Many restaurant chains are still struggling to recover from the impact of the COVID-19 pandemic. The rising costs of food, rent, and labor have put significant pressure on businesses, forcing many to shut down locations. Even popular pizza chains have been hit hard by these financial challenges.
The restaurant industry was one of the worst affected during the pandemic, with federal data showing that 5.9 million restaurant employees were either laid off or furloughed. Even after restrictions were lifted and businesses reopened, inflation made it difficult for restaurants to stay profitable.
Between 2019 and 2024, food costs for the average restaurant increased by 29%, while labor costs rose by 31%, according to the National Restaurant Association. These financial pressures have led to the closure of hundreds of restaurants across different chains, with pizza chains among the latest to face difficulties.
Pizza Chains Facing Closures
Marco’s Pizza: In November 2024, Marco’s Pizza franchise owners Terry Burkholder and Ben Finley, who operate in the Tampa Bay area, filed for Chapter 11 bankruptcy. This decision was made to help reorganize their finances and sell four underperforming locations.
Mod Pizza: The Seattle-based pizza chain Mod Pizza also experienced financial troubles, leading to the closure of 27 out of its 500 stores. The company even considered filing for bankruptcy but managed to find a buyer, Elite Restaurant Group, to keep operations running.
Pizza Hut: A major Pizza Hut franchisee, EYM Pizza L.P., which previously owned 142 locations, has been hit with financial struggles. In January 2025, the company sold 77 of its locations but was forced to close 15 restaurants in Indiana and Ohio in mid-2024. The remaining 50 stores that could not be sold are also set to close.
Domino’s Pizza Enterprises: The largest Domino’s franchisee, Domino’s Pizza Enterprises, announced on February 7, 2025, that it will shut down 205 underperforming stores to cut costs and improve profitability. The closures will take place between April and June 2025, with 172 of them located in Japan. The company expects to save about $9.72 million annually but will face a one-time closure cost of $60.8 million.
Domino’s Pizza Enterprises operates the brand in 12 countries, including Australia, France, Germany, Japan, New Zealand, and Singapore. Group CEO Mark van Dyck stated that while Japan remains a strong market for pizza, some stores opened during the COVID-19 period were not in ideal locations. Closing them will help strengthen the company’s operations.
With rising expenses continuing to challenge the restaurant industry, it remains to be seen how these popular pizza chains will navigate the road ahead.
