Papa Johns Essay

Issues

1. The pizza category is suffering from a longer-term trend, with the growth of take-out food capabilities at full service restaurants and the creation of more diversified menus at fast-food competitors.

2. Concerns about the U.S. housing market crisis and the high price of gasoline caused for a large scale back in consumer’s budget to dining out.

3. Pizza hut benefited from a first-mover advantage in international markets and operate more stores in China than Papa John’s has in total. Papa John’s needs to take advantage of different markets overseas.

Recommendations

1. Papa John’s has stated that they don’t want to diversify their menu too much because of their competitive advantage in the quality of pizza. The company needs to consider partnering with another fast food firm like KFC and Taco Bell do by sharing a single building. By doing this, it will diversify the menu by giving options to family of what everyone wants and creates variety to mutually benefit off

Restaurant and quick-service restaurant dinner service dinner occasions were declining due to an increase in at-home dinner preparations. 70% of Papa John’s sales are from dinner orders. To counter this, Papa John should consider creating a frozen pizza segment in their organization. The goal of this would be to get these frozen pizzas into retailers like Walmart and Target so they are still finding ways to reach individuals who aren’t dining out during this difficulty economic time.

3. Papa John’s international efforts have been focused in Mexico, Canada, the United Kingdom, the Middle East, and Asia. The company has 959 stores internationally but could greatly benefit from increasing this number in the Asian market. The Asian market generally favors quality-centered business models due to higher preferences for quality. Another trend is in these markets is a growing income base for the local population. This will help offset to tough conditions domestically and set up success for the