The economic landscape for pizza restaurant operators has remained challenging since the COVID-19 pandemic, with rising labor and food costs contributing to ongoing financial distress. In response, some restaurant owners have been forced to close locations, sell businesses, or file for bankruptcy protection.
The competition within the U.S. pizza industry has intensified, with over 74,000 pizza restaurants operating across the country in 2024. Alongside fierce competition, operators have faced significant cost increases, with food prices rising by 29% and labor costs climbing by 31% between 2019 and 2024, according to the National Restaurant Association. These rising costs have forced many pizza chains to raise their menu prices, which surged by an average of 27.2% from February 2020 to June 2024.
As inflation continues to weigh on consumers’ wallets, many are opting for more affordable at-home alternatives, such as frozen pizzas, rather than dining out. This shift in consumer behavior has further compounded the challenges faced by pizza chains, prompting closures, sales, and bankruptcy filings among major franchises.
Major National Pizza Chains Struggling with Financial Difficulties
In July 2024, EYM Pizza L.P., one of the largest Pizza Hut franchisees, filed for Chapter 11 bankruptcy protection after operating 142 locations across Georgia, Illinois, Indiana, South Carolina, and Wisconsin. As part of the bankruptcy process, the company auctioned off 77 of its restaurants and announced plans to close an additional 50 locations that could not be sold.
Meanwhile, Domino’s Pizza Enterprises, the largest franchisee of the global pizza chain, revealed in February 2025 that it would close 205 underperforming locations, including 172 in Japan. The closures, expected to occur between April and June 2025, are part of the company’s strategy to refocus its market efforts and improve profitability. Domino’s anticipates saving approximately $9.72 million annually, though the move will come with a one-time cost of $60.8 million.
In California, People First Pizza Inc., a Domino’s franchisee in Yorba Linda, filed for Chapter 11 bankruptcy protection in an effort to reorganize its business. The company is currently grappling with over $500,000 in disputed claims but intends to keep its restaurant operations ongoing.
Bertucci’s Files for Chapter 11 for Third Time
The struggles of pizza chains are not confined to the larger national franchises. Bertucci’s Restaurants LLC, an iconic East Coast chain, has filed for Chapter 11 bankruptcy protection for the third time in seven years. The company operates 16 locations across six states, down from 31 locations following its previous bankruptcy filing in December 2022. Bertucci’s, known for its Brick Oven Pizza & Pasta restaurants, initially filed for bankruptcy in April 2018, seeking to sell its assets at the time.
Despite the repeated bankruptcies, Bertucci’s continues to focus on restructuring its business and maintaining a presence in the competitive pizza market.
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