Papa John’s closing 74 UK outlets
American pizza chain Papa John’s has confirmed that it will be shutting down 74 of its UK takeaway branches following severe financial difficulties over the past 12 months.
It’s still unclear what this means for Papa John’s successful partnership with Supermacs. The pizza chain has more than 50 outlets across Ireland and shares many locations with Supermacs, including flagship locations like Eyre Square and the various Plaza Group locations.
It’s understood there are no plans to close any Papa John’s outlets in Ireland.
The UK closures follow after the renowned pizza chain reported a pre-tax loss for its UK Operations of over £21.8 (€24) million for its most recent financial year, adding to a £19.2 (€21.8) million deficit recorded in 2023, according to City AM.
Recently submitted accounts to UK Companies House reveal the closures coincide with the firm’s revenue taking a substantial blow, falling from £95.9 (109) million to £88.6 (€101) million, the Irish Mirror reported.
A statement approved by the board read: “In 2024 we continued to navigate the effects of global disruption; ongoing geopolitical issues, staffing shortages and rises in commodity costs.”
It added: “Whilst there was an improvement in consumer confidence, this remains below pre-pandemic levels with consumers more cost-conscious and more risk averse.”
UK managing director Chris Phylactou revealed on City AM’s Boardroom Uncovered programme that the firm has stopped haemorrhaging cash and is set to post its first UK profit since 2021.
Speaking on the programme, Mr Phylactou announced that the division is “no longer losing money” and expects to achieve profitability by 2025.
He stated: “That’s because of the difficult decisions we made back then. Having people lose their jobs is the last option for us. We tried everything to keep the restaurants open.”
He added: “It’s never an easy decision and something that I wasn’t happy doing, but it’s something that we had to do as a brand.
“We maintained the restaurants probably longer than we should have to safeguard the workforce for as long as possible and we put a lot of effort into trying those trying to turn those businesses around.
