Pizza Chain Papa John’s to Close Underperforming UK Restaurants

Pizza chain Papa John's has announced plans to close nearly a tenth of its restaurants in the UK due to underperformance. The decision follows a review that identified 43 sites as financially unviable across various locations in England, including Harrogate, St Helens, Billericay, and Eastbourne.

The UK managing director, Chris Phylactou, emphasized that supporting affected team members is a top priority. The company aims to assist impacted staff with redeployment opportunities where available while focusing on investing in profitable locations and partners moving forward.

In a separate announcement, Revolution Bars revealed potential plans of selling all or part of the group after facing challenges impacting trading. The company cited external factors contributing to its decision to explore strategic options for long-term improvement

Consultancy firm PwC highlighted the ongoing boom in the takeaway industry, with a net increase in chain takeaway shops last year. Despite challenges faced by other hospitality sectors, takeaways remain popular among consumers, driving growth and competition within the market.

Papa John’s strategic closures aim to optimize profitability and drive growth in its second largest market, the UK. The company intends to expand into non-traditional sites while announcing partnerships with large retail partners in the coming months.

Following a trend of closures and restructurings in the retail sector, Papa John’s and Revolution Bars’ decisions reflect the evolving landscape of the UK’s hospitality industry, with brands like the Body Shop and Pryzm also navigating challenges in recent times.