Papa John’s UK has reported it closed 74 restaurants in 2024 whilst opening seven.
The total number of sites in the UK is now 457, down from 524 in 2023. It refranchised 60 corporate restaurants whilst closing 43 to leave 13 operational corporate restaurants at 29 December 2024. The total number of franchised sites is 444.
Like-for-like sales within its franchised sites declined by 2%. Turnover dropped by 7.6% to £88,660,000, which is around £13,400,000 down on its high point during the pandemic. Losses after tax increased to £22,343,000 compared to a loss to £18,527,000 the year before.
The company stated: “Included in the loss for the year is £10,216,000 (2023: £1,874,000) of costs relating to this transformation (of the UK business) and consists of costs relating to the franchise portfolio restructure (closure and refranchising of restaurants, asset impairments and termination of onerous contracts).”
The lease surrender costs were £4,626,000, partnership exit costs were £2,332,000 and legal and professional fees were £1,764,000.
In a Companies House report, Papa John’s added: “In 2024 we continued to navigate the effects of global disruption; ongoing geopolitical issues, staffing shortages and rises in commodity costs. Whilst there was an improvement in consumer confidence, this remains below pre-pandemic levels with consumers more cost-conscious and more risk averse.”
The first year of the pandemic – 2020, Papa John’s reported turnover rose 29.7% to £94,914,000 from £73,165,000. In the year to 26 December 2021, turnover rose 7.8% to £102,339,000. Operating profit was £7,730,000, a 1% increase from £7,650,000.
