When will Papa John’s get into baked goods?
Papa John, the pizza chain with more than 60 locations in the U.S., is getting into baked good production.
The company is in the midst of the first phase of a $20 million investment that includes building a bakery in the San Francisco Bay Area and a pizza production plant in New Mexico.
Papa John has a presence in the Midwest and Southeast, where it has expanded to locations like the San Diego-based San Francisco-based Pizza Hut.
The first three plants, located in Iowa, Texas and Florida, will produce 100,000 pies annually.
Papa John’s has been looking to expand its bakery business for years.
In 2013, the chain launched the first new store in the region in nine years.
The company has expanded in the past few years, buying franchises and expanding its footprint in states like Iowa and New Mexico that traditionally have been hard to reach for a pizza chain.
In February, the company signed a deal to open a new bakery in South Florida.
While it hasn’t revealed how many locations it will have in the country, Papa John said the first 100 will open in March.
It will be the first expansion of a brand in the company’s nearly 10-year history.
The chain was acquired by Papa John on Feb. 4, 2013.
“We believe the future of our business is in baked goods,” CEO Mike Hirsch told analysts in February.
“We have a lot of passion for them, we’re excited about them and we believe they are going to be very popular.”
The deal with Papa John will allow the company to increase production of its frozen pizza and produce pizza in the form of a range of toppings.
In addition to expanding the footprint of its bakery, Papa Joes will be looking to produce the baked goods in a factory in Mexico.