---
title: "Papa Johns bets local marketing shift will blunt promotional pressures"
url: https://burnaze.com/article/67d31d6b-2b58-4f1e-9899-2c37d2170b76
source: "Restaurant Business"
original_url: https://restaurantbusinessonline.com/marketing/papa-johns-bets-local-marketing-shift-will-blunt-promotional-pressures
author: "Alicia Kelso"
category: "Pizza"
industry: "Restaurants"
segment: "Pizza"
topics: ["Marketing"]
published: 2026-11-05T22:29:05.000Z
modified: 2026-11-06T12:02:27.479Z
image: https://cdn.informaconnect.com/platform/files/public/2026-11/background/papa%20johns%20pizza.jpg?VersionId=hzmNSk1bq9Pcs7XrKFKkjNdq7lp.4Hwt
---

# Papa Johns bets local marketing shift will blunt promotional pressures

**TL;DR:** Papa Johns is launching its Unbox Better plan to counter promotional pressure from competitors like Domino’s, Burger King, Casey’s, and 7‑Eleven. The plan includes local marketing co‑ops, menu renovation, and a barbell pricing strategy.

*By Alicia Kelso, originally published in Restaurant Business on 2026-11-05. [Read the original](https://restaurantbusinessonline.com/marketing/papa-johns-bets-local-marketing-shift-will-blunt-promotional-pressures).*

## Key facts

- Unbox Better plan received 98% franchisee approval.
- The chain has experienced nine consecutive quarters of negative same‑store sales.
- Local marketing co‑ops are being reintroduced to strengthen regional promotion.
- The menu renovation focuses on dough optimization, bake consistency, and better toppings.

## Story

Papa Johns' recent sales slide has cost the chain market share losses, but not just to category leader Domino’s. Regional chains, like Jet’s — which experienced an 11.5% increase in sales last year while the pizza category was otherwise negative — and convenience stores like Casey’s and 7-Eleven, which have recently upgraded their pizzas, have also made some dents.

This intensifying competition has kept pace with changing consumer expectations, which “continue to rise,” Papa Johns CEO Todd Penegor said during the company’s earnings call Thursday morning. Papa Johns, however, hasn’t kept that same pace.

“For decades, customers chose Papa Johns because we stood for something distinctive, not because we were the cheapest option, but because they believe we offered something worth choosing: quality ingredients, great pizza, and a brand promise that sets us apart,” he said. “At our best, that promise earned trust and loyalty. But customers' expectations have continued to rise. Competition has intensified, and we recognize that we must move with those expectations to continue to earn that trust.”

## Unbox Better plan launch

That is why the chain introduced Unbox Better. Executives didn’t call it a turnaround plan, but it comes as the chain registered another negative same-store sales performance in the third quarter, marking its ninth out of the past 10.

There are many pieces in this plan, from marketing and technology to franchisee support such as reduced commissary margins and tech fees. That last part helped yield a 98% approval rate among franchisees to adopt the plan, Penegor said.

That’s not to say it will be a silver bullet, however. The environment remains intensely promotional, and customer acquisition remains hard to come by. To ensure the work from Unbox Better is effective, the chain is pulling from a successful playbook that has worked for brands like Domino’s, Burger King, and several others — it’s soliciting customer feedback about its products and service.

## Marketing and promotions strategy

“Their feedback will guide a steady set of product and quality improvements that we will roll out through next year,” Penegor said.

The company is also “resetting” its value equation.

“In a very promotional category, we chose to protect margin over deep discounting, and transactions declined as a result. We are now sharpening our barbell strategy, pairing the signature products customers crave with price points that drive traffic and conversion,” he added, cautioning that this approach will take several quarters of consistency before it gains traction.

The company plans to offer specialty pizzas at accessible price points complemented with “pulsed promotions,” like 50% off carryout orders. Penegor said the recent shift back to local marketing co-ops will help Papa Johns “play the game differently” amid the intense promotional environment. To coincide with Unbox Better, Papa Johns is bolstering its local ad fund to 2% from 0%, while reducing its national ad fund from 6% to 5%.

## Menu and food quality focus

“It puts us in a position where we can have a strong national barbell but also complement it at the local level, which has been a bit handicapped in the last few years. I think it gives us the opportunity to compete even stronger. We’re confident we’ll bend the trends,” Penegor said.

The menu is also a major priority within the Unbox Better plan, and we can expect new news in the fourth quarter, though “renovation of the core” remains Papa Johns’ biggest focus.

“As a restaurant company, everything starts with the food,” Penegor said. “We are working on and retraining the fundamentals across dough optimization, bake consistency, better toppings and presentation. What do we need to do to manage the melt points and amp up the cheese flavor of our cheese? How do we continue to optimize our dough? How do we drive improved heat retention for the consumer?

“Our customers don't owe us their business; we earn it with every order, every experience, every day, and that is the focus.”

*Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.*

## Entities

- Restaurants (sector)
- Burger King (company)
- franchisee support (topic)
- Domino's (company)
- Papa Johns (company)
- 7-Eleven (company)
- local marketing (topic)
- Todd Penegor (person)
- Casey's (company)
- barbell pricing (topic)
- menu renovation (topic)
- promotional pressure (topic)

---
Originally reported by Alicia Kelso, Restaurant Business (https://restaurantbusinessonline.com/marketing/papa-johns-bets-local-marketing-shift-will-blunt-promotional-pressures). Summarized by Burnaze (https://burnaze.com/article/67d31d6b-2b58-4f1e-9899-2c37d2170b76).
