Papa John’s International plans to open 52 new restaurants across the mid-Atlantic region (specifically greater Philadelphia, Baltimore, and Washington, D.C.) by 2030. This expansion is being driven by a new franchisee.
This move is part of a broader corporate strategy to significantly reduce the percentage of company-owned stores and increase operational efficiency through refranchising. The same franchisee who will open the new locations has also taken ownership of 85 existing Papa Johns shops in the region.
The decision to accelerate the domestic refranchising program comes as the company is navigating a challenging market. CEO Todd Penegor noted that total pizza sales have stagnated, with North America comparable sales decreasing by 2.7% in the most recent third quarter, citing weaker consumer sentiment and a highly promotional Quick Service Restaurant (QSR) marketplace.
Papa Johns intends to reduce its corporate restaurant ownership to a mid-single-digit percent of the North American system. The leadership believes that refranchising with “well-capitalized, growing franchisees” strengthens the long-term health of the system and “unlocks future growth opportunities.” The company remains open-minded about maximizing shareholder value, especially following a reported withdrawn offer to take the company private. Learn More>>>
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