In this week’s episode of the Future of Engagement, Murray Newlands talks about where Papa John’s went wrong, how to avoid similar mistakes, and why getting involved in politics is bad for your brand.
Just as the Chik-fil-A PR disaster is finally dying down, another fast food giant has made a similar faux-pas. Papa John’s pizza CEO John Schnatter was quoted as saying that costs incurred from the president’s new health care initiative would be passed on to customers in order to protect shareholders.
Papa John’s On ObamaCare:
“We’re not supportive of Obama Care, like most businesses in our industry,” Schnatter said, according to Politico. “But, our business model and unit economics are about as ideal as you can get for a food company to absorb Obama Care…If Obama Care is, in fact, not repealed, we will find tactics to shallow out any Obama Care costs and core strategies to pass that cost onto consumers in order to protect our shareholders’ best interests.”
Naturally, Facebook and Twitter were ablaze with criticism for Schnatter and for Papa John’s following the release of the comment, both for speaking critically of “Obama Care” and for the company’s willingness to spare shareholders at the expense of customers.
Graph taken from Alerti.com
Papa Johns’ and Chik-fil-A’s ventures into political debates were pretty disastrous, but their loss can be your gain if you use their poor example as a cautionary tale and a learning experience. What these companies demonstrated is the importance of staying out of sensitive political dialogue – especially when it isn’t even related to your business.
Fast Food Religion and Politics Don’t Mix
See 11 Cases That Prove Brands Should Avoid Sensitive Issues
If any issue has two strong oppositional sides, any non-objective statement you make is not going to go over well with a lot of people. Rather than potentially alienating a large percentage of your customer base, instead choose to remain objective, unbiased, and maintain distance between your brand and any debate over politics.
What other brand horror stories have you heard?
Share them in the comments and you may be featured or linked to in follow-up posts.
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Yes Papa Johns surely did make quite a lot of mistakes there and is surely a learning opportunity for lots of others
Wow, didn’t know Papa Johns had made this statement. Has definitely put me off them now.
Don’t know whether I agree or disagree on companies coming out and making such a view. Least we all know were we stand with Papa J now!
For some companies it could work, having a strong view on something, depends on who your customers are, and if that goes with your branding and perception in the wider public.
Gail W would love you to read ..Mothering the Sunday
So when is Papa Johns’ day? I can’t wait to support them!! Just like i support Chic-Fil-A day!!!
Well, the other way to think about it is that the 50 percent that confirms with you will become even more devoted.
So getting a part is not always bad, but I consent if you are company like a meals sequence, you do not want to reduce 50 percent your clients by leaving comments on something questionable.
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I can’t believe niter Papa John’s commented on such an issue. What a mistake!! Haven’t had Papa John’s in years. Never going there again to.
You know, Chik-fil-A drew a line in the sand, not only politically, but socially and in ten years time the whole tea party “movement” will be gone, because of its tired and close minded worldview. Things will change, I can’t say if for better or worse, but this whole fearmongering thing will find another form and Chik-fil-A will stay there on their side of the line they’ve drawn. As a business, you can take sides, but depending on whatever decision you made, there’s no going back.
Honestly if you are running a business, you need to basically not say anything that the news can grab a hold of no matter what your views are. You are guaranteed to selling to customers that don’t agree with your views on just about anything.
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Twitter: JGDCD
August 21, 2012 at 8:27 pm
I can’t even believe Papa John’s commented on such an issue. What a mistake!! Haven’t had Papa John’s in years. Never going there again.
Jennifer G would love you to read ..Warrant Issued for DUI Suspect Who Failed to Show for Court
Hi Gail,
I guess every one do learn from mistakes and if you can learn from mistakes, you can make a lot of things.
Thank you
Paul
The whole point about branding your business is to invest in something that will last for very long. Politics change every few years. So to associate your brand with politics is only a short term investment and therefore not a wise investment.
