Nigel Travis (pictured) replaced John Schnatter as the CEO of Papa John’s in April 2005. Travis, formerly the president and COO of Blockbuster, has taken the pizza delivery chain over the $1 billion mark in revenue, boasting same-store sales results that have trumped rivals Pizza Hut and Domino’s over the past two years.
Matthew Boyle of Fortune magazine sat down with Travis to discuss Papa John’s revamped online ordering system, franchisee relations, growth plans, and his relationship with the man he replaced.
Papa John’s began online ordering in 2001, but Travis has ramped up the service significantly. Online sales have doubled in the two years he’s been at the helm with the addition of new features such as plan-ahead ordering (placing an order up to 21 days in advance for a special event) and "same again" orders (repeats the last order you placed). Online ordering has inflated order size and frequency as well, because the customer can take the time to consider all the options.
“We learned that they order more frequently, and they buy more - there is at least a 10 percent increase in the average order size online. The reason they buy more is simple, yet oxymoronic. The Internet speeds up everything but this is an example where it slows things down. When you call in an order over the phone, you are rushed and the store is rushed. But when you are online, you look at the whole range of the menu - like side orders of buffalo wings - and you see all the special offers,” said Travis.
Papa John’s plans to begin storing credit card numbers and customizing emails within the coming weeks, though Travis said they have a long way to go before all of the improvements are implemented.
Travis would like to see Papa John’s increase their international sales from 10 percent to at least 20 percent over the next five or six years. There are currently 360 international stores but he would like to reach 600 by the end of 2008. Papa John’s just opened a location in Egypt and plans to expand further into China and Russia. As for franchisees, Travis encourages them to voice their opinions, even if it’s something negative. With roughly 80 percent of the system franchised, he stresses the need for a positive relationship with his franchisees to build a better company. “I ask their opinion, and I don't think that doing so is weak management - that's strong management,” said Travis.
As for the Papa himself, Schnatter still serves as the company’s chairman. He and Travis share a good relationship, but that’s not to say that it’s been all rainbows and butterflies.
“From time to time, there are differences. We're both passionate, and we have very strong personalities. So we both argue when we have to, pretty furiously, but there's nothing wrong with that. My wife is passionate and I argue with her from time to time, too,” said Travis.