BUSINESS

From a small operation in a broom closet back in 1984, Papa Johns has quickly grown into one of the world’s biggest pizza chains.The chain managed to scale its operations by prioritizing “better ingredients” and clean labels, as well as early tech adoption. Papa Johns ensured consistency through vertical integration by using Quality Control Centers to distribute fresh dough and proprietary sauce.However, after years of growth, Papa Johns now faces the same industry-wide headwinds impacting other major pizza chains. Earlier this year, the chain confirmed that like Pizza Hut, it plans a significant operational scale-back to close approximately 300 underperforming North American locations, TheStreet Co-Editor-in-Chief Daniel Kline recently reported. In 2025, Papa Johns’ North America comparable sales decreased 2%, and total revenues of $2.1 billion were flat compared to 2024. Net income was $32 million, compared to $84 million in 2024, according to the company’s 10K filing with the Securities and Exchange Commission. Among key reasons for the comparable sales decline and closure of 300 stores is a shift in consumer behavior due to economic stress. More precisely, families are increasingly trading down by choosing frozen pizza over restaurant delivery to save money, Kline pointed out, citing the Baking Business report. Despite these challenging times for restaurant and fast food chain owners, Papa Johns is not giving up. Rather, it is shifting its strategy to meet customers where they are. Papa Johns debuts a new line of oven-toasted sandwiches Papa Johns continues to evolve beyond pizza with the launch of a new sandwich, the chain revealed on March 30. It will apply the brand’s signature “better ingredients” promise to a new category, according to the press release. The company plans to use premium ingredients, such as ciabatta-style bread and its signature Garlic Sauce, to attract customers who want an “indulgent” lunch or dinner that isn’t a slice of pizza. “This launch is more than a new menu item — it’s a statement about where our brand is headed. We’re taking the flavor and quality leadership we’ve built in pizza and pushing it further,” stated Senior Vice President of Brand Marketing Shivram Vaideeswaran.  Papa John’s new Oven-Toasted Sandwich lineup includes:Philly Cheesesteak: Seasoned steak, roasted onions and peppers, pizza ranch sauce, and white American cheeseChicken Bacon Ranch: All white-meat grilled chicken, bacon, diced tomatoes, banana peppers, pizza ranch sauce, and white American cheeseSteak & Mushroom: Seasoned steak loaded with roasted mushrooms and onions, garlic truffle sauce, and white American cheeseLike McDonald’s, Papa Johns bets on value offering Papa Johns confirmed that with the launch of new sandwiches, it plans to provide more affordable meal deals. Specifically, these sandwiches are priced at $7.99 individually. However, customers can choose a “Papa Pairings” deal to get each sandwich for $6.99 when they buy two or more items. They can also bundle them with a Pepsi for about $9.49. Papa Johns isn’t the only chain doubling down on value offerings to address current industry challenges and shifts in customer behavior. I previously reported on McDonald’s bid to attract low-income diners, who have been skipping fast food due to high prices. In September 2025, McDonald’s CEO Chris Kempczinski sounded the alarm about a “two-tier economy” in which wealthy customers are still spending, but lower-income guests are skipping meals, especially breakfast, or eating at home to save money. This shift follows years of inflation that led McDonald’s average prices to rise nearly 40%.To address this, McDonald’s is rolling out new value offerings, including a menu of items priced at $3 or less, and new $4 breakfast meals. 

Papa Johns debuts a new line of oven-toasted sandwiches to win back customers. DenisMArt/Shutterstock.com

