Latest news with #ChrisPhylactou
Yahoo
4 days ago
- Business
- Yahoo
Papa Johns closes 74 restaurants in UK
Papa Johns has announced the closure of 74 UK restaurants following a challenging period that saw its pre-tax losses increase to £21.8m in the financial year 2024, up from £19.2m in 2023. The pizza chain, which is the second-largest in the UK, experienced a downturn in sales from £95.9m to £88.6m - a continuation of a decline from an £8.1m profit in 2021 when sales stood at £102.3m. By the end of the 2024 financial year, the number of Papa Johns' locations in the UK had reduced from 524 to 457. The company attributed the closures to a mix of geopolitical issues, staffing shortages and rising costs. Despite these challenges, the brand managed to open seven new stores in 2024. In a statement, Papa Johns 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." By March 2024, the company confirmed the closure of 43 locations following a consultation, with the shutdowns taking place in mid-May. An additional 31 stores were closed during the year, although the full list of closures has not been disclosed. In January 2025, Papa Johns informed investors of its plans to shut down more underperforming stores to enhance profitability. Amidst the closures and increasing losses, Papa Johns UK managing director Chris Phylactou expressed optimism on City AM's Boardroom Uncovered show, stating the business is "no longer losing money" and anticipates a return to profit during 2025. The first Papa Johns restaurant in the UK opened in 1999, and by 2013, the brand celebrated its 200th UK store. In 2023, the chain closed 22 outlets but also opened 15 new locations. Its net income for the first quarter of 2025 stood at $9.3m - a significant $5.6m drop from the $14.9m reported in the first quarter of the previous year. "Papa Johns closes 74 restaurants in UK" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Record
6 days ago
- Business
- Daily Record
Papa Johns confirms closure of 74 stores after years of financial losses
The company is set to finally see profits this year after making consistent losses since 2021 and shutting dozens of stores as a result. Pizza chain Papa Johns has confirmed that they have closed 74 of their UK stores over the past two years due to financial losses. The food firm has lost money every year since 2021, including a loss of almost £20million in the year up to October 2024. However, the company's managing director Chris Phylactou has stated that they are finally to see profits this year after a poor run since the pandemic. But that hasn't been enough to stop the closures. There were 43 stores, all based in England, that closed in May of this year. And the Mirror has reported that a further 31 stores were shut last year. Speaking on an upcoming episode of City AM's Boardroom Uncovered podcast, Phylactou shared that two of Papa Johns' largest partners flagged the risk of insolvency during 2023. He said: "We took a strategic decision to acquire those and we kept those restaurants for nearly a year. We tried to look at which ones we could turn around and fortunately 60 of them were really good. 'We franchised them internally to incumbent franchisees, 13 of them we've kept under corporate ownership, but unfortunately 43 of them we've had to close. Closing restaurants is never an easy decision. "It's the last thing we ever want to do. It's a lot of jobs, particularly when people's livelihoods are at stake. But if restaurants are performing badly and losing a lot of money, sometimes the best decision is to close them.' Papa Johns is the UK's second largest pizza takeaway brand, behind Domino's. The first UK Papa Johns stores opened in Essex in 1999 and in 2013 it opened its 200th UK store. At the start of 2024, Papa Johns owned 118 branches and 406 franchise stores. But in 2023, Papa Johns closed 22 branches and opened 15 new sites. The UK arm of Papa Johns disclosed a pre-tax loss of £21.8million in the year to October 2024, with a loss of £19.2million in 2023 and a £4.1million loss in 2022. It was then that Papa Johns made the "difficult decision" to close stores. He said: "Having people lose their jobs is the last option for us. We tried everything to keep the restaurants open.' He added: 'It's never an easy decision and something that I wasn't happy doing, but it's something that we had to do as a brand. "We held on to the restaurants probably longer than we should have to protect the people for as long as we could. 'And we put a lot of effort into trying to turn those businesses around. But unfortunately, they were even the wrong location and the performance of the restaurants was really bad. So there was no business case to keep them open.' It has not been confirmed how many jobs have been lost due to the closures, and the specific locations of all 74 stores have not been revealed. However, the 43 high street stores shut in May were all in England, with closures stretching from London to the Midlands. Join the Daily Record WhatsApp community!
