Quite a few chain pizza places have taken a serious financial hit since the COVID-19 pandemic. In 2024 alone, six fairly well-known pizza chains filed bankruptcy and another one is on the brink. Yikes. Experts speculate this trend of bankrupt chains (it’s affecting more than just pizza joints) is due to several reasons. First, inflation has caused a significant rise in labor and food costs, making it more expensive to keep the doors open. Second, lingering COVID-19 pandemic effects have taken a toll on all of us, the workforce included. Plus, there’s the increase in popularity of delivery meal kits, which make it easy to prepare a healthy, quick meal at home hassle-free.
Whether you believe the blame for so many pizza restaurant bankruptcies lies with delivery meal kits, inflation, or something else entirely, there’s no doubt many chains simply aren’t thriving like they used to. Sadly, for some of us, this might mean we need to start looking for a new favorite fast food pizza joint. To find out which places found themselves in so much of a financial bind this year that it forced them to file bankruptcy, or at least come close to it, keep reading. We’ve got the answers to all of your questions, including what companies cited as their reasons for making such a drastic move and what you can expect from them in the future.
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Mary’s Pizza Shack
Stack of Mary’s Pizza Shack pizza boxes – Mary’s Pizza Shack / Facebook
Mary’s Pizza Shack has been serving its pies for 65 years. While far from the first pizza spot in the United States (which just so happens to still be alive and well), that is something to be extremely proud of. Even so, on September 10, 2024, Mary’s Pizza Shack filed with the U.S. Bankruptcy Court for the Northern District of California. It didn’t file Chapter 11, but instead, filed for Chapter 7 protection. Apparently, this was the final step in the brand’s restructuring. So really, it has more to do with the legal side of things and bookkeeping.
If you are a fan of Mary’s Pizza Shack or have had the privilege to visit one of its 10 locations across Northern California, you’ll be glad to learn that the company’s filing doesn’t mean there will be store closures. So what’s happening? Well, the brand is transitioning from being a single corporation into smaller, individually owned and operated stores. You don’t have to give up on it just yet. Plus, each location is now owned by extended family members of the founder, Maria Fazio, so you can still count on them to keep the tradition of its legendary recipes alive.
Oath Pizza
Oath Pizza store sign on black building panels – John M. Chase/Shutterstock
Oath Pizza got its start in 2015 on Nantucket Island and quickly became known for its use of top-quality crust (it is grilled and then seared in olive oil). However, sadly it didn’t have what it takes to survive. In fact, as of December 2023, all of its company-owned locations were closed. Even so, it wasn’t until October 22, 2024, that Oath Pizza’s parent company, Next Level Pizza Inc., went to the U.S. Bankruptcy Court for the District of Delaware to file for Chapter 7 bankruptcy.
As for why Next Level Pizza Inc. chose to file, there were several reasons. First, it needed to liquidate company assets because of its inability to repay creditors. It declared its assets ranged between $100,000 and $500,000, but its liabilities added up to anywhere from $10 to $50 million. Second, low sales and profits played a role, as is common with most bankruptcy filings. Lastly, the company said a proposed buyer and its investors were involved in a lawsuit. For now, a handful of Oath Pizza franchises are still open, but their future is uncertain and as noted, many of the major locations have been closed for some time now.
Fired Pie
Fired Pie sign above store – Around the World Photos/Shutterstock
There are so many different types of pizza in the United States, but wood-fired pizza is arguably one of the best. However, you wouldn’t know it if you base your opinion on Fired Pie’s business standing. It’s not like the pizza was bad by any means, but unfortunately, the business has been facing significant struggles since it first opened in 2013.
On November 13, 2024, Fired Pie’s parent company, NWFI LLC, was forced to file with the U.S. Bankruptcy Court in the District of Arizona for Chapter 11 protection. The reason? The company hopes to restructure its business model under Subchapter V. Court documents revealed that while its assets were in the $1 million ballpark, its liabilities could be as high as $10 million. For NWFI LLC, this simply doesn’t pan out. Shamrock Foods, Arrowhead Towne Center, and Scottsdale Fashion Square are just a few of the companies it is in debt to.
While Fired Pie’s bankruptcy standing doesn’t necessarily mean it is disappearing, it does mean they need to make some serious changes. Today, Fired Pie has 13 locations, all of which are in Arizona. If you get a chance to check them out, you should take advantage while it is still an option. After all, its rebound from Chapter 7 isn’t guaranteed.
EYM Pizza (Which Operates Select Pizza Hut Locations)
Opened box of Pizza Hut pizza on car seat – HeyDebbie/Shutterstock
Pizza Hut is one of the most well-known fast food pizza chains. With locations in every corner of the country, you’d be hard-pressed to find someone who hasn’t eaten its pie before. Plus, it is always coming out with new items, like hot honey pizza and wings, so it’d be reasonable to suspect Pizza Hut is one of the chains that managed to steer clear of the recent influx of restaurant bankruptcy filings. You’d be wrong to do so, though.
