Papa Johns reaffirms commitment to the UK amidst report of potential closures
The brand has more than 500 restaurants in the UK.
Papa Johns affirms that the UK is critical to its long-term success as its second-largest global market after a report from the Sun said that the pizza giant could close 100 restaurants in the UK as it aims to optimise its business model.
"As our second largest global market, the UK is critical to Papa Johns long-term success. As we work to fully optimise 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,” a Papa Johns spokesperson said.
READ MORE: Papa Johns shutters some restaurants in South Wales
In a press release, Papa Johns said they had 210 net unit openings globally for the full year 2023 with 57 net unit openings in North America and 153 net unit openings in international markets.
“The lower-than-anticipated net unit openings were primarily the result of additional unanticipated international restaurant closures in the fourth quarter including 10 UK franchised restaurants; 12 international units that were re-classified as closed locations in the fourth quarter through a review of temporary restaurant closures; restaurant openings moved into 2024; and restaurant opening delays due to the ongoing conflict in the Middle East,” the company said.
The company also said it plans to optimise its UK business model, where it will focus on improving operational efficiency, enhancing the customer experience and driving profitability.
“As a result, the Company closed multiple low-performing, non-viable, franchised restaurants in the fourth quarter of 2023. In 2024, the Company anticipates additional strategic restaurant closures of low-performing restaurants that will drive improved profitability of the remaining stores and strengthen our franchisee base within this important market,” Papa Johns said.
