Pizza chains continue to shrink as hundreds of restaurant closures reshape the industry

America’s pizza industry is undergoing a major shakeup as several of the country’s largest chains announce widespread restaurant closures in an effort to improve profitability.

In recent months, Papa Murphy’s, Papa Johns and Pizza Hut have each revealed plans to shutter dozens—or even hundreds—of underperforming locations, highlighting the financial pressures facing even some of the nation’s most recognizable pizza brands. 

Papa Murphy’s plans to close up to 50 restaurants

Papa Murphy’s parent company, MTY Group, recently announced it will close 45 to 50 corporate-owned Papa Murphy’s locations over the next six to nine months. Company executives said the affected stores have struggled financially, prompting a broader restructuring aimed at strengthening the brand’s remaining footprint.

The closures are part of a larger effort that will eliminate 68 underperforming restaurants across MTY’s portfolio of restaurant brands. 

Papa Johns reducing hundreds of underperforming stores

Papa Johns is also downsizing. The pizza chain announced plans earlier this year to close approximately 300 underperforming restaurants across North America by the end of 2027, with dozens of locations already closing across at least 17 states.

Company leaders have said many of the affected restaurants are older franchise locations with lower sales volumes, and the strategy is intended to strengthen the overall system. 

Pizza Hut continues to scale back

Pizza Hut has also been reducing its footprint. The chain announced plans to close 250 U.S. restaurants as part of an ongoing strategic review after declining sales, while parent company Yum! Brands has explored broader changes for the business.

Industry analysts say the closures reflect changing consumer habits, rising operating costs and intense competition within the pizza category. 

A changing landscape for pizza chains

Although the three brands face different circumstances, their announcements point to a broader trend affecting the restaurant industry. 

Companies are increasingly choosing to close underperforming locations, streamline operations, and focus investment on restaurants with stronger long-term growth potential as they navigate higher labor costs, inflation and shifting consumer demand. 

Links on this page may be affiliate links, for which the site earns a small commission, but the price for you is the same