Papa John's Announces Major Restaurant Closures Following Sales Decline
In a significant blow to the fast-food pizza sector, Papa John's has revealed plans to close hundreds of restaurant locations as sales continue to plummet. The company confirmed it will shutter 200 restaurants this year and an additional 100 by the end of 2027, alongside cutting approximately 7 percent of its headquarters staff. This announcement comes just weeks after rival Pizza Hut disclosed similar closure plans, solidifying Domino's position as America's most popular pizza franchise.
Industry Experts Analyse the Growing Gap
Retail analysts highlight the widening disparity between Domino's and its competitors. Neil Saunders, retail expert at GlobalData, told the Daily Mail: 'Domino's is in a much stronger position than Papa Johns as it has a better focus on value, is really easy to order from, and has been innovating its menu.' Meanwhile, Alicia Kelso, executive editor of Nation's Restaurant News, noted: 'While Domino's has responded by shifting its attention to carryout, Papa Johns and Pizza Hut weren't as quickly agile.'
Closures Driven by Underperformance
Papa John's has not specified which locations will close but stated they are 'not meeting brand expectations', essentially indicating insufficient pizza sales. These closures follow a disappointing October to December quarter, where in-store sales dropped by 5.4 percent despite the introduction of new menu items. These included a 'new and improved' pan pizza with a crispy garlic parmesan crust and a limited-time heart-shaped pizza for Valentine's Day.
Customer Reactions and Historical Context
On social media platforms like Reddit, customers expressed mixed reactions. One user commented: 'When will these fast food places see the writing on the wall? Wendy's is in trouble too. Raising prices is one thing, but if you're reducing portions, using cheaper lower quality ingredients, and reducing staff? Come on.' Another added: 'Saw this coming. Papa John's in my area have declined to the point where they can't even always fulfill orders anymore.'
This sales slump is not a new trend for Papa John's. In 2024, the chain reported a steep drop in sales, citing 'challenging sales trends' expected to persist through 2025. That same year, 43 'underperforming' stores were closed across the UK. For fiscal year 2025, Papa John's reported a 2 percent year-over-year decrease in revenue from North American stores.
Broader Industry Challenges
Papa John's is not alone in facing difficulties. Weeks earlier, Pizza Hut announced plans to close about 250 locations due to sliding sales, primarily targeting 'underperforming' sites, as stated by parent company Yum! Brands during an earnings call. Despite Domino's closing over 200 stores post-Covid, it remains the world's largest pizza chain by both sales and store count. Papa John's ranks fourth in the US, behind Domino's, Pizza Hut, and Little Caesars, with over 3,500 US locations and more than 6,000 restaurants globally across 50 countries and territories as of 2026.
In the company's earnings release, Papa John's expressed optimism: 'We look forward with confidence in our ability to generate sustainable, profitable growth, and value creation.' The Daily Mail has reached out to Papa John's for further comment on the closures.
