Restaurant India News: Papa John’s Accelerates North America Store Rationalisation with 44 Closures

Papa John’s has closed 44 restaurants across North America during the first quarter of 2026 as part of its previously announced plan to shut 300 underperforming locations by the end of 2027.

According to the company’s May 2026 financial report, the closures took place between December 28, 2025, and March 29, 2026. The closures included five company-owned restaurants and 39 franchised outlets spread across 17 U.S. states, including Texas, California, Florida, Arizona, Michigan, North Carolina, and Virginia.

The move follows the company’s announcement on February 26, 2026, that it would rationalise approximately 300 underperforming restaurants across North America. Around 200 of these closures are expected to take place during 2026.

Ravi Thanawala, Chief Financial Officer and President of Papa John’s North America, said, “The vast majority of our global restaurants have performed well over the years and delivered strong returns for both corporate and franchise owners. The restaurants identified for closure have faced persistent financial underperformance. According to Thanawala, most of these outlets are franchise-operated, have been in operation for more than 10 years, and generate average annual sales of less than Rs 5.1 crore (approximately $600,000) per location. This is the same strategy we successfully deployed during my tenure managing our international business. The initiative helped improve average sales in the United Kingdom by 17 percent. The strategy is aimed at improving franchise economics by enabling operators to focus resources on stronger-performing restaurants and priority markets."

The company has also cited ongoing pressure from food costs and labour inflation as factors affecting domestic profitability. Alongside store rationalisation, Papa John’s is pursuing operational efficiencies and supply chain savings to strengthen earnings performance.

President and Chief Executive Officer Todd Penegor said, “2025 was a year of transformation for Papa John's. The company has focused on improvements across its technology platform, customer experience, restaurant network and cost structure. The company also reported a 1 percent increase in total pizzas sold during the fourth quarter, along with growth in multi-pizza orders. (We’re) working hard to really make sure that we partner with our franchise community to set them up for long-term success. The carryout segment in North America recorded low single-digit order growth, supported by promotional initiatives launched during late 2025."

The store closure programme represents one of the largest portfolio optimisation efforts undertaken by the pizza chain in recent years as it seeks to improve profitability and strengthen franchise performance across North America.