Delivery Apps Transforming the Restaurant Market... Major U.S. Pizza Chains Struggling

The expansion of delivery apps has disrupted the U.S. pizza chain market, leading to declining sales for major players. While these chains once dominated delivery through their own networks, competition intensified as local restaurants and other restaurant brands entered the market via Uber Eats, DoorDash, and other platforms. According to Technomic, U.S. pizza chain revenue growth has stalled, with sales declining in 2022. Papa Johns plans to close 200 locations by December, Pizza Hut was sold to a private equity fund last month, and Domino's Pizza stock dropped 30% over the past year. Rising costs and gas prices also impacted performance, with Domino's revising its earnings guidance. Analysts note the competitive landscape has fundamentally shifted, as local pizza shops now compete with pizza chains via delivery apps, eroding the latter's technological edge. While chains like Domino's and Papa Johns have acknowledged delivery app competition as a risk, they are adapting by integrating these platforms into their strategies.