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Papa John’s Pizza founder and CEO John Schnatter was forced out of his own company back in 2018 after he reportedly used the N-word on a phone call. Yet in the past few weeks, Schnatter has released the transcript of the phone call in question, and that transcript reveals the true story — it appears Schnatter was set up and the alleged “offense” wasn’t an offense at all. The Papa John’s founder suffered a heinous defamation of character.
Schnatter has sued Laundry Service, the company he hired to help bolster his public image, for many breaches of contract. His lawsuit claims that the company blackmailed him and orchestrated his destruction.
The racism accusations against Schnatter had always been politically motivated and overblown, but the transcript reveals just how duplicitous Laundry Service was and just how deceptive was the story that tanked Schnatter’s career.
Schnatter built Papa John’s from nothing. At age 22, his father, Robert Schnatter, invested in a failing bar and John Schnatter — who had worked in pizza joints through high school and college — set up some kitchen equipment in a converted broom closet and set up his own booming pizza business. He sold his beloved Camaro in 1983 for $2,800 and that money helped save his father’s tavern — and allowed Schnatter to build the business that would become Papa John’s.
On the call that would destroy his career, Schnatter laid out the philosophy that made Papa John’s so successful. “When I get the pizza wrong, they don’t eat it. When we get the pizza wrong, they don’t sell it, then our people don’t make their bonus,” he said. “You never forget the fact that you go home with burns on your arms and that you have to make the pizza, you know, cook the pizza, and deliver the pizza because the guy had a crash or had a wreck or didn’t show up.”
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