Papa Johns pizza company has made headlines in recent years. Here's a look at what happened (2025)

On March 21, Papa Johns announced via an SEC filing that its president and CEO, Robert Lynch, has resigned, effective March 20, to take a CEO role with another corporation.

"This was an incredibly difficult decision for me, as I see all of the upside potential that exists for this great company," Lynch said in a release. "That being said, I feel good about this decision knowing that Papa Johns is very well positioned for both the short and long term. I am certain that Papa Johns’ incredible leaders, franchisees and team members will continue to do what only Papa Johns can: deliver better pizza to the world."

On Wednesday, the Louisville-area-founded pizza chain announced it will close 43 of its 450 UK shops, including 16 in London, by mid-May.

It’s been a bumpy few years for the brand, currently based in the Louisville and Atlanta metro areas.

When was Papa Johns founded?

John Schnatter launched the pizza company as Papa John’s from his family's Jeffersonville, Indiana, bar in 1984. Ten years later, it has grown to 500 Papa John's stores nationwide. In 1999, the company moved into its Louisville corporate headquarters.

Why did Papa Johns’ founder step down as CEO?

In January 2018, Schnatter stepped down as the CEO of the company following criticism of NFL leadership for its handling of player protests during the national anthem;publicly blaming it for a decline in pizza sales.

Papa Johns pizza company has made headlines in recent years. Here's a look at what happened (1)

Why did Papa Johns’ founder step down as chairman?

In July 2018, Schnatter resigned from his position as chairman of Papa Johns after admitting he used the N-word on a public relations call. He also resigned from the University of Louisville's board of trustees.

Schools and other organizations distanced themselves from Papa Johns’ founder.

John Schnatter has donated millions of dollars, with his name affixed to everything from college buildings to football stadiums. But in 2018, many organizations cut ties with him.

  • Jeffersonville Mayor Mike Moore returned a $400,000 donation from Schnatter, and moved to pull his name from a historic gym. The donation was part of an agreement to donate $800,000 over time to help renovate the Nachand Fieldhouse, a decades-old gym that in 2017 was renamed to the John H. Schnatter – Nachand Fieldhouse.
  • The University of Louisville removed Papa Johns as the title sponsor for Cardinal Stadium.
  • Purdue University stripped Schnatter’s name from the economic research center at its Krannert School of Management, to which he’d donated $8 million and offered to return the money.
  • Ball State, in early August 2018, had an economics program in Schnatter’s name and stood by the alumnus, issuing statement saying that Schnatter used the slur "not in a derogatory manner seeking to demean any individuals or groups; rather it was used as an example of improper conduct."

Schnatter graduated from Ball State with a major in business administration in 1983, and was given an honorary doctorate of laws when he spoke at Ball State's commencement in 2015. In 2016, the Charles Koch Foundation and Schnatter donated $3.25 million to Ball State for the creation of the John H. Schnatter Institute for Entrepreneurship and Free Enterprise.

But later in August 2018, Ball State trustees changed course on Papa John's controversy, and voted to remove Schnatter’s name from both the institute and a distinguished professorship of free enterprise and return the money donated by the Schnatter Family Foundation.

Is Papa Johns leaving Louisville?

In September 2020, the pizza giant announced it would be moving the company’s global headquarters to Atlanta. At the time, the company said about 550 of its 750 corporate jobs would remain in Kentucky.

In February 2023, citing a change in workforce needs, the company announced plans to sell its Louisville corporate headquarters office at 2002 Papa Johns Blvd.

The company said employees would still physically work in Louisville.

In October of that year, Papa Johns announced it would retain the office.

Papa Johns changed its name.

In 2021, Papa Johns rebranded and removed the apostrophe from the company name, another step in moving away from company founder Schnatter.

Shaq is leaving the Papa Johns Board of Directors.

In Febraury 2023, Max Wetzel, executive vice president and chief operating officer of Papa Johns, based in Atlanta, announced his intention to resign from his position; and Board of Directors member Olivia Kirtley, based in Louisville, announced her retirement from the board after nearly 20 years.

In February 2024, the company announced that Shaquille O’Neal, a brand ambassador of the company and an investor of nine Papa Johns locations in Atlanta, would not seek reelecton to be a part of the Papa Johns' board of directors. He’d been a part of the leadership of the company for five years. His term on the board ends May 2. The decision came as O'Neal was involved in many other businesses, according to the release.

Seth Slabaugh, The Star Press; Justin L. Mack, IndyStar; Courier Journal reporters Olivia Evans, Ana Rocío Álvarez Bríñez and Matt Glowicki ;and the Lafayette Journal & Courier contributed to this report.

