Papa John’s plans to close approximately 300 locations in the U.S. over the next two years to enhance brand performance, according to CFO Ravi Thanawala.
LOUISVILLE, KY – Papa John’s has announced plans to close around 300 restaurants across the United States within the next two years. This decision, according to company executives, is part of a strategy aimed at strengthening the brand’s overall performance.
The closures, which represent roughly 9 percent of the company’s nationwide footprint, follow a comprehensive strategic review of its restaurant portfolio. This review identified locations that have struggled to meet internal benchmarks.
During a recent earnings call, Chief Financial Officer and North America President Ravi Thanawala stated that the review pinpointed approximately 300 underperforming restaurants in North America. These locations either fail to meet brand expectations or lack a clear path to sustainable financial improvement. Additionally, some of these closures will allow for the effective transfer of sales to nearby restaurants.
“We believe these closures will further strengthen the system and improve franchisee health by allowing franchisees to reallocate resources towards operational excellence in their remaining restaurants and open units in priority markets,” Thanawala explained.
Most of the affected stores are franchise-owned, over a decade old, and are scheduled to close in 2026. The remaining locations are set to shut down in 2027. However, company officials did not disclose specific locations of the impacted restaurants.
In conjunction with reducing its store base, the Louisville-based chain also plans to accelerate its refranchising program. This move is part of a broader effort to enhance operational efficiency and profitability.
This announcement follows similar news from rival Pizza Hut, which has also revealed plans to close several underperforming locations.
According to India-West, the changes at Papa John’s reflect a significant shift in strategy as the company seeks to adapt to a competitive market and improve its overall financial health.