Papa John’s New Struggle

The new CEO Steve Ritchie of Papa John’s recently wrote a letter to its employees, franchisees, and customers detailing the substantial steps Papa John’s intends to take to repair a reputation that has fallen over the past year. In his letter, he stated that the company’s leadership team had already completed the first step in the plan which was to do among themselves an “unconscious bias training.” He then stated that he and others in the leadership would be visiting various franchises throughout the company in the following months.

He also stated that Papa John’s was assembling an advisory team of diversity, equity, and inclusion experts. To the end of reputation repair, Papa John’s is even now developing a new minority-owned franchise expansion and development program and a new foundation focused on positively impacting communities with Papa John’s restaurants. But Ritchie is clear that these organizations in development are only the beginning of taking the company back to its values. Ritchie is not new with the pizza world. He has been highly involved in it for more than 25 years.

In his role as PJ’s CEO, he will be leading 120,000 corporate and franchise employees all over the world. He also fully realizes that he is responsible to the company’s partners, custumers, and communities. While its profitability is going up at this present time, it is still somewhat below what it was a little over a year ago. Ritchie believes that although recovery will be slow, Papa John’s will eventually get to where it wants to be. His sights are in particular set on attracting Millennial and Gen Z customers. Sadly, prior to getting to this point there may be store closures in the coming months.

Throughout most of 2018 and throughout all of the coming year there will be a reduction of royalties, foodservice pricing, and online fees. In addition, it has hired Victoria Russel for its new Chief of Diversity and Inclusion role.

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