Pizzerias losing ground to coffee shops, Mexican restaurants

An image of people sharing a pizza

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(NewsNation) — Pizza is losing dominance as Americans’ favorite fast food and fast-casual dining options, according to industry data cited by the Wall Street Journal.

While it was once the second-most common type of restaurant in the United States, coffee shops and Mexican food restaurants now outnumber pizzerias, and the outlook remains weak.

Pizza sales have lagged the broader fast food market for years. In 2024, pizza ranked sixth among U.S. restaurant chains by sales, down from second place in the 1990s, according to market-research firm Technomic. The number of pizzerias in the U.S. peaked in 2019 and has declined since, according to Datassential.

Major chains, such as Papa John’s and Pizza Hut, are rethinking their strategies. Papa John’s has closed some North American locations as it focuses on boosting sales at restaurants it sees as having greater growth potential. Other locations, executives say, may simply need renovations.

Midsize chains, including Blaze Pizza and MOD Pizza, have closed stores over the past two years as they work to turn around their brands. California Pizza Kitchen was sold in December to an investor group for less than $300 million — well below its $470 million valuation in 2021 when it went private, the Wall Street Journal reported.

The pizza doldrums come amid increased competition from other fast-food options, all of which are easily available via food delivery apps.

A $20 pizza can feel expensive compared with $5 fast food deals, frozen pizzas, or home-cooked meals. Experts say delivery apps, which now put countless cuisines within easy reach, have eroded pizza’s once-dominant place in American dining.

Food

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