Papa John’s International, Inc., (Papa John’s) operates and franchises pizza delivery and carryout restaurants and, in certain international markets, dine-in and delivery restaurants under the trademark ‘Papa Johns.’
Papa John’s restaurants in operation, consisting of company-owned and franchised restaurants operating in 51 countries and territories. The company-owned restaurants include some restaurants operated under three joint venture arrangements. In discussions of the company’s business,...
Papa John’s International, Inc., (Papa John’s) operates and franchises pizza delivery and carryout restaurants and, in certain international markets, dine-in and delivery restaurants under the trademark ‘Papa Johns.’
Papa John’s restaurants in operation, consisting of company-owned and franchised restaurants operating in 51 countries and territories. The company-owned restaurants include some restaurants operated under three joint venture arrangements. In discussions of the company’s business, ‘Domestic’ is defined as within the contiguous United States, ‘North America’ includes Canada, and ‘International’ includes the rest of the world other than North America.
Strategy
The company is committed to delivering on its brand promise BETTER INGREDIENTS. BETTER PIZZA. and a business strategy designed to drive sustainable long-term, profitable growth.
The key elements of the company's strategy are to focus on its core product proposition and improve innovation across the barbell; amplify its marketing message; invest in its technology; differentiate its customer experience; and partner with, as well as evolve, its franchisee base.
Segments
Papa Johns has four defined reportable segments: Domestic Company-owned restaurants, North America franchising, North America commissaries (Quality Control Centers), and International.
Domestic Company-owned Restaurants
The Domestic Company-owned restaurant segment consists of the operations of all Domestic Company-owned restaurants and derives its revenues principally from retail sales of pizza and other food and beverage products.
Operating Company-owned restaurants allows the company to improve operations, training, marketing and quality standards for the benefit of the entire Papa John's system.
North America franchising
The North America franchising segment consists of the company's franchise sales and support activities and derives its revenues from the sale of franchise and development rights and the collection of royalties from the company's franchisees located in the United States and Canada.
North America commissary
The North America commissary segment comprises 11 full-service regional dough production and distribution centers (Quality Control Centers, or 'QC Centers') in the United States, which supply pizza sauce, dough, food products, paper products, smallwares and cleaning supplies twice weekly to each traditional restaurant served. This system enables the company to monitor and control product quality and consistency while lowering food and other costs. The company also has one QC Center in Canada, which produces and distributes fresh dough. The company evaluates the QC Center system capacity in relation to existing restaurants' volumes and planned restaurant growth, and facilities are developed or upgraded as operational or economic conditions warrant. To ensure consistent food quality, each Domestic franchisee is required to purchase dough and pizza sauce from the company's QC Centers and to purchase all other supplies from the company's QC Centers or other approved suppliers.
International
The International segment is defined as all restaurant operations outside of the United States and Canada. As of December 29, 2024, there were various International restaurants, comprises company-owned restaurants in the United Kingdom and franchised restaurants. The company operates one International QC Center in the UK. The International segment also consists of distribution sales to Papa John’s restaurants located in the UK and the company’s franchise sales and support activities, which derive revenues from sales of franchise and development rights and the collection of royalties from the company’s International franchisees. Other QC Centers outside North America are operated by franchisees pursuant to license agreements or by other third parties.
All other
These consist of operations that derive revenues from franchise contributions to the company’s marketing funds and the sale, principally to company-owned and franchised restaurants, of information systems and related services used in restaurant operations, including the company’s point-of-sale system, online and other technology-based ordering platforms.
Development
The company's Domestic Company-owned restaurant growth strategy is to continue to open restaurants in existing markets as appropriate, thereby increasing consumer awareness, increasing market share, improving customer service, and enabling it to take advantage of operational and marketing scale efficiencies. The company has co-developed Domestic markets with some franchisees or divided markets among franchisees and will continue to use market co-development in the future, where appropriate. The company's Domestic Company-owned markets comprise strong-performing restaurants, making them attractive locations either as Company-owned or franchised.
The company's experience in developing markets indicates that market penetration through the opening of multiple restaurants in a particular region results in increased average restaurant sales over time. The company will establish a development or a master franchise agreement with a franchisee for the opening of a specified number of restaurants within a defined period of time and specified geographic area. Similar to the company's Domestic Company-owned restaurant growth strategy, the company's International strategy has shown to build higher consumer awareness, increased market share, and improved operational efficiencies.
Marketing Programs
The company's Domestic marketing strategy consists of national advertising via television, print, direct mail, digital, mobile marketing, and social media channels. The company's digital marketing activities have increased significantly over the past several years in response to increasing customer use of online and mobile technology. Local advertising, such as television, radio, print, direct mail, restaurant-to-door flyers, digital, mobile marketing, and local social media channels, is currently optional for franchisees.
Papa John’s Marketing Fund, Inc. (PJMF) produces and buys airtime for Papa John’s national television commercials and advertises the company’s products through digital media including banner advertising, paid search-engine advertising, mobile marketing, social media advertising and marketing, text messaging, and email. PJMF also engages in other brand-building activities, such as consumer research and public relations activities. Domestic Company-owned and franchised Papa John’s restaurants are required to contribute a certain percentage of sales to PJMF.
In international markets, the company's marketing focuses on reaching customers who live or work within a trading area of a Papa John’s restaurant. The company's international markets use a combination of advertising strategies, including television, radio, print, digital, mobile marketing, and local social media, depending on the size of the local market.
Trademarks, Copyrights and Domain Names
The company has registered and maintains Internet domain names, including ‘papajohns.com’, and country code domains patterned as ‘papajohns.cc’, or a close variation thereof, with ‘.cc’ representing a specific country code.
Government Regulation
The company is subject to Federal Trade Commission (FTC) regulation and various state laws regulating the offer and sale of franchises. The FTC requires the company to furnish to prospective franchisees a franchise disclosure document containing prescribed information.
History
Papa John's International, Inc. was founded in 1984. The company was incorporated in 1991.