The Two Best Pizza Chains in the United States Close More Than 200 Restaurants

The fast food sector continues to face a challenging scenario. The increase in operating costs has forced large chains to make drastic decisions to maintain their profitability. According to the National Restaurant Association, between 2019 and 2024, food prices rose by 29%. Additionally, labor costs increased by 31%.

In this context, companies like Domino's Pizza and Pizza Hut have opted to reduce their number of establishments. Both brands seek to optimize their network of locations and adapt to the new market conditions.

Domino's Pizza Closes More Than 200 Locations

Domino's Pizza has decided to close more than 200 stores in 2025 as part of its restructuring strategy. The company confirmed that it will eliminate 205 points of sale, of which 172 are in Japan. These closures will take place between April and June of this year.

The company explained that the growth experienced during the pandemic was not sustainable in all cases. Some openings proved unprofitable under their current model. "Eliminating these stores will strengthen our network," the company stated in its release.

Despite the reduction in locations, Domino's continues to lead the pizza market in the United States. Currently, it has more than 5,600 locations in that country and nearly 15,000 in 90 international markets. The restructuring aims to ensure its long-term growth and improve operational efficiency.

Pizza Hut Also Faces Adjustments in Its Business

Another major chain affected by the challenging economic landscape is Pizza Hut. In recent years, the company has implemented significant changes in its operational structure to improve its profitability.

In 2022, the company closed 25 of its own locations in Spain and implemented a Redundancy Plan (ERE). This measure affected approximately 300 workers. The decision aimed to transform the business model in the country and operate under a 100% franchised scheme.

In January 2025, Food Delivery Brands, the company that manages the Telepizza and Pizza Hut brands, announced the closure of its operations in Chile. Additionally, it filed for bankruptcy due to the complex economic and financial environment in that market. The company explained that it will now focus on strengthening its presence in Europe.

New Strategies for the Future

Despite the closures, Pizza Hut continues to explore new opportunities to remain competitive. In December 2024, the chain opened an innovative restaurant concept in Plano, Texas. This establishment incorporates advanced technology, such as self-service kiosks and pickup lockers. It also features the brand's first drive-thru service.

Meanwhile, Domino's Pizza estimates that the closures will generate annual savings of $15.5M. The company also projects revenues of between $10M and $12M before interest and taxes (EBIT).

Mark van Dyck, the company's CEO, explained that the company is acting quickly to adapt to market changes. "When I took on this role three months ago, I said we would act decisively to reshape our business. Where change is required, we are acting quickly and transparently," he stated.

A Sector in Transformation

The closure of locations is not exclusive to Domino's and Pizza Hut. Other food chains and large retail stores have taken similar measures. Companies like TGI Fridays, Denny's, Red Lobster, and Joann Fabrics have reduced their number of establishments in recent months.

The retail sector has also been hit by the economic crisis. Giants like Macy's, Walgreens, Kohl's, and Family Dollar have closed hundreds of stores to adjust their operations.

As the industry continues to evolve, companies must find new strategies to maintain their competitiveness. Digitalization and cost optimization seem to be the path many companies are taking to ensure their sustainability in the future.