>
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https://www.eater.com/2018/7/23/17602668/papa-johns-poison-pill-john-schnatter-takeoverTim Forster2018-07-19T12:09:18-04:002018-07-19T12:09:18-04:00Papa John’s Founder Accused of Sexual Misconduct and Fostering a ‘Bro’ Culture
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<img alt="Papa John’s International Rings the NASDAQ Opening Bell" src="https://cdn.vox-cdn.com/thumbor/nYwkUqepAJa88umimOkzDFdMkFY=/180x591:2159x2075/1310x983/cdn.vox-cdn.com/uploads/chorus_image/image/60421293/466110207.jpg.0.jpg" />
<figcaption>Photo by Rob Kim/Getty Images</figcaption>
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<p>A new report details allegations against John Schnatter, who stepped down last week following a leaked recording of him using a racial slur</p> <p id="3WVuJM">Papa John’s founder John Schnatter <a href="https://www.eater.com/2018/7/12/17564002/papa-johns-founder-john-schnatter-out-chairman">resigned as chairman of his company last week</a> after a recording of him using the N-word was leaked to <em>Forbes </em>— and the pizza chain founder hasn’t gone quietly into the night: He’s accused the company’s board of directors of failing to investigate the incident properly, and <a href="https://www.eater.com/2018/7/17/17581166/papa-johns-john-schnatter-resigned-mistake-investigation">says he regrets stepping down</a>. But <a href="https://www.forbes.com/sites/forbesdigitalcovers/2018/07/19/the-inside-story-of-papa-johns-toxic-culture/">a new investigative report from <em>Forbes </em>alleges more misconduct</a>, saying Schnatter presided over a “bro” culture at Papa John’s, where women were often the target of sexual harassment, and himself engaged in sexual misconduct that resulted in at least two confidential settlements.</p>
<p id="7WilLF">Schnatter is accused of stalking and groping a woman in 1999; he later claimed the woman was trying to extort him for $5 million, but the situation ended with a confidential settlement. <em>Forbes </em>also reports that a 2009 “incident” involving a 24-year-old female marketing employee resulted in another confidential settlement, and anonymous sources say there have also been more settlements over the years. Meanwhile, sources say women at the company were subjected to harassing behavior from Schnatter and other male employees, such as being asked about their bra size or if they were menstruating. Schnatter also allegedly asked employees to spy on their colleagues, and sometimes read workers’ emails. Schnatter, through a representative, “disputed” most of the <em>Forbes</em> story.</p>
<p id="NhPmMP">Schnatter stepped down as CEO in late 2017, after he claimed on an earnings call that <a href="https://www.eater.com/2017/11/1/16592474/papa-johns-nfl-sales-john-schnatter-shares">NFL players’ national anthem protests were hurting Papa John’s sales</a>. The company’s revenue slid, and an anonymous franchisee tells<em> Forbes</em> the company has been offering discounts galore in an attempt to win customers back. The recording of Schnatter using a racial slur, which led to Schnatter leaving the brand’s board of directors, was obtained by <em>Forbes</em> in the process of investigating this larger story, which also claims Schnatter installed loyalists and close friends, including CEO Steve Ritchie and international president Tim O’Hern, in leadership positions at Papa John’s so he could run the company unchallenged. Corporate employees being forced to sign nondisclosure and non-disparagement agreements also apparently kept people from coming forward.</p>
<p id="meyt9g">In response to the allegations, Papa John’s spokesperson provided the following statement to Eater via email:</p>
<blockquote><p id="ZlPsEm">As previously announced, a special committee of the Board of Directors, comprised solely of independent directors, has retained an outside firm to oversee an audit and investigation of the culture at the company and to make recommendations for whatever changes may be necessary. We take this matter seriously. If anything is found to be wrong, we are determined to take appropriate action.</p></blockquote>
<p id="Ui3575">But it seems getting rid of Schnatter entirely won’t be so easy: As <em>Forbes </em>points out, he’s still on the company’s board and owns 30 percent of its shares, and even “showed up to work as usual” the day after he resigned as chairman. If Papa John’s hopes to keep selling pizza, it may need to completely disassemble the house that Schnatter built.</p>
