Papa Johns buys 91 restaurants from UK franchisee
The restaurants were previously operated by Drake Food Service International.
Papa Johns has acquired the 91 restaurants operated by the M25 division of Drake Food Service International (DFSI) in the UK.
The transition of restaurants will establish a portfolio of Company-owned restaurants in the market. Financial terms of the transaction were not disclosed.
The new corporate-owned restaurant portfolio will consist of 91 locations across London and other parts of the U.K. Papa Jonhs said they see opportunities to implement operating model enhancements including revenue management capabilities, product and technological innovation and operational efficiencies, to improve sales and restaurant-level profitability.
As part of the transition, approximately 1,000 employees working for DFSI M25 will become team members of the company, which prioritises creating a winning culture for its employees. Papa Johns expects minimal if any, disruption to customers is expected during the transition time.
“The U.K. is important within our international footprint with the largest number of stores outside of North America, strong brand awareness with consumers and potential for long-term growth as we still have tremendous whitespace in the market. Owning and operating restaurants will allow Papa Johns to follow a similar model that we’ve created in the U.S., which enables us to leverage our resources, best practices and scale with franchisees in the U.K. and worldwide to further their success,” said Amanda Clark, Chief International and Development Officer for Papa Johns.
DFSI will continue to hold its master franchise rights for Papa Johns in Spain, Portugal, Chile and Central America.