Posted: Aug 13, 2018 03:01 PM CDT (CNN) Sales have plunged since former CEO and chairman John Schnatter — the original Papa John — created a PR crisis for the company. But now Papa John’s is helping out its struggling restaurant owners.
The company announced late Friday that it was planning to cut some royalties, food prices and online fees for the remainder of the year. The new initiatives aim “to help address the sales and operating challenges following comments made by the Company’s founder.”
Schnatter stepped down as chairman of Papa John’s after it was revealed that he used a racial slur during a conference call with a marketing firm earlier this year. Papa John’s has stopped using his image in marketing materials.
In addition to the reduced fees and royalties, the company will also help franchisees pay for new marketing and in-store images. In its earnings report last week, the company said same-store sales in North America fell 10.5% in July and 6.1% in the most recent quarter.
It also reported that it was setting aside “$30 million to $50 million for the remainder of 2018” to help pay for new marketing and other re-branding efforts. It’s all part of Papa John’s PR blitz to try and make amends for Schnatter’s comments. Read more from klfy.com…
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