America’s Pizza Market Faces Challenges
After a period of rapid sales growth, the pizza industry in the U.S. is experiencing a slowdown. While takeout and delivery became standard, consumers are shifting their preferences, now opting for a wider variety of cuisines available through delivery apps that range from sushi to steak.
Domino’s Pizza, which was once at the forefront of the market, recently reported a 5.2% increase in U.S. sales last quarter. This growth is seen as modest and insufficient to overcome years of stagnation in the market, as noted by the Food Research Institute.
Vince Martin, an analyst, pointed out this month that “pizza has more competition than ever.” Earlier this year, Domino’s partnered with delivery giants like Uber Eats and DoorDash to cater to customers who favor these platforms.
Joe Jordan, the Chief Operating Officer of Domino’s, mentioned that connecting with DoorDash customers could boost sales for their stores. However, it’s interesting to note that despite these efforts, Domino’s stock has hardly budged over the past year, even as the overall market has seen growth.
Other pizza chains aren’t faring as well. Pizza Hut has reported declines in sales for two years running, and Papa John’s has faced significant struggles, with stock prices plummeting over 60% since early 2022. In early 2025, Papa John’s same-store sales dropped by 3%, which is concerning, especially given the company’s attempts to modernize.
During the pandemic, pizza sales peaked, with Papa John’s seeing a staggering 29% increase from 2020 to 2021. But, as trends shifted, they now compete directly with every restaurant on delivery apps like DoorDash, which includes well-established names like Chili’s and Olive Garden.
Martin remarked that although American consumers are still spending on delivery, a larger share is going towards alternatives beyond pizza. Economic historian Louis Hyman emphasized that chain pizza will need to elevate their quality or reduce prices to stay relevant, a challenge that is not easily navigated.
At Donatos, a Columbus-based chain, the shift towards third-party apps is evident. Kevin King, the CEO, acknowledged the necessity to adapt and reach customers effectively, indicating their ongoing efforts to provide value through enhanced loyalty programs and specific promotions.
Experts are raising concerns about the implications of delivery apps. Rylan Navon, CEO of The Source, highlighted that when customers order through platforms like DoorDash, the data and relationship with those customers often end up belonging to the app, not the restaurant. This raises risks for restaurants as they might lose loyal patrons to competitors who pay for better visibility on these platforms.
While DoorDash and Uber Eats have seen significant order growth, pizza sales across major U.S. chains have only risen by 7% over the last four years, a stark contrast to rising inflation rates. Hyman pointed out that the dominance of pizza isn’t guaranteed anymore, urging chains to reassess their strategies seriously.
Interestingly, more than half of Americans still eat pizza regularly, according to data from Resonate. Almost half said they would order pizza to go at least once a month, but the preference for traditional delivery is still declining. About 38% of people still visit pizzerias, but fewer are choosing delivery.
In summary, though pizza remains a popular choice among consumers, the landscape is evolving quickly due to the influence of delivery apps. How the major chains adapt to these changes will likely determine their future success.
