How struggling Papa Johns has been hit by years of scandal: From a racist conference call to tycoon's £230,000 Covid fraud probe, sex assault allegations and row over taking the knee
Papa John's announcement that it is closing dozens of British stores shocked many of its staff - but it is simply the latest blow for the struggling pizza giant after years of separate scandals.
From a racist conference call that saw the founder utter the N-word to a millionaire tycoon's alleged Covid fraud, the firm has been mired in controversy for years.
Then, on Tuesday, amid financial woes, the beleaguered firm said it will be closing 43 of its 450 UK stores, putting jobs at risk across the country.
Some of its workers were reduced to tears as a result.
It's not the first time in recent history that Papa John's has been in the headlines for all the wrong reasons.
A string of scandals caused damage to pizza chain Papa Johns' reputation before news broke it is to shut 43 restaurants across the UK
Papa John's founder John Schnatter was forced out of the company in 2018 after criticising the NFL's stance on player protests, as well as using the word 'n*****' during a training exercise
Only in October 2020, the chain launched an investigation into UK franchise owner and millionaire tycoon Raheel Choudhary, 64.
It was claimed he misused £230,000 of taxpayers' money in the Eat Out to Help Out discount deal.
Choudhary, who owns the franchise of 61 outlets, had reportedly been advised by the US brand not to participate in the UK government scheme - established to support businesses during the coronavirus lockdown.
Insiders at the pizza chain claimed three of Choudhary's franchises in Birmingham, Nottingham and London raked in thousands from the policy, set up by then-Chancellor Rishi Sunak.
Choudhary was accused of pressuring staff to record thousands of 'phantom covers' under the Eat Out To Help Out scheme, which would have seen the government pay half of each bill - up to £10 each.
This was in spite of the fact that the scheme was only open to dining-in restaurants - which had been hit hardest by the pandemic, not takeaways. Mr Choudhary said at the time he was 'co-operating fully' with the internal probe.
It is unclear what the results of the probe were, but Mr Choudhary seemingly still owns at least one Papa John's in Britain.
Meanwhile, financial woes earlier this year meant Papa John's had to consider 'strategic closures' to free up money for investment and improve profitability at its remaining UK sites.
On Tuesday, it announced 43 restaurants as 'underperforming locations that are no longer financially viable'.
It will close the restaurants by mid-May following a consultation process, Papa Johns International said.
The UK has 450 Papa John's stores, the largest number of outlets outside the US.
Chris Phylactou, managing director at Papa Johns UK, said: 'Our priority is our team members, who will be fully supported throughout this process.
'Our goal is to work with impacted team members and attempt to find redeployment opportunities where available.
'We understand the impact this will have on our team members and are committed to supporting them during this time.'
Papa Johns said it plans to increase investment in research and technology, such as better utilising customer data, as part of its UK strategy.
In October 2020, the chain launched an investigation into UK franchise owner Raheel Choudhary, 64, amid claims he misused £230,000 of taxpayers' money in the Eat Out to Help Out discount deal
It also said it will look at the development of new types of sites beyond traditional restaurants, such as expanding into holiday parks, and is set to 'announce other large retail partners in the coming months'.
Mr Phylactou added: 'While this is a difficult decision, closing these underperforming locations will give us the opportunity to invest back into the right locations with the right partners for long-term growth.
'We are focused on driving shared profitable growth across our UK restaurants, by continuing to make improvements to our business to ensure that we are well positioned for the future.
'We have been encouraged by the results so far from these initiatives.'
The company has not confirmed how many staff will be impacted by closures, but said that all staff impacted by this decision have been informed.
Yet employees at the locations earmarked for the axe told MailOnline they were very worried about their future and the uncertainty that has come with the news of these potential closures.
One worker even said he wasn't even told that his branch is shutting.
It's not only in Britain that the firm has had a rocky past - Papa John's in America has also seen its fair share of scandal.
The American pizza restaurant chain was famously established in 1984, when John 'Papa John' Schnatter, 62, set up an oven in the broom closet of his father's tavern in Jeffersonville, Indiana.
He sold his 1971 Z28 Camaro and bought $1,600 of second-hand equipment to start selling pizzas to his father's customers. Within a year, he had moved into the adjoining premises and after steadily growing in popularity, the company Papa John's went public in 1993.
By 1994 it had 500 stores, rising to 1,500 by 1997. In 2009, Schnatter tracked down his long-lost Camaro - the sale of which had funded his initial enterprise - and bought it for $250,000.
But Schnatter was rarely without controversy, In 1999, a woman accused him of stalking and groping her - while he in turn accused her of trying to extort him. The case was eventually resolved with a confidential settlement.
In 2009, a further settlement was paid out after Schnatter was accused of sexual misconduct towards a 24-year-old female marketing employee.
Despite building a hugely successful franchise, Schnatter was forced to step down as CEO after causing controversy in December 2017 when, during a conference call, his criticised the National Football League for his chain's drop in performance.
Referring to the US national anthem protests in August of the previous year, in which players were observed taking the knee for the first time, Schnatter said: 'The NFL has hurt us... We are disappointed the NFL and its leadership did not resolve this.'
Schnatter remained chairman of the board of investors, but he added to his problems during another meeting in July 2018, when he said without evidence, that KFC founder Colonel Sanders had used the word 'n*****' to refer to black people.
This time, Schnatter was forced off the board completely and he filed a lawsuit against the company.
In a 2019 interview with WDRB, Schnatter claimed he was pushed out as part of a strategic coup from his successors and that a 'day of reckoning' would come.
John Schnatter, the founder of Papa John's, speaking in an interview which aired on 2019 about his bitter departure from the company
Schnatter founded Papa John's in Indiana in 1984. He is pictured in an undated image inside one of the restaurants
He claimed they 'used the black community and race as a way to steal the company' and that he is not racist and never has been.
The interview was mocked online with many calling Schnatter 'insane' and some saying he had started producing 'grease sweats' after eating so many pizzas.
Schnatter claimed in the interview that none of the people who succeeded him in charge had the appropriate experience to run the company, and that the food was suffering as a result.
'I've had over 40 pizzas in the last 30 days, and it's not the same pizza. It's not the same product. It just doesn't taste as good.
'The way they're making the pizza is just not fundamental to what makes a Papa John's pizza,' he said.
His claims were rejected by his successor as CEO, Rob Lynch, who said 'nothing has changed' about the group's recipes.
