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Pizza chain feels the pinch -Papa John’s rocked by founder’s n-word scandal even as stocks plunge and pizza lovers flee their products

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Papa John’s rocked by founder’s n-word scandal
Chairman John Schnatter and former CEO allegedly said “Colonel Sanders called blacks n—–s” and never faced a backlash
In the ensuing backlash Papa John’s stock plunged four percent Wednesday
The struggling pizza chain, had scrapped its sponsorship deal with the NFL in February after tangling with the league over the kneeling controversy
Three months later they were forced to cut menu prices to reverse a sales slide 
Pizza chain issued a statement: “Papa John’s condemns racism and any insensitive language, … Diversity is an essential ingredient in our pursuit of providing a better product and better service”
They company admitted “… though diversity and inclusion is an area where we will continue to strive to do better
John Schnatter 1.jpg
Foot and Mouth Disease: Papa John chairman and former CEO John Schnatter  “Colonel Sanders called blacks n—–s” and never faced a backlash

It only gets worse for Pizza giant Papa John’s. Stock of the restaurant chain was down more than 4 percent on Wednesday following a report that founder and chairman John Schnatter allegedly made racist comments during a May conference call in which he was receiving public relations training from an outside marketing firm.
The controversial restaurateur, who had to step down as chief executive in January for his remarks on football players taking a knee during the national anthem, allegedly said “Colonel Sanders called blacks n—–s” and never faced a backlash, according to Forbes, which first reported the incident.

Papa Johns Pizza.jpgThe restaurant chain’s stock has taken a beating in recent times in the wake of the founder’s racist antics

Schnatter also reflected on his youth growing up in Indiana, where he allegedly said on the conference call that “people used to drag African-Americans from trucks until they died,” according to the Forbes report, which claimed that Schnatter shared the story in a misguided effort to show his distaste for racism.
Representatives of the outside marketing firm, Laundry Service, declined to comment on the incident. But its owner, Casey Wasserman, terminated the company’s contract with Papa John’s, according to reports.
The pizza chain issued a statement without confirming or denying the incident.
“Papa John’s condemns racism and any insensitive language, no matter the situation or setting. Diversity is an essential ingredient in our pursuit of providing a better product and better service to our customers and to the communities where we operate and live. We take great pride in the diversity of the Papa John’s family, though diversity and inclusion is an area where we will continue to strive to do better.”
The struggling pizza chain,  scrapped its sponsorship deal with the NFL in February after tangling with the league over the kneeling controversy, also embarked on price cutting measures in May to reverse a recent sales slide.
After seven years as the official pizza chain of the NFL, Papa John’s was replaced three  by Pizza Hut.  Founder John Schnatter resigned as CEO in December after publicly blaming Papa John’s declining national sales on the league’s hesitancy surrounding players’ national anthem protests. Schnatter said at the time he was “disappointed” in the NFL’s leadership for not stifling the controversy.
Schnatter blaming the chain’s declining sales on the national anthem protests unleashed a firestorm of negative publicity.  In January he was replaced by current CEO Steve Ritchie

 

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