The Famous Pizza Chain That Is Already Closing in New York, Boston, and California

Oath Pizza, a chain of pizzerias with a presence in cities like Boston, New York, and California, faces the permanent closure of all its locations.

The parent company is Next Level Pizza Inc. It filed for bankruptcy in October 2024 under Chapter 7 of the United States Bankruptcy Code. This decision marked the beginning of the company's liquidation process, which failed to overcome an unsustainable financial crisis.

Otah Pizza and an Incredible Debt

The company's accumulated debt exceeded 50 million euros. In contrast, its assets barely reached 500,000 euros, leaving it in a critical situation. A Bankruptcy Court in the District of Delaware ordered the complete liquidation of the company's assets. This meant the immediate closure of the remaining locations and the disappearance of the brand from the market.

Founded in Boston, Oath Pizza became known for its focus on fresh ingredients and customization options. In 2022, it had 17 establishments in different states, including New York, Massachusetts, Pennsylvania, and California. However, the economic situation forced the closure of seven of them before the end of 2023.

Throughout 2024, the company accelerated the closure of more restaurants. The last operating locations are expected to permanently close at some point in 2025.

Otah Pizza: Why It Must Close

The chain's failure is due to multiple factors. One of the most decisive was the inability to pay its debts, which left the company with no room to maneuver. Additionally, the pizza market in the United States is extremely competitive.

Large chains like Domino's and Pizza Hut have consolidated their dominance, making it difficult for smaller brands to survive. Inflation and rising operating costs after the pandemic also negatively impacted the fast-food industry.

Another key factor was the lack of sustained expansion. Despite its presence in strategic cities, Oath Pizza failed to grow consistently or consolidate a large enough customer base. This limited its ability to generate stable income and face economic challenges.

The closure of Oath Pizza adds to a series of bankruptcies in the food industry during 2024. Many companies have faced difficulties staying afloat in an increasingly competitive environment. The disappearance of this chain marks the end of an attempt to innovate in the world of pizzerias. However, it also reflects the harsh conditions that emerging brands face in the sector.