Papa Johns to Close Nearly 300 Restaurants as Sales Decline Across Pizza Industry

is planning to close nearly 300 underperforming restaurants across North America as the pizza chain responds to declining sales and shifting consumer spending.

Company leaders announced the closures during a recent earnings call, saying about 200 locations will shut down this year, with the remaining closures expected by the end of 2027. Executives say the affected restaurants either do not meet brand expectations, lack a clear path to financial improvement, or are located near other stores that can absorb customer demand.

The company operated roughly 3,500 locations at the end of 2025, but has not released a list of which restaurants will close. In addition to the store reductions, Papa Johns is also cutting about 7% of its corporate workforce.

The move follows a challenging fourth quarter, with same-store sales in North America dropping 5.4%. Company leaders cited a weaker consumer environment and heavy promotional competition across the industry.

Papa Johns is attempting a turnaround by focusing on menu improvements and operations. Recent efforts include recalibrating ovens to improve product consistency and launching new menu items, including a pan pizza.

The closures come amid broader struggles across the pizza sector. Rival chain Pizza Hut recently announced plans to close hundreds of locations as well. Meanwhile, Domino’s has reported sales growth, driven in part by value-focused deals and marketing campaigns.

Industry analysts say the changing landscape reflects tighter consumer budgets and increased competition among quick-service restaurants.

Explore: NBCPalmSprings.com, where we are connecting the Valley.