# Papa John's Blames NFL Controversy for Poor Sales.

**URL:** <https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430>\
**Category:** Cafe Society\
**Created:** [November 1, 2017, 8:10pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430 "2017-11-01T20:10:36Z")\
**Posts on this page:** 20\
**Page:** 3

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**Author:** ![Voyager](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/voyager/32/133_2.png) [@Voyager](https://boards.straightdope.com/u/Voyager)\
**Post date:** [November 2, 2017, 3:40pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430/41 "2017-11-02T15:40:49Z")

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> [@doorhinge](#):
>
> Papa John’s hasn’t changed their product since they last announced their fiscal earning. Papa John’s pizza is still Papa John’s pizza.
> 
> Papa John’s cut its profit forecast blaming a reduction in NFL viewership for a decrease in product sales.
> 
> AFAIK, a company pays big bucks to advertise a product during NFL football games.  
> Promises are made, contracts are signed.  
> Advertisements are designed to encourage buyers to purchase that product.  
> Earnings forecasts are based on X number of viewers.  
> A reduction in NFL viewership should/could result in less product being sold (during NFL games?).
> 
> It appears to me that the Papa John’s company is preparing it’s investors/stockholders to expect reduced earnings numbers.

I wonder what percentage of their advertising is NFL, and whether the reduction in sales tracks reduction in ratings. But if they totally depend on NFL viewership for sales they are idiots.  
More likely it is an excuse to explain the drop. Not their fault, it is the players fault.

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**Author:** ![kenobi\_65](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kenobi_65/32/13178_2.png) [@kenobi\_65](https://boards.straightdope.com/u/kenobi_65)\
**Post date:** [November 2, 2017, 3:50pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430/42 "2017-11-02T15:50:51Z")

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> [@Voyager](#):
>
> I wonder what percentage of their advertising is NFL, and whether the reduction in sales tracks reduction in ratings.

They’ve also tied themselves very closely to the NFL through their sponsorship deal, and featuring current and former players (Peyton Manning, J.J. Watt, and probably others, as well) in their ads.

If there are people who are actively boycotting the NFL\*, **and its sponsors** , due to the anthem issue, then it’s possible that Papa John’s is taking a bigger hit than other pizza chains.

And, yes, NFL ratings are down. They were down last year, too. It’s a complex topic, and has been analyzed extensively, with no one clear reason for it. TV ratings are down across the board as people turn to streaming or other media sources, the concussion / CTE issue has turned off some fans, some people feel that the games have become less entertaining to watch due to the length and frequent commercials, etc.

- 
  - I’m certain that some people are doing this, but I’m not yet convinced that this is a widespread thing.

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**Author:** ![gazpacho](https://avatars.discourse-cdn.com/v4/letter/g/6f9a4e/32.png) [@gazpacho](https://boards.straightdope.com/u/gazpacho)\
**Post date:** [November 2, 2017, 5:43pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430/43 "2017-11-02T17:43:53Z")

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NFL ratings are down because the NFL is working hard to piss off their fans. The Rams and Chargers moving to LA has been a ratings disaster. People in LA are not watching those teams on TV. The NFL ratings in San Diego are way down the same is happening in St Louis.

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**Author:** ![silenus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/silenus/32/166_2.png) [@silenus](https://boards.straightdope.com/u/silenus)\
**Post date:** [November 2, 2017, 5:49pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430/44 "2017-11-02T17:49:58Z")

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Pizza Hut just announced that their 3rd and 4th quarter same store profits are up. Could it be that Papa John’s just makes crappy pizza and people are finally figuring that out?

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**Author:** ![doorhinge](https://avatars.discourse-cdn.com/v4/letter/d/a5b964/32.png) [@doorhinge](https://boards.straightdope.com/u/doorhinge)\
**Post date:** [November 2, 2017, 6:04pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430/45 "2017-11-02T18:04:37Z")

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> [@DigitalC](#):
>
> If you want an alternative to Papa Johns for your pizza parties go with [Little Ceasars.](http://www.cnn.com/2017/02/15/us/mike-ilitch-rosa-park-trnd/index.html)

There are many alternatives to Papa John’s pizza. That’s not the point. From a strictly financial/business/stockholder point of view, Papa John’s wouldn’t be announcing/explaining the potential earnings/profits of Little Caesars Pizza.

