"Papa Johns' chief financial officer and president of North America Ravi Thanawal said the company plans to shutter a total of 300 underperforming restaurants in 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.""
"Pizza Hut said it, too, was closing 250 "underperforming" locations in 2026 as fast-casual restaurant chains struggle, with consumer spending dropping amid higher inflation and a high cost of living. The chain cited competition from rival Domino's Pizza and declining store sales."
"Unlike Pizza Hut and Papa Johns, Domino's earnings beat expectations, and its success proves people are still eating tomato pies, even as the competition falters."
Papa Johns announced the closure of 300 underperforming restaurants across North America by the end of 2027, with two-thirds shutting down by year-end 2025. The company will also reduce its workforce by approximately 7%. These closures target locations failing to meet brand standards or lacking sustainable financial improvement paths, as well as sites where sales can transfer to nearby restaurants. This announcement follows Pizza Hut's similar decision to close 250 underperforming U.S. locations in 2026. Both chains face challenges from declining consumer spending due to inflation and high living costs. Domino's Pizza, however, continues to outperform competitors, suggesting market consolidation among major pizza chains.
#pizza-industry-consolidation #restaurant-closures #consumer-spending-decline #competitive-market-dynamics #workforce-reduction
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