Papa John's founder John Schnatter has resigned as Chairman

John Schnatter is no longer the CEO of Papa John's, but he's still causing headaches for the pizza chain.

Forbes magazine reports that Schnatter used the N-word during a conference call in May, as part of a discussion of how to avert PR problems. When asked how he'd distance himself from online racist groups, he complained that "Colonel Sanders called blacks [N-words]” and never faced any backlash.

Schnatter has acknowledged the comment, saying, "Regardless of the context, I apologize. Simply stated, racism has no place in our society."

Although Schnatter is still the chairman and public face of Papa John's, he stepped aside as CEO early this year as the company's profits plummeted, following statements he'd made saying that the NFL's national anthem flap had cost the restaurant customers.