Papa John’s, a popular high street pizza chain, is gearing up to shutter several locations across the UK this year due to rising costs.
The global pizza chain, with 524 establishments in the UK, is reportedly set to close “dozens” of branches in the country, as indicated by reports from the Sun. According to statements from Papa John’s to investors, the company foresees “additional strategic restaurant closures of low-performing restaurants” as part of an effort to enhance its profitability.
Nevertheless, according to an insider, the closures might impact as many as 100 Papa John’s locations. Papa John’s has chosen not to disclose the precise number of stores that could be closed in the coming year.
Papa John’s Response: Operational Optimization Plan
A spokesperson for Papa John’s said, “As we work to fully optimize our restaurant operations and improve profitability across the market, we will continue evaluating the growth potential of our restaurants. This includes working collaboratively with our franchisees to strategically close low-performing locations when necessary, as well as continuing to invest in the right locations for the benefit of our customers. We will work to fully support team members through any transitions.”
Nevertheless, the spokesperson stated that “no definitive decisions have been reached at this point” regarding which locations, or how many, might eventually close.
Papa John’s stands as the second-largest pizza takeaway brand in the UK, trailing behind Domino’s. With 118 branches under its ownership and 406 franchise stores, Papa John’s made its debut in Essex in 1999, reaching a milestone in 2013 with the opening of its 200th UK store. Over the past year, Papa John closed 22 branches, but concurrently, it inaugurated 15 new sites.
It comes on the heels of the announcement that Revolution bars will be closing eight of their branches, a response to the financial challenges faced by their young target audience amid the cost-of-living crisis. The group has categorized these specific locations as “unprofitable.”
The company announced the closure of Revolution sites in Beaconsfield, Derby, Reading, St Peters Liverpool, and Wilmslow. Efforts are underway to redeploy staff from these locations. Additionally, two Revolucion de Cuba sites in Sheffield and Southampton, along with the Playhouse in Newcastle-Under-Lyme, will also be closed. The exact date of the closures has not been confirmed.
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