Papa John’s is explaining to it’s shareholders why earnings will be less than expected.

If fewer people are watching NFL football, that means there will be fewer people seeing Papa John’s commercials. If fewer people are seeing Papa John’s commercials, that means that fewer people will be ordering/buying Papa John’s products. If fewer people are buying Papa John’s products, Papa John’s may wish to renegotiate, or terminate, their deal with the NFL.

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**Author:** ![aceplace57](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/aceplace57/32/3500_2.png) [@aceplace57](https://boards.straightdope.com/u/aceplace57)\
**Post date:** [November 2, 2017, 6:06pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430/46 "2017-11-02T18:06:34Z")

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Storm damage in multiple areas may have cost some sales.

Houston, Louisiana, Florida, Puerto Rico (I checked, Papa J has locations there)

That must have made some impact on sales.

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**Author:** ![doorhinge](https://avatars.discourse-cdn.com/v4/letter/d/a5b964/32.png) [@doorhinge](https://boards.straightdope.com/u/doorhinge)\
**Post date:** [November 2, 2017, 6:06pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430/47 "2017-11-02T18:06:39Z")

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> [@silenus](#):
>
> Pizza Hut just announced that their 3rd and 4th quarter same store profits are up. Could it be that Papa John’s just makes crappy pizza and people are finally figuring that out?

Does Pizza Hut advertise during NFL games?

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**Author:** ![Quimby](https://avatars.discourse-cdn.com/v4/letter/q/22d042/32.png) [@Quimby](https://boards.straightdope.com/u/Quimby)\
**Post date:** [November 2, 2017, 6:09pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430/48 "2017-11-02T18:09:31Z")

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Something I find ironic about what’s happening with the NFL is the Right thinks they are sticking it to the Left by hating on the NFL meanwhile most liberals I know (even ones who like football) hate the NFL as an organization.

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**Author:** ![silenus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/silenus/32/166_2.png) [@silenus](https://boards.straightdope.com/u/silenus)\
**Post date:** [November 2, 2017, 6:16pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430/49 "2017-11-02T18:16:26Z")

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> [@doorhinge](#):
>
> Does Pizza Hut advertise during NFL games?

Yes they do, although their major sponsorship deal is with the NCAA.

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**Author:** ![running\_coach](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/running_coach/32/15836_2.png) [@running\_coach](https://boards.straightdope.com/u/running_coach)\
**Post date:** [November 2, 2017, 6:17pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430/50 "2017-11-02T18:17:19Z")

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> [@doorhinge](#):
>
> Does Pizza Hut advertise during NFL games?

What difference does it make?  
Unless PJ’s sales are down because they support the NFL rather than the players.  
Free market at work. Isn’t that the Holy Grail?

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**Author:** ![Chronos](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chronos/32/134_2.png) [@Chronos](https://boards.straightdope.com/u/Chronos)\
**Post date:** [November 2, 2017, 6:21pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430/51 "2017-11-02T18:21:01Z")

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And of course, even if they didn’t advertise during NFL games, they provide a control for the game-watching-party variable: If the reason for Papa John’s decline were fewer people getting together to watch games and ordering pizza, like **aceplace57** suggested, then one would expect to see the same decline with all pizza companies.

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**Author:** ![kenobi\_65](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kenobi_65/32/13178_2.png) [@kenobi\_65](https://boards.straightdope.com/u/kenobi_65)\
**Post date:** [November 2, 2017, 6:50pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430/52 "2017-11-02T18:50:33Z")

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> [@aceplace57](#):
>
> Storm damage in multiple areas may have cost some sales.
> 
> Houston, Louisiana, Florida, Puerto Rico (I checked, Papa J has locations there)
> 
> That must have made some impact on sales.

Likely so…but it doesn’t seem to have kept Dominos or Pizza Hut from posting increases in overall sales.

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**Author:** ![wguy123](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wguy123/32/3161_2.png) [@wguy123](https://boards.straightdope.com/u/wguy123)\
**Post date:** [November 2, 2017, 7:26pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430/53 "2017-11-02T19:26:28Z")

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> [@RealityChuck](#):
>
> More likely, they ran out of people who had never tasted their pizza before.

