The controversial founder and CEO of Papa John's, John Schnatter, is stepping down, the company announced Thursday.

The company said its current president, Steve Ritchie, would replace him.

Schnatter sparked controversy in November when he slammed NFL leadership over players' kneeling during the national anthem to protest racial injustice and police brutality.

"Leadership starts at the top, and this is an example of poor leadership," Schnatter said in a call with investors.

The CEO's statements quickly inspired backlash on the left and support on the right. The Daily Stormer, a white-supremacist website, even posted an article asking whether Papa John's was the "official pizza of the alt-right" — the chain responded that it did not want "hate groups" buying its pizza.

Schnatter owns roughly 25% of Papa John's and will stay on as chairman after stepping down as CEO in January. A press release from the company said he would "pursue his personal passion for entrepreneurship, leadership development, and education."

This is not the first time Schnatter has stepped down as CEO — he did so in 2005, after a period of declining sales at the company, then returned three years later.


Schnatter has a history of making political statements that spark controversy.

He came under fire in 2012 for saying the Affordable Care Act, the healthcare law better known as Obamacare, would be a "lose-lose" for Papa John's franchisees and employees. Schnatter argued that it would cost Papa John's $5 million to $8 million annually and ultimately drive up the price of its pizza.

The backlash was swift, with many promising to boycott Papa John's. The company's shares slumped about 4.2% at the time, Forbes reported.


Schnatter has also spoken out extensively against what he says is over-regulation.

In his 2017 book, "Papa: The Story of Papa John's Pizza," Schnatter argued that regulations were steering the US away from a system of free enterprise he believes crucial to the nation's success.

"America in 2016 is on the path to becoming what Germany was in 1867," Schnatter wrote.

Schnatter's great-grandfather immigrated to the US from Germany in 1867 as a young craftsman seeking work. The US was a land of opportunity where people were free to become successful without fear of attack or government interference, Schnatter said.

Speaking with Business Insider in January, Schnatter emphasized that he thought regulation in the US needed to be dialed back to help businesses thrive.

"You've got to have free markets with limited government, with the proper amount of regulation where you don't jam entrepreneurship," Schnatter said.

Schnatter donated $1,000 to Donald Trump's presidential campaign, though he did not publicly voice support for him.

"As far as the politics, I have no idea," Schnatter told Business Insider before Trump's inauguration. "I do think we ought to give the new administration at least a chance to either do better things or to botch it."

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Good guy. He'll be fine.

He should just give em all the finger!

Shame he has to step down from the company he founded for voicing his opinion (which is obviously correct).

quote:

Originally posted by arfmel:
Shame he has to step down from the company he founded for voicing his opinion (which is obviously correct).

He will still be the Chairman of the company, according to the article.

Maybe he can get some Chic-Fil-A franchises.

So absurd, he didn't say anything in either case that was racist, crude, overtly political, or even controverial. Just common-sense truth. I hate SJWs!

The NFL Leadership are idiots no matter what side of that asinine "controversy" you're on. the ACA is a costly loser for businesses no matter whether you were stupid enough to support it or not.

quote:

Originally posted by 12131:

quote:

Originally posted by arfmel:
Shame he has to step down from the company he founded for voicing his opinion (which is obviously correct).

He will still be the Chairman of the company, according to the article.

He owns 25%, about 8.5 million shares at ~$60. That will keep the wolf a long way from the door.

Such are the realities of a publicly traded company and mixing business with politics.

quote:

Originally posted by 46and2:
Such are the realities of a publicly traded company and mixing business with politics being patriotic.

You should not lose your job due to thinking kneeling during The Anthem is a shitty thing to do.

quote:

Originally posted by 12131:

quote:

Originally posted by arfmel:
Shame he has to step down from the company he founded for voicing his opinion (which is obviously correct).

He will still be the Chairman of the company, according to the article.

Yes, this is just symbolic. He is still chairman.

quote:

Originally posted by Skins2881:
You should not lose your job due to thinking kneeling during The Anthem is a shitty thing to do.

But you should for saying so if saying so hurts the business, which is exactly what happened.

He was free to say it, their customers were free to vote with their wallets, they did and it cost the company money and reputation, and he was basically fired for causing the loss.

That's how business works.

As a representative of that company, he can think whatever he wants, and he can say pretty much whatever he wants, but there may be consequences, and there were.

We (here) say the same thing all the time about freedom of speech... it does not include freedom from the potential consequences of said speech.

That's how free speech works.

And in this case, free speech and business worked exactly as expected.

The mistake is entirely his, for interjecting politics into business.

He should have kept it to himself and his friends.

(I agree with him, fwiw, screw the NFL and the kneelers, but that's not the point at all.)

quote:

Originally posted by 46and2:
Such are the realities of a publicly traded company and mixing business with politics.

I agree - right doesn't have much to do with it. Public companies are pathologically averse to any hint of bad publicity. They have to be since they have to answer to all those shareholders. Their duty is to make money, not take political or social stands.

It is their nature. Griping about it is like griping about wasps that sting.

quote:

Originally posted by 46and2:

quote:

Originally posted by Skins2881:
You should not lose your job due to thinking kneeling during The Anthem is a shitty thing to do.

But you should for saying so if saying so hurts the business, which is exactly what happened.

He was free to say it, their customers were free to vote with their wallets, they did and it cost the company money and reputation, and he was basically fired for causing the loss.

That's how business works.

As a representative of that company, he can think whatever he wants, and he can say pretty much whatever he wants, but there may be consequences, and there were.

We (here) say the same thing all the time about freedom of speech... it does not include freedom from the potential consequences of said speech.

That's how free speech works.

And in this case, free speech and business worked exactly as expected.

The mistake is entirely his, for interjecting politics into business.

He should have kept it to himself and his friends.

(I agree with him, fwiw, screw the NFL and the kneelers, but that's not the point at all.)

You missed my point, or I didn't make it clear. I understand the realities of business/politics. I don't think being supportive of your country/flag should be political, it should be ingrained in your personhood.

I'm just disgusted that it's political to support country/anthem/flag. I get that it's all about opposing Trump. Just like the tax thing. The tax and spend party being worried about the deficit all of a sudden when two years ago it didn't matter.

Why is it controversial? It should be controversial what those NFL asshats are doing.

He’ll be just fine. As long as a Papa Johns Pizza costs more than a seat in many NFL stadiums, I’d say he’s a winner.

This might have nothing to do with the pizza public but the relationship with the NFL.

Poppa John is the official pizza supplier, IIRC, which means thick contracts with all sorts of representations, commitments, indemnities, restrictions, contingencies, maybe even an incorporeal hereditament no one noticed, lots of moneys being spent in reliance thereon, and the NFL attorneys put out the word that he had to STFU.

Maybe he has other reasons for stepping down.

BLM can make their own goddam pizzas. Stupidity.

Buying opportunity.