Papa John’s closed multiple “low-performing, non-viable” franchised restaurants in the UK in the fourth quarter of 2023, with more closures planned in 2024.
According to a preliminary update from the US, the pizza brand is looking to optimize its UK business model and set up its “largest international market for long-term success”.
As a result, the company expects to make additional strategic restaurant closures of low-performing restaurants to drive improved profitability of the remaining stores and strengthen its franchisee base.
The pizza brand said it was focusing on improving operational efficiency, enhancing the customer experience and driving profitability in the UK.
According to a report in The Sun newspaper, it could close as many as 100 locations – though this was not confirmed by the company.
A spokesperson for the pizza giant said: “As our second largest global market, the UK is critical to Papa Johns’s long-term success.
“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.
“However, it’s important to note that no final decisions have been made at this time.”
Papa Johns has 118 branches that it owns and runs, as well as 406 franchises.
In November, Papa Johns’ said the repositioning of its UK estate created a “drag on profits”.
Earlier in 2023, the company acquired two packages of restaurants, one 27-strong, and another 91-strong through the acquisition of the M25 division of Drake Food Service International (DFSI).
It brought the UK corporate estate to 118 restaurants, the largest store footprint outside of North America.
CEO Rob Lynch said at the time: “Our efforts over the past year have focused on repositioning our UK portfolio.”
Despite the impact of this being “slightly more than expected”, Lynch added: “We continue to be confident in the long-term potential of the UK market.
“Despite the volatility that everyone is talking about in the international markets, we continue to see positive growth ahead.”
Papa John’s UK recently promoted Chris Phylactou to the position of managing director, after more than three years with the brand, replacing previous MD Rob Payne.
