John Schnatter with Papa John's pizza family (Image: Papa John's)
John Schnatter, the founder and former CEO of Papa John’s Pizza, resigned as the company’s chairman on Wednesday following revelations that he used a racial slur during a conference call in May.
According to Forbes, Schnatter — who has often appeared in Papa John’s advertisements — allegedly used the N-word during a call with company executives and Laundry Service, a marketing agency.
Schnatter admitted using the word and issued an apology Wednesday.
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“Colonel Sanders called blacks n—,” the Papa John’s founder reportedly said in the call when asked about his strategy for distancing himself and the company from online hate groups, like the white supremacist organizations and individuals who had started claiming Papa John’s as their pizza of choice late last year.
“News reports attributing the use of inappropriate and hurtful language to me during a media training session regarding race are true,” Schnatter said in a public statement. “Regardless of the context, I apologize. Simply stated, racism has no place in our society.”
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It’s Schnatter’s first controversy. “The NFL has hurt us by not resolving the current debacle to the players’ and owners’ satisfaction. … The NFL has hurt Papa John’s shareholders,” Schnatter reportedly told investors. The company’s stock subsequently dropped and in February, the NFL ended its sponsorship deal with Papa John’s after eight years. Schnatter had already resigned as CEO in January.
Papa John’s was founded in 1984, and now counts more than 3,000 restaurants in North America. The company — whose shares increased substantially Thursday morning, after initially dropping in the wake of reports about Schnatter’s use of the slur — has yet to name a new chairman.
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