Economy
Related: About this forumMajor Pizza Chain Closing 300 Locations: What To Know In VA
The chain said it also plans to lay off 7 percent of its corporate workforce as it aims to turn around declining sales. See VA impacts.
By Megan VerHelst, Patch Staff
Feb 26, 2026 5:38 pm EST
Papa John's, one of America's largest pizza chains, is planning to close hundreds of locations and lay off a portion of its corporate workforce as the company aims to cut costs and improve restaurant profitability, according to reports.
During a Thursday earnings call, company executives said that approximately 300 underperforming locations will close by the end of 2027, with 200 closing by the end of this year, according to reports by National Restaurant News and CNN Business. ... The company did not provide a specific list of locations identified for closure. The chain had about 3,500 locations at the end of 2025, including nearly 130 in Virginia.
Papa John's Chief Financial Officer Ravi Thanawala said the stores identified for closure are primarily franchise-owned and are not meeting brand expectations or lack a clear path to sustainable financial improvement. ... In addition to the closures, the company said it plans to lay off 7 percent of its 700-person corporate workforce. Papa John's global corporate office is located in Atlanta.
The announcement comes after Papa John's announced a 2 percent decline in North America same-store sales driven by a performance downturn of company-owned stores, according to National Restaurant News. ...The company said it also plans to simplify its menu by phasing out the Papadias, a flatbread sandwich introduced in 2020, and Papa Bites, its bite-sized dough balls introduced in 2022. The move comes after the company introduced pan pizza in January, and it is testing out sandwiches and chicken tenders in some markets.
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Coldwater
(1,202 posts)Ford shutdown $5.8 billion factory just months after opening and 1,600 workers lost their jobs, and they're lashing out at the company instead of the real culprit Donald Trump who they voted for in deep red Kentucky.
Even Ford blames Donald Trumps changes to EV tax credits for the failure of the battery-making facility
CurtEastPoint
(19,948 posts)Papa Johns political history is heavily tied to its founder, John Schnatter, a Republican donor who publicly opposed the Affordable Care Act in 2012 and criticized the NFL's handling of anthem protests in 2017. Schnatter resigned as CEO and Chairman in 2018 after using a racial slur. The company has historically contributed more to Republican candidates and committees OpenSecrets.
Key Political Context
Affordable Care Act (ACA) Opposition: In 2012, Schnatter claimed the ACA would raise pizza costs by 11 to 14 cents, leading to public backlash over his criticisms of employee healthcare requirements.
NFL Controversy: In 2017, Schnatter blamed falling pizza sales on the NFLs response to player protests during the national anthem, a move that drew criticism and led to him stepping down as CEO.
Racial Slur and Resignation: Following a 2018 report that he used a racial slur during a conference call, Schnatter resigned as chairman of the board.
Political Contributions: Data shows that while the company has made donations, they have historically favored Republican, as shown by data from OpenSecrets.
Following these controversies, the company has worked to distance itself from its founder and his political stances.
Lifeafter70
(853 posts)Ole John boy had a hand in the pizza chains loss in sales. He was a very outspoken supporter of trump, donated to his campaign.
CurtEastPoint
(19,948 posts)SWBTATTReg
(26,202 posts)for lousy service, as well as the idiotic issues that the founder kept throwing in our faces as a republican. It gets tiring after that, and to be honest w/ you, we do like our pizzas, but we never, ever, once missed our pizzas from PJs.
Every dollar not given to these people is a dollar more for the things that do mean something to us.
bucolic_frolic
(54,784 posts)but there's no money left over for the pizza, and that's why people don't go there. But they don't get it.
JT45242
(3,975 posts)I remember the Wendy's fiasco that came from "where's the beef" -- they jumped a huge amount in market share and tried to capitalize by building a ton of new stores without properly researching the location to see if it would support the new stores.
As a result, Dave Thomas had to sell off the now floundering Wendy's.
Did they open far too many stores, too quickly without proper research to see if it was sustainable?
Always wonder how corporate stores do versus franchises after working for both McOpco (corporate stores) and franchises of McDonalds when I was in college. Can be huge differences in what is happening.
Lifeafter70
(853 posts)I remember when the nephew began his expansion and renovations of existing stores.
They went through many bankruptcies and finally total shutdown.
NewHendoLib
(61,764 posts)NNadir
(37,746 posts)NNadir
(37,746 posts)...Little Ceasar's, Mike Illitch, whose philanthropic activities supported charities to address poverty, children's health, education, and economic development.
After Civil Rights activist Rosa Parks was attacked in her home, he paid her rent in a safer part of town and did so quietly.
I don't eat chain pizzas except maybe on the road in airports, but I'd rather starve than eat at Papa John's but would gladly eat a Little Caesar's.