Papa John’s International Inc. is evaluating its National Football League sponsorship in the wake of declining television football viewership, which the company has blamed in part on the national anthem protests that have roiled the league this season.
The Wall Street Journal is reporting top executives at the pizza chain said they are in weekly discussions with the NFL about the returns their advertising dollars are generating and that they will see how the rest of the football season plays out before making any big decisions. But they say consumers’ shift to digital channels is leading them to completely rethink the way they advertise.
“We have to evaluate our reliance on partnerships that are TV-focused, like the NFL,” Papa John’s Chief Marketing Officer Brandon Rhoten said in an interview on Friday, two days after the company reported that falling TV viewership of NFL games hurt the company’s third-quarter sales.
Total NFL ratings through the first seven weeks of the season declined by 5% compared with last year and by about 15% versus the same stretch in 2015, which was a strong season for the league. Media experts say many league offerings—from additional Thursday night games to the availability of games on digital devices and outlets—has led viewers to watch football elsewhere.
“If the viewership decline continues, we will need to shift into things that work more effectively for us,” said Papa John’s President and Chief Operating Officer Steve Ritchie.
While Papa John's was quick to blame the NFL for lackluster sales at its pizza restaurants during the third quarter, Pizza Hut is singing a different tune, according to CNBC.
Pizza Hut, the pizza division of Yum Brands, said Thursday that it is "not seeing any impact" from NFL player protests on its business in the third or fourth quarters of this year.
In fact, sales at Pizza Hut are doing quite well. On Thursday the brand posted its fifth consecutive quarter of positive same-store sales growth. The brand saw growth of 1 percent, exceeding forecasts for a 0.7 percent decline in the third quarter.
Yum said that live sporting events, including baseball, college football and the NFL were important to its business. Pizza Hut is the official sponsor of the NCAA.
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