Papa Johns Closing 300 Stores in US: Is Your Local Location on the List?
Papa Johns is closing 300 underperforming US stores through 2027 to offset declining sales. The move targets low-volume, older locations generating under USD 600,000 annually. While a full list of addresses isn't public, the closures represent 9% of their domestic footprint. The chain is also cutting menu items like Papadias to focus on efficiency.
Papa Johns announced Thursday, February 26, that it plans to shutter approximately 300 underperforming restaurants across North America as part of a sweeping "transformation plan" to stabilize its balance sheet. The decision to close 300 Papa Johns stores, revealed during the company’s fourth-quarter earnings call, follows a 5.4% decline in North American same-store sales and reflects a broader trend of cooling consumer demand in the fast-food industry. Roughly 200 of these locations are expected to close by the end of 2026, with the remainder slated for 2027.
Is Your Local Store on the List?
Papa Johns has not yet released a specific list of addresses or cities slated for closure. However, the company confirmed that the affected units are primarily franchisee-owned.
With approximately 3,500 locations in North America as of late 2025, these 300 closures represent nearly 9% of the chain’s domestic footprint. Residents in markets with older, low-traffic stores or those located within close proximity to another Papa Johns may be most likely to see their local branch close. Why Is Papa Johns Closing 300 Stores Across the US?
Strategy Behind the Closures
Company executives described the move as a "surgical" effort to strengthen the brand's overall health. According to Chief Financial Officer Ravi Thanawala, the targeted stores share specific characteristics:
- Aged Assets: Most are over a decade old.
- Low Volume: They generate annual revenue under USD 600,000.
- Financial Drag: Many are currently operating with negative cash flow.
Thanawala noted that these closures would allow the company and its franchisees to "redirect resources to drive operational excellence" in higher-performing markets. In many cases, the company plans to transfer customer demand from the shuttered units to nearby existing locations. ‘Pentagon Pizza Index’ Spikes as US Deploys Military Aircraft Toward Middle East Over Iran Crisis.
Papa Johns Layoffs and Menu Changes
The store closures are only one part of a wider restructuring. Papa Johns also confirmed it has reduced its corporate workforce by 7% (approximately 50 positions) to simplify its organizational structure.
Additionally, the chain is streamlining its menu to improve kitchen efficiency. Popular but complex items, including the Papadias (flatbread sandwiches) and Papa Bites, are expected to be phased out by the second quarter of 2026. CEO Todd Penegor emphasized that the brand is shifting focus toward high-quality core products, such as its recently launched pan pizza.
A Struggling Pizza Sector
Papa Johns is not alone in its retreat. The announcement comes just weeks after Pizza Hut revealed plans to close roughly 250 locations due to similar sales declines.
Analysts point to an "elevated promotional environment" and a "weak consumer backdrop" as the primary culprits. As inflation continues to impact household budgets, many consumers are opting for value-focused deals at competitors like Domino's or choosing lower-cost grocery options over delivery.
(The above story first appeared on LatestLY on Feb 27, 2026 11:19 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).