Pizza lovers will have a harder time finding their favorite slice, as an economic downturn in the fast-food pizza dining sector has resulted in major chain franchisees closing 100s of restaurant locations and filing for bankruptcy.
The nation’s largest pizza dining chain, Domino’s Pizza, is among the pizza giants whose franchisees have filed for bankruptcy.
Major pizza chain Papa John’s, which has not filed for bankruptcy, announced in its fourth-quarter earnings call that it will close 300 underperforming restaurants, including 200 by the end of 2026. The company did not reveal a deadline for closing the remaining 100.
Papa John’s also said it would cut 7% of its workforce.
Papa John’s closing 300 locations
“We have identified approximately 300 underperforming restaurants across North America that are not meeting brand expectations or lack a clear path to sustainable financial improvement, as well as locations where we can effectively transfer sales to a nearby restaurant,” Papa John’s CFO Ravi Thanawala said in a statement.
Pizza Hut, which also hasn’t filed for bankruptcy, won’t be left out of closings as the company’s parent Yum! Brands in February said that it would close 250 underperforming locations as part of its Hut Forward plan in the first half of 2026.
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Domino’s franchisee bankruptcy
And now, Domino’s Pizza chain franchisee, North County Pizza Inc., has filed for Chapter 11 bankruptcy protection to reorganize its restaurant businesses.
The bankruptcy filing will give North County Pizza breathing room to restructure its debt and reorganize its businesses under the bankruptcy statute, as it authorizes an automatic stay of any legal actions against the company during the bankruptcy case.
Closings and layoffs unknown
The debtor did not state a reason for filing for bankruptcy in the petition and has not revealed if it will close locations or lay off any employees.
Restaurant franchisees have blamed fierce competition, rising labor and food costs, and high lease rates that have required companies to launch restructurings or file for bankruptcy.
Domino’s holds the title of largest pizza chain in the U.S. with about 7,090 units through the third quarter of 2025, according to the “Domino’s 101: Fun facts” on the company’s website.
More bankruptcies:
- Troubled automobile maker files Chapter 7 bankruptcy liquidation
- Major gambling destination files for Chapter 11 bankruptcy
- Major department store brand liquidates in Chapter 11 bankruptcy
The Oceanside, Calif.-based pizza chain franchisee filed its petition on March 11 in the U.S. Bankruptcy Court for the Southern District of California, listing $100,000 to $1 million in assets and $1 million to $10 million in liabilities, according to Bankruptcy Observer.
North County Pizza Inc. operates 18 Domino’s Pizza locations in the San Diego area, with about 450 employees, according to RK Consultants.
Debtor has Round Table franchises
The debtor also has an undisclosed number of Round Table Pizza locations under its franchise agreements with bankrupt Fat Brands Inc., and has a specialized niche serving Southern California military bases, such as Camp Pendleton, RK Consultants reported.
A group of Round Table franchisees filed a lawsuit against Fat Brands in November 2025, alleging that the company mismanaged marketing funds for the pizza restaurants by diverting $800,000 from Round Table’s marketing fund to pay for its 2022 Fat Brands Summit conference, 1851 Franchise reported.
Fat Brands was able to invoke an automatic stay against all legal actions under bankruptcy rules when it filed for Chapter 11 protection on Jan. 26, 2026, according to a Securities and Exchange Commission filing.
Related: Major fried chicken franchisee closes in Chapter 11 bankruptcy
