Exclusive – Papa John’s reports £22.3m loss after closing 74 sites: Papa John’s UK has reported it closed 74 restaurants in 2024 whilst opening seven. The total number of sites in the UK is now 457, down from 524 in 2023. It refranchised 60 corporate restaurants whilst closing 43 to leave 13 operational corporate restaurants at 29 December 2024. The total number of franchised sites is 444. Like-for-like sales within its franchised sites declined by 2%. Turnover dropped by 7.6% to £88,660,000, which is around £13,400,000 down on its high point during the pandemic. Losses after tax increased to £22,343,000 compared to a loss to £18,527,000 the year before. The company stated: “Included in the loss for the year is £10,216,000 (2023: £1,874,000) of costs relating to this transformation (of the UK business) and consists of costs relating to the franchise portfolio restructure (closure and refranchising of restaurants, asset impairments and termination of onerous contracts).” The lease surrender costs were £4,626,000, partnership exit costs were £2,332,000 and legal and professional fees were £1,764,000. In a Companies House report, Papa John’s added: “In 2024 we continued to navigate the effects of global disruption; ongoing geopolitical issues, staffing shortages and rises in commodity costs. Whilst there was an improvement in consumer confidence, this remains below pre-pandemic levels with consumers more cost-conscious and more risk averse.” The first year of the pandemic – 2020 – Papa John’s reported turnover rose 29.7% to £94,914,000 from £73,165,000. In the year to 26 December 2021, turnover rose 7.8% to £102,339,000. Operating profit was £7,730,000, a 1% increase from £7,650,000. 

Exclusive – McDonald’s reports profit boost despite turnover decline: The UK business of McDonald’s has reported turnover declined marginally by £14m to £1,821,827m in the year to 31 December 2024. But its profit before tax rose to £120,082,000 from £66,327,000 the year before. The company said its site list increased by 35 in the year but doesn’t provide an overall estate number. Franchise rights fees rose to £545,061,000 from £543,587,000 the year before. But its administrative expenses dropped to £164,501,000 from £223,899,000m the year before. Its owned restaurants produced turnover of £904,969,000, down from £942,084,000 the year before. The income received from services provided to franchised restaurants including percentage rent, royalty and licence fees rose to £916,858,000 from £893,534,000 the year before. Its employee number reduced to 24,375 from 25,843 the year before. The company stated: “The company’s gross profit has decreased to £825m (2023: £826m) and it made an operating profit of £76m (2023: £11m). The year-on-year improvement in operating profit is predominantly driven by savings in administrative, which offset the investment and intangibles impairment of £41m. Additionally, this was further impacted by continued inflationary pressures impacting food, paper and utility costs on the company-operated estate.” The company reported that 89% of its UK restaurants are operated by 172 men and 30 women. It reported it had introduced a third-party restaurant and review process called Putting People First Visits. It stated: “As part of these visits, we have included a review of every restaurant’s sexual harassment risk assessment with checks on ensuring preventative measures are in place. A restaurant visit will be failed without such measures in place with immediate remedies required.” The company also introduced a Red Flag campaign. It stated: “The campaign is designed by employees for employees to provide an easily recognisable way to call out unacceptable behaviours in the workplace, signposting its existing reporting channels. As part of this campaign, the company developed and launched a new generative AI chatbot solution offering an accessible and user-friendly method to raise a Red Flag and speak up.”