Papa John’s has announced plans to close 300 of its locations by the end of 2027 as part of a strategic effort to cut costs and streamline operations. Chief Financial Officer Ravi Thanawala revealed during a fourth-quarter earnings call that some of the restaurants earmarked for closure are failing to meet brand expectations or lack a sustainable financial future. In these instances, the company aims to transfer sales to nearby outlets, ensuring minimal disruption to customer service.
The immediate phase of this plan will see 200 locations shuttered by the end of this year, with further closures scheduled up to 2027. As it stands, Papa John’s operates approximately 6,000 locations across 50 countries and territories.
This restructuring initiative comes amid challenges for the pizza chain in boosting domestic sales and achieving growth. Earlier this year, the company reported flat revenues of $2.1 billion for 2025, with profits also on the decline. Additionally, Papa John’s stock has seen a 31% decrease over the past year, trading at $31.85 on Thursday.
To further reduce expenses, Papa John’s has implemented a 7% reduction in its corporate workforce. Although specifics regarding the timing of these layoffs were not provided, the company had reported a global workforce of around 104,000 employees as of March 2025.
The decision to close underperforming restaurants marks a significant shift in Papa John’s strategy, demonstrating a proactive response to current market conditions and a commitment to improving overall performance. Despite facing challenges, the company’s efforts to streamline operations present an opportunity for recovery and reinvigoration in the competitive pizza industry.