Popular 49-year-old pizza chain files for Chapter 11 bankruptcy

Industry Overview - The pizza restaurant industry is highly competitive in the U.S., with Domino's and Pizza Hut ranking among the Top 8 fast-food chains by locations in 2025 [1] - Domino's has 7,014 locations, ranking sixth, while Pizza Hut has 6,557 locations, ranking eighth [1][9] Company Performance - Domino's plans to add 175 new franchise units in 2025, indicating strong franchisee interest and better pipeline visibility compared to the previous year [3] - Despite the competitive landscape, Domino's remains confident in its growth strategy [3] Economic Challenges - The pizza restaurant sector has faced significant economic challenges, including rising labor and food costs, high lease rates, and fierce competition [4] - These challenges have led some chains to restructure, close locations, or file for bankruptcy [4] Bankruptcy Filings - Franchisees of major pizza chains, including Domino's and Little Caesars, have filed for Chapter 11 bankruptcy due to financial distress [6] - Smaller chains like Zeppe's Tavern and Bertucci's Restaurants have also filed for bankruptcy in 2025 [7] Location Closures - Mod Pizza has reduced its locations from about 500 in 2024 to 450 in 2025 after closing 27 stores [5] - Fired Pie, a Phoenix-based chain, has also faced closures since the Covid pandemic impacted the industry [8]