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Today I review a double pepperoni pizza from Papa John's (a personal favorite of mine).
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Papa John's tries new tack to challenge Pizza Hut, Domino's for pizza supremacy
Published 5:00 p.m. ET Jan. 29, 2016 | Updated 10:34 a.m. ET Jan. 30, 201
(Online Publication: USA Today)
LOUISVILLE - The battle among America's pizza chain juggernauts for a bigger slice of the $40 billion industry is about to get more heated.
In an era when industry leaders are offering two pizzas for as little as $10, Papa John's - the country's fourth biggest pizza chain in terms of market share - says it will launch an aggressive campaign to win more customers by making the case that spending a a few more bucks on your pie is worth it.
Company officials say their push will start during festivities in San Francisco ahead of the Super Bowl - historically the biggest day of the year for pizza sales - when the Kentucky-headquartered chain will have three of their NFL pitchmen J.J. Watt (a former delivery driver for rival Pizza Hut), Joe Montana and Archie Manning announce that Papa John's will pledge that any customer dissatisfied with their pizza will get their next pizza free. (The company’s most celebrated endorser and franchisee Peyton Manning will be too busy preparing to play in the Super Bowl to take part in the pitch.)
The company plans to follow its celebrity push with a national television advertisement campaign the day after the Super Bowl to market their free pizza guarantee.
The brash move comes from a company that has touted a “Better Ingredient, Better Pizza” motto for about 20 years, while its competitors increasingly offer cut-rate deals, which have added a new dynamic to the war among America's big four pizza chains. Pizza Hut, Domino's, Little Caesars, and Papa John's account for about 39% of the industry's revenue.
Little Caesars, the third biggest chain in terms of sales, sells its large 'hot-n-ready' pizza for $5 in many markets. Industry leaders Pizza Hut and Domino’s have launched value menus where customers can buy two items-including pizzas, pasta, and desserts-for $10 to $11.98.
Papa John’s is hardly averse to offering specials. They currently offer one large, one-topping pizza for regular price with a second one for 50 cents. But with prices that skew higher than their bigger rivals-a large pepperoni pizza goes for $15.50 at Papa John's in the Chicago market- their specials are significantly more expensive their big chain rivals.
“You can’t make a silk purse with a sow’s ear,” Papa John's founder and CEO John Schnatter told USA TODAY. "You can’t make good wine from bad grapes. If you’re serving a $5 pizza, you are either serving ingredients that are not high quality or you’re putting less on.”
Pizza Hut, which recently launched what it's calling its $5 flavor menu, declined to address Schnatter's comments directly. But company spokesman Doug Terfehr noted the company has been "serving the same great-tasting pizza, at a great value" for more than 50 years.
Papa John's first introduced the free pizza guarantee in the United Kingdom last year as it was trying to differentiate their brand from Domino’s Pizza, which dominates the UK pizza scene with nearly four times as many outlets as Papa John’s.
Papa John’s president and chief operating officer Steve Ritchie credited the campaign with helping boost same-store sales by “double-digit” percentage points in the United Kingdom last year. Fewer than 2% of their customers in Britain called up to complain and ask for a free pizza, Ritchie said.
Under the soon-to-be offered guarantee in the U.S., customers dissatisfied for any reason can call Papa John's within 30 minutes of receiving their pizza and they will be offered a choice of having a new pie made for them on the spot or be credited with a free pizza for another day, Ritchie said.