Popular pizza chain closed dozens of restaurants globally

With the U.S. being a melting pot of different cultures and ethnicities, it’s almost impossible for this country not to give dishes from other parts of the globe an American spin and make them its own. 

Although associated with Italy, pizza is among the most popular dishes in the U.S., making it an American staple for many decades.  

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This explains why the U.S. has millions of pizza joints and chains and is the birthplace of well-known names such as Pizza Hut  (YUM) , Domino’s  (DPZ) , and Papa Johns. 

Although Papa Johns  (PZZA)  is still considered a pizza giant worldwide, it has experienced concerning declines over the last few months. 

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Papa Johns’ total revenues were down 3.6% in 2024 compared to the year prior, with domestic company-owned, North America franchise, and North American restaurants all suffering declines.  

Its international sector suffered the same fate, with comparable sales decreasing nearly 1% in 2024. 

The company attributed these global losses to acquiring 118 formerly franchised restaurants in the UK in 2023. It closed and franchised all but 13 of them, which impacted its earnings for fiscal 2023 and 2024. 

Although Papa Johns’ global business looks to be in jeopardy, the UK is taking the biggest hit. 

Papa Johns makes mass restaurant closures across the UK

Papa Johns International has closed over 40 restaurants across the UK over the last year due to underperformance, which caused hundreds of employees to lose their jobs. 

Although a tough decision, the pizza chain lost almost £20 million before making this move, as it had exhausted all other options. 

The company claimed this was a strategic move to reinvest the money from the closures into improving the remaining locations. Still, this significant shift left some pizza-loving fans wondering if this was the beginning of the end for the beloved chain. 

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Papa Johns turnover increased by 0.79% to nearly £96 million in 2023 compared to the previous year, as stated in its latest accounts filing. However, it still had a pre-tax loss of almost £20 million.

The last time the pizza chain saw positive results in both numbers was 2021, when it reported a turnover of £102.3 million and a pre-tax profit of £8.1 million.

Papa Johns makes a surprising revelation, but a wrinkle emerges

Although many feared the end of Papa Johns in the UK, a surprising revelation made some loyal fans optimistic about the pizza chain’s future.

The company’s Managing Director, Chris Phylactou, confirmed in City AM’s Boardroom Uncovered podcast that Papa John’s is profitable again and on track to report its earnings for the first time since 2021. He also stated that the pizza chain expects to make a profit in 2025.

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However, the joy didn’t last long. This month, it was revealed that 13 Papa Johns restaurants across the South West UK have temporarily closed, leaving a lingering cloud of uncertainty about the chain’s future. 

“While the stores are temporarily closed, we are working to secure new ownership and reopen as soon as possible. Our priority is delivering quality pizza and a great experience for our customers, while supporting our teams through this transition,” said a Papa Johns UK spokesperson.

No official confirmation has been given about whether layoffs will occur or have resulted from these closures. Still, the company intends to reopen these locations once a new franchisee has been found.

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