Papa John’s is delivering some bad news of its own, announcing plans to close hundreds of locations as customers tighten their belts in a tough economy.
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During a Feb. 26 earnings call, the pizza chain announced plans to close approximately 300 underperforming restaurants in North America by the end of 2027, according to CNN. About 200 of those locations are expected to shut down this year.
According to Ravi Thanawala, Papa John’s chief financial officer and president of North America operations, the restaurants being closed are those “not meeting brand expectations or lack a clear path to sustainable financial improvement, as well as locations where we can effectively transfer sales to a nearby restaurant.”
Papa John’s hasn’t announced which locations will close. As of the fourth quarter of 2025, Papa John’s operated 3,523 restaurants in North America, opening 96 new locations in its last fiscal year.
In addition to the closures, the company laid off about 7% of its corporate staff, which numbered around 700.
Another Pizza Chain Recently Announced Locations Set to Close
The closures come after a difficult fourth quarter for the company, which saw a 5.4% drop in same-store sales across North America. In a statement, CEO Todd Penegor attributed the results to “a weak consumer backdrop and elevated promotional environment.”
Penegor is attempting to turn around Papa John’s by focusing on its menu. He’s recalibrating ovens and rolling out a new pan pizza to bring some much-needed dough back to the chain.
However, Papa John’s isn’t the only pizza chain struggling in this economy. In February, rival Pizza Hut announced it would close about 250 locations in the first half of the year. The closures come as its parent company, Yum! Brands, strategically reviews the brand.