Papa John’s one of the largest pizza delivery chains in the United States has been going through a difficult time fighting the public battle between the founder of John Schnatter and the Board of Directors, financial loses as well as the securities class action lawsuit for not disclosing material information to its investors. John Schnatter was asked to give in his resignation after he used a racial slur in an ongoing conference call which was made public. Then there were allegations against Schnatter for inappropriate behavior which were settlitchieed confidentially. To top it all off, a former employee filed a class action lawsuit for having anti-competitive “no hire” terms which prohibited Papa John’s franchisees to hire workers from the franchises of other companies.
Steve Ritchie was appointed as the Chief Executive Officer the day John Schnatter had resigned. The new CEO has been a part of Papa John’s since 1996 and was hired as a customer service representative. Then on the basis of his dedication and hard work, he became Papa John’s franchise operator and owner in 2006. It didn’t stop till here, in 2010 he started to serve in the capacity of leadership in operations. It eventually got him the position of the Chief Operating Officer in 2014. Steve Ritchie was then finally made the President in 2015 which was the highest position in the job rank
John Schnatter hasn’t made his resignation easy on the pizza chain company, he has launched a website to gather support and even wrote a letter in the Louisville Courier-Journal asking mentioning how Papa John’s is the life’s work of him and his customers, they will get through this difficult time and he is sorry that all this happened.” Steve Ritchie, on the other hand, is on the top of his game to do damage control. In an effort to take control of the situation, Steve Ritchie wrote a letter to his employees, customers, and franchises that Papa John’s leadership team had “unconsciously completed bias training” and it’s going to be rolled out.
He further mentioned diversity efforts are under their way and expert help is being taken from respected people to guide the brand. The Papa John’s recent advertising campaign is also an effort to acknowledge their mistake and that the company has taken into account the comments of its customers on the social media very seriously and these comments are going to help the company do better.