Papa John’s Pizza Scaling Down: Closure of Almost 10% of UK Stores
Papa John’s, a pizza chain, has announced plans to close nearly 10% of its UK restaurants, citing underperformance as the reason for closure.
The decision to close 43 sites followed a business review that identified locations no longer deemed financially viable.
Chris Phylactou, the UK managing director of Papa John’s, emphasized that supporting affected team members was a priority and stated that efforts would be made to find redeployment opportunities for them.
The closures span across England, from Harrogate, North Yorkshire to St Helens, Merseyside, Billericay, Essex, and Eastbourne, East Sussex, all deemed underperforming and financially unviable.
Despite challenges faced by other sectors in the hospitality industry, takeaway outlets have been thriving, with a net increase of 151 chain takeaway shops opening last year, according to consultancy PwC.
Papa John’s had previously announced strategic closures to reallocate resources for investment and enhance profitability at its remaining UK sites. The company plans to expand into non-traditional sites such as holiday parks and has promised to announce partnerships with other large retail partners in the near future.
Meanwhile, Revolution Bars, which owns Revolucion de Cuba, is exploring strategic options to improve its future prospects, including potential restructuring or sale of all or part of the group. The company cited external challenges impacting trading, and discussions with key shareholders and investors are underway to raise additional funds.
Despite a rise in new retail outlets last year, primarily in coffee drive-throughs, bubble tea shops, and fast-food restaurants, there was a net decrease of 5,000 stores across the UK, driven by closures from chains like Wilko. The Body Shop and nightclub chain Pryzm have also faced difficulties, announcing site closures this year.
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