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Reuters
Papa John's is perhaps the last brand to have gone through a public relations crisis, but the situation is just another case of déjà vu for the brand's experts.
It reminds them of Uber.
Specifically, they see parallels between what happened to Papa John leading to his president John Schnatter resigning this week and how the Uber crisis unfolded in 2017, ultimately leading to the ousting of founder and former CEO Travis Kalanick.
Schnatter, the founder and former CEO of Papa John's, resigned from his position as president of the company on Wednesday, after acknowledging having used the N-word during a conference call . The incident occurred during a conference call with the advertising agency's laundry service in May, reported Forbes.
But it was not the first time that he – and by extension Papa John – was at the center of a public maelstrom. Like Uber, Papa John's CEO continued to create his own messes in 1965, when Schnatter, then CEO, criticized the NFL's leadership over kneeling players during the national anthem in protest of the injustice racial and police brutality.
Comments place the mark squarely at the center of a polarizing debate last year, sparking reactions on the left and right supports. The chain eventually ended up killing its sponsorship deal with the NFL.
Similarly, Uber's Kalanick departure was not caused by a one-time incident, but a series of crises over several months – including allegations of badual harbadment. and discrimination, privacy and data concerns, and a leadership overhaul.
"It's like déjà vu," said Chris Allieri, founder and director of the consulting firm Mulberry and Astor. "In both cases, there was a series of actions, statements and records on how they acted, conducted and conducted."
The similarities do not stop there. Kalanick and Schnatter were not only the founders, but also the very visible public faces of their companies. They were both inextricably linked to their brands – especially in the case of Schnatter, who was also the literal face of Papa John's marketing campaigns.
This meant that it was impossible to avoid being under the scanner for every action of their choice or under their supervision, or the fact that these actions would have a direct impact on the perception of their mark. They were also two outspoken figures, with their views sometimes courting controversy. And eventually it came back to bite them. "Schnatter should have learned both from his previous experience with the NFL and from the negative impact on the fall of former Uber CEO Travis Kalanick," said Nick Peters, vice president at Commcore Consulting. "In the media and social media environment of today, all C-Suite executives must ensure that everything they say can be repeated in public, often to their detriment. "
And of course, both situations end up having an impact on brands.
Uber controversies hit brand hard, and Dad John risks suffering for some time
US consumer popularity of Uber reaches its lowest level, according to Morning Consult Brand Intelligence, 40% of 40,000 respondents Online conversations around Papa John's, likewise, soared to 78% negative the day Schnatter resigned, according to Brandwatch's data, with the hashtag #BoycottPapaJohns garnering over 4 , 3 million impressions.
Still, not everything is lost for Papa John's. The exit of Schnatter may seem like a big shot, but it's not the end of the road for the mark. Several senior executives, including those from Wells Fargo, Volkswagen and Uber, of course, have left their businesses in times of crisis, and the companies have recovered well.
In addition, the brand seems to have taken the example of Uber's missteps, with Schnatter's departure arriving much faster than Kalanick's exit. This sends a clear signal that he is serious about problem solving, say the experts, and perhaps the first step that he has to do to reinvent himself – even if it's not going to happen. 39; has more public relations agency to guide him.
"When the leader of an organization does not comply with the declared values of the organization, its brand and its culture, it creates confusion in the marketplace and repels customers", states Deb Gabor, CEO of Brand Strategy. Sol Marketing. "The fact that Schnatter is leaving his role as president is pretty much Papa John's only choice to prevent the mark from becoming a fire pit."
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