--- title: "⛫ Why Pizza Chains are Struggling" url: https://burnaze.com/article/5ca3e094-747d-4b53-acaa-011b43eed475 source: "Empires Weekly" original_url: https://empirespod.substack.com/p/why-pizza-chains-are-struggling author: "Patrick Buckley" category: "Pizza" industry: "Restaurants" segment: "Pizza" published: 2026-07-27T21:26:09.000Z modified: 2026-10-31T13:15:34.056Z image: https://substackcdn.com/image/fetch/$s_!lAAs!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ffe6aefe7-325a-4422-a893-616f3a853c5f_1200x600.png --- # ⛫ Why Pizza Chains are Struggling **TL;DR:** The pizza sector is struggling due to increased competition from 3PD platforms and mom & pop operators, with Domino's being one of the few chains weathering the storm. Rising costs and the availability of cheaper alternatives, such as frozen pizzas, have also contributed to the decline. *By Patrick Buckley, originally published in Empires Weekly on 2026-07-27. [Read the original](https://empirespod.substack.com/p/why-pizza-chains-are-struggling).* ## Story If you’re a franchisee (or have locations) in **Austin TX,** the awesome people at **Picnic** are throwing an event next week! If you want to boost your catering $$$ (and enjoy an open-fire cookout, whole-hog roast, and more), respond to this email and I’ll send you the details! Leading QSR and fast-casual brands - including Chick-fil-A, Starbucks, Goop Kitchen, and more - trust **CloudKitchens** to expand into new markets faster and at a fraction of the cost of traditional real estate. With an upfront investment of less than 10% of a brick-and-mortar location and 2.5–4.9x higher return on invested capital, **CloudKitchens** helps brands grow with less risk and overhead. Domino’s just announced Q2 same-store-sales. Despite growing their order count, sales rose just 0.1%…..thanks to selling cheaper pizzas. Zooming out, pizza was the only category to experience negative sales in 2025. Papa John’s and Pizza Hut are closing hundreds of locations, while the fast casual segment is shrinking: > *None of the build your own fast casual concepts have worked out. None of them have delivered great unit level economics where franchisees specifically have been able to say that they were successful.**-*Harsh Ghai on Empires The sector is hurting for a few core reasons, but it makes sense that primarily only Domino’s (2025 SSS were up 4.8%) is weathering the storm. > “*Our brand has never been stronger, and our competition has never been weaker*” -Russell Weiner, Domino’s CEO The rise of 3PD platforms like DoorDash, UberEats, and so on, has given every restaurant the tech & operating stack that enabled Domino’s to dominate in pizza. Prior to DoorDash, if you wanted delivery, pizza shops were typically the only game in town. Now, you have a virtual food court on your phone that functions the same way: 1. Enter your order via mobile app 2. Receive status updates / follow the “progress bar” 3. Delivery driver shows up to deliver the food But now that every restaurant can deliver like a pizza chain, pizza chains have to compete…like every other restaurant. Pizza has one of the densest sectors of mom & pop operators (relative to chains & franchises), and they’re able to differentiate meaningfully on quality & experience. Especially where I live in the NYC area, getting a pizza from a chain versus my favorite independent is a night & day difference in experience. But you can’t say the same about every other category. 7th St Burger is a damn good burger. A Jersey Mike’s Italian sub may not be the same as my local deli who still wakes up at 4am to make their mozz…but it’s still pretty damn good. This simply isn’t the case with pizza! Every restaurant has faced rising costs across COGS & labor since covid, but in the case of pizza restaurants, customers have had an easy, cheaper alternative to turn to: the frozen pizza aisle at their grocery store. As a result, frozen pizza sales are **surging**, and I’m not surprised. While I believe there’s nothing like opening up a fresh pizza box on a Friday night (regardless of where it’s from), the end product of a solid frozen pizza versus a chain pizza is sadly in the same ballpark of quality. Yet again, just another nuance of this pizza sector that has made things more difficult. I think emerging pizza franchises will have to approach expansion differently given the new landscape. The way **Prince St. Pizza is growing** is one example of a brand doing it differently, and that is working. Overall, so long as convenience reigns supreme, Domino’s will continue taking marketshare in this struggling sector! The next episode of Empires will be with the founder & CEO of Tint World (150+ locations). He acquired the original 6 locations in 2006, has scaled it for 2 decades, and recently took on a private equity partner to grow the concept to 500+ locations nationwide. **Taco Bell Hit with Lawsuits** The franchisor, supplier Taylor Farms, and at least one franchisee face legal action from consumers in multiple states over alleged illness tied to lettuce. **Jersey Mike’s IPO Could Raise $1 Billion** The sandwich chain could secure the restaurant industry’s largest public offering of the past 20 years. **Biscuit Belly Acquires Maple Street Biscuit Company** The chain will close 16 of its locations after selling 35 to Biscuit Belly as part of a move for parent, Cracker Barrel, to improve profitability. **Domino’s Same-Store Sales Rise by Just 0.1%** Despite growing their order count, sales rose just 0.1% thanks to selling cheaper pizzas. **How Restaurants Can Win in Era of GLP-1s** As GLP-1 use reshapes consumer appetites, brands must rethink portions, value, menu strategy, and how their food is presented. **7-Eleven Names New CEO** Former beverage industry executive Mauricio Leyva will assume leadership of the country’s largest convenience retailer on Aug. 1. **Topgolf is getting into…Media?** The company is leveraging its venues, digital ecosystem, and millions of annual guests to create a new sponsorship business. **American Franchise Act Advances Through House Committee** Nearly a year after it was introduced in Congress, the American Franchise Act is advancing on Capitol Hill. ## Entities - QSR (sector) - Taco Bell (company) - Domino's (company) - Pizza Hut (company) - Papa Johns (company) - DoorDash (company) - Uber Eats (company) - qsr industry (topic) - Jersey Mike's (company) - 7-Eleven (company) - Tint World (company) - competition (topic) --- Originally reported by Patrick Buckley, Empires Weekly (https://empirespod.substack.com/p/why-pizza-chains-are-struggling). Summarized by Burnaze (https://burnaze.com/article/5ca3e094-747d-4b53-acaa-011b43eed475).