Papa John's Q1 UK Results

Friday 26th March

Leading UK Pizza Delivery and Takeaway chain Papa John’s Pizza has achieved another period of double digit sales growth, led by a sustained media presence.

The UK operation of the company, which was founded in the USA in 1984, achieved 10 per cent growth in like-for-like sales, a 1.4 per cent increase on its Q4 figures (8.6%). This is the 17th consecutive period of comparative sales growth and continues Papa John’s robust performance.

Despite the lengthy cold snap which brought hazardous driving conditions to the business during the start of the year, a continued media presence of TV and radio advertising and store level support built on 2009’s momentum, and the company plans for this to be sustained across the rest of the year.

The pizza category saw the usual increased level of discounting in the early part of the year, with Papa John’s offering customers increased value with a ‘Buy one, get one free’ offer. This was followed with the launch of a superior product called the Il Carnovoro, and helped to continue to boost sales through the early spring.

Papa John’s success in 2009 is evident in the fact that the company opened a record 24 franchised stores across the UK. The pizza experts are on track to build on that success by opening 40 stores in 2010 so that Papa John’s UK and Ireland will have over 180 stores by the end of the year.

The company’s overall performance has also been recognised by industry body the Pizza, Pasta and Italian Food Association, who named Papa John’s as the Delivery Chain of the Year for the second consecutive year ahead of shortlisted rivals Domino’s and Pizza Hut.

As well as aiming to open another 40 stores this year, Papa John’s has other significant expansion plans. A new Quality Control Centre where Papa John’s 100% fresh dough will be produced is due to open in Milton Keynes in the Spring, following a £5m investment.

Managing Director’s comment:
UK MD Jack Swaysland

We are delighted with our results from the start of 2010.  

We have continued to invest very heavily in all areas of the service we offer to customers, right through from the very latest website technology to the opening of new stores.

This investment has seen us carry out sustained TV and radio campaigns for the first time, as well as stepping up our presence in printed media – both nationally and locally.

January saw the launch of our brand new web platform, Papa’s Lounge, which provides a digital loyalty suite for customers. Combined with our industry leading mobile ordering, and our investment in social media interfaces of Facebook and Twitter, this continues to engage customers with the Papa John’s brand, assisting us to establish a relationship beyond price and the deal.

The significant percentage of purchases made online also proves that Papa John’s is moving apace with modern technology, and making the ordering process even easier for our customers.

And this strategy will continue. We look forward to opening 40 stores in 2010, allowing even more people to hear about Papa John’s and try our exceptional pizzas. When it opens later this year, our new state-of-the-art dough plant will ensure that we can cater for our ever increasing production needs going forward.