Businessman offers clarity on takeaway outlets

A businessman who has in the past had interests in the Papa Johns franchise in the South West of England has provided some clarification of the circumstances surrounding the pizza chain’s recent difficulties.

Dr Renato Raho managed 10 Papa Johns outlets in the region through his business Renz Restaurants Ltd before selling the franchise to Jabbar Mumtaz in October 2023.

It was reported earlier this month that Papa Johns had terminated its relationship with franchisee Mr Mumtaz. A total of 13 stores were listed as being temporarily closed.

They were: Barnstaple, Newquay, Torquay, Newton Abbot, Exmouth, Plymouth – Mutley Plain, Plymouth – St Budeaux, Plymouth – Woolwell, Exeter – St Thomas, Paignton, Bristol – Filton, Stroud and Cirencester.

After news emerged of the temporary closure of the outlets, Papa Johns said in a press statement: “While the stores are temporarily closed, we are working to secure new ownership and reopen as soon as possible. Our priority is delivering quality pizza and a great experience for our customers, while supporting our teams through this transition.”

Dr Raho, who was the Managing Director of Renz Restaurants Ltd, wants to clarify and correct some of the reporting concerning the Papa Johns franchise in the South West.

Some reports indicated that Mr Mumtaz had originally “rescued” ten Papa Johns outlets “after another franchisee went bust”. Dr Raho said this is not factual or correct. Renz Restaurants sold 10 stores assets for a consideration paid by Mr Mumtaz via his limited businesses to Mr Mumtaz.

Following the asset sale, Renz Restaurants was put into liquidation once it had ceased trading following the sale on October 31, 2023.

Legal documents for the sale were signed on November 2, 2023.

Renz Restaurants did not own or operate Bristol Filton, Stroud and Cirencester.

Dr Raho also stressed that as the business was sold as an asset sale, and a going concern, everyone kept their jobs and the stores continued trading.

Papa Johns were not involved in the sale process directly, but named on a tripartite agreement as the franchisor.