The pizza category has been struggling overall.
A number of chains has closed locations.
Rising costs have forced chains to raise prices or shut down.
While pizza remains a popular and affordable option for Americans opting to eat out or get takeout, competition in the space has never been tougher.
Consumers have the option to get cheap pizza from chains like Domino’s, Papa John’s, and Marco’s, which puts pressure on pizzerias that offer a more traditional full-priced experience.
In addition, the overall economy has not helped.
“In the last 5 years, food and labor costs for the average restaurant have each gone up 35%. The other expenses for running a restaurant – the building, supplies, credit card processing fees – are also going up quickly. Restaurant owners generally try to keep menu prices as low as possible – making an average of 3-5% pre-tax margin,” the National Restaurant Association shared.
Pizza Marketplace also shared some data from a recent Restaurant365 study.
“Food cost increases also surpassed expectations, with 91% of respondents reporting a rise, up from the 82% who had expected increases at the start of the year. More than half of those coping with food cost inflation this year are seeing a 1% to 5% increase,” according to the study.
That has led to an unfortunate side effect that could contribute to customers staying away.
“In response to rising food costs, 56% planned to increase menu prices,” the study showed.
It’s a combination of negative operating factors that have led to a number pizza chains closing locations, or even shutting down altogether.
Now, The Rock Wood Fired Pizza has closed all of its restaurants except one.
The Rock Wood Fired Pizza came from founders Don Bellis and Jay Gigandet.
They started the concept after enjoying wood-fired pizza in an establishment in a small New England coastal town. Both felt that Washington could use a wood-fired pizza establishment of its own.
“The duo insisted that their pizzas would be made from scratch, with only the freshest ingredients. While they were hard at work in the kitchen, their favorite Rock n’ Roll classics would accompany their pizza creations,” the chain shared on its website.
Over the past 30 years, the chain grew to seven locations, but six of them are slated to close.
“After 30 amazing years serving our communities, we’ve made the difficult decision to close our Rock restaurants at Renton, Covington, Federal Way, Puyallup, Tacoma, and Lacey,” Bellis shared on the company’s Facebook page.
“This choice did not come easily — each restaurant has been part of countless family dinners, celebrations, and everyday moments shared with friends.”
finance.yahoo.com
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