Family favourite pizza chain to close down more locations this year with ‘up to 100’ facing the chop
A FAMILY favourite pizza chain is to shut scores of locations across the country this year in a fresh wave of closures as restaurants battle high costs and fewer visitors.
Dozens of Papa Johns branches will close for good, The Sun understands.
It comes after the chain, which operates 524 locations in the UK, told investors it anticipates “additional strategic restaurant closures of low-performing restaurants” in a bid to boost profits.
But as many as 100 locations could face the chop and disappear forever, according to one insider at the company.
Papa Johns declined to say how many branches will be affected.
A spokesperson for the pizza giant said: “As our second largest global market, the UK is critical to Papa Johns’s long-term success.
“As we work to fully optimize 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.”
Papa Johns is the UK’s second-largest pizza takeaway brand, and has 118 branches that it owns and runs, as well as 406 franchises.
Domino’s, the chain’s biggest rival, operates at 1,253 locations and Pizza Hut 150.
Papa Johns’ first British restaurant opened in 1999 in Grays in Essex after the brand went international.
But by 2013, it celebrated the opening of its 200th UK store.
The pizza chain closed 22 restaurants in 20223 but opened new branches in 15 locations.
Fans of the pizza giant were left gutted in December after the chain pulled out of Cardiff completely.
All four Papa Johns branches across Welsh city shut their doors to customers abruptly before Christmas.
Branches in Glasgow, Plymouth, Worcester, Hereford, and Guildford have also shut down in recent months.
The closures come as hospitality bosses say that they are facing the worse start to the year ever with a string of high profile closures.
Restaurant chains are suffering from a double-whammy of falling sales as cash-strapped consumers cut back on going out and rising costs from higher wages, rent, energy and ingredient costs.
In 2023, some well-known retailers shut a handful of branches, while others have disappeared from the high street for good.
In January 2023, Byron Burger fell into administration, with owners saying it would result in the loss of over 200 jobs.
Italian dining chain Prezzo revealed plans to shut 46 restaurants back in April due to soaring energy and food costs, putting 810 jobs at risk.
Other chains have been forced to put expansion plans on hold.
Hostmore, the owner of restaurant chain TGI Fridays and 63rd+1st has said that it will no longer open any new restaurants until at least 2025, after confirming a drop in earnings.
The Centre for Retail Research also revealed today that 10,494 shops closed for the last time during 2023, and 119,405 jobs were lost in the sector.
More shops had been lost in previous years, and there was a reduction in job losses from 151,641 in 2022.
But the centre’s director, Professor Joshua Bamfield, said the improvement is “less bad” rather than good.
“The cost-of-living crisis, inflation and increases in interest rates have led many consumers to tighten their belts, reducing retail spend,” Prof Bamfield said.
“Retailers themselves have suffered increasing energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive store closures during the pandemic exceptionally difficult.”
The Centre for Retail Research said most stores were closed because companies were trying to reorganise and cut costs, rather than the business failing.