NEW YORK — The pizza world, long a staple of American comfort food, is feeling the pinch like never before, with major chains shuttering hundreds of restaurants this year alone as inflation, shifting consumer habits, and post-pandemic recovery woes take their toll.
Domino’s Pizza, the undisputed delivery king, leads the pack with around 200 closures announced for 2025, but it’s far from alone—MOD Pizza, Little Caesars, and others are trimming footprints too, signaling a tough road ahead for an industry that once seemed recession-proof.
Domino’s, which boasts over 20,000 locations worldwide, revealed the cuts during its latest earnings call, citing “changing consumer behavior” in a value-conscious economy.
CEO Russell Weiner didn’t sugarcoat it, stating, “Delivery is a tougher value right now in this value-conscious world. And so, the choice isn’t going to another restaurant. Most of the time, it’s eating at home.”
The closures, primarily targeting underperforming spots, aim to “sharpen market focus and improve profitability,” with the company projecting $15.5 million in annual savings and $10-12 million in earnings before interest and taxes.
While exact U.S. numbers aren’t broken out, the global tally underscores how even pizza—the ultimate affordable indulgence—is struggling as families opt for home-cooked meals over takeout.
A Growing Trend of Store Closures in Pizza Industry
MOD Pizza and Little Caesars are part of the broader bleed, contributing to hundreds of shutdowns across the sector.
Fast-casual MOD, known for customizable pies, axed 27 stores in early 2024 as part of a restructuring that swapped out its CEO and grappled with a 10.7% sales bump that couldn’t offset rising costs.
Little Caesars, the budget behemoth, has quietly closed dozens amid franchisee pressures, though specifics remain fuzzy. Even Papa John’s and Pizza Hut are sounding alarms, with executives echoing Domino’s on declining sales and value challenges that hint at more trims to come.
This isn’t just a blip—it’s a symptom of a battered quick-service restaurant (QSR) landscape where low-income diners, once the backbone, are pulling back double-digits from visits.
McDonald’s CEO Christopher J. Kempczinski nailed it during their Q2 earnings, stating, “Overall QSR traffic in the U.S. remained challenging as visits across the industry by low-income consumers once again declined by double digits versus the prior year period. Reengaging the low-income consumer is critical as they typically visit our restaurants more frequently than middle- and high-income consumers.”
Pizza, ironically, was supposed to weather storms better than pricier fare, but with operating costs up 20-30% since 2020, even $5 Hot-N-Readys feel like luxuries.
A Wave of Closures: From Global Giants to Local Favorites
The pain isn’t confined to the big names. Domino’s largest franchisee, Australia-based Domino’s Pizza Enterprises (DPE), announced in February 2025 it would shutter 205 “loss-making stores” worldwide, with 172 in Japan alone closing between April and June.
“Japan is an attractive market for quick service restaurants and pizza, with significant long-term upside for Domino’s,” DPE Group CEO Mark van Dyck said, framing the cuts as a reset for growth. The move is expected to save $9.72 million annually but comes with a one-time $60.8 million hit.
Closer to home, Bertucci’s—an East Coast Italian chain with a pizza-heavy menu—filed for Chapter 11 bankruptcy for the third time in seven years on April 24, 2025, operating just 15 restaurants at filing. The chain, which debuted in 1981, had already slimmed from 31 spots in 2022, blaming inflation and supply chain snarls.
Franchisees of popular chains aren’t spared either; in March 2025, California-based People First Pizza Inc., a Domino’s operator, filed Chapter 11, citing similar woes.
Even iconic spots are folding. Buddy’s Pizza, the Detroit-style square-pie inventor since 1946, shuttered its Portage, Michigan, location in 2025, succumbing to COVID hangovers, staffing shortages, and inflation.
Zeppe’s Tavern, a rock ‘n’ roll-themed Ohio chain since 1986 with 13 locations plus one in Florida, sought Chapter 11 in April 2025 to restructure amid rising costs.
Oath Pizza, a fast-casual player, filed Chapter 7 in November 2024, closing all corporate spots with under $500,000 in assets against up to $50 million in debt.
Chuck E. Cheese, the birthday-party pizza palace, is teetering too. Reports from late 2024 flagged multiple closures in Pennsylvania, Missouri, and North Dakota, with the chain eyeing a buyer amid identity struggles—pizza’s secondary to arcade games these days.
And Bahama Breeze, Darden’s tropical chain with pizza on the menu, axed 15 spots nationwide in summer 2025, including four in New Jersey, to “focus on highest performing restaurants.
North Jersey alone lost gems like a beloved red-sauce Italian joint in Morris County, a brick-oven pizza spot in Montclair, and an upscale American eatery in Millburn over summer 2025. “Still, it’s not easy to say goodbye to your favorite eatery or your local pizza spot,” lamented NorthJersey.com.
Why Pizza’s Losing Its Slice: Inflation, Habits, and a Shifting Market
The closures trace to a perfect storm: Inflation hiked ingredient and labor costs 20-30% since 2020, while high interest rates stalled home sales—bad news for furniture-like big buys, but pizza? Consumers are cooking more at home, per QSR Magazine, with delivery apps like DoorDash adding fees that make a large pie $25-30.
“Eating pizza remains one of the favorite activities of American families,” noted EDA TV, “but chains must adapt to an increasingly demanding and competitive market.”
Business Insider’s 2025 forecast warned of 2,500+ retail closures, including pizza players, as low-income traffic drops double-digits.
“The crisis spares not even the most beloved flavors,” EDA TV added, listing Bertucci’s, Zeppe’s, and MOD as casualties.
Forbes Australia’s take on DPE’s cuts: A $9.4 million save, but a $60.8 million upfront hit. For survivors like Domino’s (still the top U.S. pizzeria per Restaurant Business Online), it’s about value plays—deals and efficiency to claw back traffic.
But for chains like Metro Mattress (wait, no—pizza focus), the lesson is clear: Adapt or fold.
As 2025 wraps, the industry’s contraction—hundreds gone, thousands more at risk—feels like a slice too thin for comfort.
Also Read: A Sporting Goods Retailer is Now Closing Over 100 Stores
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