Twitter: hostforawebsite
August 19, 2012 at 8:45 am
It’s difficult to say what the outcome longterm for Chick-fil-a’s brand image will be. Their comments clearly angered a lot of people. Taking the morality of what was said out of the equation it got them a lot of publicity didn’t it.
Chris would love you to read ..Promote Your Website
Twitter: Ezvid
August 18, 2012 at 4:54 pm
Hi Gail,
I have learned it from them too.
Thank you
Alex would love you to read ..How To Screen Record Euro Truck Simulator
Well, the other way to think about it is that the half that agrees with you will become even more loyal.
So taking a side is not always bad, but I agree if you are business like a food chain, you don’t want to lose half your customers by commenting on something controversial.
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Twitter: gfrankenberry
August 17, 2012 at 3:32 pm
I dont think most companies freely just throw their opinions or make statements regarding what their opinions are regarding political issues. I think some of the ceo’s or other heads of large corporations that have built their companies on certain principals or values are sometimes approached and asked what their opinions are of specific political issues. In cases like this, I think companies should definitely not be afraid to make statements if they have built their business on a certain reputation or value such a chick filet. Sometimes not making a comment or stating an opinion in something you believe in is worse than making the statement.
Hey Gail,
I agree with you being in politics can have severe affect on the image of a brand or a company. Thanks for sharing this information with us.
Thanks,
Muhammad
Twitter: 3mwindowfilmto
August 16, 2012 at 8:33 am
I agree with you completely. Brands and companies should stay away from making political statements on such sensitive issues as gay marriage and healthcare. If you take a political stand supporting one side of the argument you will automatically alienate the other side. You will lose customers either way so it’s best to stay neutral and take no sides at all. Chic Fil A actually had some support from the republicans after their statement against gay marriage with all these politicians posing for pictures with Chic Fil A. That, however, will only result in a temporary boost in sales. The damage to their brand has been major though and it will be felt for years to come.
Twitter: AAAccidentAttorneys
August 16, 2012 at 11:35 am
While I do agree with you, I also can understand an organization taking a stand on values/issues it believes in. Different issues can force different levels of alienation (and gay marriage certainly introduces some strong opinions), but companies do have a right to take a side. I’m not so sure things are as grim as they may seem for these companies, everyone is responding in hysterics on both sides of the issues. Once things get toned down a bit and people start to discuss things a little more rationally, I think things will be sorted out, and we won’t demonize companies for taken a side on a social issue.
good words from Murray Newlands with very interesting advices. I totally agree that getting envolved in politics does no good for your brand
Marti Perarnau would love you to read ..Theofanis Gekas
Being in politics or doing politics can harm the brand image of any company.I guess Papa Jones does it for attracting more people.But it only makes you foolish if you are commenting such topics.You are providing eateries to others so its better to not eat what one can’t digest.
Aditya would love you to read ..ERP Software Delhi
How about Progressive Insurance’s disastrous response to allegations they defended their client’s killer in court? I just wrote a blog about the situation. As word of the case spread, Twitter users began to respond negatively at Progressive. They issued the same canned, auto-response over and over again about being sorry for the loss of the family, but that they handled the situation just fine. The last part is debatable, considering they did send a lawyer to help defend the driver that killed their client. Either way, Progressive’s account was banned from TwitLonger for being spammy.
Robert Koenig would love you to read ..Car Crash Victim Betrayed by Insurance Company
Sadly that is the tactic these days, don’t talk, or else you will be looked down upon. It’s really a downward spiral in our culture. The lack of voice these days is probably one of the leading causes to the plummet in our society (and yes I’m not going to get specific). I hear a lot of complaining about a certain political upcoming event, and yet I doubt anything will change because everyone is afraid to stand up. Because there’s so many large mouths out there that will talk them down, hold signs outside their house shaming them… You know what I mean. I feel often times the best I can do is just keep track of my chickens in life and do my best with what I have.
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