Court records for the U.S. Bankruptcy Court for the Eastern District of Texas revealed that EYM Pizza (owner of around 140 Pizza Hut locations) filed for Chapter 11 bankruptcy protection on July 22, 2024. EYM Pizza noted that Pizza Hut was one of its most significant unsecured creditors and it owed more than $2.2 million. This sounds pretty bad, but it is actually the result of an ongoing dispute between the two companies. Initially, EYM Pizza sued Pizza Hut for breach of contract surrounding what it refers to as outdated practices, equipment, and inability to stay competitive. Following that, Pizza Hut counter-sued EYM for failure to pay various franchise fees. Yikes.
Before filing for Chapter 11 bankruptcy protection, EYM closed more than a dozen of its locations in Indiana and Ohio. However, Pizza Hut is currently trying to find the recently closed shops new owners to take over.
Anthony’s Coal Fired Pizza & Wings
View of Anthony’s Coal Fired Pizza & Wings from parking lot – Helen89/Shutterstock
In 2015, coal-fired pizza was making quite a stir in the pizza community, and Anthony’s Coal Fired Pizza & Wings locations were popping up all over the place. Fast-forward a few years and now Anthony’s parent company, BurgerFi International Inc. (yes, the burger place), is on the rocks financially. In late 2024, it made a desperate play to save the company, including all of its pizza and burger locations, by filing for Chapter 11 bankruptcy protection. Apparently, it had been seeking strategic alternatives for several months, but it wasn’t enough to save them from Chapter 11.
All the usual suspects contributed to BurgerFi’s decision: A decline in post-pandemic consumer spending, inflation, and rising food and labor costs. As a result, the company noted that stabilizing the business was a much-needed step to not only sustain operations but grow them well into the future.
According to Fox59 News, “BurgerFi said it currently owes anywhere from $100 million to $500 million to over 10,000 creditors.” Yeah, you read that right. Even so, the company stands by its comeback and said all of its restaurants (144 in total between BurgerFi and Anthony’s) would remain open. Additionally, not all of the locations are part of the bankruptcy filing — it’s only the 67 corporate-owned stores. None of the company’s franchise-owned stores are involved.
Buca Di Beppo
Buca di Beppo restaurant with neon signs – Gsheldon/Getty Images
In its heyday, Buca di Beppo was a lively, alluring restaurant known for its delicious family-style Italian food, pizza included. While many of its locations seemed to be perpetually packed for quite some time, it seems that era may have passed (at least for now). Since 2020, the company has slowly been closing locations, largely due to the pandemic. However, in June of 2024, it decided to shutter almost 20% of its remaining locations. Following that, on August 5, 2024, it filed for Chapter 11 bankruptcy with the U.S. Bankruptcy Court in the Northern District of Texas. In the filing, 30 creditors were listed and the total amount owed? Just about $50 million.
In a press release, a company spokesperson said the filing will ideally lead to a strong future for the restaurant chain: “By restructuring with the continued support of our lenders, we are paving the way toward a reinvigorated future.” The goal is to restructure 44 core Buca di Beppo locations and interestingly enough, open another one. So, if you are a big fan of Buca di Beppo, you can still satisfy your cravings and you don’t have to worry if you have one of their gift cards lying around either. It is still redeemable, and hopefully will be for a very long time.
MOD Pizza On The Brink Of Bankruptcy
MOD Pizza storefront – Brett_hondow/Getty Images
MOD Pizza may not have filed for bankruptcy quite yet, but the company was flirting with the idea this year. MOD Pizza was founded in Seattle in 2008, and since then has grown to have over 40 locations in California alone plus 500 more across the United States. However, in early July 2024, MOD Pizza said it was exploring its financial options in the hopes that it wouldn’t have to succumb to a Chapter 11 filing. One such option was potentially finding a buyer. Luckily, just a couple of weeks after the initial announcement, Los Angeles-based Elite Restaurant Group swooped in to save the day by acquiring the company.
For Elite Restaurant Group, this type of move is nothing new. In fact, it has acquired several failing restaurant chains, including Daphne’s California Greek, Patxi’s Pizza, and more. For now, we aren’t sure exactly what the merger means for MOD Pizza, and whether or not it will result in any store closures. Hopefully, with help from the group, MOD Pizza will continue to sell its delicious customizable pizzas well into the future.
If MOD Pizza or any of the other chains listed in this article are your go-to for pizza takeout, it might be time to start learning how to make pizza dough from scratch. There’s no way homemade pizza will ever replace the desire for a fast, easy pie, but it’s worth considering, at least until you find a new favorite pizza joint.
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