As Californians continue to grapple with rising living costs, another familiar name is quietly shrinking its footprint. From retail stores to restaurant chains, businesses across the country have been scaling back operations amid higher operating expenses and changing consumer spending habits.
Now, Papa John’s has joined the growing list of companies closing locations, with dozens of restaurants already shuttered and hundreds more expected to follow. The pizza chain announced earlier this year that it plans to close approximately 300 underperforming restaurants across North America by the end of 2027, with around 200 locations expected to close during 2026 alone.
While the company has not released a full list of affected stores, a recent analysis by Fast Company identified more than 40 Papa John’s locations that appear to have already closed this year, including at least five in California. The reported closures include restaurants in L.A., Glendale, Manteca, Yorba Linda, and San Diego.
Why is Papa John’s closing restaurants?
The closures are part of a broader strategy to improve profitability and streamline operations. Many of the restaurants being targeted are older locations that have struggled with declining sales, rising labor costs, higher food prices, and increased operating expenses.
The company has been facing slower customer traffic as inflation continues to affect household budgets, prompting many consumers to cut back on takeout and delivery spending. At the same time, competition in the pizza industry has intensified, with chains battling for customers through discounts, loyalty programs, and delivery deals.
