How Papa John's Found Success In Avoiding Big Discounts

In America, we love our pizza. According to The Atlantic, in the U.S., we spend a staggering $37 billion a year on the doughy deliciousness. Just thinking about the gooey warm cheese mixed with tomato sauce over crunchy bread makes our mouths start to water. There are also so many different varieties to choose from, whether it's a margarita style or a unique pie like a spicy chicken tikka masala version.

Despite its popularity, some pizza chains have struggled to be profitable in the wake of inflation — but Papa John's is not one of them. QSR Magazine reports that the pizza company is one of the only chains that's been able to increase its sales. Papa John's CEO Rob Lynch said that he believes this is because the restaurant is focused on providing value and not just giving consumers steep discounts. "We have a very robust value strategy," Lynch explained. "It's just not the same as everyone else going out and putting the lowest price point on national television."

What Papa John's strategy involves

The pizza giant has focused on creating quality ingredients for its patrons, like its popular stuffed crust pizza. Per its website, the cheese-stuffed crust features "never-frozen original dough with melty cheese" that is baked to "crispy, golden goodness." Lynch also said he believes Papa John's success is due to its unique advertising that changes based on the location of its consumers and because of its customer loyalty program, as reported by QSR Magazine.

According to the Papa John's website, you can register online or through its app and get one point for every $1 you spend online or at the store. They also give customers $10 in "Papa Dough" for every 75 points earned. Lynch explained they currently have 25 million consumers in their rewards program and they're "able to surgically deliver incentives that motivate people in different ways to drive transactions" (via QSR Magazine). Which is something its competitors may want to take note of, as chains like Domino's and Pizza Hut have watched their sales decline in this latest quarter.