Papa John’s carries out a capital increase to reinforce its expansion plan in Spain

The company will double its stores and triple employment in our country in three years.

Papa John's launches an aggressive expansion plan: it will open 90 stores in three years and triple employment in Spain

PJ Spain, company that manages the Papa John’s pizza chain, has carried out a capital increase of 1,111,483 euros, raising the resulting subscribed capital to 4,111,483 euros, as published in the Official Gazette of the Mercantile Registry (Borme).

This expansion has been carried out to reinforce Papa John’s expansion plan in Spain, according to sources from the company to this medium. The pizza chain intends to open 60 own restaurants and 30 franchisees in three years. That is, a total of 90 new stores that will be added to the 73 restaurants with which they will close in 2020, as Invertia advanced.

In fact, the opening of the last two of the year is scheduled for December in Barcelona, ​​a strategic area for the company. Andalusia and the north of Spain are also important enclaves in this plan, where plans to triple the workforce, which currently stands at 1,400 employees.

A growth that, in addition, has on the table the opening of a second production center in the north or Catalonia that would be added to the one they have in Alcalá de Henares (Madrid). Although, at the moment, it is something that is only being studied by the pizza company.

Jump to the franchise

Papa John’s was presented in 2015 in the Spanish pizza sector, dominated by its two rivals with a differentiated product: pizzas accompanied by a chilli and garlic sauce. Its business model was like that of the rest of its competitors since it did not have franchises, but for five years it has grown thanks to its own stores.

Now, the company opens to this format with the experience it brings from the three franchises it has in Portugal (the other leg of the Iberian market). But why now and not before? Well, for a brand issue. “Because we first wanted to establish the brand and control the business 100%,” the marketing director told Invertia a month ago.

In this sense, recently Papa John’s has signed an agreement with Booh! to open a store in Andalusia within the center of dark kitchens in Malaga, a multi-brand space totally focused on food delivery and take away of different types. However, this model will not be the priority in the company’s strategic plan.