• by Richard Whitman , Columnist, August 7, 2018

It looks like Papa John’s can use some help in the marketing and promotion department.

The firm released its second-quarter results today and revenue was down 6.2%, largely the result of continuing fallout from the bad behavior of founder John Schnatter, ousted as chairman last month. 

The company’s stock price fell nearly 3% Tuesday in anticipation of the weak Q2 results — announced after the markets closed — and then another 10% in after-hours trading. 

Last month, Forbes disclosed that Schnatter used racist language during a conference call in May. 

But the pizza chain’s troubles began last November, when then CEO Schnatter blamed the NFL for declining sales at the company — specifically taking the league to task for not dealing with players who refused to stand during pre-game renditions of the National Anthem. 

Schnatter’s outburst didn’t sit well with many rational-thinking consumers, and the firm’s financial performance has been on the decline ever since. 

Last month’s disclosure prompted the departure of Fallon, which had just recently replaced Laundry Service as creative agency for the company. Initiative also resigned its recently won media account with the firm, and Olson’s PR unit resigned its account with the company, as well. 

Last week, Papa John’s hired Endeavor Marketing to help turn things around.

Papa John’s CEO Steve Ritchie told analysts on a conference call late today that the firm will unveil a splashy new rebranding campaign led by Endeavor in the fourth quarter. Multicultural agency Nimbus has also been tasked with helping to get the firm’s new messaging out. 

During the call, Ritchie repeatedly stated the firm is dedicated to regaining the public’s trust. He said he’s been traveling the country and beyond in recent months, meeting with franchisees and other stakeholders and told analysts the company has their support. 

The company, said Ritchie, is committed to “equality, inclusion and respect” of all people. He rightly blamed Schnatter for the damage done. “It’s a difficult time for the brand, but there is a way forward,” he said. A key part of the strategy he stressed is winning over Millennials and Gen Zers with a purpose-driven agenda. 

As Endeavor is busy at work on the company’s rebranding campaign, the firm continues to air TV ads to maintain some sort of marketing presence, without Schnatter. The company has severed all ties with him. It’s also working with DoorDash and Amazon on enhanced delivery services. 

Ritchie also noted that the search for a new CMO is a top priority. 

But the turmoil continues. Schnatter has filed a suit alleging the firm didn’t exercise due diligence in getting rid of him. 

Yep, it’s pretty clear the company remains in the middle of a sh*t storm. Stay tuned to see what impact (if any) its actions have to turn things around.