The development of delivery services and the growth of online commerce allowed the company to ride the wave of sales caused by quarantine.
Reporting quarterly financial results, Papa John’s pizza chain, which includes more than 5,000 restaurants, reported a significant increase in sales. U.S. sales for the second quarter in North America increased by 28%, while international sales increased by 5.3%. The company also reports that the number of new customers in the last three months was about 3 million.
By staying home during quarantine, customers began ordering pizzas and other “fast food” much more frequently. And since the coronavirus pandemic is not yet in a hurry to end, Papa Johns and similar companies can count on increased demand in the long term.
The main reasons for the company’s success are the well-established delivery service, as well as the growth of an online presence. According to the report, 70% of Papa John’s orders come online, with the mobile platform being the fastest growing network in the ecosystem.
Another additional benefit for the company due to the pandemic is the growth of attractive offerings in the commercial real estate market. According to Papa Johns, this opens up previously unavailable opportunities for the company to expand its network of operations in the United States.
Also, the company attributed part of its success to the properly implemented social policy and supported by Papa John `s healthy climate. Including the fact that in 2017 the founder of the company and “Papa John” John Schnatter himself was dismissed as CEO for racist remarks. Basketball star Shakeel O’Neill has been the face of the brand since then.
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