Pizza restaurant chain Papa John’s is planning to close approximately 50 underperforming company-owned restaurants in the UK in a bid to reduce operational losses.
All the closures are scheduled for the second quarter of this year.
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The move is part of the pizza chain’s strategic review of its portfolio.
It aims to target locations that contributed to two-thirds of the company’s operating losses in the UK during the fourth quarter of 2023.
Since March 2023, Papa John’s has transitioned 61 underperforming franchised sites to “more proven franchisees” and taken 118 franchised restaurants into company ownership.
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It has 450 UK stores, including outlets in service stations, holiday parks and attractions.
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By GlobalDataA report in KentOnline quoted a Papa John’s spokesperson as saying: “As our second largest global market, Papa John’s remains committed to driving growth in the UK.
“We are undertaking a comprehensive review of our UK-based restaurants to assess viability. Based on our current analysis, we are planning to close approximately 50 underperforming corporate-owned locations.
“The strategic closure of these restaurants would give us the opportunity to invest back into the right locations with the right partners, optimising the brand for long-term growth.”
Founded in 1984, Papa John’s International is known for its pizzas made with mozzarella cheese, vine-ripened tomato sauce and filler-free meats.
Papa John’s operates more than 5,900 restaurants across 50 countries and territories. It is co-headquartered in Atlanta, Georgia and Louisville, Kentucky, US.
In February 2023 Papa John’s International also reported a modest increase in total global revenues to $2.14bn – a 2% rise from the previous year.
Total revenues for Q4 2023 were up by 8.6% to $571.3m from $526.23m in the previous year’s Q4.
On a recent conference call to discuss 2023’s financial performance, Papa John’s International CEO Rob Lynch indicated that the company will persist in evaluating its UK portfolio, including both company-owned and franchised locations, and may consider additional closures if necessary.
