Why Is Papa Johns Closing 300 Stores Across the US?
Papa Johns is set to close 300 underperforming restaurants across the United States by the end of 2027 as part of a major cost cutting and restructuring plan aimed at reviving growth and improving profitability.
Papa Johns (Papa John's) is set to close 300 underperforming restaurants across the United States by the end of 2027 as part of a major cost cutting and restructuring plan aimed at reviving growth and improving profitability. The move follows flat annual revenues and declining profits that have weighed on the company’s overall performance.
Why Is Papa Johns Shutting Down Stores?
The struggling pizza chain announced that around 200 locations will shut by the end of 2026, with the remaining outlets closing by the end of 2027. According to Chief Financial Officer Ravi Thanawala, the affected restaurants are either not meeting brand expectations or lack a clear path to sustainable financial improvement. Apple Store Opens in Downtown Detroit, CEO Tim Cook Calls Launch ‘Absolutely Electric’ (See Pics).
In some cases, Papa Johns believes it can transfer sales to nearby stores, reducing operational costs while maintaining customer demand in those areas.
Financial Struggles Behind the Decision
The closures come amid flat domestic sales and slowing growth. In February, Papa Johns reported 2025 revenue of 2.1 billion dollars, unchanged from the previous year, along with declining profits.
The company’s stock has also taken a hit, trading at 31.85 dollars on Thursday and falling 31 percent over the past year. These financial pressures have pushed the company to streamline operations and focus on stronger performing locations. ‘Pentagon Pizza Index’ Spikes as US Deploys Military Aircraft Toward Middle East Over Iran Crisis.
Papa Johns Layoffs
In addition to restaurant closures, Papa Johns has reduced its corporate workforce by 7 percent. As of March 2025, the company employed approximately 104,000 corporate and in store workers globally. The company has not yet disclosed which specific US locations will be impacted.
What This Means for Customers
Despite the closures, Papa Johns still operates around 6,000 restaurants across nearly 50 countries and territories. The company aims to strengthen its brand presence by concentrating on profitable outlets and improving overall performance.
As competition in the pizza market intensifies, this restructuring marks a significant step in Papa Johns strategy to stabilize sales and return to sustainable growth.
(The above story first appeared on LatestLY on Feb 27, 2026 10:23 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).