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Papa John's Prices Driving People Away


47of74

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Papa John's is taking a hit.

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Sales at North American locations open at least a year fell 1% in the quarter ending on June 25, compared to the same period last year, dragged down by high prices at the chain’s franchise locations.

“Some of the pricing … had gotten out in front of where the consumer was willing to spend,” said Papa Johns (PZZA) CEO Rob Lynch during a Thursday analyst call discussing the quarterly results. “April was the worst month that we’ve had since I’ve been at Papa Johns (PZZA),” in terms of sales at locations open at least a year, he said. Lynch joined Papa Johns (PZZA) in 2019.

Franchise operators have over the past year “been increasing their prices at a faster rate than our company-owned restaurants” to preserve profit margins as inflation has surged, Lynch said. Inflation has been cooling in recent months, but hit a 40-year high in June of last year. “As a result, they have experienced a larger decline in transactions relative to our company-owned restaurants this past quarter,” he said.

The vast majority, roughly 2,900 out of about 3,400 total North American Papa Johns restaurants, are franchised, according to the company. In general, franchise operators are able to set menu prices themselves, though the company may set a cap on pricing for certain promotions.

I think the price increases are only part of it.  Even before I had bariatric surgery the amount of grease tended to upset my stomach.  I've had some since surgery and John Schnatter left and it's not really any better.  And I don't think Papa John's did enough to distance itself from John Schnatter after he left.  I think a complete rebranding would've helped, especially one that would have dropped the Papa John's name for something else.  I know that was probably easier said than done and given ammo to fuck face groupies but it might have drawn some more customers back.  I don't know about anyone else, but carrying the name of someone who complained about Colonel Sanders being allowed to be a racist asshole without realized what century he lived in doesn't sell it for me.  (Plus there are God knows how many great pizza places up here in the Twins).   

It's kind of similar to the situation Tesla is in with an increasingly unhinged Qelon being a complete pile of excrement and having a total Backpfeifengesicht as well.  I think though if they could sever him completely from Tesla they would have a slightly better time since Qelon didn't name the company after himself.

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1 hour ago, 47of74 said:

I think the price increases are only part of it. 

Honestly I think it's more that they are absolutely disgusting and there are so many better choices. Customers  in 2023 are not interested in a thin, floppy, mass produced pizza with boring toppings and gross sauce. The novelty of the dipping was cool back in 2001 or whenever but now they just seem gross. It's what you buy when you need to purchase a ton of pizzas for volunteers and don't want them to volunteer again. Costco is cheaper and just a higher quality product. 

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18 minutes ago, Maggie Mae said:

Honestly I think it's more that they are absolutely disgusting and there are so many better choices. Customers  in 2023 are not interested in a thin, floppy, mass produced pizza with boring toppings and gross sauce. The novelty of the dipping was cool back in 2001 or whenever but now they just seem gross. It's what you buy when you need to purchase a ton of pizzas for volunteers and don't want them to volunteer again. Costco is cheaper and just a higher quality product. 

That and as I said before Schnatter's racism really turned people off the brand.  There are so many better pizza options here in the Twin Cities.  Local chains like Pizza Lucé, Fat Lorenzo's, Mesa Pizza, Galactic Pizza, and so on.  Even Pizza Hut is better than the greasy cardboard the company Schnatter founded still makes.

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8 minutes ago, 47of74 said:

That and as I said before Schnatter's racism really turned people off the brand.  There are so many better pizza options here in the Twin Cities.  Local chains like Pizza Lucé, Fat Lorenzo's, Mesa Pizza, Galactic Pizza, and so on.  Even Pizza Hut is better than the greasy cardboard the company Schnatter founded still makes.

I don't think the average person who buys bottom tier pizza is looking at anything other than cost and if it's edible or not. I didn't know any of that stuff - just that current food trends are moving away from that type of food. Consumers today want fresh, quality ingredients, and tend to go for higher quality brands. The last time I had PJs was when we needed to order pizza for a volunteer group and there was no Costco (preferred for mass qualities of pizza, otherwise we get Moose's/Bear Tooth (#1 grossing independent pizzeria in the US, #3 best pizza according to some survey). There's just no point in ordering from Little Caesars/Papa Johns/Pizza Hut/Dominos and those chains are closing up like Bed Bath & Beyond. 

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