In a recent development, Papa John’s International has shared the news of its successful acquisition of the restaurants previously owned by Drake Food Service International’s (DFSI) M25 division in the United Kingdom.
The transition of restaurants will result in the creation of a collection of Company-owned restaurants within the market. The specific financial details of the transaction have not been revealed.
“The UK is important within our international footprint with the largest number of stores outside of North America, strong brand awareness with consumers and potential for long-term growth as we still have tremendous whitespace in the market,” said Amanda Clark, Chief International and Development Officer for Papa Johns by adding that owning and operating restaurants will allow Papa Johns to follow a similar model that they’ve created in the US.
The upcoming corporate-owned restaurant portfolio will encompass a total of 91 establishments located throughout London and various regions in the UK.
The company recognizes opportunities to implement enhancements to its operating model, which include bolstering revenue management capabilities, fostering product and technological innovation, and achieving operational efficiencies. These measures aim to improve sales performance and enhance profitability at the restaurant level.
As part of the transition, around 1,000 employees currently employed by DFSI M25 will join the company as team members.
However, DFSI will retain its master franchise rights for Papa Johns in Spain, Portugal, Chile, and Central America.
“By exiting our stake in the UK, we will be able to focus our efforts on our Papa Johns portfolio in Iberia and Latin America,” said Fernando Frauca, Managing Partner and CEO of DFSI.
Founded in 1984, Papa John’s International, Inc. has emerged as a global powerhouse in the pizza delivery industry. With a network of over 5,700 restaurants spread across approximately 50 countries and territories, it currently holds the distinguished title of being the third-largest pizza delivery company worldwide.
