John Schnatter

John Schnatter
Born	John Hampton Schnatter (1961-11-22) November 22, 1961 Jeffersonville, Indiana, U.S.
Other names	Papa John
Occupation	Businessman
Years active	1984–present
Known for	Founder of Papa John's Pizza

John Hampton "Papa John" Schnatter (born November 22 or 23, 1961) is an American businessman who established the Papa John's pizza franchise in 1984. He launched the venture from a space in the back of his father's bar, financing the purchase of secondhand restaurant equipment by selling his car. By 2017, his net worth had surpassed $1 billion.

Schnatter resigned as CEO on January 1, 2018, following backlash over remarks in which he blamed the National Football League (NFL) for declining sales due to the league’s handling of national anthem protests. These statements resulted in the NFL terminating its partnership with Papa John's.

He continued serving as chairman of the board of directors until July 2018, when he stepped down after reports emerged that during a May 2018 internal diversity training call, he used a racial epithet while referring to Colonel Sanders. Schnatter later asserted that the board orchestrated his removal unjustly.

Early life and education

Born in Jeffersonville, Indiana in 1961 to Mary and Robert Schnatter, John Schnatter grew up with a mother who worked in real estate and a father who served as a local judge. He is of German descent. After graduating from Jeffersonville High School in 1980, he earned a business degree from Ball State University in 1983.

During the 1980s, his father co-owned Mick's Lounge, a tavern located in Jeffersonville.

Creation and expansion of Papa John's Pizza

In 1984, Schnatter launched Papa John's Pizza by transforming a broom closet inside his father's tavern into a pizza kitchen. To fund the initial investment of $1,600 for used pizza-making equipment, he sold his 1971 Z28 Camaro. Initially selling pizzas to patrons of the tavern, demand quickly grew, prompting expansion into adjacent space within one year. The company went public in 1993 and expanded rapidly to reach 500 outlets by 1994 and 1,500 by 1997. In 2009, Schnatter repurchased his Camaro after offering a $250,000 reward for its return.

In the late 1990s, he moved the corporate headquarters from Jeffersonville to Louisville, Kentucky.

Schnatter stepped down as president and CEO in early 2005 but retained his position as chairman. He resumed the CEO role in 2008 and briefly shared leadership as co-CEO during 2010.

Departure from Papa John's Pizza

In October 2017, Schnatter attributed declining sales to the National Football League, citing player protests during the national anthem as damaging to business. At that time, Papa John's held marketing partnerships with the NFL and 23 teams but subsequently removed NFL branding from its advertisements following Schnatter’s comments.

On December 21, 2017, amid controversy, Schnatter resigned as CEO and was succeeded by COO Steve Richie effective January 1, 2018. He remained Papa John’s largest shareholder with approximately 9.5 million shares and continued as chairman of the board.

In July 2018, during a marketing training session, Schnatter used a racial slur while mentioning Colonel Sanders, leading to termination of contracts with the marketing agency involved. That same day, he resigned from both his chairman role and his seat on the University of Louisville board of trustees.

On July 26, 2018, Schnatter initiated legal action in Delaware and Kentucky courts seeking access to company financial documents and disputing property ownership claims. The company restricted his access and implemented a "poison pill" strategy aimed at limiting his influence.

A court order issued in January 2019 granted Schnatter access to records concerning his removal. By March 2019, a settlement provided him full access to documents and eased some restrictions on communication with shareholders. As part of this agreement, Schnatter consented not to pursue board re-election after April 30, 2019; however, he retained rights to pursue legal action if misconduct was discovered. The company also lifted conditions requiring activist hedge fund Starboard Value to support the existing board members. While owning about 31% of shares in March 2019, Schnatter had reduced his stake below 17% by November.

By June 2019, Papa John's had become the fourth-largest global pizza delivery and takeout chain with headquarters located in Jeffersontown, Kentucky, within the Louisville metropolitan area.

In November 2019, Schnatter publicly acknowledged using the racial slur during internal training but stated it was intended to oppose racism. He also criticized product quality since his departure and warned of an impending "day of reckoning." The interview gained widespread attention and inspired numerous parodies.

