Papa John’s to close 300 ‘underperforming’ restaurants across the U.S.

Popular pizza chain Papa John’s will close hundreds of “underperforming” stores over the next two years, the company’s executives said during a Q4 earnings call last week.

“We have identified approximately 300 underperforming restaurants across North America that are not meeting brand expectations or lack a clear path to sustainable financial improvement, as well as locations where we can effectively transfer sales to a nearby restaurant,” Papa John’s CFO Ravi Thanawala said during the Feb. 26 call.

Papa Johns executives described the closures as “strategic,” allowing franchises to redirect resources towards “operational excellence.” According to Thanawala, the majority of the closures will take place in 2026, with approximately 100 closures planned for 2027.

Papa John’s cited high food costs and labor inflation over the last two years as part of the reason for the closures. It wasn’t immediately clear which restaurants across North America would shutter.

Thanawala went on to say that Papa John’s will also “reduce menu complexity” as part of its effort to streamline operations, including eliminating Papadias and Papa Bites from North American menus.

According to the company, the closures account for approximately 21% of its global sales. Approximately seven percent of its corporate workforce was also expected to be eliminated.

The carry-out and delivery pizza chain has hundreds of locations across the U.S., including nearly 70 stores in Illinois. According to its website, Papa John’s has dozens for stores in the Chicago suburbs, including the following locations: