4 Pizza Chains On a Downward Spiral in 2024
Pizza is a food category in its own right. A Pizza Hut survey released earlier this year found that Americans eat pizza three times per month on average and consume about eight pieces of pizza during that same amount of time. This adds up to nearly 100 slices per year for the average American, and the total is likely even higher for particularly diehard pizza fans.
Unfortunately, America's massive appetite for the popular dish doesn't always protect pizza shops from financial difficulties. In 2024, a number of pizza chains have been struggling with issues such as store closures, declining sales, and even bankruptcy. These woes don't necessarily mean the chains will go out of business like other failed pizza concepts. However, they do show that those businesses aren't quite as powerful as they were in the past—spurring some to make major changes in an effort to reclaim their past popularity.
Here are four pizza chains that have been on a downward spiral this year.
Papa Johns
Papa Johns still holds its title as one of the largest pizza chains in America, but customers aren't flocking to its restaurants quite like they used to. The company has reported three straight quarters of same-store sales declines, including a 6% drop in the latest period that ended on Sept. 29. That was its worst result since the second quarter of 2019, per Restaurant Business Magazine.
CFO Ravi Thanawala said during a recent earnings call that they expect this year's "challenging sales trends" to "likely continue as we close out 2024 and enter 2025." But CEO Todd Penegor has a multi-faceted plan that he hopes will improve Papa Johns' performance in the long term, such as introducing value offers, rolling out new menu items, ramping up marketing, investing in technology, opening new restaurants, and improving its loyalty program.
"We are acting with urgency," Penegor said during the call. "We are laser-focused on strengthening our foundation in the near-term, while positioning the company to capitalize on opportunities to drive success and value creation over the long term."
Mod Pizza
One of the nation's most famous fast-casual pizza spots, Mod Pizza, has faced its fair share of financial struggles in 2024. The chain shuttered nearly 30 underperforming locations across ten states and Washington D.C. during the first quarter of the year alone. In the summer, anonymous reports began to emerge that Mod was preparing a potential bankruptcy filing, and a spokesperson told Restaurant Business Magazine that they were "exploring all options" to improve their finances.
Mod was able to avoid bankruptcy when the Los Angeles-based Elite Restaurant Group bought the chain in July. It has since announced several changes aimed at turning the business around, including a revamped tiered menu and the refranchising of company-owned restaurants.
Fired Pie
The Arizona-based fast-casual chain Fired Pie filed for Chapter 11 bankruptcy this month as it seeks to restructure its business. Though the chain did not share its reasons for the move, the category of fast-casual pizza restaurants has been flooded with competition and has struggled for years.
Nation's Restaurant News reported that Fired Pie's parent company listed $500,000 to $1 million in assets and $1 million to $10 million in liabilities in the filing. According to its website, the chain currently has 14 restaurants in operation across Arizona.
Oath Pizza
Oath Pizza, yet another fast-casual pizza chain, officially filed for Chapter 7 bankruptcy in the fall of 2024. The move came a year after Oath Pizza shuttered all of its corporate-owned restaurants after contending with financial difficulties and a big legal fight between investors and an executive trying to buy the chain. The company is liquidating its remaining assets through the Chapter 7 filing.
At its peak, Oath Pizza had 17 restaurants spread throughout Massachusetts, New York, Pennsylvania, California, and other states. However, per Nation's Restaurant News, only a few independent franchised Oath Pizza locations are still in operation today.
Sign up for our newsletter!