The Sun
6 days ago
- Business
- The Sun
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. 1 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. Huge restaurant chain 'up for sale' putting 70 sites at risk of closure 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. Which Papa Johns sites closed in 2024? Barnsley, South Yorkshire Bebington, Merseyside Bexhill, East Sussex Billericay, Essex Bromley, Greater London Coulsdon, Greater London Cricklewood, Greater London Darlington, County Durham Doncaster, South Yorkshire Durham, County Durham East Dulwich, Greater London East Grinstead, West Sussex Eastbourne, East Sussex Hailsham, East Sussex Harringay, Greater London Harrogate, North Yorkshire Hendon, Greater London Horsham, West Sussex Lancaster, Lancashire Leeds Meanwood, West Yorkshire Liverpool West Derby Road, Merseyside Middlesbrough, North Yorkshire Mottingham, Greater London Northwood Hills, Greater London Peacehaven, East Sussex Peckham, Greater London Penge, Greater London Putney, Greater London Redhill, Surrey Rochdale, Greater Manchester Rotherham, South Yorkshire Ruislip, Greater London Runcorn, Cheshire Scunthorpe, North Lincolnshire Sittingbourne, Kent Southport, Merseyside St Helens, Merseyside Stoke Newington, Greater London Tunbridge Wells, Kent Upminster, Greater London Watford St Albans Road, Hertfordshire Whitton, Greater London Wimbledon, Greater London 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.
Daily Mirror
6 days ago
- Business
- Daily Mirror
Papa John's confirms 74 outlets closed across UK as chain hit difficulties
The pizza franchise has released a statement and added: 'we tried everything to keep the restaurants open' Papa John's has today confirmed it has closed 74 of its pizza takeaway outlets in the UK due to severe financial struggles in the last 12 months. The UK arm of the American pizza behemoth d isclosed a pre-tax loss of £21.8 million for its latest financial year, compounding a £19.2 million loss reported in 2023, as per City AM. Newly filed accounts with Companies House show that the company's revenue also took a hit, dropping from £95.9 million to £88.6 million. The specific locations of the Papa John's outlets set for closure have not been disclosed. The last time Papa John's saw a pre-tax profit in the UK was in 2021, when it posted £8.1 million, along with a turnover of £102.3 million during the same period. A statement approved by the board read: "In 2024 we continued to navigate the effects of global disruption; ongoing geopolitical issues, staffing shortages and rises in commodity costs." It added: "Whilst there was an improvement in consumer confidence, this remains below pre-pandemic levels with consumers more cost-conscious and more risk averse." Over the course of the year, the chain shut down 74 restaurants but opened seven new ones, ending 2024 with 457 Papa John's locations across the UK, a decrease from 524. Despite the closures, Papa John's is hopeful about returning to profitability in 2025. Following a challenging period that saw the closure of more than 40 outlets last year, UK managing director Chris Phylactou disclosed on City AM's Boardroom Uncovered programme that the company has ceased losing money and is positioned to deliver its first UK profit since 2021. During the programme, Phylactou declared that the division is "no longer losing money" and anticipates turning a profit by 2025. "That's because of the difficult decisions we made back then" he explained. "Having people lose their jobs is the last option for us. We tried everything to keep the restaurants open." He continued: "It's never an easy decision and something that I wasn't happy doing, but it's something that we had to do as a brand." "We maintained the restaurants probably longer than we should have to safeguard the workforce for as long as possible. "And we put a lot of effort into trying those trying to turn those businesses around. "However, regrettably, they were in the wrong locations and the restaurant performance was extremely poor. So there was no business case to keep them open."
Daily Mail
6 days ago
- Business
- Daily Mail
Popular restaurant chain shuts 74 locations across the UK after financial losses
Papa John's has closed 74 of its pizza takeaway outlets across the country due to severe financial difficulties. The UK arm of the American fast food chain suffered pre-tax losses of £21.8million in the latest financial year. Papa John's revenue has also taken a hit with newly-filed accounts on government website Companies House showing a drop from £95.9million to £88.6million. Moreover, the last time the pizza chain achieved a pre-tax profit in the UK was in 2021, when it recorded £8.1m, The Mirror has reported. The closure of the 74 outlets has taken place over the course of a year, but was only confirmed today. It is unclear how many staff at the takeaway pizza chain, which has more than 400 stores across the UK, have been affected by the announcement. A spokesperson for the company said: 'In 2024 we continued to navigate the effects of global disruption; ongoing geopolitical issues, staffing shortages and rises in commodity costs.' They added: 'Whilst there was an improvement in consumer confidence, this remains below pre-pandemic levels with consumers more cost-conscious and more risk averse.' It is unclear how many staff at the takeaway pizza chain have been affected by the announcement (file photo) In March last year, Papa John's announced it would be shutting 43 'underperforming' restaurants across Britain - nearly a tenth of its total stores. Chris Phylactou, managing director at Papa Johns UK, previously said: 'Our priority is our team members, who will be fully supported throughout this process. 'Our goal is to work with impacted team members and attempt to find redeployment opportunities where available. 'We understand the impact this will have on our team members and are committed to supporting them during this time.' Despite closing the underperforming stores, Papa John's has opened another seven new ones across the UK. Last March, the chain opened a new branch in Sleaford, Lincolnshire brining 20 new jobs to the local area. Mayor of Sleaford, Councillor Anthony Brand said: 'I was delighted to be asked to open Sleaford's newest Papa Johns. 'As mayor, it's always great to see restaurants and businesses creating new jobs in the borough for members of the local community.'
