Latest news with #PapaJohnsUK
Yahoo
06-08-2025
- 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 Mail
04-08-2025
- 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.'