RealityChuck nailed it in post 22.

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**Author:** ![TimeWinder](https://avatars.discourse-cdn.com/v4/letter/t/bcef8e/32.png) [@TimeWinder](https://boards.straightdope.com/u/TimeWinder)\
**Post date:** [November 2, 2017, 7:50pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430/54 "2017-11-02T19:50:29Z")

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> [@doorhinge](#):
>
> Does Pizza Hut advertise during NFL games?

It is a safe approximation in the US that Pizza Hut advertises _everywhere_. This message brought to you by Pizza Hut.

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**Author:** ![doorhinge](https://avatars.discourse-cdn.com/v4/letter/d/a5b964/32.png) [@doorhinge](https://boards.straightdope.com/u/doorhinge)\
**Post date:** [November 2, 2017, 8:05pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430/55 "2017-11-02T20:05:51Z")

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> [@running\_coach](#):
>
> What difference does it make?  
> Unless PJ’s sales are down because they support the NFL rather than the players.  
> Free market at work. Isn’t that the Holy Grail?

According to the video linked in the OP, Papa John’s CEO announced it was cutting it’s PROFIT forecast. Profit forecasts are more than sales alone.

Assuming two similarly run companies had $1 million in sales, but one company chose to spend big bucks to advertise during NFL games, and hire NFL spokesmodels, in order to reach their sales total, the other company’s profits would/should be greater. If the numbers of NFL viewers drops, the first company still has to pay for the big buck advertising for the duration of their contract. Profits would be even lower.

It’s not Papa John’s fault that NFL viewership is down, but it is Papa John’s responsibility to increase profits, sales, and stock prices. Papa John’s can cut expenses by renegotiating it’s contract with the NFL, by or severing it’s ties with the NFL.

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**Author:** ![Helena330](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/helena330/32/531_2.png) [@Helena330](https://boards.straightdope.com/u/Helena330)\
**Post date:** [November 2, 2017, 8:14pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430/56 "2017-11-02T20:14:06Z")

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I still support my beloved Seahawks, but while I used to watch a lot of football, I pretty much watch only the 'Hawks now. There are a few things that really bother me. First are the ridiculous hits. Take guys down, sure, but crushing and flattening them to the point of injury is becoming a huge turn-off. I realize a lot of it’s a judgment call, but there’s no excuse for keeping guys like Ndamukong Suh in the NFL. That guy hurts people intentionally. I’m surprised he hasn’t killed someone. I also have a problem with how the NFL tolerates domestic violence. They only enforce their own policy if they get pushback.

> **[NFL frequently flouts its own six-game suspension domestic violence policy -...](https://profootballtalk.nbcsports.com/2017/08/11/nfl-frequently-flouts-its-own-six-game-suspension-domestic-violence-policy/)**
>
> As everyone in and around the NFL awaits word on whether Cowboys running back Ezekiel Elliott will be suspended over domestic violence allegations, a consensus seems to be emerging that Elliott will get six games, in line with the league’s policy.One...

My Seahawks have the charming Frank Clark:

> **[Frank Clark's reaction to a female reporter is a reminder of challenges women...](https://www.sbnation.com/2017/5/10/15609360/frank-clark-natalie-weiner-domestic-violence-seahawks)**
>
> Clark wasn’t happy that Natalie Weiner shared a story she wrote about his domestic violence arrest.

I fully support the players peacefully protesting. I suspect I’m not the only one not watching for other reasons.

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<div class="post-metadata">

**Author:** ![kenobi\_65](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kenobi_65/32/13178_2.png) [@kenobi\_65](https://boards.straightdope.com/u/kenobi_65)\
**Post date:** [November 2, 2017, 8:19pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430/57 "2017-11-02T20:19:16Z")

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> [@doorhinge](#):
>
> According to the video linked in the OP, Papa John’s CEO announced it was cutting it’s PROFIT forecast. Profit forecasts are more than sales alone.
> 
> Assuming two similarly run companies had $1 million in sales, but one company chose to spend big bucks to advertise during NFL games, and hire NFL spokesmodels, in order to reach their sales total, the other company’s profits would/should be greater. If the numbers of NFL viewers drops, the first company still has to pay for the big buck advertising for the duration of their contract. Profits would be even lower.

