Papa John’s, the pizza restaurant chain, intends to shutter around 50 of its company-owned outlets in the UK as part of a strategy to cut operational losses.
All closures are slated for the second quarter of this year.
The decision forms part of the pizza chain’s strategic evaluation of its portfolio.
The objective is to focus on locations that accounted for two-thirds of the company’s operating losses in the UK during the fourth quarter of 2023.
Since March 2023, Papa John’s has converted 61 underperforming franchised sites to “more established franchisees” and acquired ownership of 118 franchised restaurants.
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It operates 450 stores across the UK, encompassing outlets in service stations, holiday parks, and attractions.
A 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.”
Established in 1984, Papa John’s International is renowned for its pizzas crafted with mozzarella cheese, vine-ripened tomato sauce, and meats free from fillers.
Papa John’s has a presence in over 5,900 restaurants spanning 50 countries and territories. Its co-headquarters are located in Atlanta, Georgia, and Louisville, Kentucky, USA.
In February 2023, Papa John’s International also disclosed a slight uptick in total global revenues, reaching $2.14 billion, marking a 2% increase from the previous year.
Total revenues for the fourth quarter of 2023 saw an increase of 8.6%, reaching $571.3 million compared to $526.23 million in the previous year’s fourth quarter.
During a recent conference call addressing the financial performance of 2023, Papa John’s International CEO Rob Lynch stated that the company will continue assessing its UK portfolio, encompassing both company-owned and franchised locations, and might contemplate further closures if deemed necessary.
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