Papa John's Strategic Challenges

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Papa John’s is the third largest delivery and carry-out pizza chain with 7% of the pizza segment behind Pizza Hut’s 20% and Domino’s at 12%. Papa John’s competes with independent pizzerias and other chains like Pizza Inn, Little Caesar’s and Cici’s Pizza, but without sit down dining they have reduced overhead costs (Parnell, 2014).
2013, Papa John’s recorded revenues of $1,439 million (Papa John 's International, Inc. 2015).
Development of economies of scale and delivering fresh ingredients twice a week to stores was accomplished by 10 Papa John’s full service quality control centers. Franchises are required to purchase dough and spice mix from these Q.C. centers or approved suppliers to ensure consistent quality (Parnell, 2014). These full
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1) Papa John’s CEO, John Schnatter, a registered Republican, who donated to George W. Bush, threw a fund raiser for presidential hopeful Mitt Romney. Mr. Schnatter stated to employees that he had grown concerned about the direction of the country under President Obama. "The last several years have been tough on America 's founding principles." (Bandler & Burke, 2013). A misquoted statement about reducing wages to pay for Obamacare created a backlash by liberal socialist democrat media types.
2) Initiative has landed Papa John 's International 's media business, on an account that spends about $130 million in measured media. The New York shop is charged with handling media planning and buying as well as digital and social efforts. Papa John’s stated that the decision was part of their ongoing effort to be a more global company and improve efficiencies (O 'Leary,
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merges with the Pizza Corner, owned by Global Franchise Architects (GFA) whose chief executive officer Joseph Cherian would take up running Papa John 's (Papa John 's to merge with Pizza Corner in India to become India 's third largest pizza chain, existing 70 outlets of Pizza Corner will be rebranded to Papa John 's. 2014).
Papa John 's Pizza’s valuable sponsorship of the National Football League in the United States and recently Papa John’s capitalized on growing enthusiasm for the U.S. National Soccer Team in this year 's World Cup (Brandau, 2014).
3) Papa John 's (4,428 restaurants in 34 countries), lacks favorable scale of operations in comparison to its competitors. Competitors, such as Burger King (13,667 restaurants in 97 countries), Domino 's Pizza (10,886 restaurants in 70 countries), and Yum! Brands (40,000 restaurants in 125 countries), are larger in size in terms of revenues and operations. The lack of scale also reduces the bargaining power of the company (Papa John 's International, Inc.

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