Papa Johns has acquired a further 27 locations in the UK, bringing its total corporate estate to 118 restaurants.
The latest acquisitions were made in July, and were disclosed in the group’s Q2 2023 update.
In June, Papa Johns established a company-owned restaurant portfolio in the UK with the acquisition of 91 restaurants.
The pizza group acquired a 91-strong UK portfolio previously operated by the M25 division of Drake Food Service International (DFSI).
The UK has the largest store footprint outside of North America, with the company aiming to follow a similar model to the US by owning and operating restaurants.
“I recently visited these locations and after meeting with our leadership team and those in the field, I’m excited about the long-term growth potential of these restaurants and the holistic UK market,” according to president and CEO Rob Lynch.
The model “accelerates our ability to scale our company’s capabilities with franchisees in the UK, and worldwide, to grow comps and new unit development”, Lynch said.
Papa Johns’ international business comparisons were down 1% however, driven by declines in the UK, according to the update.
Despite that, Lynch said the group was pleased the “improved relative performance” in the second quarter in the UK.
“While we know there will be macro-economic challenges ahead, particularly in the short term, we’re confident that we can improve sales and profitability within our UK market, and in our international segment overall,” he said.
As it integrates the new UK restaurants, the business is in the process of implementing “best practices developed within our domestic market, including marketing investments, specifically in the aggregator channels, menu innovation, and operational improvements”.
“We continue to make strategic investments across our international organization and infrastructure,” Lynch added. “It’ll take some time, but our investments in IT to support sales through improved capabilities like e-commerce, loyalty and revenue management are setting our global franchisees up for sustainable long-term success.”
