Major pizza chain restructuring could impact Texas as it closes hundreds of locations

Papa Johns is moving forward with a major plan to close hundreds of underperforming restaurants across North America, a decision that could affect locations in Texas, where the chain maintains one of its largest statewide footprints. While the company has not released a list of stores slated to close, executives say many of the targeted restaurants fit a specific profile that includes older, lower-performing locations. 

Up to 300 restaurant closures planned

Earlier this year, Papa Johns announced plans to close approximately 300 underperforming restaurants across North America by the end of 2027, with about 200 closures expected during 2026. The company also reduced its corporate workforce by about 7% as part of a broader turnaround strategy aimed at improving profitability. 

According to company executives, most of the restaurants identified for closure are franchise-owned, have been open for more than 10 years, generate less than $600,000 in annual sales, and lack a clear path to sustainable financial improvement. In some cases, the company expects sales to shift to nearby Papa Johns restaurants rather than disappear altogether. 

Texas has one of the chain’s largest footprints

Texas is home to hundreds of Papa Johns locations, with restaurants serving customers in cities including Houston, Dallas, San Antonio, Austin, Fort Worth, El Paso and dozens of smaller communities. Although Papa Johns has not identified which restaurants will close, the state’s large presence means Texas could be among the markets affected as franchise operators evaluate underperforming stores. 

Company aims to strengthen remaining restaurants

Papa Johns says the closures are intended to create a healthier restaurant system by allowing franchisees to invest more heavily in stronger-performing locations. The company believes reducing its footprint will improve average restaurant sales while positioning the brand for long-term growth, even as it continues opening new restaurants in priority markets. 

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