Family favourite pizza chain to close down more locations this year with ‘up to 100’ facing the chop

A FAMILY-favorite pizza chain will close scores of locations across the country this year in a new wave of closures as restaurants struggle with high costs and fewer patrons.

Dozens of Papa John’s branches will close for good, The Sun learns.

1

Papa Johns will close dozens of branches across the UK in 2024

It comes after the chain, which operates 524 locations in the UK, told investors it foresees “additional strategic closures of underperforming restaurants” in a bid to boost profits.

But as many as 100 locations could face a hit and be gone forever, according to one company insider.

Papa Johns declined to say how many branches would be affected.

A spokesperson for the pizza giant said: “As our second largest global market, the UK is critical to the long-term success of Papa Johns.

“As we work to fully optimize our restaurant operations and improve profitability across the market, we will continue to evaluate the growth potential of our restaurants.

“This includes working with our franchisees to strategically close underperforming 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 throughout all transitions.

“However, it is important to note that no final decisions have been made at this time.”

Papa Johns is the second largest takeaway pizza brand in the UK and has 118 owned and operated branches as well as 406 franchises.

Domino’s, the chain’s biggest rival, operates in 1,253 locations, and Pizza Hut in 150.

See also  This unfortunate maple syrup poster has got people giggling… so can YOU spot what the problem is?

The first British Papa John’s restaurant opened in Grays, Essex in 1999 after the brand went international.

But by 2013 it had celebrated the opening of its 200th UK store.

The pizzeria chain closed 22 restaurants in 20223, but opened new branches in 15 locations.

Fans of the pizzeria giant were left gutted in December after the chain pulled out of Cardiff altogether.

All four Papa Johns branches across the Welsh city abruptly closed their doors to customers before Christmas.

Branches in Glasgow, Plymouth, Worcester, Hereford and Guildford have also closed in recent months.

The closure comes as restaurant bosses say they are facing their worst ever start to the year with a string of high-profile closures.

Restaurant chains are suffering the double whammy of falling sales as cash-strapped consumers cut back on spending and rising costs due to higher wages, rent, energy and grocery costs.

In 2023, some well-known retailers closed a handful of branches, while others disappeared from the high street forever.

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

Italian restaurant chain Prezzo revealed plans to close 46 restaurants back in April due to high energy and food costs, putting 810 jobs at risk.

Other chains were forced to put expansion plans on hold.

Hostmore, owner of the TGI Fridays and 63rd+1st restaurant chains, said it would not open any more restaurants until at least 2025, after confirming a decline in earnings.

The Center for Retail Research also revealed today that 10,494 stores were last closed during 2023, with 119,405 jobs lost in the sector.

See also  Full list of Wilko stores closing down next week revealed - is one near you shutting for good?

More stores were lost in previous years, and the number of lost jobs was reduced from 151,641 in 2022.

But the centre’s director, Professor Joshua Bamfield, said the improvement was “less bad”, not good.

“The cost of living crisis, inflation and rising interest rates have led many consumers to tighten their belts, reducing retail spending,” Professor Bamfield said.

“Retailers themselves have suffered rising energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive store closures during the pandemic extremely difficult.”

The Center for Retail Research said most stores closed as companies tried to reorganize and cut costs, rather than going out of business.

Categories: Optical Illusion
Source: HIS Education

Rate this post

Leave a Comment