Papa John’s International, Inc. outlined significant customer experience (CX) enhancements tied to digital innovation, even as the brand implements cost‑saving measures and system restructuring to address recent sales pressures.
The pizza chain confirmed plans to introduce an AI‑powered food ordering agent within its mobile app in the second quarter of 2026. It is a move aimed at simplifying voice and group ordering while delivering quicker, more personalized service to customers and loyalty members.
“Our partnership with Google Cloud will enable us to take personalization to the next level,” said Todd Penegor, President and CEO of Papa John’s. “We’re not just reacting to orders; we’re anticipating our customers’ needs and proactively providing tailored recommendations and offers. This isn’t just about convenience; it’s about creating a truly joyful and personalized pizza experience that builds lasting loyalty.”
Penegor emphasized that the upgrades reflect the brand’s commitment to digital transformation and more seamless customer interactions. The enhanced app is expected to work in concert with backend modernization efforts, including a new point‑of‑sale system and AI‑supported labour and inventory management tools.
Loyalty Program Driving Engagement
Papa John’s sees its Papa Rewards loyalty program as a core driver of customer engagement. The company reported that loyalty members order at higher rates than non‑members, highlighting the value of personalized incentives and exclusive benefits.
“As we accelerate our transformation, we are making visible progress executing our strategy,” Penegor said. “We are confident in our direction and in our ability to deliver sustainable profitable long‑term growth and capitalize on opportunities across the category.”
Restructuring, Store Closures and Operational Focus
The CX investments come amid a broader restructuring aimed at improving system‑wide profitability and competitiveness. Papa John’s plans to close about 300 underperforming locations in North America by the end of 2027, with approximately 200 closures targeted for 2026. Most of these are franchise‑owned outlets with limited sales momentum.
Alongside the closures, Papa John’s will reduce about 7 percent of its corporate workforce to streamline operations and improve efficiency. CFO and North America President Ravi Thanawala explained the closures target restaurants that are not meeting brand expectations or lack a clear path to financial improvement.
“We’ve had great partnership with the franchisees to make sure we’re thinking about each market holistically,” Thanawala said, adding the changes are designed to “set ourselves up for a stronger system.”
In addition to digital and operational changes, Papa John’s plans to simplify its North America menu by discontinuing items such as Papadias and Papa Bites in the second quarter of 2026. The company believes this will help reduce kitchen complexity and enhance service speed.
Despite headwinds, including a 5.5 percent decline in same‑store sales in North America in Q4 2025, leadership remains focused on balancing efficiency with customer‑centric growth initiatives.
Looking ahead, Papa John’s expects to open 40 to 50 new restaurants in North America in 2026, alongside closures, as part of its effort to optimize its footprint and drive future growth.
