Papa John’s has closed 74 of its pizza takeaway outlets across the country due to severe financial difficulties.
The UK arm of the American fast food chain suffered pre-tax losses of £21.8million in the latest financial year.
Papa John’s revenue has also taken a hit with newly-filed accounts on government website Companies House showing a drop from £95.9million to £88.6million.
Moreover, the last time the pizza chain achieved a pre-tax profit in the UK was in 2021 when it recorded £8.1m, The Mirror has reported.
The closure of the 74 outlets has taken place over the course of a year, but was only confirmed today.
It is unclear how many staff at the takeaway pizza chain, which has more than 400 stores across the UK, have been affected by the announcement.
A spokesperson for the company said: ‘In 2024 we continued to navigate the effects of global disruption; ongoing geopolitical issues, staffing shortages and rises in commodity costs.’
They added: ‘Whilst there was an improvement in consumer confidence, this remains below pre-pandemic levels with consumers more cost-conscious and more risk averse.’
Papa John’s has closed 74 of its pizza takeaway outlets across the country due to severe financial difficulties (file photo)
It is unclear how many staff at the takeaway pizza chain have been affected by the announcement (file photo)
In March last year, Papa John’s announced it would be shutting 43 ‘underperforming’ restaurants across Britain – nearly a tenth of its total stores.
Chris Phylactou, managing director at Papa Johns UK, previously 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 Johns explained it has plans to increase investment in research and technology, such as better utilising customer data, as part of its UK strategy.
It also said it will look at the development of new types of sites beyond traditional restaurants, such as expanding into holiday parks.
Mr Phylactou added in his comments last year: ‘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.
In March last year, Papa John’s announced it would be shutting 43 ‘underperforming’ restaurants across Britain – nearly a tenth of its total stores
Graphic shows the Papa John’s stores that closed following the announcement last March
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‘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.’
Despite closing the underperforming stores, Papa John’s has opened another seven new ones across the UK.
Last March, the chain opened a new branch in Sleaford, Lincolnshire brining 20 new jobs to the local area.
Mayor of Sleaford, Councillor Anthony Brand said: ‘I was delighted to be asked to open Sleaford’s newest Papa Johns.
‘As mayor, it’s always great to see restaurants and businesses creating new jobs in the borough for members of the local community.’
