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What's the cost of delivering a pizza headquarters more than 400 miles? Up to $20M, not including tip.
Papa John's International disclosed that the one-time cost of moving its corporate headquarters from Louisville, Kentucky, to Atlanta will be between $15M and $20M by the end of this year, according to the company's annual report filed Thursday with the Securities and Exchange Commission. The cost includes about $6M already incurred in 2020, including $4.7M in severance packages and employee transition costs.
Papa John's is in the process of building out 60K SF at Three Ballpark Center at The Battery at Truist Park in Cobb County — home of the Atlanta Braves — and will integrate the marketing, communications, customer experience, operations, human resources, diversity, equity and inclusion, financial planning and analysis, investor relations and development divisions, according to the report.
Papa John's also noted that the company expects to begin making minimum lease payments on its $33M lease at Three Ballpark this year. The pizza-maker signed a 15-year lease, according to data from Transwestern, which has Papa John's lease rate at $37 per SF. That rate is more than $10 per SF above the average office lease rate for the Cumberland/Galleria submarket, according to CBRE's Q4 office market report. That price is more often achieved in submarkets like Midtown and Buckhead.
Earlier this month, the Development Authority of Cobb County approved a $13M revenue bond incentive package for Papa John's, the country's fourth-largest pizza chain, that allows it to abate taxes on its office finishes, furniture and equipment at Three Ballpark.
“The Atlanta office is part of a broader strategic reorganization of corporate functions reflecting the Company’s ongoing transformation into a brand and culture that can effectively and efficiently deliver on the Company’s purpose, values and strategic business priorities,” the annual report stated.
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