Fans are worried about the future of Papa John’s after the latest earnings report showed a sharp drop in sales.
The pizza chain, the fourth-largest in the United States by sales, has struggled to win back customers as years of inflation have squeezed household budgets, causing many to cut back on takeout.
At the same time, Americans have been ordering fast food from chains they believe offer better value, their boss said.
Offers from McDonald’s, Wendy’s, Popeye’s and others, available for delivery through Uber Eats and Doordash, have been a hit.
‘Papa John’s is definitely not the pizza chain it once was!’ wrote one customer on Reddit.
The beloved pizza chain has faced three consecutive quarters of declining sales.
The company last week reported a 6 percent drop in U.S. sales in its July-September earnings results, the worst performance since mid-2019 and the third consecutive quarter of sales declines.
Finance chief Ravi Thanawala acknowledged “challenging sales trends” and that they “will likely continue” through 2025.
CEO Todd Penegor admitted the chain needs to be “price competitive” to regain customer loyalty.
In response, he plans to expand the chain’s ‘Papa Pairings’ value menu, offering two select items for $6.99 each.
The company will also introduce faster reward options for loyal members and invest in new technology to improve the customer experience.
Fans, however, don’t seem convinced, with some on social media criticizing the chain’s high prices and claiming its quality has declined compared to competitors like Domino’s and Pizza Hut.
One said: “It’s too expensive with cheap ingredients.”
Papa John’s shares have fallen about 32 percent this year, reflecting investor concerns.
‘Before it was extremely reasonable compared to Dominos and Pizza Hut. ‘Papa John’s is definitely not the pizza chain it once was!’
“It’s too expensive for basically the same shit you can get anywhere,” another wrote.
‘Papa John’s is failing as an industry… but they still want to charge a fee. It doesn’t make sense,” a third agreed.
Papa John’s shares have fallen about 32 percent this year, reflecting investor concerns.
However, the chain is not alone, as its rivals are also struggling this year.
Customers have expressed concerns about the price and quality of Papa John’s pizzas
Hunt Brothers Pizza has 9,703 locations in more than 4,000 cities across the United States, while the second-largest chain, Domino’s Pizza, has 6,929 locations in all 50 states and two territories.
Given the increase in costs, they have raised menu prices, but this has caused a drop in customers.
Pizza Hut’s sales declined 1 percent in the third quarter and it was also forced to close 130 restaurants after a major franchisee filed for bankruptcy.
Big-name chains like Applebee’s, TGI Fridays and Boston Market have recently closed restaurants.
Red Lobster filed for bankruptcy in May and closed nearly 100 restaurants. Now it has emerged from bankruptcy.
BurgerFi also filed for bankruptcy in September, raising fears of mass closures of its 162 locations.
Papa John’s is the fourth largest pizza chain in the United States by sales, but fifth in terms of number of locations.
By that measure, Hunt Brothers is the largest pizza chain in the United States. It is only in 36 states, but has 9,703 stores in more than 4,000 cities, and also surpasses Pizza Hut, Domino’s and Little Caesar’s.
The little-known chain has operations in a large number of convenience stores and gas stations.