America’s pizza industry, once a takeout and delivery staple, is now facing a cooling trend as consumers increasingly turn to delivery apps for a wide variety of food options, including sushi and steak. Domino’s, a once-powerful pizza chain, has seen its U.S. sales rise only 5.2% last quarter, a modest increase that hasn’t reversed years of slowing growth.
Analyst Vince Martin notes that pizza now faces competition it never had before, as delivery apps like DoorDash and Uber Eats have expanded to include a vast array of restaurant options. Domino’s has joined these platforms to reach more customers, but its stock performance has remained stagnant over the past year, even as the broader market has risen.
Rival chains like Pizza Hut and Papa Johns are also struggling. Pizza Hut has seen sales decline for two consecutive years, while Papa Johns has endured what some are calling a ‘lost decade’ with shares down over 60% since 2022. The pandemic briefly boosted pizza sales, but the explosion of delivery apps has shifted consumer spending away from pizza toward other food categories.
Experts warn that while convenience is a major draw, it comes at a cost. Delivery platforms like DoorDash and Uber Eats now have access to customer data, enabling them to promote competing restaurants, which can push loyal customers toward other options. While these platforms have seen double-digit order growth, pizza sales have lagged behind broader inflation rates, indicating the industry’s need for either improved quality or significantly lower prices to remain competitive.
Despite the challenges, some chains are adapting. Donatos, a Columbus-based chain, has embraced the new landscape by expanding its presence on delivery apps and offering promotions like $5 Pizza Pals and limited-time deals. Consumer data suggests that pizza remains a popular choice, with over half of Americans still regularly eating it, though the way they get it has shifted significantly, with more preferring carryout or pickup over full delivery.