The economic downturn in the fast-food pizza dining sector has led to franchisees closing hundreds of locations and filing for bankruptcy protection. Pizza chain Papa John's announced plans to close 300 underperforming restaurants, including 200 by the end of 2026, while pizza chain's largest franchisee, North County Pizza Inc., filed for Chapter 11 bankruptcy on March 11, 2025. Meanwhile, Cotti Foods Pizza Hawaii, which operates five locations in Hawaii, will close all of its locations due to business failure. The company plans to offer equivalent employment to affected employees at other Pieology locations until those close. Despite this, the franchisee has not filed for bankruptcy.