D'ough! Pizza Chain Boss "does a Ratner" As He Tells Customers: "Don't eat a whole pizza"

The boss of an international pizza chain did a 'Gerald Ratner' this morning by warning customers listening to a live radio interview: 'Don't eat a whole pizza'. Blundering John Schnatter - the worldwide chief of Papa John's - risked the wrath of shareholders when he said 'just eat one or two slices'. The gaffe echoes that of jewellery tycoon Gerald Ratner, who saw his business collapse almost overnight when he told his investors - in a widely-broadcast conference - that his products were 'total crap'.

A slice of Ratner: Owner John Schnatter told his customers not to eat a whole pizza. The pizza firm boss - which has 118 outlets in the UK and 2,500 in the USA - told his customers not to eat five or six slices - even though you can't buy less than a whole pizza at one his takeaways. The smallest pizza, at £6.99, has six slices, the medium, at £8.99, has eight slices and the large, at £9.99, has 10 slices.

Mr Schnatter, who calls himself the 'Papa' John, said on the Today programme on Radio Four: 'Pizzas are healthy for you if you don't eat too much of it - you can't eat five or six slices. 'But if you eat one or two slices it's very nutritious - a slice or two is good for you.'

John Schnatter is well-known in America for his appearances in adverts for his brands Mr Schnatter's answer came after Radio 4 business presenter Adam Shaw asked whether the Papa John's boss was concerned about the government's anti-obesity campaign impacting on sales. The presenter then joked: 'So don't eat a whole pizza is the advice of the chief executive of Papa John's? 'I'm not sure your investors would want to hear you tell people don't eat too much of your pizzas.'

Gerald Ratner became famous in the business world when he blurted out that his products were 'crap.' Ending the interview Mr Shaw - who asked whether Mr Schnatter was concerned about the government's anti-obesity campaign, added: 'I always eat a whole one.'

The global pizza magnate - who hails from Jeffersonville, Indiana - was brought onto the show to talk about how his company is bucking the credit crunch. He bragged that the firm posted a record sales increase of 13 per cent in January - and had a 60 per cent uplift this week alone.

The 47-year-old said: 'We've seen this cycle before several times in the last 25 years - the long and the short of it is we seem to do well in tough times.' He added that he was in London this week for an annual franchisee conference - to try and get more people buying into his chain - a global £1billion business. He said: 'The UK is a huge priority for Papa John's international - our sales in the UK are up three straight years. 'We've found in a recession that pizzas do quite well - we are optimistic and very bullish at Papa John's.'

The gaffe, though, has echoes of the famous own goal by former jewellery firm tycoon Gerald Ratner. In a now infamous blunder - taught in business studies lessons across the country - the magnate told his shareholders that the jewellery his high street stores sold was 'crap' - saying many of the items were 'cheaper than a prawn sandwich in M&S and wouldn't last as long'. The slip-up wiped £500million from the value of the business overnight as customers boycotted the chain.

More recently, in 2003, former Barclays chief executive Matt Barrett put his foot in it when he admitted he wouldn't let his kids use a credit card. He told an aghast Commons' Treasury select committee: 'I do not borrow on credit cards. I have four young children. I give them advice not to pile up debts on their credit cards.' Such gaffes are now known in the business world as 'doing a Ratner'. However, Mr Schnatter's advice is likely to be hard to follow for diners at his 118 UK restaurants.

His stores do not sell pizza by the slice and the smallest you can buy - recommended for one person - is six slices. A Papa John's worker at one of their stores in Dartford, Kent, said he's never had anyone ask for less. He said: 'That is our smallest - we never get anyone in here asking for anything smaller. 'I don't know what the recommended number of slices are if you want to be healthy - you'd have to ask your doctor.'

Mr Schnatter sold his first car - a classic American Z28 Camaro sports car - to buy his first pizza oven and found the company. His firm is now the third largest pizza delivery chain in the UK and opened 20 new outlets last year in a rapid business expansion to challenge Pizza Hut and Domino's. He has become a cult figure in the US - appearing on his own TV commercials to promote the firm.



by Daily Mail Reporter