The issue with your analysis is that, yes, while Papa John’s spends a lot of money on their NFL presence (advertising during games, their official sponsorship with the league), they likely are not spending any _more_ money on it this year than they did last year. Yes, NFL ratings are down, so maybe Papa John’s isn’t getting the bang for their buck from the NFL that they did in the past.

If profits are down (Papa John’s says that they are, or that they will be), but expenditures aren’t any higher than they were in the past (which I expect to be the case – the NFL isn’t forcing Papa John’s to spend more money this year than they did last year), then it must be that sales went down.

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**Author:** ![running\_coach](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/running_coach/32/15836_2.png) [@running\_coach](https://boards.straightdope.com/u/running_coach)\
**Post date:** [November 2, 2017, 8:20pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430/58 "2017-11-02T20:20:29Z")

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> [@doorhinge](#):
>
> According to the video linked in the OP, Papa John’s CEO announced it was cutting it’s PROFIT forecast. Profit forecasts are more than sales alone.
> 
> Assuming two similarly run companies had $1 million in sales, but one company chose to spend big bucks to advertise during NFL games, and hire NFL spokesmodels, in order to reach their sales total, the other company’s profits would/should be greater. If the numbers of NFL viewers drops, the first company still has to pay for the big buck advertising for the duration of their contract. Profits would be even lower.
> 
> It’s not Papa John’s fault that NFL viewership is down, but it is Papa John’s responsibility to increase profits, sales, and stock prices. Papa John’s can cut expenses by renegotiating it’s contract with the NFL, by or severing it’s ties with the NFL.

[From here.](http://money.cnn.com/2017/11/01/media/nfl-papa-johns-protests/index.html)

> [@](#):
>
> **NFL ratings, like the rest of network television, are in a slump.** Through Week 7, NFL viewership is down 5% overall from the same point last year.
> 
> The NFL may be part of the problems Papa John’s faces, but it’s far from the only one. **The stock is down 24% this year, while competitors including Domino’s (DPZ) have performed well (Domino’s stock is up 12% this year).**
> 
> Still, Schnatter put the NFL squarely at fault. He specifically cited the anthem protests as the root of the problem.
> 
> Papa John’s\*\* still expects sales to increase by 1.5% in North America this year\*\*, but that’s down from its previous estimates.
> 
> Shares of Papa John’s (PZZA) tumbled 9% on the lowered estimates.

Sales up but profit down? Stock down but competitors up?

> [@](#):
>
> “ **Leadership starts at the top** , and this is an example of poor leadership,” Schnatter said on a conference call with investors Wednesday. “The NFL has hurt Papa John’s shareholders.”

How Ironic The poor little snowflake mega-millionaire screwed up but can’t take responsibility.

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<div class="post-metadata">

**Author:** ![kenobi\_65](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kenobi_65/32/13178_2.png) [@kenobi\_65](https://boards.straightdope.com/u/kenobi_65)\
**Post date:** [November 2, 2017, 8:23pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430/59 "2017-11-02T20:23:26Z")

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> [@kenobi\_65](#):
>
> If profits are down (Papa John’s says that they are, or that they will be), but expenditures aren’t any higher than they were in the past (which I expect to be the case – the NFL isn’t forcing Papa John’s to spend more money this year than they did last year), then it must be that sales went down.

Clarifying, based on what **running coach** just posted:

Projected profits are down, because they aren’t meeting their projected sales goals, not because they’re spending any more on the NFL than they did in the past.

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<div class="post-metadata">

**Author:** ![aceplace57](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/aceplace57/32/3500_2.png) [@aceplace57](https://boards.straightdope.com/u/aceplace57)\
**Post date:** [November 2, 2017, 8:33pm UTC](https://boards.straightdope.com/t/papa-johns-blames-nfl-controversy-for-poor-sales/800430/60 "2017-11-02T20:33:17Z")

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I wish Papa J offered salads.

Good salads would be a solid seller. Similar to the variety of salad choices that Wendy’s offers.

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