FILE - In this Wednesday, Oct. 18, 2017, file photo, Papa John’s founder and CEO John Schnatter attends a meeting in Louisville, Ky. Schnatter, who appears on the chain’s commercials and pizza boxes, will leave the CEO role in January 2018, weeks after he publicly criticized NFL leadership for the ongoing national anthem protests by football players. He will be replaced by Chief Operating Officer Steve Ritchie on Jan. 1. Schnatter, who is the company’s biggest shareholder, will stay on as chairman. (AP Photo/Timothy D. Easley, File)

Papa John’s founder out as CEO weeks after NFL comments

NEW YORK — Papa John’s founder John Schnatter will step down as CEO next month, about two months after he publicly criticized the NFL leadership over national anthem protests by football players — comments for which the company later apologized.

Schnatter will be replaced as chief executive by Chief Operating Officer Steve Ritchie on Jan. 1, the company announced Thursday. Schnatter, who appears in the chain’s commercials and on its pizza boxes, and is the company’s biggest shareholder, remains chairman of the board.

Earlier this year, Schnatter blamed slowing sales growth at Papa John’s — an NFL sponsor and advertiser — on the outcry surrounding players kneeling during the national anthem. Former San Francisco 49ers quarterback Colin Kaepernick had kneeled during the national anthem to protest what he said was police mistreatment of black men, and other players started kneeling as well.

“The controversy is polarizing the customer, polarizing the country,” Schnatter said during a conference call about the company’s earnings on Nov. 1.

Papa John’s apologized two weeks later, after white supremacists praised Schnatter’s comments. The Louisville, Kentucky-based company distanced itself from the group, saying that it did not want them to buy their pizza.

Ritchie declined to say Thursday if the NFL comments played a role in Schnatter stepping down, only saying that it’s “the right time to make this change.”

Shares of Papa John’s are down about 13 per cent since the day before the NFL comments were made, reducing the value of Schnatter’s stake in the company by nearly $84 million. Schnatter owns about 9.5 million shares of Papa John’s International Inc., and his total stake was valued at more than $560 million on Thursday, according to FactSet. The company’s stock is down 30 per cent since the beginning of the year.

Schnatter, 56, founded Papa John’s more than three decades ago, when he turned a broom closet at his father’s bar into a pizza spot. And it has since grown to more than 5,000 locations. Schnatter has also become the face of the company, showing up in TV ads with former football player Peyton Manning. Schnatter stepped away from the CEO role before, in 2005, but returned about three years later.

Ritchie said new ads would come out next year. The company said later Thursday that it had “no plans to remove John from our communications.”

The Papa John’s leadership change comes as the pizza chains that once dominated the fast-food delivery business face tougher competition from hamburger and fried-chicken chains that are expanding their delivery business. McDonald’s Corp., for example, expects to increase delivery from 5,000 of its nearly 14,000 U.S. locations by the end of the year.

Ritchie said his focus as CEO will be making it easier for customers to order a Papa John’s pizza from anywhere. That’s a strategy that has worked for Domino’s, which takes orders from tweets, text messages and voice-activated devices, such as Amazon’s Echo. Papa John’s customers can order through Facebook and Apple TV, but Ritchie said he wants the chain to be everywhere customers are.

“The world is evolving and changing,” he said.

Ritchie, 43, began working at a Papa John’s restaurant 21 years ago, making pizzas and answering phones, the company said. He became a franchise owner in 2006 and owns nine locations. He was named chief operating officer three years ago. Ritchie said plans for him to succeed Schnatter were made after that.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

COVID-19 scare sees Latvia-bound troops turn around, return to Canada

Those on board face another 14 days in isolation

2 dead, 8 hurt in South Carolina nightclub shooting

Police are searching for two suspects

Ponoka RCMP lay charges following home invasion

33-year-old man who arrived on bicycle is in custody

QUIZ: A celebration of dogs

These are the dog days of summer. How much do you know about dogs?

P.E.I. reports three new COVID-19 cases, including one seniors’ residence employee

CHARLOTETOWN, P.E.I. — Prince Edward Island reported new COVID-19 cases for the… Continue reading

Even pandemic can’t spoil July

July. Finally. It’s seems like the last three weird months have taken… Continue reading

‘You have to show up:’ NDP MP questions virtual attendance of Alberta Tories

NDP MP McPherson says she’s disappointed Tory MPs haven’t been participating in virtual meetings

Flood warning, mandatory evacuation for people in remote Alberta hamlet

A flood warning has been issued for the rain-swollen Smoky River near the Hamlet of Watino

Stop enforcing sex work laws during COVID-19, Amnesty, sex worker advocates say

‘We need to make sure the existing laws on the books aren’t enforced’

No winning ticket for Friday night’s $25 million Lotto Max jackpot

TORONTO — No winning ticket was sold for the $25 million jackpot… Continue reading

At Mount Rushmore, Trump digs deeper into nation’s divisions

MOUNT RUSHMORE NATIONAL MEMORIAL, S.D. — At the foot of Mount Rushmore… Continue reading

Most Read