The restaurant industry is trying to figure out whether America has hit peak pizza. From a report: Once the second-most common U.S. restaurant type, pizzerias are now outnumbered by coffee shops and Mexican food eateries, according to industry data. Sales growth at pizza restaurants has lagged behind the broader fast-food market for years, and the outlook ahead 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. "That's what the consumer tells us." 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, earlier filed for bankruptcy.
Pizza once was a novelty outside big U.S. cities, providing room for growth for independent shops and then chains such as Pizza Hut with its red roof dine-in restaurants. Purpose-made cardboard boxes and fleets of delivery drivers helped make pizza a takeout staple for those seeking low-stress meals. Today, pizza shops are engaged in price wars with one another and other kinds of fast food. Food-delivery apps have put a wider range of cuisines and options at Americans' fingertips. And $20 a pie for a family can feel expensive compared with $5 fast-food deals, frozen pizzas or eating a home-cooked meal.
[...] Pizza's dominance in American restaurant fare is declining, however. Among different cuisines, it ranked sixth in terms of U.S. sales in 2024 among restaurant chains, down from second place during the 1990s, Technomic said. The number of pizza restaurants in the U.S. hit a record high in 2019 and has declined since then, figures from the market-research firm Datassential show. Further reading, at WSJ: The Feds Need to Bail Out the Pizza Industry.
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