The Mercury News

Papa’s gone: Pizza chain pulls founder’s image from products

Company continues cleanup effort after he used racial slur

- By Candice Choi

NEW YORK — 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 there are no plans to change its name.

Schnatter, who has long

been the face of the brand, is still on the board and is the company’s largest shareholde­r — meaning he remains a key presence. 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 were up 1 percent Friday. Schnatter owns nearly 30 percent of the stock.

In addition to appearing in TV ads, Schnatter’s image has been on packaging and at the center 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.

Schnatter had used the slur during a media training exercise, Forbes said. When asked how he would distance himself from racist groups, Schnatter reportedly

complained that Colonel Sanders never faced a backlash for using the word. Schnatter subsequent­ly issued a statement acknowledg­ing the use of “inappropri­ate and hurtful” language.

“Regardless of the context, I apologize,” the statement said.

The fallout has already included Major League Baseball indefinite­ly suspending

a promotion with Louisville, Kentucky-based Papa John’s that offered people discounts at the pizza chain after a player hit a grand slam. The University of Louisville also said Schnatter resigned from its board of trustees, and that the school will evaluate the naming arrangemen­t for Papa John’s Cardinal Stadium, according to the Louisville Courier-Journal.

 ?? CHARLES KRUPA — ASSOCIATED PRESS ARCHIVES ?? Papa John’s founder reportedly complained that Colonel Sanders never faced a backlash for using the racial slur.
CHARLES KRUPA — ASSOCIATED PRESS ARCHIVES Papa John’s founder reportedly complained that Colonel Sanders never faced a backlash for using the racial slur.
 ??  ?? John Schnatter apologized and said he would resign as chairman after Forbes reported that he used the slur during a media training session.
John Schnatter apologized and said he would resign as chairman after Forbes reported that he used the slur during a media training session.

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