Pizza chains are feeling the pinch

Pizza is almost as iconic as hotdogs and apple pie in the American lexicon of food. From chains to local artisanal pie shops to the frozen food aisle, pizza is everywhere. Not everything is rosy in the land of pizza, however – two major chains are closing hundreds of restaurants, a large franchisee filed for bankruptcy, and this week a beloved small chain abruptly shuttered its doors. What’s going on with pizza?

Papa John’s and Pizza Hut announced that they would be closing 300 and 250 locations respectively. These closures reflect the fact that people are opting to make pizza at home instead of going to a restaurant or having a pizza delivered. One survey noted that 25% of consumers said they’re eating more frozen pizza instead of ordering from restaurants because of price increases. Domino’s is the only chain that is growing, and experts say that is because they invested heavily in its online ordering process. The Domino’s app is simple and effective, whereas Pizza Hut and Papa John’s have clunkier interfaces. Pizza Hut also suffers from focusing too much on dine-in restaurants, which are not as popular as pickup or delivery.

Although it isn’t mentioned in the articles, most of the big chains have mediocre pizza at best. If the choice is between frozen pizzas and a big chain, it is difficult to justify paying three times as much for something that’s mid. Additionally, high-end pizzerias have proliferated, with diners opting to spend a little more to have a much higher quality product. Finally, home pizza ovens have become more affordable. Brands like Ooni and Gozney offering wood-fired or pellet ovens that can reach the high temperatures needed for a great pizza.