Famous pizza chain begins closing branches

Papa John's has announced a significant downsizing of its UK operations, closing a total of 74 branches. The company stated that it made this decision due to factors such as geopolitical uncertainties and rising costs. While 31 branches were closed last year, an additional 43 branches were shut down in May of this year.

According to the company's latest financial reports, its pre-tax loss increased from 19.2 million pounds to 21.8 million pounds. During the same period, sales revenue also fell from 95.9 million pounds to 88.6 million pounds. This indicates a continuing downward trend when compared to the 8.1 million pound profit and 102.3 million pound sales volume the company achieved in 2021.

Papa John's emphasized that closing underperforming restaurants is part of its strategy to increase profitability. In a statement made to investors in January 2024, it was noted that this downsizing process was inevitable. Following consultations initiated in March, it was reported that 43 branches were closed in May and 31 more stores had quietly closed last year. However, the full list of closed branches has not been disclosed to the public.

With these closures, the number of Papa John's stores across the UK has fallen from 524 to 457. The company is known as the second-largest pizza delivery chain in the UK.