Dive Brief:
- Papa Johns is launching three oven-toasted sandwiches in a new menu category debut, the brand said Monday.
- The sandwich rollout follows the excision of Papadias and Papa Bites from the chain’s menu. Those items added incremental sales but disrupted the chain’s normal operational workflows.
- The brand, which has faced declines in same-store sales over seven of the last eight quarters, is looking to menu innovation to offer new sales opportunities without detracting from its core pizza business.
Dive Insight:
The sandwiches, which are Papa Johns’ takes on classic sub flavors, are meant to make consumers reconsider their ideas about what a pizza chain can do with its menu, according to a statement emailed to Restaurant Dive. The new items are made with ciabatta bread and brushed with the brand’s Special Garlic Sauce.
The chain tested the sandwiches in some North American markets in recent months, CEO Todd Penegor said on Papa Johns’ most recent earnings call. The brand was “pleased with the early results of this new growth platform with our new sandwiches increasing sales of nonpizza items in test markets,” Penegor said.
The chain also intends to sell these items at an accessible price point, Penegor told analysts and investors. According to the press release, the sandwiches are priced at $7.99.
For the most part, Papa Johns has focused on its core pizzas under Penegor, who joined the chain in 2024. That focus has resulted in a higher absolute number of pies sold, but has not translated into same-store sales growth as a result of trade down. In January, the chain launched a premium Pan Pizza meant to help it compete with similar menu items at competitors.
CFO Ravi Thanawala said items like the Pan Pizza and toasted sandwiches were part of an effort to expand its total addressable market. Expanding its customer base will be crucial for the chain, which has 11% annual buyer penetration, according to Circana’s 2026 Definitive Restaurant Rankings. Domino’s, by contrast, has 34% buyer penetration and is undertaking a concerted campaign to capture 50% market share in the QSR pizza category.
Papa Johns may have more menu items coming to expand its TAM.
“In the U.K. we're serving up new crispy coated chicken tenders alongside new dipping sauces and we are pleased with the early results increasing sales of side items. We plan to build upon these learnings for chicken innovation in the U.S.,” Penegor said.
Oven-toasted sandwiches have played an important role in menu innovation as chains look for ways to capitalize on consumer demand for convenient, handheld items. Panera launched oven-toasted baguettes in 2023. While those specific items are no longer available, the chain still sells toasted sandwiches like a Ciabatta Cheesesteak and a Toasted Italiano, according to its online menu. Last year, Jimmy John’s also added a toasted sandwich menu category.
