John Schnatter has been effectively out of Papa John’s for more than two years and hasn’t been a shareholder in the chain for some time.
But he’s not exactly sitting on a beach enjoying his millions, either. He has made regular comments on the business side of the chain he founded—usually critical—and he’s also been on something of a crusade to repair his name.
That came up this week, when he did an interview with the conservative station OAN, which called Schnatter “cancel culture’s latest target” and said that the “woke mob is coming for your pizza,” never mind that Papa John’s is selling more pizzas than ever.
“Until Papa John’s steps up to the plate and owns what they did, this is never going to go away, because I’m not going away,” he told the station.
The interview was notable largely for a single comment. “We’ve had three goals for the last 20 months,” he said. “To get rid of this n-word in my vocabulary and dictionary, and everything else, because it’s just not true. Figure out how they did this and get on with my life.”
It didn’t exactly go over well. The comment certainly appeared to indicate that Schnatter spent much of the past two years trying not to say the n-word.
Live look at John Schnatter trying not to say the "N" word#PapaJohns#JohnSchnatterpic.twitter.com/xsAdrgffit
— Jonathan Patterson (@j_1ofakindnocap) March 10, 2021
In subsequent statements, Schnatter said the comment was aimed at his effort to correct the record—and not keep from saying the n-word. Still, the poorly worded comment and the reaction afterward are indicative of the problem Schnatter had back then, and why he’s struggled to fix his reputation since then.
Schnatter’s n-word comments, and earlier comments he made on NFL player protests during the national anthem, have left the view that he is a racist—a perception that still bleeds at time into the company he once ran. His efforts to fix that reputation don’t appear to be making things better, while periodically reminding customers of that era. He still wears his trademark red shirt on any public appearance, though now it’s emblazoned with his signature, rather than the Papa John’s logo.
Thus far, Schnatter’s I’m-Not-A-Racist media tour doesn’t appear to be sinking Papa John’s, which is coming off one of the best years in its history, thanks to a population stuck at home, where they order a lot of delivered pizza. Still, Schnatter’s crusade serves as a reminder of his downfall.
Remember, it was in a November 2017 earnings call, when he criticized the NFL’s handling of player protests during the national anthem, when Schnatter first came under fire. “The NFL has hurt us,” he said. “And more importantly, by not resolving the current debacle to the players and owners’ satisfaction, NFL leadership has hurt Papa John’s shareholders.”
That controversy sent Papa John’s sales falling, and that following spring he was on a conference call with the public relations firm Laundry Service, talking about racism, when he said, “What bothers me is Colonel Sanders called blacks n-----s. I’m like, I never used that word. And they get a word. And we used the word ‘debacle’ and we get framed in the same genre.”
Forbes reported the comment in July. Schnatter acknowledged it was true, ultimately leaving the company and losing his founders’ agreement that made him Papa John’s primary spokesman.
The controversy sent sales plunging further and ultimately led the company to sell shares to the investment firm Starboard Value, which ultimately replaced management—hiring Rob Lynch as CEO.
The OAN interview isn’t Schnatter’s first stumble in his crusade—during a 2019 local television interview a sweaty Schnatter claimed he ate 40 pizzas in 30 days to test what he says is its declining quality.
Still, Schnatter has continued. In December, he released the results of an investigation from former FBI Director Louis Freeh that was critical of media coverage of the NFL comments as well as the company’s response. It called Schnatter’s comments “ill advised” but said “no fair reading or reporting can even arguably state that Mr. Schnatter quoted that word with any racist intent.”
In February, Schnatter ripped on Papa John’s on Seeking Alpha and started his TikTok criticisms. In February he sent a release saying he was “rallying in defense of a former Papa John’s employee who was wrongfully terminated after reporting racial harassment by the manager.”
And then this month, Schnatter’s lawsuit against Laundry Service and Wasserman Media Group was unsealed, revealing his complaints against the company that recorded the infamous n-word comment. Schnatter has charged Casey Wasserman, the CEO of Laundry Service’s parent company, of trying to extort Papa John’s of $6 million, saying otherwise it would have released the recording.
Apparently this is rich guy jealousy.
“I think Casey Wasserman was jealous,” Schnatter told OAN. “I mean, he inherited all his money. I’m a self-made man. So you have that.”
And so Schnatter is not going away. Well, at least not until he gets his apology. “If Papa John’s would just say, ‘Hey we got in a hurry. We didn’t follow proper due diligence and process with Delaware law. John has no history of race or racism. There wasn’t anything on that tape that was race. We’re sorry we made a mistake.’ I’d forgive them in my heart. But, you know, they keep on.”
Papa John's, however, has been keeping quiet on the subject of its former CEO and founder.
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