<p id="iFJqv0">• <a href="https://www.forbes.com/sites/forbesdigitalcovers/2018/07/19/the-inside-story-of-papa-johns-toxic-culture/">The Inside Story of Papa John’s Toxic Culture</a> [Forbes]<br>• <a href="https://www.eater.com/2018/7/17/17581166/papa-johns-john-schnatter-resigned-mistake-investigation">Disgraced Papa John’s Founder Regrets Stepping Down After Racist Remark</a> [E]<br>• <a href="https://www.eater.com/2018/7/12/17564002/papa-johns-founder-john-schnatter-out-chairman">Papa John’s Founder Resigns After Racist Rant Leaks</a> [E]</p>
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https://www.eater.com/2018/7/19/17590768/papa-johns-john-schnatter-sexual-harassment-allegationsWhitney Filloon2018-07-17T10:20:06-04:002018-07-17T10:20:06-04:00Disgraced Papa John’s Founder Regrets Stepping Down After Racist Remark
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<img alt="Celebrities Attend Race - 2015 Indy 500" src="https://cdn.vox-cdn.com/thumbor/BtNu4Eq63WfUJR6a5zfousn_j18=/731x19:3000x1721/1310x983/cdn.vox-cdn.com/uploads/chorus_image/image/60394035/474646336.jpg.0.jpg" />
<figcaption>Papa John’s founder John Schnatter | Photo by Michael Hickey/Getty Images</figcaption>
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<p>John Schnatter has accused the pizza chain’s board of failing to investigate the incident</p> <p id="rUUnjq">Papa John’s founder John Schnatter resigned from his company last week after a recording of the pizza mogul using a racial slur leaked to the media. But Schnatter clearly isn’t ready to step out of the spotlight: <a href="https://www.wsj.com/articles/papa-johns-founder-says-resignation-was-a-mistake-1531805367?mod=yahoo_hs&yptr=yahoo">He’s now saying it was “a mistake” to step down</a>, and is accusing the company’s board of directors of failing to properly investigate the incident, per the <em>Wall Street Journal</em>.</p>
<p id="islvXo"><a href="https://www.eater.com/2018/7/12/17564002/papa-johns-founder-john-schnatter-out-chairman">Schnatter publicly apologized and resigned last Wednesday</a>, just a day after <a href="https://www.forbes.com/sites/noahkirsch/2018/07/11/papa-johns-founder-john-schnatter-allegedly-used-n-word-on-conference-call/#3f474a5d4cfc"><em>Forbes</em> broke the news of the recording’s existence</a>. Ironically, the businessman’s use of the N-word came during a media training call that was intended to prevent future public relations disasters.</p>
<p id="JAhY21">“The board asked me to step down as chairman without apparently doing any investigation,” Schnatter said in a letter to Papa John’s board obtained by the <em>WSJ</em>. “I agreed, though today I believe it was a mistake to do so. I will not allow either my good name or the good name of the company I founded and love to be unfairly tainted.”</p>
<p id="TxsyLT">In an interview yesterday with CBS affiliate WLKY, Schnatter claimed the media agency that conducted the training call “provoked” him into using the N-word and <a href="https://www.cnbc.com/2018/07/16/papa-johns-founder-said-media-agency-tried-to-extort-him.html">accused the company of trying to blackmail him for $6 million</a> in order to keep quiet. (The agency, Laundry Service, did not immediately respond to a request for comment.)</p>
<p id="KC2cXd">Prior to his exit, Schnatter had a history of putting Papa John’s in the political crosshairs by making controversial and/or offensive comments: Last fall <a href="https://www.eater.com/2017/11/1/16592474/papa-johns-nfl-sales-john-schnatter-shares">he blamed the pizza chain’s falling sales on NFL players kneeling in protest during the national anthem</a>. Two months later, <a href="https://www.eater.com/2017/12/21/16808028/papa-johns-founder-stepping-down-john-schnatter-ceo">he stepped down as CEO</a> and moved into the role of company chairman — and two months after that, <a href="https://www.eater.com/2018/2/28/17061626/nfl-pizza-hut-papa-johns">the NFL dropped Papa John’s as its official pizza sponsor</a>, swapping it for Pizza Hut.</p>
<p id="CxIM1T">Papa John’s has quickly distanced itself from its founder following this latest incident. According to <a href="https://ir.papajohns.com/news-releases/news-release-details/special-committee-papa-johns-board-approves-company-actions">a press release issued by the company on Saturday</a>, Schnatter no longer has access to office space at Papa John’s corporate headquarters and he will no longer appear in advertisements for the company. The pizza chain has also asked Schnatter to stop talking to the media about the company, a request that thus far seems to be falling on deaf ears.</p>
