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 a month on average and consume about eight pieces during the same time period. That’s nearly 100 slices a year for the average American, and the total is probably even higher for particularly die-hard pizza fans.

Unfortunately, America’s massive appetite for this popular dish doesn’t always protect pizzerias from financial difficulties. In 2024, a number of pizza chains have faced issues such as store closures, declining sales, and even bankruptcy. These misfortunes don’t necessarily mean the chains will go out of business like other failed pizza concepts. However, they show that these companies are no longer as powerful as they once were, prompting some to make major changes in a bid to regain their past popularity.

Here are four pizza chains that are in a downward spiral this year.

Papa John’s

Papa Johns still holds its title as one of the largest pizza chains in America, but customers aren’t flocking to its restaurants like they used to. The company has reported three consecutive quarters of declining same-store sales, including a 6% decline in the most recent period ended September 29. This is its worst result since the second quarter of 2019, according to Restaurant Business Magazine.

Chief Financial Officer Ravi Thanawala said on a recent earnings conference call that he expects 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 offerings, rolling out new menu items, scaling up marketing, investing in technology, opening new restaurants and improving. its loyalty program.

“We are acting with urgency,” Penegor said on the call. “We are focused on strengthening our foundation in the near term, while positioning the company to capitalize on opportunities that will enable it to succeed and create value in the long term.”

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Pizza Mod

One of the country’s most famous fast-casual pizzerias, Mod Pizza, faced its share of financial woes in 2024. The chain closed nearly 30 underperforming locations in ten states and Washington, D.C. over the only first quarter of the year. Over the summer, anonymous reports began to emerge that Mod was preparing a possible bankruptcy filing, and a spokesperson said Restaurant Business Magazine that they were “exploring all options” to improve their finances.6254a4d1642c605c54bf1cab17d50f1e

Mod was able to avoid bankruptcy when Los Angeles-based Elite Restaurant Group purchased the chain in July. He has since announced several changes aimed at turning around the company, including a revamped multi-tier menu and the refranchising of company-owned restaurants.

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Baked pie

Arizona-based fast-casual chain Fired Pie filed for Chapter 11 bankruptcy this month as it seeks to restructure its business. Although the channel did not share the reasons for this decision, the The fast-casual pizza category has been flooded with competition and has struggled for years.

Nation’s Restaurant News reported that Fired Pie’s parent company listed between $500,000 and $1 million in assets and between $1 million and $10 million in liabilities in the filing. According to its website, the chain currently has 14 restaurants operating throughout Arizona.

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Oath Pizza

Oath Pizza, yet another fast-casual pizza chain, officially filed for Chapter 7 bankruptcy in fall 2024. The move came a year after Oath Pizza closed all of its company-owned restaurants after having faced financial difficulties and a major legal battle between investors and an executive trying to buy the chain. The company is liquidating its remaining assets via Chapter 7 filing.

At its peak, Oath Pizza had 17 restaurants across Massachusetts, New York, Pennsylvania, California and other states. However, according to Nation’s Restaurant Newsonly a few independent Oath Pizza franchise locations are still in business today.

Zoe Strozewski