Papa Johns has recently received $200 million in capital to help fund its current operations. This investment was made to them by a New York based investment firm called Starboard Value LP. With the assistance of Starboard Value, Papa Johns will have a source of capital and a financial advisor to help them restore their financial standing. Starboard Value has a track record of turning around and assisting restaurant chains. With their assistance, Papa Johns will be able to overcome their current difficulties. The pizza restaurant chain suffered a major setback after its founder made some controversial comments during last summer. As a result, the company lost a couple of major sponsors as well as experiencing a decline in its sale. In an effort to respond to these setbacks, the chief executive officer of Papa Johns Steve Ritchie has taken action to help the company.
Steve Ritchie was recently named as a board member of Papa Johns after the deal with Starboard Value LP was completed. He will serve as a major strategic advisor and manager for the company. Along with Ritchie, Starboard Value CEO Jeff Smith and the CEO of Pinnacle Entertainment Anthony Sanfillippo will join him as board members. Both Sanfillipo and Smith were the two new board members added to the company in an effort to get extra support in making new strategic plans. With the combination of the three board members, Papa Johns will look to find ways to restore its reputation as well as increase its sales within the next year.
The strategy that the board members and Papa Johns will establish will consist of a number of things. Steve Ritchie has already looked to help inform the public that Papa Johns is a company that is against bigotry and racism. He has therefore established a policy that will investigate the company culture and look for ways to make it a more tolerant organization. Along with this aspect of the new strategic plans, Steve Ritchie of Papa Johns will aim to repay the company’s debt, improve and change its marketing campaigns and also increase sales. All of these aspects of the company’s strategy will likely help the company resolve its current issues.