WSJ: Pizza Chains See Slower Sales

With increased competition in delivery, pizza QSRs are lagging in the fast-food market.

January 06, 2026

Sales growth for pizza chains have lagged behind the broader fast-food market for years, the Wall Street Journal reported, noting that the outlook for pizza QSRs isn’t much brighter.

“Pizza is disrupted right now,” Ravi Thanawala, chief financial officer and North America president at Papa John’s International, said in an interview with WSJ. “That’s what the consumer tells us.”

California Pizza Kitchen was sold in December to an investor group for under $300 million, less than the $470 million it sold for in 2011 when the chain went private, WSJ reported.

The parent of the Pieology Pizzeria chain filed for chapter 11 bankruptcy protection in December. Others, including the parent of Anthony’s Coal Fired Pizza & Wings and Bertucci’s Brick Oven Pizza & Pasta, have also filed for bankruptcy, according to WSJ.

Some of the struggles that pizza chains are facing include proliferation of the market, causing price wars, as well as how food-delivery apps have given consumers a wider range of cuisines and delivery options to choose from.

Slower sales for pizza chains doesn’t mean Americans have stopped eating pizza—according to Technomic, pizza chains generated around $31 billion in sales. However, WSJ noted that the meal’s dominance in restaurant fare has declined, as Technomic reported that among different cuisines, it ranked sixth in terms of U.S. sales in 2024 among restaurant chains.

Additionally, pizzerias are now outnumbered by coffee shops and Mexican food eateries, WSJ reported. The number of pizza restaurants in the United States hit a record high in 2019 and has declined since then, figures from the market-research firm Datassential show.

“Major pizza players are rethinking their businesses. Pizza Hut, Papa John’s and the parent of Papa Murphy’s are considering potential sales or other strategic moves. Midsize chains including Blaze Pizza and Mod Pizza have closed locations over the past two years as they work to turn around their brands,” WSJ wrote.

Papa John’s is open to selling the company, though executives are focused on a “broad turnaround strategy,” WSJ wrote, looking to change everything from its franchising strategy to how it builds its pizzas. Some North American stores are being closed to focus on improving other locations.