Industry Overview - Pizza remains a popular and affordable dining option for Americans, but competition is intensifying with chains like Domino's, Papa John's, and Marco's exerting pressure on traditional pizzerias [1] - Over the last five years, food and labor costs for the average restaurant have increased by 35%, alongside rising expenses for building, supplies, and credit card processing fees [2] - The National Restaurant Association indicates that restaurant owners typically maintain a pre-tax margin of only 3-5% while trying to keep menu prices low [2] Cost and Pricing Challenges - A recent study revealed that 91% of respondents reported food cost increases, up from 82% at the beginning of the year, with over half experiencing a 1% to 5% rise [3] - In response to rising food costs, 56% of restaurant operators plan to increase menu prices, which may deter customers [3] Company-Specific Developments - The Rock Wood Fired Pizza has closed all but one of its locations due to a combination of negative operating factors affecting the pizza industry [4] - Founded by Don Bellis and Jay Gigandet, The Rock Wood Fired Pizza initially thrived for 30 years, growing to seven locations before the recent closures [5][6] - The decision to close multiple locations was difficult for the company, as each restaurant had significant community ties and was part of many family gatherings [7]