According to a recent report by The Wall Street Journal, pizza was the second-largest dining category in the United States in the 1990s, with its low prices, generous portions, and ubiquitous availability. However, by 2024, its ranking had dropped to sixth place.
Although this cheesy dish remains one of the most popular foods in America, it is no longer the top choice as several pizza chain restaurants like Pieology Pizzeria, Anthony’s Coal Fired Pizza & Wings, and Bertucci’s Brick Oven Pizza & Pasta have filed for bankruptcy or closed their doors.
Since 2019, the number of pizza restaurants has been declining, with coffee shops and Mexican cuisine restaurants now outnumbering pizza eateries.
Rising prices, reduced portions, the widespread use of delivery apps, new trends in healthy eating, and increased market competition are changing how people order food and choose dishes.
The pizza craze in America has cooled down, with delivery apps capturing a larger market share.
Inflation and price increases have also changed people’s perception of pizza. A $20 pizza now may seem much more expensive compared to the $5 fast-food or frozen pizza, or simply eating pizza at home.
Bill Mitchell, CEO of Kentucky-based restaurant management platform HungerRush, mentioned that “there are things other cuisines offer that pizza cannot provide.”
He told Fox News Digital, “The concepts of Mexican food and coffee can provide breakfast options and a more diverse experience, whereas pizza itself is not necessarily a breakfast or everyday food.”
Industry insiders indicate that consumer habits are changing, but the demand for pizza has not disappeared. Sales of pizza chain restaurants still reached around $31 billion in 2024, with approximately one in ten Americans, mostly young consumers, eating pizza every day.
Many pizza chain restaurants are adapting their product offerings.
Ravi Thanawala, CFO and President of North America for Papa John’s, mentioned, “The pizza industry is currently undergoing a transformation, as consumers are telling us.”
With intensifying competition, some pizza chain restaurants are emphasizing offering value-for-money products and services.
Domino’s has introduced various promotional activities, such as a large pizza with unlimited toppings for $9.99, resulting in increased sales.
Other pizza shops are expanding their traditional menu ranges. California Pizza Kitchen is promoting a new menu called “Smart Swaps”, offering dishes like salmon and vegetarian lettuce wraps in addition to pizza.
Paul Pszybylski, Vice President of the restaurant, stated in a release, “People are continuing to focus on health and wellness, as well as recent trends in diets, weight loss, and nutrition, which are influencing their dietary demands. We are proud to be able to meet these needs in a creative and refined way.”
Mitchell also pointed out, “Pizza does not equate to being unhealthy,” and modernizing food will help attract customers back.
He said, “The most successful pizza companies today are customer-centric, driven by technology, and know how to use customer data to optimize discounts, membership programs, and products for each customer, rather than relying on mass strategies.”
Industry experts suggest that after long dominance, pizza is gradually returning to normal levels, with the emergence of delivery apps contributing to creating a fair competitive environment.
As previously reported by Fox News, pizza shops now compete directly with all restaurants on delivery apps like DoorDash and Uber Eats, reshaping the entire industry.
Gregg Majewski, CEO of Craveworthy Brands, a pizza chain based in Chicago, said, “Pizza is not out of favor, but after experiencing an incredible period, it is gradually returning to normal. It’s expected for a category that has dominated for decades to slow down.”
He added, “This streamlined reset is making pizza one of the most emotionally resonant and easily accessible foods in America again, with personalized pizzas integrating into a healthy lifestyle.”
(Reference: This article is based on a report by FOX NEWS)