What Papa John’s Atlanta Move Means For Former Louisville HQ

Papa John’s (PZZA) is making a move that may not have the support of its controversial founder and former CEO John Schnatter. The company is opening a new HQ facility in Atlanta, moving several parts of its operations from Louisville, Kentucky as a result.

The global headquarters will be situated in the metro area of Atlanta and will be home to the pizza chain’s “menu innovation, marketing, customer experience, human resources, diversity, equity and inclusion, communications, and development functions.”

The move to Atlanta is part of a broader reorganization of its corporate operations, which is expected to be completed by the summer of 2021.

“Shortly after setting a new strategic direction for Papa John’s late last year, we began to assess the optimal corporate organization to support our restaurants and our brand’s long-term growth,” Rob Lynch, president and CEO of Papa John’s, said in a statement.

“With strong momentum and our potential expanding every day, we are investing in capabilities for future innovation and global growth, improving efficiencies, and better aligning our organization around the strategies that are driving our near- and long-term success,” he added.

The reason for the move, Lynch said, was because Atlanta offers a deeper talent pool and close proximity to a global airport that will help to better connect its domestic and international markets. Atlanta is also home to Papa John’s “newest and most sophisticated” quality control center, and it is the company’s largest corporate-owned market, USA Today reported.

While an office has not been identified by Papa John’s as of yet, the company said it expects to determine the location by the end of 2020.

Papa John’s said it will keep its Louisville location, where it has resided in for the last 36 years. The property will house its IT, supply chain, and legal teams, which Lynch said is still an essential part of Papa John’s continued success. The company will keep 550 of its 750 corporate jobs in Louisville, Courier Journal reported.

The announcement from Papa John’s also gained the attention of Schnatter, who said in a statement obtained by the Courier Journal, that he was “saddened” by the decision. He continued by saying, “I’m concerned that the relationship won’t be the same as it was for the three successful decades.”

Schnatter, who created the pizza chain in 1984, was ousted by the company after alleged racist comments surfaced in a recorded meeting with its advertising firm. Schnatter has since been outspoken about Papa John’s latest moves, most recently criticizing the quality of its pizza.

Shares of Papa John's were trading at $82.89 as of 10:19 a.m. EDT, down 37 cents or 0.44%.