If you haven’t checked the corporate masthead lately, things look a lot different at the pizza giant than they did even a year ago. It’s been a bit of a whirlwind. For a long time, the face of the brand was literally the guy on the box, John Schnatter. Then came Rob Lynch, who basically steered the ship through the chaos of the pandemic and the "Better Ingredients, Better Pizza" brand reclamation project. But as of late 2024, there’s a new heavy hitter in the corner office. Todd Penegor is the CEO of Papa John's Pizza now, and if you follow the fast-food industry, that name should ring a bell.
He came from Wendy’s.
Most people don't realize how much the leadership at the top dictates why your pizza costs $18 or why the app suddenly works better (or worse). Penegor isn't just a placeholder. He’s a guy who spent years making Wendy’s a legitimate threat to McDonald’s by leaning into digital sales and breakfast. Now, he’s tasked with doing something similar for a pizza brand that has felt a little stagnant lately.
Why the CEO of Papa John's Pizza is Betting on Digital
Pizza is a tech business. Seriously. If you think Papa John's is just about dough and tomato sauce, you’re missing the forest for the trees. The current strategy under Penegor is heavily weighted toward "digital transformation." That sounds like corporate speak, but honestly, it just means they want you to stop calling them on the phone and start using the app.
Why? Data.
When the CEO of Papa John's Pizza looks at the books, the digital customer is worth way more than the walk-in. They order more often. They spend more on sides like Jalapeño Papa Bites. They respond to push notifications. Penegor is leaning into what he calls "Pops" (Papa Johns Optimal Platform). It’s an internal push to make the tech stack more agile. During his time at Wendy's, Penegor saw digital sales grow from basically nothing to a multi-billion dollar pillar of the business. He’s trying to replicate that blueprint here.
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It’s a tough spot, though.
The competition is brutal. Domino’s is essentially a tech company that happens to sell pizza, and Pizza Hut has the massive backing of Yum! Brands. Papa John's has always occupied this middle ground of "premium" fast-food pizza. But in an economy where everyone is feeling the pinch of inflation, "premium" is a hard sell. Penegor has to find a way to keep that quality perception while making the price point make sense for a family of four on a Friday night.
The Ghost of the Past and the New Culture
You can’t talk about the leadership here without acknowledging the massive shadow cast by the founder. For years, the brand struggled to decouple itself from the controversies surrounding Schnatter. Rob Lynch did the heavy lifting of "de-John-ing" the brand—removing the face from the boxes and focusing on Shaq (Shaquille O'Neal), who joined the board and became a brand ambassador.
Penegor’s job is different. He’s the "growth" guy.
He inherited a company that is stable but needs a spark. One of the first things he’s had to navigate is the shifting relationship with franchisees. In the world of pizza, the franchisees are the lifeblood. If they aren't making money because food costs are up and labor is scarce, the CEO hears about it. Fast. Penegor has been vocal about "unit economics." In plain English: making sure the individual store owners are actually turning a profit so they’ll want to build more stores.
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It’s not just about the US, either. International growth is the holy grail. While Papa John's is a household name in the States, there is massive "white space" in markets like the UK, China, and India. The CEO of Papa John's Pizza has to play a global game of chess, balancing domestic saturation with international expansion.
What People Get Wrong About the Menu
Everyone asks about the crust. Or the garlic sauce. (The sauce is iconic, let's be real).
But the business strategy under current leadership is less about inventing a new pizza and more about "menu platforms." Think about the Papadia. That wasn't just a random lunch item; it was a way to use existing ingredients to capture a different "daypart"—lunch. Penegor is expected to continue this trend of "innovation within the margins." You’ll likely see more limited-time offerings (LTOs) that use the stuff already in the kitchen but package it in a way that feels new.
The Challenges Ahead: Labor and Loyalty
Labor is the elephant in the room. Every fast-food CEO is losing sleep over it. How do you keep drivers when they can make similar money doing DoorDash or working in a climate-controlled warehouse?
The CEO of Papa John's Pizza has had to embrace third-party delivery aggregators. For a long time, pizza places resisted this. They wanted their own drivers. But the world changed. Now, if you order Papa John's, there’s a decent chance a DoorDash driver is bringing it to you. Penegor has to manage that relationship—using third parties to fill the gaps without letting them eat all the profit.
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Then there’s the "Papa Rewards" program. This is Penegor’s secret weapon. By the end of 2024, the goal was to have a massive chunk of their transactions coming from loyalists. If they can keep you in their ecosystem, they don't have to spend as much on Google ads to find you.
A Summary of the Current Strategy
- Efficiency over Everything: Streamlining the supply chain to lower costs for franchisees.
- Tech-First Approach: Moving toward a seamless app experience that rivals Uber or Amazon.
- Global Footprint: Shifting focus to international markets where the brand is still "fresh."
- Brand Partnerships: Continuing the success of the Shaq partnership while looking for new cultural touchpoints.
Honestly, the next two years will be the "make or break" period for Penegor. He has the pedigree. He knows the QSR (Quick Service Restaurant) world inside and out. But pizza is a different beast than burgers. In the burger world, you’re fighting for the individual lunch. In pizza, you’re fighting for the family dinner.
How to Actually Use This Information
If you're an investor, a franchisee, or just someone who really cares about where their stuffed crust comes from, keep an eye on the quarterly earnings calls. That’s where the real tea is spilled. Penegor is generally pretty transparent about where the hurdles are.
Next Steps for the Curious:
- Watch the Digital Mix: Check the next few earnings reports. If "digital sales" as a percentage of total sales keeps climbing, Penegor’s plan is working.
- Monitor Menu Pricing: Keep an eye on the "deals" section of the app. If the discounts get deeper, it means they are struggling with traffic. If the prices stay firm but they add "value bundles," they are successfully navigating inflation.
- Track International Openings: See how many stores are opening in China versus the US. That’ll tell you exactly where the board of directors thinks the future money is.
The era of the "celebrity founder" is over at Papa John's. It’s been replaced by the era of the "operational expert." It might be less dramatic, but for the long-term health of the brand, it’s probably exactly what the company needed.