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Papa Johns to Shutter 300 North American Stores, Cut 7% of Corporate Staff

The turnaround plan follows weaker U.S. sales, prioritizing refranchising, a leaner menu, cost reductions, overseas expansion.

Overview

  • Roughly 200 of the identified underperforming restaurants are slated to close in 2026, with the remainder shutting by the end of 2027.
  • Management projects at least $25 million in non‑marketing cost savings through 2027, including about $13 million expected this year.
  • The closures target units that the company says are largely franchise-owned, more than a decade old, and generating average unit volumes under $600,000.
  • Papa Johns will phase out the Papadias and Papa Bites platforms as part of menu simplification, and it expects near-term pressure on 2026 North America comparable sales.
  • The company plans 180 to 220 gross new restaurant openings in 2026 across all markets and will accelerate refranchising to reduce the company-owned share to the mid-single digits.