RETAIL >r Papa John’s Pizza Power Using only the best ingredients for 30 years, Papa John’s is embracing high- profile branding opportunities leveraging the newest technology. By Jeff Borgardt

company profile

Papa John’s www.papajohns.com Annual revenue: $1.34 billion HQ: Louisville, Ky. Employees: 100,000 Specialty: Pizza delivery/ takeout, franchising Tony Thompson, president and COO: “The focus on quality has been consistent throughout our 30 years’ history. We are almost religious about it. We don’t com - promise on our brand standards.”

or Papa John’s, it’s all about the quality. Offering fresh and tasty ingredients distinguishes it from others in a crowded pizza market, Fthe company says. “We have better ingredients, better pizza. That really is what we are all about,” says Tony Thompson, president and COO. Papa John’s slogan, “Better Ingredients. Better Pizza.” describes its “all-natural sauce, freshly cut vegeta - bles and premium meats and cheeses,” the company says.

Dough, cheese and toppings Papa John’s success begins with its ingredients. Papa John’s pizza is pre - pared using fresh, unfrozen dough, which is placed in store coolers long enough for it to proof and rise. Once ready, it is hand-tossed. The proprietary dough does not use “dough-conditioners” such as sodium stearoyl lactylate or mono- and diglyc - erides. The high-protein dough made with unbleached wheat flour and fil - tered water gives the pizza dough its balance of flavor and chewy crust. The

<< Founder John Schnatter gave away free pizzas to anyone who owned a Camaro when he was reunited with this own. thin crust has a pencil-thin edge.

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Papa John’s “better ingredients” also and doesn’t include high-fructose corn milk. All cheeses have minimal preserva - include the pizza sauce, made from fresh syrup, artificial colors or artificial flavors. tives to maintain freshness and to ensure California tomatoes. Six hours after the Instead, it’s simply tomatoes, virgin olive consistency and quality across many tomatoes are picked, the sauce is produced oil, sunflower oil, spices, and a touch of salt restaurants. Italian sausage is 100 percent and minimally heated to retain flavor. It is and sugar. pork without fillers and green peppers are shipped in #10 steel cans instead of plastic The pizza cheese is made from 100 per - shipped several times per week for fresh - pouches. The sauce is not manufactured cent real mozzarella and high-quality skim ness. Peppers are not frozen or vacuum packed and are sliced daily. Its onions, beef, mushrooms, pepper - oni, chicken, Canadian bacon, black olives and peppers are also selected to meet top-quality standards. Papa John’s also uses more expensive pizza boxes with a white-on-white structure to protect the pizza flavor from cardboard. Pizza comes with garlic dipping sauce and a pepperoncini for added value.

PAPA JOHN’S HITS A HOME RUN AS OFFICIAL PIZZA OF NEW YORK YANKEES In November, Papa John’s inked a partnership deal to be the official pizza of the New York Yankees. As part of the deal, Papa John’s will be the exclusive branded pizza sold in Yankee Stadium, display stadium signage and will have the ability to use the Yankees marks in market - ing and advertising. “We are excited to be the official pizza of the New York Yankees,” says Tim O’Hern, Papa John’s senior vice president and chief develop - ment officer. “The Yankees are one of the premier teams in baseball and we’re thrilled with the opportu - nity to serve our better-quality pizza to their loyal fans.” In addition to having a presence at Yankees’ games, Papa John’s will be available to fans at other stadi - um events beginning on Dec. 28 at the New Era Pinstripe Bowl, New York’s only college football bowl game. “We are greatly pleased to expand our partnership with Papa John’s, hoping that its pizza being featured at Yankee Stadium will fur - ther strengthen both brands glob - ally,” says Michael J. Tusiani, New York Yankees senior vice president, corporate sales and sponsorships .

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Thanks to all of this attention to quali - ty ingredients, Papa John’s “presents a better pizza to consumers, and they know the difference,” Thompson says. “The focus on quality has been consis - tent throughout our 30 years’ history. We are almost religious about it. We don’t compromise on our brand standards.”

Three Decades of Pizza Pie Papa John’s is the No. 3 global pizza delivery chain, according to Pizza Today . As of last year, there were 4,163 Papa John’s restaurants in operation, consisting of 696 company-owned and 3,467 franchised restaurants operating

in all 50 states and in 35 countries and < territories. There are 48 restaurants in < Papa John’s is the No. 3 global pizza delivery chain with 4,163 restaurants in operation in all 50 states and 35 coun - tries and territories. There are more than 1,000 Papa John’s locations in international markets. Beijing and north China alone. “Papa” John Schnatter founded the thanks in large part to his energetic Camaro for $1,600 to help save his company in 1984 and serves as its TV spots. father’s tavern. He then purchased used spokesman. The chairman and CEO Schnatter founded Papa John’s in pizza equipment, knocked out a broom has become something of a celebrity 1984 after selling his prized 1972 closet in the back of the tavern and

