The Broom Closet that Started Papa John’s

Written by Samuel Phineas Upham

John Schnatter had a plan when he took over the broom closet of his father’s tavern in 1983. He wanted to start his own business selling pizza to the patrons of the bar. Located in Jefferson, Indiana, Mick’s Lounge was the first place one could find a slice of Papa John’s.

John got the money by selling his 1971 Camaro, a now famous story. The value was $1600, good enough to get a few pieces of used pizza making equipment and get the ball rolling. Within one year of selling pizzas, he’d rented the space next door to his father’s tavern.

Papa Johns didn’t become America’s fourth largest pizza takeout chain overnight, although it sometimes feels that way. A lawsuit filed by Pizza Hut in 1997 challenged some of Papa John’s advertising. Perhaps you recall the comparison of ingredients, stating that “Fresher is Better.”

Not according to the jury when the case went to trial. Though the ruling was overturned eventually, the original verdict stated that fresh ingredients did not necessarily guarantee a better pizza. The advertisement was ruled misleading until the overturning in 2000, when the court ruled that Pizza Hut failed to show how Papa John’s advertising would have a material effect on the consumer’s purchase.

If you’re wondering what happened to the Camaro, Schnatter did eventually buy it back from the family he sold it to. It only took a year.

Samuel Phineas Upham is an investor from NYC and SF. You may contact Samuel Phineas Upham on his Samuel Phineas Upham website