Pizza seems to be losing its hold on the American palate. While cheese dishes are still among the nation’s favorites, the classic pizza isn’t the go-to choice it used to be. Factors like rising prices, the popularity of delivery apps, shifting health trends, and fresh competition are rewriting the way people decide on dinner.
Numerous pizza chains have either closed stores or declared bankruptcy. Notable casualties include Pieology Pizzeria, Anthony’s Coal Fired Pizza & Wings, and Bertucci’s Brick Oven Pizza & Pasta. However, many other chains are redefining what they offer.
Once the second-largest segment in the restaurant industry back in the 1990s, pizza is expected to drop to sixth place by 2024, as noted by the Wall Street Journal. This shift, according to industry insiders, shows a change in consumer habits rather than a decline in demand.
Ravi Tanawala, the CFO and president of Papa John’s North America, remarked, “Pizza is in turmoil right now. That’s what consumers are telling us.” With inflation, a $20 pizza can seem like a splurge when compared to cheaper fast-food options, frozen pizzas, or meals made at home.
Despite these challenges, pizza chains are projected to make about $31 billion in sales in 2024, and around 10% of Americans—mostly younger folks—report enjoying pizza every day. However, since 2019, the number of pizza restaurants has declined, making way for more coffee shops and Mexican eateries.
Bill Mitchell, CEO of Hunger Rush, pointed out that other cuisines are offering things pizza can’t, like breakfast options and varied experiences. “Pizza doesn’t typically lend itself to breakfast or daily ritual,” he observed.
As competition heats up, some chains are emphasizing value. For instance, Domino’s saw a sales boost by running promotions for large pizzas at affordable prices. Meanwhile, some brands are branching out their menus. California Pizza Kitchen has launched a “Smart Swap” menu that features various health-conscious dishes beyond pizza.
Paul Przybylski of California Pizza Kitchen mentioned that current trends in health and wellness are influencing eating habits, allowing them to adapt creatively to meet consumer needs.
“Pizza doesn’t have to be synonymous with unhealthy eating,” Mitchell asserted, adding that modernization is essential for regaining consumer trust. The best-performing pizza businesses, he noted, prioritize customer experience and technology, moving away from outdated high-volume strategies.
With the emergence of delivery apps, pizza is now competing with every other type of restaurant. These apps have shifted the landscape significantly, making diners think differently about their options, especially after the surge in demand during the pandemic.
Greg Majewski, CEO of Claveworthy Brands, shared that while pizza isn’t losing its popularity, it’s adjusting after long-standing dominance. He remarked, “What we’re witnessing is a rational reset. Pizza remains one of America’s most emotional and approachable foods.” He added that customization can make pizza suitable within a healthy lifestyle, and consumers are willing to pay more for quality and consistency.