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quality,” and the company now has more than 200 stores there. The Asia/Pacific market is also an area of focus for the future, Thompson says. Latin America does extremely well, and Papa John’s has seen “really nice, healthy growth” in the Middle East, he adds. When Papa John’s first began its big international push four years ago “we were not as sophisticated,” Thompson admits. “We made our mistakes and learned from them.” Perhaps Papa John’s opened too many new stores overseas a bit too quickly, he says, but it “learned a lot early on, shored things up, focused on quality and now the international team is doing well across the board.” In some ways, Papa John’s international expansion is similar to its business when it first began expanding domestically. It is taking on its two larger and more established competitors, Pizza Hut and Dominos. These are “big businesses with 30-year head-starts,” says Steven Ritchie, sen -

<< Papa John’s marketing strategy focuses on professional sports with an emphasis on football in the United States. It is ior vice president, global operations the official pizza of the and star quarterback Peyton Manning is a spokesman. and global operations support and began selling pizzas to the tavern’s cus - less competition and marketing training. It will use the same strategies tomers. His pizzas proved so popular required in many overseas markets but it did to grow after its 1984 founding in that one year later he was able to move the overall pizza segment of the market America, Ritchie says. into an adjoining space. could well be smaller. The product is In 2009, after years of wondering also tailored to local tastes. In Egypt, Super Bowl Branding whatever happened to his beloved for example, Papa John’s pizza top - Papa John’s marketing strategy focuses Camaro, Schnatter decided he wanted pings include tuna, calamari and on professional sports with an emphasis to buy it back but couldn’t find it. So he smoked veal, and deliveries are made on football in the United States. drove across America in a replica of on scooters for faster delivery times in Although most restaurant’s marketing the Camaro, searching for the original. heavy traffic. efforts reach out to mothers and families, He finally located the owner near Papa John’s has more than 1,000 it has found professional sports partner - Louisville and he purchased the auto international stores in 35 nations. ships to be a slam-dunk. for $250,000. The original Camaro was “Russia is a really great market for us,” The company sponsored a college then placed on display at company Thompson says. football bowl game from 2006 to 2010 headquarters and Schnatter celebrated The United Kingdom is the country known as the Papajohns.com Bowl the reunion by giving away free pizzas outside North America with the most game in Birmingham, Ala. In 2010, it to anyone who owns a Camaro. Papa John’s. This is a “very, very heavi - inked a deal to become the official ly competitive and penetrated area,” pizza of the National Football League. Tuna, Calamari and Veal Thompson says. Papa John’s opened Star quarterback Peyton Manning Papa John’s current expansion plans stores in the UK without television serves as a spokesman and also owns are primarily outside of the United advertising support, “just basic guerilla 25 franchise locations in Colorado. States and Canada. There is generally tactics growing the market with product In addition to football, Papa John’s

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also is The Official Pizza Sponsor of the As pizza is a “social type of product, High Technology Football League in the United Kingdom. It made for gatherings,” and sports matches “How consumers order pizza today is vast - also partners on a team basis in most tend to be associated with these gatherings, ly different than it was 10 to 15 years ago,” major sports markets. Papa John’s marketing considers it a natural Thompson says. “Technology is a key part “Sports and pizza seem to go extremely fit. Furthermore, from a TV advertising to how we reach consumers.” well together,” Thompson says. “It has a standpoint, sporting events circumvent Papa John’s was the first pizza compa - relevancy consumers react to.” DVRs and TiVos for added ad value. ny to roll out online ordering, which rev - olutionized the industry and added effi - ciency to its operations. It uses an advanced dynamic resource control infrastructure, linking retail outlets to operations to provide real-time data to national headquarters. This allows for the allocation of deliverymen and pizza ingredients to areas experiencing surges in pizza demand. The company’s 10 domestic commis - saries, or quality control centers, employ the latest innovative technology for pro - duction, logistics and communications with vendors. Papa John’s is also the only pizza company in its category to offer a rewards program – Papa Rewards – which provides frequent customers with discounts and has been active utilizing text messaging and social media. Being “in the front of the pack” techno - logically has helped Papa John’s in many ways, Thompson says, by reaching out to customers and suppliers for better rela - tionships to help them emotionally link to the brand.

In the Community Papa John’s is dedicated to community involvement. “Papa John’s is all about peo - ple,” Thompson says. “We certainly want to give back.” He notes Papa John’s has been engaged with disaster relief efforts and assists the Salvation Army.

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“Pizza is a people business and [community involvement] is an impor - tant part of engaging with our cus - tomers,” Thompson says. Since 1996, Papa John’s and John and Annette Schnatter have donated more than $20 million to the hometown . This includes a $5 million gift in 1996 to fund construc - tion of Papa John’s . In 1998, an additional $5 million was donated to fund construction of Cardinal Park with soccer, track and softball facilities. In 2007, the Schnatters and Papa John’s pledged an additional $10 million to help fund the

expansion of Papa John’s Cardinal <

Stadium, which was completed in 2010. < Believing that its success begins with its ingredients, Papa John’s uses only fresh, unfrozen dough that is hand- “It is very people-based here,” tossed, and its sauce is made only from tomatoes, virgin olive oil, sunflower oil, spices, salt and sugar. Ritchie says. “We believe it is not a monetary transaction. It is about rela - VENTURA FOODS is a leading manufacturer and marketer of shortenings, oils, dressings, sauces, may - onnaises, margarines, culinary bases and pan coatings for the foodservice industry. We help our cus - tions and anything we give comes back tomers delight their customers with the depth and breadth of the products we provide. For more infor - three-fold.” mation, visit www.venturafoods.com or call 877-Ventura.

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