The founder of Papa Johns has stepped down as the pizza chain’s chairman after using a racial slur during a conference call.
The resignation follows reports that John Schnatter used the N-word during a media training call with a marketing agency.
According to CNBC, Mr Schnatter allegedly said: “Colonel Sanders called blacks (the N-word)," and complained that the KFC founder never faced public backlash.
The company said in a statement: “Papa John’s condemns racism and any insensitive language, no matter the situation or setting ... We take great pride in the diversity of the Papa John’s family, though diversity and inclusion is an area we will continue to strive to do better.”
Mr Schnatter’s remarks were made as he took part in a role-playing exercise aimed at minimising future public relations issues, after facing a backlash last year for blaming sluggish pizza sales on NFL players kneeling during the national anthem. Papa Johns is a major NFL sponsor, and was forced to apologise for the comments made last November.
The group said at the time: “The statements made on our earnings call were describing the factors that impact our business and we sincerely apologize to anyone that thought they were divisive. That definitely was not our intention.
"We believe in the right to protest inequality and support the players' movement to create a new platform for change. We also believe, as Americans, we should honor our anthem. There is a way to do both."
Papa Johns said Olivia Kirtley would act as lead independent director following Mr Schnatter’s departure and added it would appoint a new chairman in the coming weeks.
Shares in the group dropped almost 5 per cent in Wednesday trading.
Additional reporting by news wires
