Papa Johns cuts locations as pizza sales decline across markets.
Papa Johns is closing down many of its locations across the United States and Canada as the company works to improve performance at a time when many pizza chains are facing slower sales. The pizza brand has already closed dozens of locations this year and plans to shut down hundreds more over the next several years. According to company filings, 44 Papa Johns restaurants closed during the first quarter across 17 states. Texas, California, Florida, and Arizona saw some of the largest numbers of closures, while additional locations shut down in states including Michigan, North Carolina, and Virginia. The company previously announced plans that could result in roughly 300 North American restaurants closing by the end of 2027.
Many of the locations identified for closure are older franchise-operated stores that have been open for more than a decade. Company leaders have said these restaurants generally produce lower sales and have struggled to remain profitable. By removing low-performing stores, Papa Johns believes franchise owners can focus their attention and resources on those that are still performing well.
The move comes as the pizza business continues to face pressure from changing customer habits. For years, pizza was known as one of the more affordable restaurant meals for families. Rising prices have changed that recently. Industry research shows the average price of a pizza has climbed steadily year over year, causing some customers to order less often.
As restaurant prices continue to rise, many households are looking for less expensive alternatives. Frozen pizza sales have benefited from that shift. Some consumers who once relied on pizza delivery or carryout now purchase frozen options from grocery stores instead. Delivery orders have also slipped in recent years as customers become more careful about spending and look for ways to avoid additional fees. Other long-time pizza providers have also been affected by the same trends. Pizza Hut has also announced plans to close hundreds of locations. Both companies are trying to improve results by concentrating on restaurants that generate stronger sales and attract more customers.
During a recent earnings call, Papa Johns company leaders said early results from the closure strategy have been encouraging. They reported that some sales from closed locations are being picked up by nearby restaurants in the same chain, helping those stores generate higher volumes without adding new locations. Pizza Hut is following a similar path. Its parent company has announced plans to close around 250 underperforming restaurants as part of an effort to strengthen operations. Like Papa Johns, the company is focusing on locations that have struggled to keep pace with changing customer preferences and operating costs.
For customers, the changes may mean fewer neighborhood pizza locations in the years ahead. For the companies involved, the hope is that a smaller store base made up of stronger-performing restaurants will create a healthier business moving forward. Whether the strategy succeeds will likely depend on how well major pizza chains adapt to changing consumer habits and ongoing concerns about food prices in the coming months and years.
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Papa Johns closes 44 stores in 17 states
Pizza Hut rival Papa John’s also closing hundreds of restaurants
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