Papa John Pizza
The purpose of this report is to determine the issues that Papa John faces and give a recommendation to solve the issues and provide support for the determination. Issues
Papa John’s Pizzeria started in 1984 by John Schnatter, a young man that has a love for pizza. He bought his father’s partner out of The Mick Lounge and the first Papa Johns was born. The first restaurant was eat-in spot; however it was difficult to keep up with customer demand. The core strategy was to sell a quality pizza with better ingredients through carryout and delivery. They strive to be on the cutting edge technology. They were the first in 2001 to introduce online orders, increasing their sales greatly during the period of 2001 to 2007. Then in 2007 offer ordering through text messaging. They lease corporate and retail spaces and leased trailers to distribute ingredients from there commissary. John Schnatter want to share is love for pizza with all. He opens the Operation Support Service and Training Center to train franchise owners to be successful understanding the core values of PAPA Johns. The company developed a printing company after discovering a printer that met the expectation better than most. To keep cost low in house the printer presses was available 24hrs daily. In Papa Johns the pricing of the ingredients are volatile. The prices of cheese accounts for 35% to 40% of the food cost. To lower cost of its raw materials, they purchased a third party entity BIBP Commodities Inc. and purchased ingredients at a fixed price quarterly. Internationally the company will need to concentrate on building relationship with local producers to maintain the quality of products. Recommendations
It will be ideal for Papa Johns to increase business internationally, locating into the Asian market. The quality of the ingredients use to make the pizza will be attractive in this market. Developing new skills to...