How Papa John’s Is Really Turning It Around
With Papa John’s founder John Schnatter out of the limelight, the once beleaguered franchise pizza giant is making headway. The new leadership team is proving itself notable. Innovative new menu items and easy-to-use remote ordering systems are fueling increased sales. Working together with a board of directors that includes Shaquille O’Neal, Papa Johns new management team is steering the company in an impressive way.
The current team’s success can be measured by the company’s growing customer base. During 2021’s third quarter, its worldwide sales increased by $1.2 billion. That represents 11.2% over 2020’s third quarter. Processing orders online and through mobile apps has contributed to the company’s growing sales.
How Is Papa John’s Going To Continue Moving Forward?
In August of 2019, Rob Lynch took over as Papa Johns CEO and president. Under his guidance, the ambitious leadership team continues to attract positive comments from financial analysts. The company has been recognized for its effective turnaround strategy.
The new team has accomplished more than successfully overcoming a serious public relations setback. The company remains steadfast in delivering value to its customers, employees and investors. In its 2020 Corporate Responsibility Highlights report, Papa John’s president and CEO promised to foster a winning culture of inclusion and diversity.
By promising to place people before profits, Papa John’s is building a culture based on a strong ethical foundation. The company hired Jenn Garner in January 2021 to become its first Director of Corporate Affairs and Sustainability. Her priorities include establishing a better workplace, fostering corporate responsibility and improving engagement with stakeholders.
What Changes Are Coming With Papa John’s?
The company’s 2020 report also revealed its blueprint for creating a new headquarters in Atlanta. Moving its base of operations from Kentucky will create 200 new jobs and allow the company to focus on its franchise expansion strategy.
Business owners and entrepreneurs have expressed interest in starting up new franchises. The third quarter of 2021 saw a net increase of 46 units opening. As of 2020, all new restaurant construction includes energy-efficient technology and LED lighting.
Efficient water heaters and pizza ovens reflect the company’s environmental and sustainability efforts. Reducing energy consumption demonstrates management is well aware of its corporate responsibility to customers and stakeholders.
Supplier Diversity and Sustainable Packaging
Competitors don’t possess the Shaq Papa John’s marketing dynamic and a leadership team dedicated to social causes. The commitment to diversity goes beyond the more than 30,000 employees and franchises. The company also includes suppliers in its policies.
In 2020, the company implemented a new supply chain strategy through its Global Supplier Diversity Program. Suppliers of food ingredients and packaging materials are fully vetted for their impact on the environment. Goods that offer higher quality and less waste are favored over others.
The current leadership team has gained significant attention. They’ve played a major role in turning the company around after its founder stepped down. With revamped management, its stock has outperformed the S&P 500 and Dow Jones Industrial Average. What’s on the menu also accounts for the turnaround. Since the company has also made remote ordering a snap, it’s easy to experience firsthand what’s helping to drive the increased sales.