The decline in the pizza restaurant sector continues in 2026 with major food chains closing hundreds of locations, making it harder for consumers to get their favorite meal.
Pizza restaurants have faced a severe economic downturn over the past two years, as several chains have dealt with fierce competition, rising labor and food costs, and high rental rates that have required many companies to launch out-of-court restructurings, close locations, and in some cases, file for bankruptcy.
Seattle-based Mod Pizza operated about 500 locations in 2024, but economic challenges forced it to close 27 units and sell its assets to Chatsworth, California-based Elite Restaurant Group.
The restaurant chain has not resolved its economic woes and has continued to close locations, as its website lists 448 units as of February 4.
Other smaller pizza chains filed for bankruptcy in 2025, including Bertucci’s Restaurants, which filed for Chapter 11 protection on April 24, 2025, and Backdraughts, which filed on July 23, 2025.
Major franchisees of pizza restaurants also experienced financial difficulty last year and filed for bankruptcy protection, including Domino’s operator People First Pizza Inc., which filed for Chapter 11 on March 26, 2025, and Little Caesars franchisee Red Door Pizza LLC, which filed on July 15, 2025.
Domino’s holds the title of the largest pizza chain in the United States with about 7,090 units by the third quarter of 2025, according to “Domino’s 101: fun facts” on the company’s website.
Little Caesars says it is the third-largest pizza chain in the United States, but does not list its total locations. The chain appears to have more than 4,200 in the United States, according to LocationsCloud.
Pizza Hut says it operates more than 6,700 locations in the United States, according to its website, but the chain will soon be shrinking.
Pizza giant Pizza Hut said it will close 250 underperforming restaurant locations as part of its Hut Forward plan in the first half of 2026, after reporting a 1% decline in same-store sales globally in the fourth quarter and for the year in 2025, parent Yum! Brands Chief Financial Officer Ranjith Roy said in the company’s Q4 2025 earnings call on February 4.
The company, however, reported a 1% increase in same-store sales for Pizza Hut International, with strength in the Middle East, Latin America, and Asia.
The Hut Forward program consists of a vibrant marketing program, which includes Yum! marketing support contribution, modernization of certain technology and franchise agreements, and targeted closure of underperforming units, Roy said in the earnings call.