An economic downturn in the fast-food pizza dining sector has led to franchisees closing hundreds of locations and, in some cases, filing for bankruptcy protection.
Popular pizza chain Papa John’s shared in its fourth-quarter earnings call that it will close 300 underperforming restaurants, including 200 by the end of 2026. Papa John’s also said it would cut 7% of its workforce.
The company did not reveal when it will close the remaining 100 restaurants.
Domino’s Pizza Enterprises, the largest franchisee of the giant pizza chain, planned to close 205 low-performing locations in 2025.
Also, the global pizza chain’s Oceanside, Calif.-based franchisee North County Pizza Inc. filed for Chapter 11 bankruptcy on March 11, 2025, to reorganize its business.
And now, Pieology Pizzeria franchisee Cotti Foods Pizza Hawaii, which operates five locations in the Aloha State, will close all of its Hawaii locations due to business failure, the restaurant operator said in a Worker Adjustment and Retraining Notification letter sent to state officials.
Cotti Foods said it will close its locations in Honolulu, Aina Haina, Aiea, Kailua, and Kane’ohe, Hawaii, on or after May 22, 2026, according to the March 3 letter. The franchisee has not filed for bankruptcy.
Cotti Foods was established with the purchase of its first Taco Bell location in Southern California in 1967. It began adding Wendy’s franchises in 2014 and Pieology locations in 2015, according to its website.
The franchisee operates 105 Taco Bell locations, 122 Wendy’s restaurants, and five Pieology units. The closing of the five Pieology locations likely ends Cotti Foods’ franchise agreements with the pizza chain.
Layoffs of all 56 employees at the five locations will be staggered over several months beginning March 23 and ending approximately May 22.
The franchisee, which opened its first location in 2016, said it will offer equivalent employment to most, if not all, affected employees at other Pieology locations until those close as well. The employees do not have bumping rights.
Cotti Foods said it wasn’t sure if the federal WARN Act or the Hawaii Dislocated Workers’ Act applies to its closing and layoffs.
“Nevertheless, out of an abundance of caution, Pieology is issuing this notice as well as notices to each affected employee,” the company said in the letter.
Pieology included a list of positions being eliminated: two general managers, two assistant managers, one area coach, 10 Pieology crew leads, and 41 crew members.
finance.yahoo.com
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