Contact IndyStar reporter Cheryl V. Jackson at cheryl.jackson@indystar.com or 317-444-6264. Follow her on X.com:@cherylvjackson.

Papa Johns pizza company has made headlines in recent years. Here's a look at what happened (2025)

FAQs

What has happened to Papa Johns? ›

A total of 43 of its 450 locations across the country have been found to be "low-performing" or "underperforming" and are said to no longer be financially viable. The sites will be closed by mid-May, Papa John's said - after it informs impacted staff.

Why is Papa Johns failing? ›

Lower transactions and a decline in organic delivery primarily drove the downside.

What is the story behind Papa Johns pizza? ›

In 1983, John Schnatter delivered his last campus pizza, picked up his business degree from Ball State University, and went home to Jeffersonville, Indiana. There, at age 22, he knocked down the broom closet in his father's tavern, installed an oven and began delivering pizza out of the back of the bar.

Why is Papa Johns being boycotted? ›

The leader of the African-American Think Tank in Louisville is calling for a boycott of Papa John's pizza over the company's handling of founder John Schnatter's use of the N-word.

Is Papa Johns closing in 2024? ›

Global pizza chain Papa John's has revealed that it plans to shut down 43 restaurants across the UK in the coming months, with 16 in London to close. It comes as the takeaway business confirmed plans to axe the “underperforming” locations after launching a review at the start of 2024.

Why is Papa Johns changing their name? ›

As noted by the outlet, removing the apostrophe may be yet another way that Papa Johns is distancing itself from founder John Schnatter. Schnatter had stepped down as CEO in 2018 after criticizing the NFL (which Papa John's had sponsored) for its handling of the national anthem kneeling protests.

Is Papa Johns declining? ›

Total revenues of $507.9 million decreased $6.6 million , or 1.3%, in the second quarter of 2024 compared with the prior year period. The lower revenues were largely attributable to an $8.8 million decrease in North America commissary revenues reflecting a combination of lower transaction volumes and commodity prices.

What did Papa Johns get sued for? ›

The Reason for the Class-Action Lawsuit

In 2010, Papa John's began sending text messages to customers. The messages advertised deals and specials for its pizza. The messages were sent in bulk, with some customers reportedly receiving 15 text messages consecutively, even at odd hours of the night.

What is the failure rate of Papa Johns franchise? ›

What is the failure rate for a Papa John's franchise? Low to moderate. The failure rate for a Papa John's franchise is 2% in the first year, rising to 6% by year three.

Is Papa Johns processed food? ›

We don't use cheap and more processed ingredients. Whether it's our signature sauce, toppings, our original fresh dough, or even the box itself, we invest in our ingredients to ensure that we always give you the finest quality pizza.

Why is Papa Johns successful? ›

The secret to Papa John's success is baked into the company's DNA. At the core is their commitment to their brand promise: 'Better Ingredients. Better Pizza', which means constantly sourcing and investing in the finest ingredients. This brand promise extends to every aspect of their business, including marketing.

Who owns Papa Johns now? ›

Majority Ownership of Papa John's

The majority shareholder of Papa John's is T. Rowe Price Investment Management, Inc., holding 11.38% of the company as of August 24, 2023. This significant stake underscores the investment firm's confidence in the pizza chain's growth and strategy.

Why is Papa Johns struggling? ›

The chain's 2% decline in same-store sales came despite increases in demand from third-party delivery users. Papa John's blamed the issue on a decline in sales through organic delivery, and apparently that decline more than offset any increases the company received from its partnership with Uber Eats and DoorDash.

What was Papa Johns downfall? ›

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.

Why is Papa Johns closing? ›

Strategic closures were previously confirmed by Papa Johns to improve profitability and free up money. 'While this is a difficult decision, closing these underperforming locations will give us the opportunity to invest back into the right locations with the right partners for long-term growth.

What does John Schnatter do now? ›

John Schnatter is a father and grandfather, the founder of Papa John's International, a major philanthropist who cares deeply about investing in tomorrow's leaders, and one of America's most iconic entrepreneurs.

Is Papa Johns doing well? ›

Operating income of $34 million decreased 11% compared with the first quarter of 2023, while Adjusted operating income(c) of $43 million increased 10% on improved restaurant-level margins and continued focus on cost discipline.

Which Papa Johns are shutting? ›

The London Papa John's restaurants that are set to close by mid-May are: Bromley, Greater London. Coulsdon, Greater London. Cricklewood, Greater London.

References

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