More than seventy popular food outlets across the UK have shut their doors. The decision, which has affected hundreds of customers and likely dozens of employees, stems from ongoing financial struggles that have deepened over the past few years.
Newly released financial reports reveal a sharp downturn in revenue. Last year, total earnings dropped by nearly £7 million, and the company once again reported significant pre-tax losses.
The last time it recorded a profit was back in 2021.
The closures concern the UK arm of the American fast food chain Papa John’s, which has now confirmed the shuttering of 74 of its pizza takeaway locations. For the 2023–2024 financial year, the company suffered pre-tax losses of £21.8 million, and its revenue dropped from £95.9 million to £88.6 million. The closures took place over the course of a year but were only officially acknowledged now.
It remains unclear how many staff have been directly impacted by the announcement. The pizza chain still operates over 400 locations across the UK. A spokesperson cited “the effects of global disruption, ongoing geopolitical issues, staffing shortages, and rising commodity costs” as contributing factors.
They added that while consumer confidence showed slight improvement, it remains below pre-pandemic levels, with customers being more cost-conscious and risk-averse.
In March 2023, Papa John’s had already announced the closure of 43 “underperforming” outlets, nearly 10% of its UK stores. At the time, UK managing director Chris Phylactou emphasized that employees were the company’s priority and said efforts would be made to offer redeployment opportunities where possible.
Despite the setbacks, the company expressed plans to invest more in research and technology, including better utilization of customer data. It also plans to explore new venue formats beyond traditional restaurants, such as expanding into holiday parks.
Mr. Phylactou previously stated, “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.”
