Papa John’s customers fearing for pizza chain’s future after bombshell report

Fans are concerned about the future of Papa John’s after its latest earnings report showed a steep decline in sales.

The pizza chain, the fourth-largest in the U.S. by revenue, 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 are ordering fast food from chains that they believe offer better value, the boss said.

Offers from McDonald’s, Wendy’s, Popeye’s and others — available for delivery through the likes of 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 company last week reported a 6 percent decline in U.S. sales in its July through September earnings results — its worst performance since mid-2019 and the third consecutive quarter of declining sales.

Chief financial officer Ravi Thanawala acknowledged the “challenging sales trends” – and that “they are likely to continue” into 2025.

CEO Todd Penegor admitted the chain must “compete on price” to regain customer loyalty.

In response, he plans to expand the chain’s “Papa Pairings” menu, offering two select items for $6.99 each.

The company will also introduce faster rewards options for loyalty members and invest in new technology to improve the customer experience.

However, fans 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.’

Shares of Papa John’s are down about 32 percent this year, reflecting investor concerns.

‘It used to be extremely reasonable compared to the likes of Dominos and Pizza Hut. Papa John’s is definitely not the pizza chain it once was!’

“It’s too expensive for basically the same s*** you can get anywhere,” wrote another.

“Papa John’s is failing as an industry… but they still want to charge. There’s no point,” a third agreed.

Shares of Papa John’s are down about 32 percent this year, reflecting investor concerns.

However, the chain is not alone; his rivals are also having a hard time 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 America, while the next largest chain, Domino’s Pizza, has 6,929 locations in the 50 states and two territories.

Faced with higher costs, they have increased menu prices, but that has led to a decline in customers.

Pizza Hut’s sales fell 1 percent in the third quarter and it also had to close 130 restaurants after a major franchisee filed for bankruptcy.

Major chains like Applebee’s, TGI Fridays and Boston Market all recently closed restaurants.

Red Lobster filed for bankruptcy in May and closed nearly 100 restaurants. It has now 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 US in terms of revenue, but the fifth in terms of number of locations.

On that basis, Hunt Brothers is the largest pizza chain in the US. It is only located in 36 states, but has 9,703 outlets in more than 4,000 cities, also surpassing Pizza Hut, Domino’s and Little Caesar’s.

The little-known chain operates in a large number of convenience stores and gas stations and is beating it.