Papa John’s shuts 74 branches after being hit heavy losses – has your local closed?

PAPA John’s has had a tough year, closing 74 restaurants in the UK. 

It comes just months after The Sun revealed that up to 100 sites faced the chop.

Today, the company announced that its losses before tax rose to £21.8 million, up from £19.2 million last year.

Sales also dropped from £95.9million to £88.6million, continuing to fall since its last profit of £8.1million in 2021, when sales were £102.3million.

By the end of the financial year, the company had 457 UK locations, down from 524 the year before.

The closures were blamed on geopolitical issues, staff shortages, and rising costs.

Despite this, the chain still managed to open seven new stores last year.

A Papa Johns statement said: “In 2024 we continued to navigate the effects of global disruption; ongoing geopolitical issues, staffing shortages and rises in commodity costs.

“Whilst there was an improvement in consumer confidence, this remains below pre-pandemic levels with consumers more cost-conscious and more risk averse.”

Despite the closures and mounting losses, Papa John’s UK managing director Chris Phylactou remains optimistic about the future. Speaking on City AM’s Boardroom Uncovered show, he said the business is now “no longer losing money” and expects to return to profit in 2025. 

Last January, Papa Johns told investors that it plans to close more underperforming restaurants to improve profits.

By March 2024, the company confirmed that 43 locations would shut down following a consultation process, with closures set for mid-May.

It has now been revealed that 31 more stores were closed last year.

While the full list of closures hasn’t been shared, the 43 locations that shut last May are known.

Papa John’s is the UK’s second-largest pizza takeaway chain.

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 2023 but opened new branches in 15 locations.

HOSPITALITY WOES

The hospitality sector has struggled to bounce back after the pandemic, facing challenges including soaring energy bills, inflation and staff shortages.

In January 2023, Byron Burger fell into administration with owners saying it would result in the loss of over 200 jobs.

Around 12 branches were saved in a rescue deal with Tristar Foods, which is owned by Calveton.

The Restaurant Group (TRG), which owned Frankie & Benny’s, Chiquito and Wagamama, shut dozens of sites in the same year.

It then went on to sell its Frankie & Bennys and Chiquito brands to Cafe Rouge owner The Big Table group in September 2023.

Italian restaurant chain Prezzo also closed dozens of sites in the same year.

In April 2024, Tasty, the owners of Italian restaurant Wildwood and Dim T, a pan-Asian restaurant, announced plans to exit 20 loss-making restaurants.

In the same month, Whitbread revealed plans to slash its chain of branded restaurants across the UK.

Meanwhile, TGI Fridays was forced to close 35 locations immediately after falling into administration last October.

However, 51 restaurants were rescued through a last-minute pre-pack deal with private equity firms Breal Capital and Calveton UK.

In June, The Sun revealed how Pizza Hut is rolling out new digital ordering screens across all 136 of its dine-in restaurants, a move that could make over 100 staff members redundant.