CALIFORNIA – Papa John’s plans to close hundreds of underperforming restaurants across North America as the pizza chain restructures parts of its franchise system.
“We have identified approximately 300 underperforming restaurants across North America that are not meeting brand expectations or lack a clear path to sustainable financial improvement, as well as locations where we can effectively transfer sales to a nearby restaurant,” Papa John’s chief financial officer Ravi Thanawala said last week during the company’s fourth-quarter earnings call.
Papa John’s operates more than 3,500 restaurants across North America, including about 166 in California.
This accounts for roughly 5% of all Papa John’s restaurants in the U.S.
It is not yet clear which specific California locations could be affected.
200 closures this year
Company leaders said about 200 restaurants could shut down in 2026, with additional closures expected through 2027.
Most of the affected locations are older stores that generate less than $600,000 in annual sales, according to company leadership.
Many of the restaurants slated for closure are franchise-owned locations that have been operating for more than a decade.
Executives say the move is intended to strengthen the brand by focusing on stronger-performing restaurants.
Restaurant chains across the industry have been reviewing store performance amid slowing consumer spending and rising operating costs.
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