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Papa John's Pizza Founder Resigns Over Racial Slur


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Jul 15, 2018
Categories: News, Business

Papa John's Pizza Founder Resigns Over Racial Slur

Link: The founder of Papa John's, John Schnatter, recently resigned as chairman of the board after it was released that he said the n-word over conference call in May. The incident occurred during a public relations roleplaying exercise with Papa John's executives and the marketing agency Laundry Service. Papa John's has since removed all commericals featurng Schnatter, and Major League Baseball has suspended their promotion of the company completely. Schnatter, however,  still has a large ownership stake in the company and sits on its board.  After the incident went viral, Papa John's stock plunged, but has recovered some since his resignation was reported. The company will likely continue to suffer from the association with Schnatter, particularly because he is featured in its name, on its pizza boxes, and in many of its commericals, so he is recognizably tied to the company. 

Many CEO Steve Ritchie was quoted as saying “Papa John’s is not an individual. Papa John’s is a pizza company with 120,000 corporate and franchise team members around the world." However, many are still dropping deals with the company and it has lost many customers, particularly as Schnatter still has a stake in the company.  Do you think Papa John's has acted appropriately in this situation? Would you still buy pizza from them? Do you think Schatter should fully sever ties with the company he founded? 


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