Industry rivals are also struggling amid shift in consumer behavior Industry statistics reveal that other pizza chains and restaurants are feeling the strain as customer behavior changes. Key food and restaurant industry statistics: More than two-thirds (68%) of U.S. consumers are cutting back on restaurant dining in 2026, prioritizing affordability and convenience, reveals Popmenu’s 2026 report Restaurant Trends To Watch. In February 2026, consumers spent $90 per week on food away from home on average, down from $115 in June 2025, according to the same Popmenu’s 2026 report. A significant 42% of operators reported their restaurant was not profitable in 2025, and more than nine in 10 operators cite food, labor, insurance, energy, and swipe fees as significant challenges, according to the National Restaurant Association.  It is important to realize that as consumers spend less on eating out, restaurants and pizza chains must contend with rising food, labor, and rent expenses. Some are also still weakened from the Covid pandemic lockdowns, making recovery even more challenging. As a result, several pizza chains have significantly scaled back their operations or even filed for bankruptcy.Struggling pizza chains include: Papa Johns: The chain is shuttering approximately 300 underperforming North American locations through 2027 to stabilize its domestic system, according to prior reporting by TheStreet.Pizza Hut: Parent company Yum! Brands is closing roughly 250 restaurants and exploring a potential sale of the brand, according to Fast Company.MOD Pizza: The fast-casual pioneer shuttered over 27 locations across 11 states as it narrowly avoided bankruptcy in 2024, TheStreet previously reported.Little Caesars: Rising operational costs have led to “indefinite” shutdowns of dozens of units across several states, according to TheStreet.North County Pizza: A major Domino’s Pizza chain franchisee filed for Chapter 11 bankruptcy in March 2026 due to soaring labor and lease rates, reported TheStreet.California Pizza Kitchen: The heritage brand was sold to an investor group in late 2025 to stabilize operations after years of sluggish performance, according to FranchiseWire. Crust Pizza: A Texas-based dining chain franchisee has filed for Chapter 11 protection to reorganize its two restaurant locations, reported TheStreet. Can a $7.99 sandwich save Papa Johns from its latest slump?“We have identified approximately 300 underperforming restaurants across North America that are not meeting brand expectations or lack a clear path to sustainable financial improvement, as well as locations where we can effectively transfer sales to a nearby restaurant,”  Papa Johns CEO Todd Penegor said in the earnings release.The stores slated for closure are mostly franchise-owned units that earn less than $600,000 in annual revenue and are currently losing money (negative EBITDA). More Restaurants Unique fast-food burger chain closes its final location Chipotle makes key changes to reverse sales slideSubway drops its free sub offer, angering loyal customersThe plan is to shut down about 200 of these in 2026, with the remainder closing by the end of 2027. Beyond store closures, the company is also cutting its corporate workforce by 7% to improve efficiency.Interestingly, not every pizza chain is struggling. For example, by mastering digital sales (which now account for over 85% of their business) and maintaining lower price points, Domino’s is gaining the market share that Papa Johns and Pizza Hut are now losing, reported Kline. While it is difficult to predict how well customers will react to Papa Johns’ new value offering, similar moves by fast-food chains such as McDonald’s appear to be working out. “The Chicago-based chain saw U.S. same-store sales jump 6.8% in the fourth quarter of 2025, a figure that blew past Wall Street’s 4.9% forecast and signaled a major recovery for the brand,” reported Financial Content. “The primary engine behind this resurgence? A relentless focus on ‘deep value,’ anchored by the permanent expansion of its $5 meal deal, which has successfully lured back price-sensitive consumers who had previously retreated from rising menu prices.” While Papa Johns’ bold new menu change may be welcomed by budget-conscious customers, experts warn it might not be enough to resolve the most significant challenges. “The Oven-Toasted Sandwiches launch may support the key near term catalyst of stabilizing comparable sales, but it does not by itself resolve the biggest risk: ongoing pressure on profitability as labor, commodities, and marketing spend weigh on already low net margins,” writes Simply Wall St. Related: Iconic 118-year-old restaurant closing its doors forever

With Alaska Airlines’ acquisition of Hawaiian Airlines completed in 2024, orders of Boeing 787-9 and 787-10 Dreamliner planes have been redirected toward the long-haul destinations to which the Seattle-based airline plans to expand in the coming years.For the coming 2026 summer travel season, Alaska is launching new routes to London, Rome and Reykjavík that it hopes to also sell to a larger number of high-end travelers. Each Boeing 787-9 plane is equipped with 34 suite-style pods that the airline is positioning as a new international business class offering for its European routes.The Elevate Ascent lie-flat seats are laid out in a one-two-one configuration and can be converted between suites and lie-flat beds depending on the passenger’s preference. The same type of suites are built into the new 787-9 planes operated by American and United while Alaska is aiming to build out its new business class experience with tailored dining and amenity options.Alaska Airlines launches new business class experience for international flightsPrior to the main meal service, business class guests receive a cheese and charcuterie board presented as a “refined interpretation of Alaska’s iconic signature fruit and cheese platter.”Other nods to its Pacific Northwest base will be present in a selection of West Coast wines, beers and Portland Stumptown coffee while the Alaska’s Chef’s Table entrée has been developed with Seattle chef Brady Ishiwata Williams to include his signature short rib sourced from a local farm.Related: American Airlines makes chic change some travelers will appreciateOther dishes designed for specific routes include the pasta carbonara on flights to Rome and Gochujang chicken with a selection of banchan for the route to Seoul. After the main meal, a flight attendant will come around with an offering that is sure to delight anyone with a sweet tooth: a dessert cart from which guests can build an ice cream sundae from a selection of viral Portland Salt & Straw ice cream maker flavors or choose from a selection of other pastries, candies and desserts.

