The familiar aroma of freshly baked pizza may soon become a rarer sight on Britain’s high streets, as Papa John’s announces the closure of 74 takeaway outlets across the UK.
Once a major player in the fast-food landscape, the American pizza chain is now grappling with steep financial losses, rising operating costs, and changing consumer habits that have left its UK operations under pressure.
The move marks one of the largest restaurant retrenchments in recent years, reflecting broader turbulence in the nation’s casual dining sector.
According to newly released filings on the UK government’s Companies House website, Papa John’s UK reported pre-tax losses of £21.8 million in the last year, with annual revenue dropping from £95.9 million to £88.6 million.
The last pre-tax profit was recorded in 2021, at ÂŁ8.1 million, highlighting a sharp downturn in recent financial performance.
While the closures unfolded gradually over the past year, the company only officially confirmed the full scale of the shutdowns today. Despite these reductions, Papa John’s still operates over 400 stores nationwide, although the precise number of staff affected by the closures remains unclear.
A company spokesperson cited a range of challenges behind the financial downturn, including global instability, supply chain disruptions, and soaring ingredient costs:
“In 2024, we continued to navigate the effects of global disruption, ongoing geopolitical issues, staffing shortages, and rises in commodity costs. While consumer confidence showed some improvement, it remains below pre-pandemic levels, with customers more cost-conscious and risk-averse.”
This latest downsizing follows a previous wave of closures in March 2024, when Papa John’s shuttered 43 underperforming stores — nearly 10% of its UK footprint at the time.
Chris Phylactou, Managing Director of Papa John’s UK, emphasized the company’s commitment to supporting employees during this transition:
“Our priority is our team members, who will be fully supported throughout this process. We’re working to redeploy staff where possible and remain committed to helping them during this transition.”
Despite the closures, the chain has outlined a longer-term strategy aimed at recovery and sustainable growth. This includes investment in technology and customer data, as well as exploring nontraditional locations such as holiday parks. By streamlining underperforming stores, Papa John’s aims to concentrate resources on “the right locations and the right partners” to rebuild profitability.
Encouragingly, the chain has also opened seven new outlets, including a Sleaford, Lincolnshire branch that created 20 local jobs. The Mayor of Sleaford, Councillor Anthony Brand, welcomed the new store as “a positive sign for local employment and community growth.”
🔹 Conclusion:
The closure of 74 Papa John’s locations underscores the pressures facing the fast-food industry in the UK, from rising inflation and changing consumer behavior to fierce competition from delivery apps. Yet, even as some familiar stores disappear from high streets, the company is taking steps to reshape its business for a leaner, more sustainable future. For pizza lovers, the closures may mark the end of an era, but for Papa John’s, it could also signal the beginning of a strategic transformation aimed at long-term resilience.