Papa John Has F*cked Up Once Again

Schnatter’s meteoric rise, launched from the closet of his father’s failing Jeffersonville bar in 1984, is integral to the Papa John’s story. The business has grown to become a publicly traded international franchise with more than $1 billion in annual sales. Papa John’s franchises over 4,700 stores, 3,500 in the U.S. and over 1,200 in nearly 40 other countries and territories.

Schnatter, who owns roughly $700 million in company stock, is seen on pizza boxes and, until the last few months, in many Papa John’s TV spots where he’s rubbed elbows with NFL stars like retired quarterback Peyton Manning.

The Forbes’ story cited a source alleging that Schnatter was asked during a May conference call to role-play through scenarios to help him learn to respond to questions about racial issues. Asked how he would distance himself from racist groups online, Schnatter was quoted as saying that Colonel Harland Sanders had referred to blacks using the N-word, but the Kentucky Fried Chicken founder never faced a backlash. But instead of saying “N-word,” Schnatter used the offensive word.

The report said Schnatter “also reflected on his early life in Indiana, where, he said, people used to drag African-Americans from trucks until they died.” The reference apparently was meant to show that he found racism deplorable, but the Forbes source said that multiple people on the call were offended. The owner of Laundry Service, the marketing firm working with Schnatter, had terminated its contract with Papa John’s after it learned about the comments.

USA Today