Papa John's to close 50 underperforming UK restaurants
Papa John's will close approximately 50 underperforming company-owned UK restaurants in a bid to stem losses.
The pizza chain, which operates more than 450 UK stores as well as number of locations in service stations, holiday parks and attractions, said the sites signposted for closure in Q2 of 2024 had accounted for two thirds of its operating losses in the UK in the fourth quarter of 2023.
Papa John's has been evaluating its UK portfolio and last year transitioned 61 underperforming franchised sites to "more proven franchisees", while also bringing 118 franchised restaurants into company ownership.
In a conference call discussing the group's 2023 results, Rob Lynch, chief executive of Papa John's International, said the changes had resulted in improvements.
He said the group will continue to evaluate its remaining UK portfolio as well as franchisee locations and that the chain could close further restaurants.
Lynch said: "We are building on the progress in this important market as we continue to take strategic actions that will drive improved profitability and further strengthen our franchisee base."
Papa John's International reported total global revenues of $2.1b (£1.6b) in 2023, a 1.6% increase on 2022.
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