Reference no: EM132285510
Papa John’s is a Quick Service Restaurant (QSR) pizza chain that serves its customers through carryout and delivery channels. They employee 22,400 people across more than 5,000 restaurants located in the United States and in 45 countries and territories
Problem
The problem at Papa John’s is the toxic culture. While the industry has shown growth, Papa John’s has experienced a decline that started back in 2017 with the controversy around Schnatter’s comments about the National Football League (NFL) hurting Papa John’s sales to most recently his use of derogatory terms on a conference call. The feud has also led to a heightened awareness of the brand resulting in the media digging into the Papa John’s culture. Forbes published an article in 2018 about the toxic culture all the way to the top-ranking executives within Papa John’s based on interviews with 37 current and former employees (Kirsch, 2018). The leadership team will need to resolve the feud and address the culture concerns before they can attempt efforts to rebuild the brand image with customers. The toxic culture at Papa Johns has made its financial performance both at the stock market and business level wise to deteriorate, and the public spat between Schnatter and the board also means investors are shying away from the stocks .
To overcome the problem Papa Johns’ investors faces, return measures should be enforced with the Price/Earnings Multiple strategy which shows what the market is willing to pay today for a stock based on its past or future earnings and how much investors are willing to pay per dollar of earnings. When Papa Johns’ stocks are undervalued buy-and-hold investors buy the stocks and wait for the stock market to improve and use the investments to fix the business and improve its financial needs.
1. How Papa John's could build on their brand name, Papa Johns. They might not be number one in what is a very large market place but number three is not bad. People know the name Papa John's but it is still not as prevalent as Pizza Hut or Domino's.
2. considering if the company can afford it; whether it will evoke a response from competitors; how employees/customers/ stakeholders are likely to view the change; and how "build company's name" fits with organizational culture, vision, mission, and goals.