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``Better Ingredients. Better Pizza.'' Alive and Well at Papa John's -- Supreme Court Declines Review of Slogan.

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LOUISVILLE, Ky.--(BUSINESS WIRE)--March 19, 2001

Pizza Hut Loses 2 1/2 Year Campaign to Take Down Papa John's Slogan

The United States Supreme Court today put an end to Pizza Hut's attempt to stop Papa John's from using its popular "Better Ingredients. Better Pizza." slogan. Pizza Hut had alleged the slogan to be false and misleading under the federal Lanham Act. In September 2000, the Fifth Circuit Court of Appeals ruled that Papa John's could continue using the slogan, and today the High Court declined Pizza Hut's request to review the case.

The decision culminates a two-and-a-half year legal battle in which Pizza Hut unsuccessfully attempted three times -- twice before the National Advertising Division of the Better Business Bureau and once in federal court -- to require its smaller rival to change its federally trademarked slogan.

"'Better Ingredients. Better Pizza.' really describes what we're about at Papa John's," said John Schnatter, Papa John's Founder and Chief Executive Officer. "We're fanatical about quality and our customers appreciate the Papa John's difference."

"We've always believed our advertising to be truthful," said Syl Sosnowski, Papa John's Vice President of Marketing. "We have a wonderful quality story to tell at Papa John's that America deserves to hear."

In addition to its victory in court, Papa John's is winning in the marketplace:
-- For the second consecutive year, Papa John's has been rated number one in
customer satisfaction among all national fast food restaurants in the American
Customer Satisfaction Index (as reported in the Wall Street Journal, February
20, 2001). Papa John's finished well above the national average for all fast
food chains and seven percentage points higher than Pizza Hut.

-- In a recently commissioned national survey among 1,500 pizza category users,
Papa John's was ranked first among national pizza chains in product quality and

-- Papa John's has been voted "Best Pizza" in more than 60 U.S. markets over
the last several years.

-- Papa John's leads all national pizza chains in per store sales averages and
comparable sales growth.

"Last year, we officially passed Little Caeser's to become the third largest pizza chain in America, in terms of sales," said Schnatter. "Our research shows that we are rapidly gaining on the number two chain, Domino's, in terms of share and usage. During the past twelve months, Papa John's usage among pizza eaters is nearly 90% of Domino's, even though they have nearly twice as many restaurants as us. Clearly, our system has a lot of momentum in the marketplace."

Papa John's International, Inc. (NASDAQ:PZZA) is headquartered in Louisville, Kentucky. At March 18, 2001, there were 2,634 Papa John's restaurants (632 company-owned and 2,002 franchised) operating in 49 states and ten international markets. Papa John's also owns or franchises 204 Perfect Pizza restaurants (3 company-owned and 201 franchised) in the United Kingdom. For more information about the company or to order pizza online, visit Papa John's at

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Publication:Business Wire
Date:Mar 19, 2001
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