Three months later, Schnatter clarified that rather than consuming all pizzas himself for quality testing, he sampled over forty pizzas within thirty days. He further criticized former CEO Steve Ritchie's leadership post-departure while expressing greater alignment with board chairman Jeff Smith who assumed leadership in February 2019.

Additional enterprises

In 1996, Schnatter established Evergreen Real Estate in Louisville, which manages a number of historic buildings located in his hometown of Anchorage, Kentucky.

The following decade, in 2007, he introduced Calistoga Artisan Sandwiches. A year later, Schnatter donated $1 million toward the Louisville Zoo's Glacier Run expansion project, securing naming rights for Calistoga at a neighboring water park. Although the Calistoga brand largely ceased operations by 2012, three outlets continued to operate in Naples, Florida.

Responding to growing concerns about processed foods and industrial agriculture, Schnatter unveiled Papa Farms at the Conservative Political Action Conference in 2022. This initiative focuses on growing crops without the use of GMOs, pesticides, or fertilizer.

Personal background

In 1983, Schnatter sold his 1971 Chevrolet Camaro to help support his father’s struggling enterprise and used the proceeds to launch Papa John's. Years later, he offered a $250,000 reward to recover the car and successfully repurchased it on August 26, 2009. Although the original buyer had since resold it, Schnatter also paid a $25,000 finders’ fee. To commemorate this event, Papa John's provided complimentary pizza to Camaro owners. The original vehicle was displayed at the company’s Louisville headquarters, while replicas were utilized for promotional tours and media events. On August 15, 2015, the Camaro was stolen in Detroit but was recovered two days later with only minor damage.

Schnatter married Annette Cox in 1987; they resided in Anchorage, Kentucky, and had three children together. Cox filed for divorce on December 5, 2019, citing an eight-month period of separation.

Claims of stalking and sexual misconduct

In 1999, Schnatter faced allegations involving stalking and inappropriate touching of a woman. He maintained that these accusations were part of an extortion attempt demanding $5 million; the issue was resolved through a confidential settlement.

A decade later, in 2009, he was accused of sexual misconduct by a 24-year-old marketing employee. This case also concluded with a confidential settlement.

Political involvement

In 2012, Schnatter and Papa John's attracted attention after he criticized the Affordable Care Act (ACA), estimating it would raise pizza prices by approximately 11 to 14 cents each. He subsequently retracted these remarks.

That same year in May, he hosted a fundraiser for Republican presidential candidate Mitt Romney and later contributed to Donald Trump’s 2016 campaign, expressing support for Trump’s administration early in 2017.

At the 2022 Conservative Political Action Conference, Schnatter voiced criticism toward President Joe Biden’s policies affecting small businesses and condemned cancel culture. He also endorsed a conspiracy theory alleging that Biden orchestrated the 2021–2022 Russo-Ukrainian crisis as a diversion from domestic challenges.

Philanthropic activities

In December 2015, Schnatter’s foundation donated $8 million to the University of Kentucky’s Gatton College of Business and Economics to establish a dedicated research and educational institute.

On September 4, 2019, the foundation contributed $1 million to Simmons College, a historically Black college in Kentucky. Simmons College President Kevin Cosby hailed the donation as a significant advancement for Black education. Nevertheless, some criticism emerged; board member Gerome Sutton suggested that Schnatter was attempting to "pay off the black community with 30 pieces of silver."

In October 2019, the foundation provided $500,000 toward renovations of Jeffersonville High School’s baseball field, which was subsequently renamed John H. Schnatter Stadium to honor his legacy as a former player.

Awards and honors

• Awarded the 1998 National Ernst & Young Retail/Consumer Entrepreneur of the Year title.
• Selected as one of the Ten Outstanding Young Americans in 2000 by the National Jaycees Organization.
• Entered into the Junior Achievement U.S. Business Hall of Fame in 2007.
• Named honorary chair for the Ride to Conquer Cancer supporting Louisville's Norton Cancer Institute in May 2009.
• Inducted into the Kentucky Entrepreneur Hall of Fame in 2010.
• Granted honorary initiation into Alpha Tau Omega in 2012.