Papa John’s has fewer retail locations than all three of its main competitors, Pizza Hut, Domino’s, and Little Caesars (Madhani, 2016). Papa John’s leadership team will need to decide whether they want to add additional locations to gain market share, or whether they want to strategically open locations to gain increased profitability. Opening new locations in areas that are oversaturated with national chain competitors or local pizza restaurants may not be the best decision going forward. During the 2008 financial crisis, Papa John’s closed many locations due to poor performance (Parnell, 2014). Over expanding could place Papa John’s in a situation where they are again faced with closing stores in the future. Local market research will be important to any decisions Papa John’s makes in the expansion area. Franchising has been a tool that Papa John’s has used extensively to expand and grow over time. However, franchising does not come without risks to the national brand. For instance, one Papa John’s franchise owner featured a local advertisement on September 11th that was deemed insensitive by many in the public (Wave 3 News, 2016). Franchising takes away a portion of corporate control and can ultimately damage a brand if not managed …show more content…
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