# Papa Johns, Starbucks, and credit market strain

> Papa Johns franchisee files bankruptcy as Starbucks boosts barista bonuses amid restaurant credit crunch.
- Title: Papa Johns, Starbucks, and credit market strain | Shortify
- Summary: Papa Johns franchisee files bankruptcy as Starbucks boosts barista bonuses amid restaurant credit crunch.
- Keywords: papa johns, starbucks, bankruptcy, credit market, restaurant lending, barista bonuses, digital tipping, Nation's Restaurant News
- Source: Nation's Restaurant News — https://nrn.com/quick-service/papa-johns-starbucks-and-the-credit-market
- Read time: 1 min
- Topics: papa johns, starbucks, bankruptcy, credit market, restaurant lending, barista bonuses, digital tipping, food, business
## 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.
## Key takeaway

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.