<p id="zXMWiW">• <a href="https://www.wsj.com/articles/papa-johns-founder-says-resignation-was-a-mistake-1531805367?mod=yahoo_hs&yptr=yahoo">Papa John’s Founder Says Resignation Was a Mistake</a> [Wall Street Journal]<br>• <a href="https://www.eater.com/2018/7/12/17564002/papa-johns-founder-john-schnatter-out-chairman">Papa John’s Founder Resigns After Racist Rant Leaks</a> [E]</p>
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https://www.eater.com/2018/7/17/17581166/papa-johns-john-schnatter-resigned-mistake-investigationWhitney Filloon2018-07-12T09:54:52-04:002018-07-12T09:54:52-04:00Papa John’s Founder Resigns After Racist Rant Leaks
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<img alt="Papa John’s International Rings the NASDAQ Opening Bell" src="https://cdn.vox-cdn.com/thumbor/s2WMFR5Rtk2f9Tvdqnw5rtDRUhM=/0x208:2406x2013/1310x983/cdn.vox-cdn.com/uploads/chorus_image/image/60346859/466110195.jpg.0.jpg" />
<figcaption>Photo by Rob Kim/Getty Images</figcaption>
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<p>Amid calls for a boycott, the pizza chain’s stock is tanking</p> <p id="uggl94">The man who founded Papa John’s in 1984, John Schnatter, <a href="http://ir.papajohns.com/news-releases/news-release-details/papa-johns-announces-resignation-john-h-schnatter-chairman-board">resigned</a> as chairman late Wednesday. His exit comes a day after a recording of him using a racial slur on a conference call <a href="https://www.forbes.com/sites/noahkirsch/2018/07/11/papa-johns-founder-john-schnatter-allegedly-used-n-word-on-conference-call/#5026d1e74cfc">leaked to <em>Forbes</em></a>. </p>
<p id="VVGXlI"><a href="https://www.eater.com/2018/7/11/17560700/papa-johns-founder-john-schnatter-racial-slur">As previously reported</a>, Schnatter described acts of violence against African-Americans and used the N-word on a call with his public relations agency, allegedly in an effort to “convey his antipathy to racism.” The conversation was part of a “role-playing exercise” designed for Schnatter in order “to prevent future public-relations snafus.” </p>
<p id="FzqA6O">But because of his views, everything about that conversation backfired: Schnatter’s PR firm quit over the remarks he made, per <em>Forbes</em>, and after the tape leaked on Wednesday, social media users <a href="https://twitter.com/search?q=%23BoycottPapaJohns&src=tyah&lang=en">were calling for a boycott</a> of the pizza chain. Meanwhile, Papa John’s stock tanked. </p>
<p id="KXlzst">He released a statement late Wednesday admitting to his comments and expressing regret: “News reports attributing the use of inappropriate and hurtful language to me during a media training session regarding race are true. Regardless of the context, I apologize. Simply stated, racism has no place in our society.”</p>
<p id="PpK4Nb">Back in January, <a href="https://www.eater.com/2017/12/21/16808028/papa-johns-founder-stepping-down-john-schnatter-ceo">Schnatter stepped down from CEO to executive chairman</a> less than two months after <a href="https://www.eater.com/2017/11/1/16592474/papa-johns-nfl-sales-john-schnatter-shares">he blamed NFL players who protested the National Anthem</a> for the chain’s flagging sales on an earnings call. That mess led to the call in May where, apparently, Schantter somehow regressed into using racist slurs. He complained that “Colonel Sanders called blacks n——s,” but that Sanders had never faced public backlash, and continued by telling a story about how where he grew up in Indiana “people used to drag African Americans from trucks until they died.”<strong> </strong></p>
<p id="dlHdV0">Papa John’s stock is down to its lowest point so far this year.</p>
<aside id="2tBtlu"><div data-anthem-component="readmore" data-anthem-component-data='{"stories":[{"title":"Papa John’s Founder Used Racial Slur on Conference Call [Updated]","url":"https://www.eater.com/2018/7/11/17560700/papa-johns-founder-john-schnatter-racial-slur"},{"title":"Papa John’s Blames NFL Protests for Falling Sales","url":"https://www.eater.com/2017/11/1/16592474/papa-johns-nfl-sales-john-schnatter-shares"},{"title":"Papa John’s Blames NFL Protests for Falling Sales","url":"https://www.eater.com/2017/11/1/16592474/papa-johns-nfl-sales-john-schnatter-shares"}]}'></div></aside><aside id="DtqSP9"><div data-anthem-component="newsletter" data-anthem-component-data='{"slug":"eater"}'></div></aside>
https://www.eater.com/2018/7/12/17564002/papa-johns-founder-john-schnatter-out-chairmanDaniela Galarza