Published on 10 Apr 2024 on Zacks via Yahoo Finance

Papa John's (PZZA) and The Bajco Group Expand Partnership

Papa John’s International, Inc. PZZA strengthens its partnership with franchisee Nadeem Bajwa and his company, The Bajco Group. The collaboration aims to expand PZZA's presence in North America, with plans to open 50 new stores by 2028. The Bajco Group, a long-term franchisee, has been integral to PZZA's growth, making this expansion a strategic move for the company.The new agreement will expand Papa John’s footprint in The Bajco Group’s existing markets across the Midwest and Arizona, Pennsylvania and Florida, furthering Bajwa’s ambition to own 500 Papa John’s restaurants. This adds to the more than 200 restaurants the franchisee currently operates.

Advancing Towards Back to Better 2.0 Strategy

The move aligns with its Back to Growth Program (B2G Program), a new initiative aimed at accelerating growth in North America as part of its Back to Better 2.0 strategy. This program is expected to enhance restaurant-level margins within the first five years of new restaurant operations, resulting in significant cost savings in restaurant P&Ls. The anticipated outcome includes improved cash-on-cash returns for franchisees, increased market presence for Papa John’s and the attraction of growth-oriented franchisees.Papa John’s is bolstering its North America development infrastructure in line with the program. The company is reinforcing its development team through strategic hires aimed at attracting new, growth-oriented franchisees and supporting existing ones to drive accelerated franchisee growth.