Exclusive – Papa John’s UK MD – we will return to profitability in 2025, refranchised stores performing up to 15% better: Papa John’s UK managing director Chris Phylactou has told Propel the business will return to profitability in 2025, and that its refranchised stores are performing up to 15% better. Last week, Propel reported Papa John’s UK saw its pre-tax loss for the year to 31 December 2023 widen to £19,289,000 (2022: £3,846,000), which was affected by the closure of 43 sites post year end that impacted its onerous lease and loan receivable provisions. Turnover stood at £95,902,000 (£95,149,000). Phylactou said: “The first half of 2024 has been really strong, and going into our busiest period, we’re confident about the fourth quarter. We will be loss making again this year, but we’ll be back in profit next year for the first time in three years. The losses have been because of investment rather than performance – we’re satisfied with the performance. The company’s new chief executive came over from the US recently and was very happy with what he saw.” Phylactou said the 460-strong brand “grew disproportionately” in terms of sites during covid and that it will be a case of “steady growth” going forwards. “The most important thing next year is to be profitable and drive sales,” he said. “But there will restaurant growth too. There’s still a lot of white space and regions we want to go into, and the non-traditional estate is growing – we’ll be going into more sports stadiums, theme parks and travel locations.” Last year, Papa John’s took on 116 restaurants from two of its biggest franchisees which were in danger of insolvency. It refranchised 60, kept 13 as company-owned stores and has nearly completed the process of disposing of the remaining 43. “The ones we’re disposing of were in the wrong areas and too difficult to turn around, even with heavy investment,” Phylactou said. “We’ve refranchised 60 with good franchisees, and they’re now performing 12%-15% better. The company-owned stores are doing really well too, and we’re using them as testing grounds for new innovations such as ordering screens. We’re comfortable keeping them for now, although other franchisees would love to take them on. Ideally, our growth will come within franchising, but we’re ready and able if the opportunity comes along to take on further company stores. We had 114 franchisees five years ago and we currently have 65, but they all want to grow, and that’s our focus. We’re not actively looking to take on new ones as there’s a lot of scope for growth within the current system.” Papa John’s features in the Propel UK Food and Beverage Franchisor Database, which is an exhaustive guide to the companies offering a food and beverage franchise in the UK and available exclusively to Premium subscribers. The database is updated every two months and the current version features 270 businesses. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. 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 supplier. Email kai.kirkman@propelinfo.com today to sign up.

Beds & Bars restructures management team as MD Murray Roberts retires: Pan-European hostel company Beds & Bars has restructured its management team following the retirement of managing director Murray Roberts. He has been with the group for nearly three decades, the last ten of which as managing director. His journey with the group as managing director includes the expansion of Beds & Bars across major cities in Europe, doubling turnover and tripling Ebitda. Roberts’ retirement has seen the group restructure with Luke Knowles appointed chief executive, while founder Keith Knowles steps into the role of executive chairman, supported by finance director Gemma Placey, sales and marketing director Sophie Herbert, newly appointed chief operating officer Chris Lambert and newly appointed chief support officer Jan Kroezen. Keith Knowles said: “Murray's industry knowledge and leadership has been instrumental in shaping Beds & Bars into the dynamic and thriving organisation it is today. His wisdom and strategic perspective will still be available in the future to help us navigate the exciting opportunities ahead.” Founded in 1994, Beds & Bars operates 4,500 beds in nine countries.