Texas is emerging as one of the states most affected by Papa Johns’ ongoing effort to shrink its restaurant footprint as the pizza chain works to improve profitability and strengthen franchise operations.
A recent analysis of company financial filings found that Papa Johns closed 44 restaurants across 17 states during the first quarter of 2026, with the highest concentration of closures occurring in Texas, California, Florida, and Arizona. The closures are part of a broader plan announced earlier this year to eliminate approximately 300 underperforming North American restaurants by the end of 2027.
Texas among hardest-hit states
According to a report published by Fast Company and highlighted by Fox Business on June 16, Texas experienced more Papa Johns closures than most other states during the first quarter. While the company has not released a complete list of affected locations, Texas was identified as one of the primary markets impacted by the downsizing effort.
The closures are largely focused on older, franchise-owned restaurants that generate less than $600,000 in annual sales and have struggled to meet company performance expectations.
Company targeting underperforming stores
Papa Johns first announced the closure strategy in late February 2026. During an earnings call, Chief Financial Officer Ravi Thanawala said the company had identified approximately 300 restaurants across North America that lacked a clear path to sustainable improvement. About 200 of those closures are expected to occur during 2026.
Company leaders believe removing weaker locations will improve average restaurant sales and allow franchisees to focus resources on stronger-performing stores.
Competition and costs add pressure
The closures come as pizza chains face increasing competition from other restaurant categories, including Mexican restaurants and coffee chains, while also dealing with inflation, labor costs, and changing consumer spending habits.
Despite the closures, Papa Johns continues to operate thousands of restaurants worldwide and plans to open new locations in priority markets as part of its long-term growth strategy.
Links on this page may be affiliate links, for which the site earns a small commission, but the price for you is the same
Leave a Comment