Atlanta, GA — Papa John’s, the major pizza chain headquartered right here in Atlanta, announced Thursday that it plans to shutter approximately 300 underperforming restaurants across North America by the end of 2027.

The move is part of a broader strategy to cut costs, boost profitability, and refocus the brand amid declining sales.

Papa John’s to Close Locations Nationwide, Including Potential Impact in Georgia

Company executives revealed the plan during their fourth-quarter 2025 earnings call. About 200 of these closures are expected by the end of 2026, with the remainder following in 2027.

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The affected locations are primarily franchise-owned stores that aren’t meeting brand standards, have no clear path to financial sustainability, or could have their customers redirected to nearby Papa John’s outlets.

Papa John’s had roughly 3,500 locations worldwide at the end of 2025, including nearly 200 in Georgia alone.

While the company has not released a specific list of closing stores or broken down numbers by state, the closures are part of a nationwide effort to strengthen the overall system.

The announcement comes as Papa John’s grapples with challenges in the pizza industry, including a 2% drop in North American same-store sales—driven partly by weaker performance at company-owned restaurants—and shifting consumer spending habits.

This follows a similar move by rival Pizza Hut, which earlier this year revealed plans to close around 250 underperforming U.S. locations in the first half of 2026.

Local Impact and Corporate Changes

With its global corporate headquarters in Atlanta, Papa John’s is also planning to lay off about 7% of its roughly 700-person corporate workforce as part of the restructuring.

CEO Todd Penegor emphasized the need for innovation and better local competition.

“We know we have to drive on innovation to recruit new customers,” Penegor said. “We also know we have to compete better at the local level, and we’ve been working hard over the course of the last 18 months.”

To streamline operations, the chain is phasing out items like Papadias (flatbread sandwiches introduced in 2020) and Papa Bites (bite-sized dough balls from 2022).

Recent additions include a new pan pizza launched in January, with tests underway for sandwiches and chicken tenders in select markets.

Papa John’s Chief Financial Officer and North America President Ravi Thanawala noted that the targeted stores are those “not meeting brand expectations or lack a clear path to sustainable financial improvement.”

No individual Georgia locations have been identified for closure yet, and the company has not indicated how many of the nearly 200 Peach State stores might be affected. Residents can check the official Papa John’s location finder for the latest status on their local spots.

This restructuring reflects broader pressures on casual dining and quick-service chains as Americans increasingly opt for value options or cook at home.

Atlanta pizza fans may see fewer Papa John’s outlets in the coming months and years, but the company insists these changes will help it emerge stronger.

Stay tuned to Atlanta Patch for updates as more details emerge on specific store closures in Georgia.