Papa John's Case Analysis

3725 Words Nov 13th, 2012 15 Pages
Better Ingredients. Better Pizza. Papa John’s.
Better Ingredients. Better Pizza. Papa John’s.
Papa John’s
Case Analysis

Papa John’s
Case Analysis

Table of Contents
Appendix2
Exhibit 13
Exhibit 24
Exhibit 35
Exhibit 46
Exhibit 57
Exhibit 68
Exhibit 710
Exhibit 810
Exhibit 914
Exhibit 1015
Recommendations16

Appendix
Introduction
* Pizzerias represent 17% of all restaurants worldwide. In the United States alone, 93% of Americans eat pizza at least once a month. * Papa John’s Pizza is the number three pizza chain in the world with 6.3% market share, trailing only behind Pizza Hut and Domino’s. * Papa John’s first location opened in 1984 by John Schnatter, who is
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* The above information is summarized in Exhibit 3.

Exhibit 3: Pizza Industry Consumer Segments

* The pizza industry was strongly linked to the disposable income of consumers and the economy as a whole. * When the economy was down, consumers typically used the takeout and delivery options. * On the other hand, as the economy turned around, people made more money so they dined out. * However, regardless of the economy, consumers with less disposable income took advantage of the cheaper takeout and delivery options along with coupons and discounts. Those with more income tended to dine out at gourmet pizza restaurants. * Until 2017, consumer spending was expected to increase by an average annual rate of 2.9%.

A competitive analysis on the pizza industry is shown in Exhibit 4.
Exhibit 4: Five Forces Model
Substitutes
* Since the pizza industry is classified as a quick service industry, they have to compete with every other fast food chain that offers a larger selection of food * Fast-food restaurants, meals at home, frozen pizzas, food from supermarkets, other restaurants that are not pizza, other delivery restaurants that are not pizza * Since pizza is viewed as unhealthy, any restaurant that offers healthy options has an advantage * Substitutes are high because they are so many more options for food besides pizza

Substitutes * Since the pizza

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