It’s true—Papa Johns recently confirmed a major restructuring plan that includes closing 300 underperforming restaurants across North America.
The announcement came during their Q4 earnings call on February 26, 2026. This move is part of a broader “transformation plan” aimed at cutting costs and improving the financial health of the overall brand.
Key Details of the Closures
- Timeline: Approximately 200 locations are expected to shut down by the end of 2026, with the remaining 100 closing by the end of 2027.
- The Target: The closures primarily affect franchisee-owned locations that are over a decade old, generate less than $600,000 in annual sales, and currently have negative profit margins.
- The Goal: By “surgically” removing underperforming stores, the company hopes to redirect resources to stronger markets and improve the average sales per store for the remaining locations.
- Corporate Impact: Alongside the restaurant closures, Papa Johns has also cut its corporate workforce by 7%.
Why is this happening?
The pizza industry has been facing a “weak consumer backdrop,” as CEO Todd Penegor described it. With inflation impacting household budgets, many customers have pulled back on fast-food spending. Interestingly, Papa Johns isn’t alone; their rival Pizza Hut also announced plans to close roughly 250 U.S. stores in the first half of 2026 for similar reasons.
What else is changing?
To simplify operations and reduce costs, Papa Johns is also trimming its menu. You can expect to see Papadias and Papa Bites phased out in the coming months as the company focuses back on its core pizza offerings and new side-item innovations.
The company has not yet released a specific list of which addresses are closing. If you have a local favorite, you might want to check its status on the Papa Johns app over the next few months.