KM Capital Brings Local Market Expertise to 44 Papa Johns Restaurants in Mexico
- KM Capital will head 44 existing Papa Johns restaurants in Mexico.
- The pizza franchise sees strong growth potential in the international market, with Mexico representing an important segment of that market.
- The global pizza market has a projected compound annual growth rate of 5.9% from now through 2034.
Papa Johns announced on Monday that KM Capital will be the pizza brand’s new franchise partner in Mexico, where it will take the reins of 44 restaurants. Papa Johns said in a statement that KM Capital will prioritize growth, innovation and operational and product excellence, and also will invest in restaurant operations and brand development.
This partnership comes as Papa Johns’ international business continues to grow. Mexico, the world’s third-largest pizza market, represents a significant market segment within Papa Johns’ long-term growth plan, according to the Papa Johns news release. Papa Johns CEO Todd Penegor said his company has focused on priority markets such as Mexico, along with strategic closures, to strengthen the franchise, Nation’s Restaurant News reported.
International Opportunity
The outlook for the international pizza market is rosy, Fortune Business Insights reports. The global pizza market size was valued at roughly $215 billion this year and is expected to reach $340.9 billion by 2034, which would equate to a compound annual growth rate of 5.9%.
Papa Johns’ international business has outperformed its U.S. business. In the second quarter, Papa Johns’ same-store sales in the international division increased 1.5%, Nation’s Restaurant News reported, which represents its seventh consecutive quarter of gains. The brand’s U.S. business declined 8.3% in the second quarter of this year, NRN noted.
Papa Johns, KM Capital Leaders React
John Matter, the global chief development officer for Papa Johns, expressed optimism about the new franchise partnership. “KM Capital brings the local expertise, commercial discipline and strategic growth mindset needed to support the brand’s next phase. Together we are focused on enhancing the customer experience, growing our presence in the market and building a stronger Papa Johns brand for consumers across Mexico.”
Enrique Ruiz Mandujano, KM Capital’s CEO and founding partner, said he looks forward to building on the brand’s strong foundation in Mexico. “Mexicans have a strong passion for pizza, and we see an opportunity to grow the Papa Johns brand by delivering great pizzas and expanding our reach to serve more communities across the country,” Mandujano said in the news release. Papa Johns Mexico will serve traditional pizza favorites as well as menu options that offer local appeal.
About Papa Johns and KM Capital
The pizza brand launched in 1984 with a stated mission of creating better pizza with better ingredients, including crust that starts with a dough that’s always fresh, never frozen. Papa Johns is co-headquartered in Louisville, Ky., and Atlanta. It has about 6,000 restaurants in roughly 50 countries and territories.
Founded in 1986, KM Capital is based in Mexico City. The news release said the private investment and advisory firm focuses on building long-term value through investment, operational improvement and financial discipline.
