Pizza lovers will have a hard time finding their favorite pizza as the economic downturn in the fast-food pizza restaurant industry has led to large chain franchisees closing hundreds of restaurants and filing for bankruptcy.
Domino’s Pizza, the largest pizza chain in the United States, is among the pizza giants whose franchisees have filed for bankruptcy.
Papa John’s, a large pizza chain that has not yet filed for bankruptcy, announced on its fourth-quarter earnings call that it will close 300 underperforming restaurants, including 200 by the end of 2026. The company did not disclose a deadline for closing its remaining 100 restaurants.
Papa John’s also said it would lay off 7% of its employees.
“We have identified approximately 300 underperforming restaurants in North America that are not meeting brand expectations or lack a clear path to sustainable financial improvement and locations where we can effectively shift sales to nearby restaurants,” Papa John’s Chief Financial Officer Ravi Thanawala said in a statement.
Pizza Hut, which has not yet filed for bankruptcy, also would not be excluded from the closure by the company’s parent company, Yum Brands. Brands said in February that it would close 250 underperforming stores as part of its Hut Forward plan in the first half of 2026.
Now, Domino’s Pizza franchisee North County Pizza Inc. has filed for Chapter 11 bankruptcy protection to restructure its restaurant business.
The bankruptcy filing will give the North County Pizza company breathing room to reorganize its debt and restructure its operations under bankruptcy law, as it authorizes an automatic stay of any legal proceedings against the company during the bankruptcy case.
The debtors did not state in their petition why they filed for bankruptcy or disclose whether they would close the plant or lay off any employees.
Restaurant franchisees blame fierce competition, rising labor and food costs and high lease rates, which have required companies to reorganize or file for bankruptcy.
Domino’s is the largest pizza chain in the United States, with approximately 7,090 pizzas sold as of the third quarter of 2025, according to “Domino’s 101: Fun Facts” on the company’s website.
More bankruptcies:
The Oceanside, Calif.-based pizza franchisee filed in the U.S. Bankruptcy Court for the Southern District of California on March 11, listing assets of $100,000 to $1 million and liabilities of $1 million to $10 million, Bankruptcy Observer reported.
