Papa Johns has announced the closure of 74 UK restaurants following a challenging period that saw its pre-tax losses increase to £21.8m in the financial year 2024, up from £19.2m in 2023.

The pizza chain, which is the second-largest in the UK, experienced a downturn in sales from £95.9m to £88.6m - a continuation of a decline from an £8.1m profit in 2021 when sales stood at £102.3m.

By the end of the 2024 financial year, the number of Papa Johns' locations in the UK had reduced from 524 to 457.

The company attributed the closures to a mix of geopolitical issues, staffing shortages and rising costs. Despite these challenges, the brand managed to open seven new stores in 2024.

In a statement, Papa Johns said: "In 2024 we continued to navigate the effects of global disruption: ongoing geopolitical issues, staffing shortages and rises in commodity costs.

"Whilst there was an improvement in consumer confidence, this remains below pre-pandemic levels with consumers more cost-conscious and more risk-averse."

By March 2024, the company confirmed the closure of 43 locations following a consultation, with the shutdowns taking place in mid-May. An additional 31 stores were closed during the year, although the full list of closures has not been disclosed.

In January 2025, Papa Johns informed investors of its plans to shut down more underperforming stores to enhance profitability.

Amidst the closures and increasing losses, Papa Johns UK managing director Chris Phylactou expressed optimism on City AM's Boardroom Uncovered show, stating the business is "no longer losing money" and anticipates a return to profit during 2025.

The first Papa Johns restaurant in the UK opened in 1999, and by 2013, the brand celebrated its 200th UK store. In 2023, the chain closed 22 outlets but also opened 15 new locations.

Its net income for the first quarter of 2025 stood at $9.3m - a significant $5.6m drop from the $14.9m reported in the first quarter of the previous year.