Alaska Airlines unveiled a new business class offering for its long-haul flights to Europe.Alaska Airlines

“A business class experience that is both sophisticated and authentically Alaska”The pre-arrival meals will also be tailored to a specific destination, the one that has currently been announced is the English breakfast for the route to London.Alaska is also partnering with Pacific Northwest clothing and home goods brand Filson for a set of lumbar pillows, mattresses and duvets that travelers will receive for the night-time portion of the flight.The airline is also launching new amenity kits with skincare products from LA body care brand Salt & Stone, a reusable water bottle and signature sleeping masks with a design of city skylines from the new destinations.More Travel News:Airline to launch unusual new flight to Cayman Islands from the U.S.Iranian strike hits major airport, injuries reportedUnexpected country is most luxurious travel destination for 2026U.S. government issues sudden warning on Switzerland travelAll together, these are part of Alaska’s effort to create a custom business class experience for its new destinations and craft a new course and image as an international airline.”We set out to design a business class experience that is both sophisticated and authentically Alaska: premium, comfortable and thoughtfully created for our guests,” Alaska’s Executive Vice President and Chief Commercial Officer Andrew Harrison said in a statement. “When we debut our new product this spring, it will raise the bar and redefine long-haul travel, while continuing to deliver the remarkable care that sets Alaska apart on the global stage.”Related: World Cup has a massive hotel problem

A brand’s success in one market can create the illusion of universal appeal. In reality, consumer resonance is often highly localized. What works in one country across pricing, positioning, and product mix does not always translate seamlessly to another.That is what makes international expansion inherently risky. Differences in consumer behavior, culture, economic conditions, and competitive dynamics all shape how a brand is perceived. Even well-established companies can struggle if they underestimate these factors, because prior success at home is no guarantee of performance abroad.This makes the latest move by Marks & Spencer particularly notable, not just as a retail expansion, but as a test of whether a legacy British brand can finally translate its appeal to U.S. consumers.Marks & Spencer returns to U.S. apparel retailMarks & Spencer has revealed a new collaboration with Nordstrom to launch a curated selection of bestselling womenswear across 30 Nordstrom stores and online, according to a company announcement.The assortment features over 60 pieces from Marks & Spencer’s core collections, marking the first time the retailer’s fashion line will be available in physical stores across the U.S.”Now is the time to build our brand awareness in the U.S. Fashion market and establish ourselves as a globally trusted brand,” said Mark Lemming, Managing Director of International at Marks & Spencer in the announcement. “We’re delighted to partner with Nordstrom, a partner who shares our values and will support us as we accelerate our growth.”Marks & Spencer’s past U.S. expansion attemptsThis is not the first time the company has tried to enter the U.S. market.Marks & Spencer initially expanded in 1988 through the acquisition of Brooks Brothers from Federated Department Stores, later launching standalone stores under its own brand, according to The Standard.However, the strategy ultimately failed. Misalignment in product assortment, sizing standards, and pricing limited its appeal to American consumers. By the late 1990s, performance had deteriorated significantly, leading to mounting losses. The company closed its U.S. stores and exited the market entirely in 2001.A more recent re-entry in a different category proved more successful. In 2022, Marks & Spencer introduced its food range through a partnership with Target, where products like its Percy Pigs gained strong traction, reportedly selling more than 30,000 bags every week, according to Marks & Spencer.

