With one of its two stores already shut, pizza chain Papa Johns is closing down in the Cayman Islands market, its local franchise holder has confirmed.
The company had been operating out of two premises in Cayman, at Grand Harbour and Queen’s Court Plaza. The Grand Harbour shop has already shut down, as its lease came to an end recently.
In a statement, SSL Capital (Cayman) Limited, which holds the local franchise, said following the COVID pandemic, Papa John’s International decided “to focus on larger markets with a minimum of 20 stores”.
The company said, after the head office of Papa John’s had made it clear that the franchise in Cayman would be ending, SSL Capital did not renew the lease on its Grand Harbour location when it expired.
“We wish to make it absolutely clear that the termination of the Grand Harbour lease is not due to any amount owing to the landlord as we have paid up all amounts due on the said lease up to the end of February 2023,” the company said in a statement refuting a recent local report after property management company BCQS posted a notice to quit on the door of the shuttered property.
That notice, dated 31 Jan., stated that the landlord had taken possession of the premises and the tenant could make arrangements to access the property and recover any contents or equipment.
BCQS, which handles the rental of properties at Grand Harbour Shoppes, confirmed that the lease had expired.
The property management company’s director, Tim Hepburn, said, “Papa John’s lease came to an end and the landlord decided to go a different route. It was very straightforward. Leases come to an end all the time around the world, day in, day out. … It was all very cordial.”
SSL Capital said it would continue to operate the Papa Johns Queen’s Court store “until further advised”, but would be exiting the Cayman market in 2023.
All orders previously served by the Grand Harbour location are now being routed to the Queen’s Court location, it said.
“We are also taking steps to dispose of aspects of the business and to ensure that some of the remaining staff can continue to be gainfully employed and is in discussion with an interested party with the aim of concluding a sale with them,” the company said.
It added, “We would like to use this opportunity to thank our many valued customers, clients, and service providers and to assure everyone that we will honour all our obligations to our staff, clients, and service providers.
“Whilst we regret this decision, we have to be mindful of the continuous changing landscape exacerbated by the global COVID pandemic. On behalf of the management and staff of Papa Johns Cayman, again we say, ‘Thank You’ for all the support and love that our customers have shown us over the years. We are forever grateful.”
As of the end of 2022, there were 5,706 Papa Johns restaurants operating in 48 countries and territories.
The Compass has reached out to Papa John’s International for comment.
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