The pizza restaurant sector has faced significant distress in recent years caused by various economic issues such as increased food and labor costs, rising interest rates on their debt, and fierce competition from rival chains.
Restaurant operators have closed or sold locations, and in some cases, filed for Chapter 11 bankruptcy to reorganize their businesses.
Domino’s Pizza is the most prominent pizza chain facing major restaurant closures, as its largest franchisee Domino’s Pizza Enterprises revealed in February that it will close 205 low-performing locations, including 172 units in Japan.
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Marco’s Pizza is another major chain that faced economic issues as its Tampa Bay area franchise owners Terry Burkholder and Ben Finley, who owned 19 locations, filed for Chapter 11 bankruptcy in November 2024 to reorganize and sell four underperforming restaurants.
Bankrupt Pizza Hut franchisee EYM Pizza L.P., former owner of 142 franchise locations, sold 77 of its restaurants in Georgia, Illinois, South Carolina, and Wisconsin to six separate bidders in January, including Yum Brands (YUM) franchisor Pizza Hut LLC, at a bankruptcy auction for about $11.78 million.
The franchisee had closed 15 of its locations in Indiana and Ohio in July 2024 before filing for bankruptcy. It will close another 50 locations that it wasn’t able to sell.
Seattle-based Mod Pizza closed 27 of its 500 stores, and considered a bankruptcy filing in July 2024 but instead found a buyer as Elite Restaurant Group purchased the chain and continues to operate it.
Mama's Pizza & Heros
Mama’s Pizza closes location after lockout notice served
And now, Tucson, Ariz.-based pizza dining chain Mama’s Pizza & Heros has closed a second location in less than two years after the landlord of its restaurant on North Oracle Road in Oro Valley issued a lockout order for non-payment of rent, KGUN-TV reported.
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Mama’s Pizza has two remaining locations at 4500 E. Speedway and 50 S. Houghton Road in Tucson.
More closings:
- Popular retail chain to close unprofitable store locations
- Bankrupt retail chain unloads store leases, key assets
- Popular discount retailer files bankruptcy, closes all stores
The Commercial Lockout Notice asserted that the property manager was terminating the tenant’s right to occupy the premises and the landlord may re-enter the property and take possession of the property. The notice said the tenant remained liable for all sums owed until the lease expires.
The property manager also has the option of securing a lien on the tenant’s personal property located on the premises and not exempted by law as is necessary to secure the payment of rent, the notice said.
Seized restaurant property might be sold
If the rent is not paid within 20 days after the seizure, the property manager may sell the property to recover unpaid rent, the notice said.
Mama’s Pizza had not filed for bankruptcy protection at last check. However, if the company files a petition, all legal actions against it would be subject to an automatic stay while its bankruptcy case proceeded.
The pizza chain in July 2023 closed another Tucson location at 6996 E. 22nd St., Tucson Foodie reported.
Mama’s Pizza originated in Long Island, N.Y., in 1979, but moved to Tucson in 1981 near the University of Arizona campus. That restaurant closed in 2021 due to the renovation of the university business district. However, four other locations opened over the years in Tucson.
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