Marks & Spencer partners with Nordstrom to reenter the U.S. market.Shutterstock

Marks & Spencer’s new fashion strategy Encouraged by its success in food, Marks & Spencer is now taking a more measured, data-led approach to reintroducing fashion in the U.S.According to company data, 13% of U.S. consumers are aware of the brand’s fashion offering, with particularly strong recognition among women aged 25-34. More than 51,000 customers also shop via its U.S. website annually.Partnering with Nordstrom allows Marks & Spencer to scale efficiently by leveraging an established retail network rather than investing heavily in standalone stores. This “asset-light” wholesale model reflects a broader strategic shift toward building a global presence through scalable partnerships rather than capital-intensive expansion.The approach has already been tested internationally. In Australia, Marks & Spencer partnered with David Jones, initially launching lingerie before expanding into womenswear and menswear following strong performance.Why international brands struggle in the U.S.Marks and Spencer is far from alone in its past difficulties.Industry experts say many international brands fail in the U.S. not because of product quality, but because they underestimate how differently the market operates.Advertising and creative strategist Andrea Cerinza notes that European customers tend to be more conservative in their spending, while U.S. customers are more responsive to aspiration, speed, and convenience.”Breaking into the U.S. market isn’t just about translating your website or increasing ad spend,” said Cerinza. “It’s about translating your strategy, creatively, culturally, and emotionally.”Coverage on more retail business:Aritzia brings back iconic fashion brand after shutdownGLP-1 weight loss disrupting fashion retail demand125-year-old retail chain to close more stores in 2026Jessica Wong, founder and CEO of marketing and PR firm Valux Digital, says that global brands often hesitate to localize out of fear of diluting their identity.”Global brands do not fail because they communicate locally,” Wong said in Forbes. “They fail because they underestimate how deeply local trust systems shape perception, credibility and long-term success.”Analysts from Harvard Business Review support this view, noting that localization is no longer a surface-level adjustment. Companies need to adapt operations, supply chains, and partnerships at a structural level, even at the cost of efficiency, to compete effectively across markets.Marks & Spencer’s financial performance supports expansionThe U.S. expansion comes as Marks & Spencer shows signs of operational recovery following years of underperformance.For fiscal year 2025, the company reported:Revenue growth of 6%Operating profit increase of 22%A 5% rise in Fashion, Home & Beauty market share, reaching 10.5%At the same time, Marks & Spencer continues to streamline its store portfolio. It recorded an £84.4 million ($112.35 million) charge related to its multi-year store rotation program, which includes closures, asset impairments, and accelerated depreciation.The company plans to reduce its full-line store count from 229 to 180 by 2028, signaling a shift toward a more efficient and modern retail footprint, according to a company announcement.Nordstrom faces a challenging but evolving retail landscapeThe timing of this expansion is complex. According to McKinsey & Company’s State of Fashion 2026 Report, the global fashion industry is expected to see only low-single-digit growth amid macroeconomic instability, tariff pressures, and increasingly value-conscious consumer behavior, particularly in the U.S.Despite these challenges, some legacy retailers are adapting. As Fortune retail and leadership expert Phil Wahba noted, competitors such as Macy’s, Bloomingdale’s, Nordstrom, Belk, and Dillard’s have invested in upgrading stores, merchandising, and customer service, efforts that not only support sales but also enhance their value.These efforts are beginning to show measurable results. Nordstrom recorded a 3.3% increase in year-over-year foot traffic in the first quarter of 2025, according to Placer.ai.Still, some analysts remain cautious. Department store partnerships can provide reach, but they also limit control over brand presentation, pricing, and customer experience, factors that have historically been critical to success in the U.S. market.Marks & Spencer’s more calculated second attemptMarks & Spencer’s renewed U.S. strategy reflects a more disciplined and informed approach than its earlier expansion, but it is also fundamentally different.Rather than attempting to establish a standalone retail presence, the company is effectively distributing through established partners, seeking to mitigate the risks that led to its prior exit. However, success will depend on whether the brand can build relevance among American consumers within another retailer’s ecosystem.While the outcome remains uncertain, the combination of improved financial performance, a partnership model, and a deeper understanding of the U.S. market shows that this second attempt is designed for a very different retail landscape than previously. Related: 77-year-old jewelry giant will close 100 stores, shut 2 brands