Papa John's Business Analysis

1516 Words 6 Pages
PROFITABILITY
The pizza category of the U.S. fast food industry is large. Sales totaled about $34 billion in 2015. Papa John’s along with its competitors will benefit from the challenging economy because of the relative value of pizzas versus other food categories. Pizzas considered a relatively inexpensive food. It is attractive to consumers who need a convenient meal at a low cost.
COMPETITION
Pizza Hut, Dominos, Little Caesars, and Papa John’s are known as the big four pizza chains in the industry who hold most market share. In 2013, Papa John’s was number three in the market, though 2016 reports say that the company is fourth. Pizza Hut is the market leader and one major difference versus competitors is that it offers more dine in restaurants
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This suggests that customers are pulling out their smartphones more frequently when ordering food. Papa John’s has been heavily marketing its digital platforms in order to drive customers to those offerings. And it 's been working so far, as consumers have been relying more on their smartphones for everyday activities. This has transferred to ordering food, and increasing smartphone usage should make mobile even more dominant and continue to spur the pizza chain 's digital growth. All of Papa John’s main competitors are headed in this direction as well so the company needs to continue to invest in digital innovations to remain competitive. On the other hand, the growing use of technology for orders could drive out some of the mom and pop pizza shops because they do not have the resources to invest in new technologies. Even though mom and pop pizza shops are not Papa John’s main competition, it could allow larger companies to gain market share if these businesses close. Another opportunity for Papa John’s is their core competency in creating a high quality pizza. With the growing consumer interest in health, Papa John’s has the opportunity to leverage their strengths by producing healthier menu options. They have already take steps in the right direction, by making a commitment to rid its food of artificial ingredients …show more content…
Additionally, domestic commissaries segment accounted for 38% of revenues, North America franchising segment accounted for 5.9% of revenues, and international operations accounted for 6.2% of revenues. Though international markets are not showing the most profitability yet, the market has great potential for the future. We can see that Papa John’s is currently expanding international operations since the company is planning to open between 180 to 210 net restaurants in 2016 with a high concentration of the restaurants being in the international

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