Papa Johns to close 50 underperforming UK takeaways, with redundancy fears

1 March 2024, 19:42

Pizza chain Papa Johns is set to close 50 UK takeaway restaurants that it says are performing worse than other locations.

The company did not reveal which of its 450 restaurants would be closed, but said that staff would be the first to know.

A spokeswoman for the group said: "As our second largest global market, Papa Johns remains committed to driving growth in the UK.

"As mentioned in January, 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.

Read more: PlayStation to axe 900 jobs and close London studio to 'future ready' itself

Read more: Body Shop to close half of its UK stores: Full list of stores shutting immediately

"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."

The group reported record global sales for the final three months of 2023, hitting more than 1.3 billion US dollars (£1 billion) during the quarter - a 10th higher than the previous year.

But chief executive Rob Lynch said it was taking action to improve profitability in the UK and to strengthen its franchisee base, as sales have begun to grow.

Papa Johns said it is focused on its staff "who will be the first to know" the takeaways that are closing, as it starts consulting on the locations.

"For any proposed restaurant closures that impact team members, we will work to find alternative roles within Papa Johns," the spokeswoman added.