Tue 26th Mar 2024 - Papa John’s to shut 43 ‘underperforming’ UK restaurants Papa John’s to shut 43 ‘underperforming’ UK restaurants: Papa John’s is to shut 43 restaurants across the UK, with the full list now being revealed. The business confirmed plans to axe the “underperforming” locations after launching a review at the start of the year. It will close the restaurants by mid-May following a consultation process, Papa John’s International said. The company has not confirmed how many staff will be impacted by closures. The group had previously said it planned “strategic closures” in order to free up money for investment and improving profitability at its remaining UK sites. At the time Papa John’s said it was shutting 50 of its UK company-owned restaurants in the second quarter of 2024 but said it is making progress in its repositioning of the market and expects to improve profitability this year. Papa John’s has now identified 43 restaurants as “underperforming locations that are no longer financially viable”. Chris Phylactou, managing director at Papa John’s UK, 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.” Papa John’s said it plans to increase investment in research and technology, such as better utilising customer data, as part of its UK strategy. Phylactou added: “While this is a difficult decision, closing these underperforming locations will give us the opportunity to invest back into the right locations with the right partners for long-term growth. We are focused on driving shared profitable growth across our UK restaurants, by continuing to make improvements to our business to ensure that we are well positioned for the future. We have been encouraged by the results so far from these initiatives.” Papa John’s also said it will look at the development of new types of sites beyond traditional restaurants, such as expanding into holiday parks, and is set to “announce other large retail partners in the coming months”. The restaurants closing are: Barnsley, South Yorkshire; Bebington, Merseyside; Bexhill, East Sussex; Billericay, Essex; Bromley, south east London; Coulsdon, south London; Cricklewood, north east London; Darlington, County Durham; Doncaster, South Yorkshire; Durham, County Durham; East Dulwich, south east London; East Grinstead, West Sussex; Eastbourne, East Sussex; Hailsham, East Sussex; Harringay, north London; Harrogate, North Yorkshire; Hendon, north east London; Horsham, West Sussex; Lancaster, Lancashire; Leeds Meanwood, West Yorkshire; Liverpool West Derby Road, Merseyside; Middlesbrough, North Yorkshire; Mottingham, south east London; Northwood Hills, west London; Peacehaven, East Sussex; Peckham, south London; Penge, south east London; Putney, south London; Redhill, Surrey; Rochdale, Greater Manchester; Rotherham, South Yorkshire; Ruislip, west London; Runcorn, Cheshire; Scunthorpe, North Lincolnshire; Sittingbourne, Kent; Southport, Merseyside; St Helens, Merseyside; Stoke Newington, east London; Tunbridge Wells, Kent; Upminster, east London; Watford St Albans Road, Hertfordshire; Whitton, south west London; and Wimbledon, south west London. The company, which operates 524 stores in the UK – 406 of which are run by franchises ­– established a corporate presence in 2023, acquiring 118 stores. In January, Papa John’s said it could shut as many as 100 sites. That came after Propel revealed in October that Papa John’s UK & Ireland saw a 21.8% decline in like-for-like system sales in the year ended 25 December 2022. The company reported turnover for the period of £95,149,000 (2021: £102,339,000), as it said its performance was adversely impacted by largely prior year changes in the VAT rate on hot food. Papa John’s posted a pre-tax loss of £2,908,000 (2021: £6,704,000). The first Papa John’s UK restaurant opened in 1999 in Grays, Essex, and in 2013 it opened its 200th UK store. It closed 22 restaurants in 2023 but opened 15 new branches. Papa John’s features in the Premium Club Turnover & Profits Blue Book, which features 889 companies. Its turnover of £95,149,000 is the 103rd highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.