Papa Johns To Close 300 Underperforming Locations Throughout 2026-2027
Papa Johns announced during an earnings call on Thursday, February 26 that the pizza chain would be closing 300 “underperforming” stores, amid economic woes the restaurant industry is experiencing due to fewer people dining out.
The closures will take place throughout the remainder of this year and into next; approximately 200 locations will shutter their doors in 2026, followed by another 100 in 2027. The list of stores currently on the chopping block is now known; as of Q4 2025, Papa Johns had about 3,500 stores across the country.
In addition, the company has also paid off seven percent of their corporate employees, reports say, which CEO and president Todd Penegor said is part of Papa Johns efforts at cost-cutting and restructuring.
“We are encouraged by the progress we are making in our transformation as we further reinforce our brand health, sharpen our value proposition, build our innovation pipeline, and enhance the customer experience,” he said. “These actions, alongside recent changes to our organizational structure to drive efficiencies, provide a strong foundation for our future.”
The decision to lay off staff and close locations came after Papa Johns saw sales drop 5.4 percent in Q4 2025.
