January 1, Pizza Chains Struggle as Apps Take Over

Wyatt’s Take

• Pizza chains are losing customers to delivery apps.
• Domino’s, Pizza Hut, and Papa Johns see slow sales while delivery app options explode.
• More people now pick up pizza themselves or order from non-pizza places.

Pizza joints used to rule Friday nights in Middle America. Now, delivery apps are changing what folks bring home for dinner.

Places like Domino’s and Papa Johns aren’t seeing the big growth they enjoyed during the pandemic. Folks now have endless food choices on apps—pizza is just one of many.

“Pizza has competition it simply never had before,” said analyst Vince Martin.

Even Domino’s jumping on DoorDash and Uber Eats hasn’t brought back the boom. Their sales went up a little, but not enough to keep up with other chains.

Pizza Hut sales dropped for two years straight. Papa Johns lost over 60% of its value since 2022.

“Clearly, American consumers are spending on delivery — but a much greater portion of that spending is going to categories other than pizza,” Martin explained.

Papa Johns saw a quick rise during lockdowns, but other foods took over once apps gave us more choices.

Now, even Chili’s and Olive Garden show up when you open a delivery app. It means pizza shops go head-to-head with every dinner in town.

Joe Jordan, Domino’s chief operating officer, said, “The ability to connect seamlessly with DoorDash customers means more sales for Domino’s stores.” But pizza’s slice keeps shrinking.

Pizzerias are forced to change their game to keep up. Donatos’ boss Kevin King put it simply: “This new world gives us lots of new ways to reach guests, and we try to be present in all of them.”

Li-ran Navon, who helps restaurants with delivery, warned, “Every time a customer orders through DoorDash or Uber Eats, that order and that customer now belong to the platform.” So pizza shops pay high fees and risk losing regulars.

Even as delivery apps enjoy double-digit growth, big pizza chains only managed a 7% sales rise over four years. Inflation and higher costs eat up most of those gains.

Johns Hopkins professor Louis Hyman said, “With the rise of delivery apps, chain pizza is no longer the only or easiest delivery option. They will need to respond with either better quality or cheaper food, neither of which is an easy path forward.”

More than half of Americans still eat pizza regularly, but carryout is the hottest way to get it now. About 38% like to sit down at a pizzeria, while delivery loses steam.

Companies are offering more deals and loyalty rewards to hold on to customers, like $5 pizzas and special offers.

No matter how you slice it, pizza’s got stiff competition, and the kitchen-table favorite will have to change to survive.

Read the full report

Wyatt Matters

Heartland families rely on good value and simple choices for dinner. With delivery apps driving up costs and taking business from local joints, it’s getting tougher for our favorite pizza shops to stay open. Folks need fair prices and a community focus—not just another faceless app deciding what’s for supper.