The popular pizza place Papa John's, is making big changes to sell more pizzas this year. In the next few weeks, they will start advertising in a new way, all over the country, instead of just in local areas.
They plan to introduce some exciting new items to their menu in April. With these changes, Papa John's hopes to see a big increase in sales throughout 2024.
Papa John's Aims for Stronger Sales After Tough Start
Papa John's faced a challenging start to the year, with a 1% drop in sales at its stores in the first two months. The main problem was its delivery service was not doing as well as expected.
CEO Rob Lynch shared with investors, "We knew the start of the year would be hard. But we're ready to improve our sales with our plans starting in the second quarter (Q2)."
These plans are about changing how the company spends its advertising money. Instead of focusing on local ads, Papa John's is moving to advertise nationally.
Working closely with its store owners, Papa John's is updating its approach to "Back to Better 2.0." This new strategy is a follow-up to the one that helped the company increase its sales five years ago.
A key part of this strategy is asking store owners to contribute more to the national advertising, raising their contribution from 5% to 6%. As a benefit, these store owners won't have to spend as much on local advertising, dropping from 3% of their sales to none. This change is about boosting sales by reaching more people nationwide.
Lynch talked about how the pizza company pushes for growth and stays strong, even when money matters get tough. He pointed out how good a deal pizza is and how well their special offer of a large pizza with one topping for $8.99 is doing.
Even though other pizza places might lower their prices to compete, Papa John's keeps a steady mix of new ideas and good deals. The company focuses on advertising and helping its pizza shop owners, planning to lead to more sales and success.
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Papa John's Launches $20 Million Marketing Revamp
Papa John's is rolling out a fresh marketing strategy with a $20 million boost this year, announced CEO Rob Lynch.
After thoroughly evaluating its advertising and creative approach in 2023, the pizza giant discovered new methods to reach its audience better, offer unique products, enhance advertising effectiveness, and maintain customer loyalty while spreading brand awareness.
In support of this new direction, Papa John's franchise owners have agreed to up their contributions to the national marketing fund by 20%. This significant shift mirrors a trend among big brands, moving away from local advertising cooperatives to national campaigns.
This strategy allows Papa John's to buy advertisements in bulk, securing lower prices and access to premium advertising opportunities, explained Lynch. This change aims to make Papa John's marketing efforts more efficient and impactful, reaching more customers and boosting sales.
The company is gearing up for a brand-new advertising campaign and promising some big changes to its menu starting in April.
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