Several well-known pizza chains have filed for bankruptcy in 2024, and one more is barely hanging on, reflecting a larger shift in the restaurant business.
Key Facts:
- Six pizza chains declared bankruptcy this year; one more might follow soon.
- Inflation, COVID-19 aftershocks, and meal kit popularity are cited as key reasons.
- Some chains aim to reorganize under Chapter 11, while others have filed Chapter 7.
- Major brands affected include Mary’s Pizza Shack, Oath Pizza, Fired Pie, EYM Pizza (Pizza Hut locations), Anthony’s Coal Fired Pizza, Buca di Beppo, and MOD Pizza.
The Rest of The Story:
The pandemic spurred a wave of bankruptcies, partly because of higher costs for labor and food, while many customers found meal kits appealing.
Mary’s Pizza Shack filed for Chapter 7 but continues to operate under a new ownership structure made up of family members. Oath Pizza closed its main locations before declaring Chapter 7, citing mounting debt.
Fired Pie and EYM Pizza (operator of certain Pizza Hut locations) both went the Chapter 11 route to allow for restructuring.
Anthony’s Coal Fired Pizza is owned by BurgerFi, which filed for Chapter 11 to address its considerable debt. Buca di Beppo also sought protection, aiming to restructure around 44 core locations.
MOD Pizza, meanwhile, avoided formal bankruptcy thanks to a last-minute acquisition by Elite Restaurant Group, though its path forward is still not entirely clear.
MOD Pizza, restaurant chain w 32 Oregon locations, may go bankrupt: reports https://t.co/2hps6OdGs8
— Neil Ackerman (@acklaw) July 9, 2024
Commentary:
The restaurant industry has always felt the pressure of changing consumer tastes and rising operational costs. These bankruptcies show how smaller chains and even some major franchises can struggle when unexpected events affect both supply chains and customer behavior.
Even if some of these restaurants remain open, customers may notice shifts in menu pricing or store locations as companies restructure to survive. The drive toward fresh, convenient alternatives such as meal kits may also continue influencing the pizza market.
The Bottom Line:
Many pizza chains are under severe financial stress, but some hope to emerge stronger through restructuring. For pizza lovers, the landscape may look different, yet plenty of options remain for both takeout and dining in.
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