Papa Johns boss brands rising costs a ‘perfect storm of difficulty’
The UK boss of pizza chain Papa Johns has branded the rising costs his business is facing as a result of a “perfect storm of difficulty”.
Speaking on the latest episode of City AM‘s Boardroom Uncovered podcast, managing director Chris Phylactou also called on Chancellor Rachel Reeves to “start giving some relief to businesses” as companies are having a “hard time”.
He pointed to the increase in employers’ contributions to National Insurance as one of the major impacts on his business since Labour came to power last summer.
The boss of Papa Johns said: “It’s been a perfect storm of difficulty for us as a brand. But we’re continuing to weather the storm by looking at selling more pizza.
“So volume is the game for us, and we want to win by volume.
“We are actually opening new sites. We’ve got a pipeline of about 10 to 12 this year. And we’re developing a pipeline for next year. So the brand is growing again.
Papa Johns is making money again
Also in the episode, the MD of Papa Johns’ UK revealed the company is eyeing a return to profit in 2025 after closing more than 40 restaurants last year.
Phylactou confirmed the business is “no longer losing money” and is on track to report its first UK profit since 2021.
City AM reported in October 2024 that the UK arm of Papa Johns lost almost £20m in the year before it decided to close more than 40 underperforming restaurants.
The Milton Keynes-headquartered division posted a pre-tax loss of £19.9m for 2023, having also lost £4.1m in 2022.
Accounts with Companies House also showed its turnover nudged up from £95.1m to £95.9m in the 12 months.
The last time Papa Johns made a pre-tax profit in the UK was the £8.1m it achieved in 2021. At the time, its turnover stood at £102.3m.