From Nation's Restaurant News · · 1m 30s
Papa Johns, Starbucks, and credit market strain
Papa Johns franchisee files bankruptcy as Starbucks boosts barista bonuses amid restaurant credit crunch.
In brief
Papa Johns franchisee files bankruptcy as Starbucks boosts barista bonuses amid restaurant credit crunch. Papa Johns franchisee Papa ZHS LLC filed for bankruptcy in Pennsylvania with $2.9m in unsecured claims, while Starbucks paid $300 bonuses to nearly 80% of baristas and $22m in tips after digital tipping expansion…
Papa Johns franchisee files bankruptcy
Papa ZHS LLC, a Papa Johns franchisee since 2019, filed for bankruptcy in Pennsylvania with assets between $100,000 and $500,000 and over $2.9 million in unsecured creditor claims.
Papa Johns expansion and sales decline
Papa ZHS expanded to 12 locations in seven years and opened Papa Johns’ 6,000th restaurant in February 2025, but reported negative 8.3% same-store sales in its most recent third quarter.
Starbucks barista bonuses
Nearly eight in ten Starbucks baristas received $300 Best of Starbucks Reward bonuses this week, paid quarterly to workers meeting quality metrics.
Starbucks stock and tips
Starbucks reported nearly 200,000 workers received company stock this week and customers paid $22 million in additional tips since digital tipping expanded in July.
Restaurant credit market strain
Lenders expect more franchisee bankruptcies as banks slow restaurant lending due to weak economic conditions and rising interest rates.
Restaurant Finance conference
The Restaurant Finance and Development conference in Vegas highlighted the restaurant industry’s credit crunch, with lenders and operators discussing increased bankruptcy risks.
Papa ZHS ownership
Papa ZHS is owned by Yasir Hussain, who began working at Papa Johns as a dishwasher about 20 years ago.
The bottom line
Papa Johns franchisee Papa ZHS LLC filed for bankruptcy in Pennsylvania with $2.9m in unsecured claims, while Starbucks paid $300 bonuses to nearly 80% of baristas and $22m in tips after digital tipping expansion.
