John Schnatter, the founder and the John of Papa John’s Pizza, stepped down as the company’s chairman of the board after admitting he used a racial slur on a conference call. But that wasn’t the first time his comments got him, and his company, in trouble. Here's all the drama that's gone down.
1
Schnatter Blames Obamacare for Pricier Pizzas
August 9, 2012: Schnatter’s controversial comments started in 2012. The outspoken Republican warned anyone who would listen that the Affordable Care Act would lead to higher pizza prices. On a call with investors, he said providing health care for employees would cost 11 to 14 cents per pizza, and the company’s stock fell during the controversy. Schnatter later told USA Today his comments were “misconstrued.”
2
He Blames the NFL for Lower Pizza Sales
November 1, 2017: Papa John’s had a sponsorship deal with the NFL, but that didn’t stop Schnatter from calling out the football league and its players. Schnatter spoke out against NFL players who chose to kneel during the National Anthem as a form of protest, saying they were hurting his pizza sales. In a call with investors, Schnatter blamed the players for a sales slump, saying fewer people were watching football because of the protests, and so they weren’t ordering pizza to watch the game.
3
Papa John’s Stock Falls After His Comments
November 2, 2017: Less than 24 hours after his comments went public, his personal net worth dropped by $70 million. Shares of Papa John’s fell to a low of $59.77 per share, though they later went back up.
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4
Papa John's Apologizes
November 15, 2017: In a series of tweets, the company issued an apology for Schnatter’s comments, saying they were never meant to be “divisive.” “We believe in the right to protest inequality and support the players’ movement to create a new platform for change,” they wrote. “We also believe together, as Americans, we should honor our anthem. There is a way to do both. We will work with the players and league to find a positive way forward."
5
Schnatter Steps Down as CEO
December 21, 2017: Schnatter announced he will step down as CEO of the company, two months after his controversial comments about the NFL. But he remained chairman of the board and the company’s biggest shareholder, and he was still the face of the company. He was replaced by chief operating officer Steve Ritchie.
6
Papa John’s and the NFL Part Ways
February 28, 2018: Papa John’s and the NFL announced they agreed to end their partnership, meaning Papa John’s is no longer the official pizza of the league. The company, which held that status since 2010, said it would continue partnering with 22 local NFL teams and would still advertise during games. Pizza Hut stepped in as the new official pizza of the NFL.
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7
Peyton Manning Backs Out
March 7, 2018: NFL star Peyton Manning sold his stake in 31 Papa John’s restaurants in the Denver area, just days before the company ended its partnership with the NFL. It was unclear whether Schnatter’s comments had any impact on Manning’s decision, and the football player still has a long-term agreement with Papa John’s as a spokesperson and brand ambassador.
8
Schnatter Admits to Using a Racial Slur
July 11, 2018: Forbes reports Schnatter allegedly used the n-word on a conference call with the marketing agency Laundry Service in May. During a role-playing exercise for Schnatter to avoid future controversies, he was asked how he’d distance himself from racist groups.
“Colonel Sanders called blacks n-----s,” he reportedly responded, complaining the KFC founder never faced public backlash for alleged racism. He also reportedly said in his home state of Indiana, people used to drag African-Americans from trucks to their deaths; he reportedly meant to indicate he was against racism, but the comments still offended some people on the call.
"News reports attributing the use of inappropriate and hurtful language to me during a media training session regarding race are true," Schnatter told Forbes in a statement. "Regardless of the context, I apologize. Simply stated, racism has no place in our society."
9
He Steps Down as Chairman of the Board
July 11, 2018: After the Forbes article was published, Schnatter resigned as chairman of the board of Papa John’s. Business Insider reports Papa John’s stock initially suffered heavy losses after the Forbes report, but went up more than 10 percent Thursday after his resignation.
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10
Schnatter's Image Will No Longer Appear On Papa John's Pizza Boxes
July 16, 2018: The Associated Press reports the company has started to remove his image from their marketing — including commercials and pizza boxes — after he admitted to using the n-word during a media training conference call.
Though the company still plans to keep the name Papa John’s, its CEO, Steve Ritchie, said in a statement the company never centered around Schnatter. “Papa John’s is not an individual. Papa John’s is a pizza company with 120,000 corporate and franchise team members around the world,” he wrote in an open letter.
11
Papa John Sues Papa John's
July 26, 2018: Schnatter sues Papa John's Pizza, asking to inspect documents from the company related to his firing. The documents say he is making the request "because of the unexplained and heavy-handed way in which the company has treated him since the publication of a story that falsely accused him of using a racial slur," CNNMoney reports.
In a statement, Papa John's said it was "saddened and disappointed" by the "needless and wasteful" lawsuit.
12
Schnatter's Photos Taken Out of Stores
August 2, 2018: The New York Post reports Papa John's sent detailed instructions to locations across the country to remove Schnatter's image from stores. That includes taking down wall posters and even removing his signature from the wooden paddles used to make the pizza.
The company also started a nationwide listening tour, beginning in Atlanta, to get feedback from customers and employees.
