Papa Johns UK losses widen to £18.5m in FY23
The results come after the group revealed earlier in March 2024 that it intended to close 43 locations which it had deemed to be ‘underperforming’
Papa Johns’ UK arm has reported a pre-tax loss of £18.5m for the year ended 31 December 2023, which widened from a previous loss of £2.9m in 2022.
According to the group’s filings with Companies House, Papa Johns in the UK saw its turnover rise slightly from £95.1m to £95.9m during 2023.
The results come after the group revealed earlier in March 2024 that it intended to close 43 locations which it had deemed to be “underperforming”.
Papa Johns has attributed its performance to global disruptions, ongoing geopolitical issues, staffing shortages and rises in commodity costs.
While the group saw an improvement in consumer confidence, it noted that it still remains below pre-pandemic levels, with consumers most “cost conscious and more risk averse”.
A statement signed off by the board said: “We continued our focus on building solid foundations for business growth and prioritised compliance and governance, operations procedures and brand standards, all designed to deliver an improved customer experience.
“Our success relies on the financial success and strategic alignments with our franchisees. Our franchisees manage their businesses independently and therefore are responsible for the day to day operations of their locations and compliance with applicable laws and regulations.”
Papa Johns added: “We continued to focus on optimising pricing/discount structures and our strategic alignment with franchisees. We have been taking proactive steps to drive profitable growth. This includes reviewing our pricing strategy, growing ticket and transactions through menu innovations, customer insights and implementing strategic pricing actions.”