Papa John Schnatter Resigns Despite Creating Enormous Wealth

In lieu of ejection by the Board of Director, Papa John’s CEO John Schnatter has chosen to step down from his management at the company that he founded by opening up a pizza business in a spare space in his father’s restaurant. From his own work ethic, he created a business that is worth over $2 billion.

As a wealth creator, I don’t think you could find 1,000 individuals in the past century that had a greater impact than he did. Schnatter’s secret to pizza wealth creation consisted of the following: (1)  perpetual price hikes that were just a little bit higher than the rate of inflation, which he sustained perpetually until Domino’s decided to become the low-cost market participating and forced the other national chains to compete; (2) a fanatical focus on “order bundling”, or the recognition that a lot of money can be made when you can regularly induce customers to not only order pizza but soda and a side as well; and (3) a regular, systematic rollout of new store locations to augment the profit growth.

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