Another well-known pizzeria files for Chapter 11, reflecting the sector’s ongoing struggles.
The Orlando, Fla.-based pizza chain recently submitted its third Chapter 11 bankruptcy filing in seven years. This move underscores the mounting financial pressures restaurant operators face, especially in the pizza segment. With so many consumers watching their budgets, soaring operational costs have become too much for many brands to bear.
Major pizza chains have reported significant setbacks since the Covid-19 pandemic, and this Florida-based chain is no exception. Industry experts say stiff competition—there were over 74,000 pizza restaurants in the U.S. in 2024—has intensified the race for loyal customers. Meanwhile, frequent price hikes are steering some people away from dine-in pizza options altogether.
Why economic pressures continue forcing Florida-based pizza chains into repeated bankruptcy filings
Restaurant owners have grappled with rising food and labor costs since 2019. According to the National Restaurant Association, food expenses climbed by an average of 29%, while labor expenses rose 31%. Menu prices followed suit, increasing by 27.2% between February 2020 and June 2024. Ever wondered why that slice seemed more expensive than before? Inflation is a major culprit, and it has left many pizzerias struggling to break even.
How inflation, labor costs, and fierce competition reshaped the American pizza marketplace? Other major brands have confronted similar headwinds, leading some to file for Chapter 11. EYM Pizza L.P., once a huge Pizza Hut franchisee, sold most of its locations after bankruptcy in July 2024. Domino’s Pizza Enterprises also announced plans to shut down more than 200 underperforming stores, including international locations.
In California, People First Pizza Inc. seeks to reorganize after facing over $500,000 in disputed claims. Below is a quick snapshot of rising costs that hit the industry hard:
| Cost Factor | Increase (2019–2024) |
|---|---|
| Food Expenses | 29% |
| Labor Expenses | 31% |
| Menu Price Hikes | 27.2% |
These figures illustrate the tough environment that many pizza operators face today. With slimmer profit margins, companies must adapt—or risk joining the growing list of closures.
Steps that major pizza restaurant franchisees are taking to stay afloat now
For struggling pizzerias, strategies often include cutting underperforming locations, reorganizing debt, or shifting to fast-casual concepts. Some owners are even experimenting with smaller menus and promotional deals to lure back cost-conscious diners. The Orlando-based debtor, listing $10 million to $50 million in assets and debts, appears set to follow a similar path. Its largest unsecured creditor, Cost Control Associates, is owed over $630,000.
So, what’s next for your local pizza joint? Many restaurant analysts believe that diversification and leaner operations will be essential for brands hoping to thrive in a competitive market. As consumers look for affordable meals, the challenge lies in balancing menu prices with quality and service.
In the meantime, keep an eye on your favorite pizza spot—changes could be coming soon. Some will emerge stronger, while others may fade away. It’s a slice of reality in today’s economic climate.