Papa John’s pulling founder’s image from its marketing

Papa John’s, which has featured founder John Schnatter in logos and TV ads, is pulling his image from its marketing after reports he used a racial slur.

His face was off at least some materials by late morning Friday, though the company said the details and exact timing for everything were still being worked out. The pizza chain said Friday there are no plans to change its name.

Schnatter has long been the face of the brand, and Papa John’s has acknowledged in regulatory filings that its business could be hurt if Schnatter’s reputation was damaged. Papa John’s got a taste of that last year, when Schnatter stepped down as CEO after blaming disappointing pizza sales on the outcry surrounding football players kneeling during the national anthem.

This week, Papa John’s was already trying to further publicly distance itself from Schnatter after Forbes reported he used the N-word during a conference call in May. Schnatter apologized and said he would resign as chairman. That prompted the company’s stock to recover some of the losses it suffered after the report, and shares climbed another 3 per cent Friday.

Schnatter remains on the board, and is still the company’s largest shareholder with nearly 30 per cent of the stock.

In addition to appearing in TV ads, Schnatter’s image has been on packaging and at the centre of a logo that usually was all over the company’s website.

Keith Hollingsworth, a professor with Morehouse College’s business department, said keeping Schnatter in the marketing and advertising would signal to people that the company does not have a problem with his comments, or that it doesn’t think they are a big deal.

“Five years from now, they might be able to start bringing him back. But at the moment, you have to be very decisive and show you take this very seriously,” Hollingsworth said.