Papa John’s to Close 300 Stores Across North America After 5.4% Sales Drop

Papa John’s closing stores, Papa John’s plans to shut down approximately 300 underperforming restaurants in North America by the end of 2027 as sales continue to decline.

During its latest earnings call, company executives confirmed that nearly 200 locations will close in 2026, while the remaining stores will shut their doors over the following year.

Sales Decline Triggers Action | Papa John’s closing stores

The company reported a 5.4% drop in same-store sales in North America last quarter. As a result, leadership decided to restructure operations and focus on stronger-performing markets.

Chief Financial Officer Ravi Thanawala explained that several locations failed to meet brand standards or show a clear path toward sustainable profitability. Instead of continuing losses, the company chose to consolidate operations.

In some regions, nearby restaurants will absorb customer demand after weaker outlets close. This strategy allows the brand to maintain service coverage while reducing operational costs.

Corporate Workforce Reduction

Beyond restaurant closures, Papa John’s reduced its corporate workforce by 7%, cutting roughly 49 positions from its 700-person team. Leadership says this move supports broader efficiency efforts and long-term financial stability.

Industry Faces Wider Challenges

The struggles do not affect Papa John’s alone. Recently, Pizza Hut also announced plans to close around 250 locations.

Rising operational expenses, inflation pressure, and shifting consumer spending habits continue to challenge the U.S. pizza market. Moreover, intense competition from delivery platforms and fast-casual brands has increased pricing pressure.

What Happens Next?

At this point, the company has not provided an announcement regarding the specific stores that will be closed. Nevertheless, the management has stated that the store closures will be gradual by the year 2027.

Going forward, the main goals for Papa John’s include strengthening the strong markets, increasing operational efficiency, as well as resuscitating same-store sales growth.

Conclusion Papa John’s closing stores

The decision by Papa John’s to close 300 stores is a major move for the company, as it marks a significant shift in the company’s strategy. Although the decision may impact the community, the management is confident that the decision will work for the company’s long-term performance as well as the brand.

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