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Why some Pizza Chains Are Struggling

Restaurant Business
Restaurant Business•Apr 17, 2026

Why It Matters

AI ordering tools could redefine customer acquisition for fast‑casual brands, and the potential sale of major pizza chains underscores how market saturation and delivery competition are forcing legacy players to rethink ownership and strategy.

Key Takeaways

  • •Starbucks and Little Caesars launch ChatGPT ordering assistants.
  • •AI recommends drinks/pizza based on mood, weather, outfit.
  • •Jersey Mike's posts 3.2% volume growth, expanding to Canada/UK.
  • •Blackstone eyes Jersey Mike's IPO amid strong unit performance.
  • •Papa John's and Pizza Hut explore sales as pizza market weakens.

Summary

The episode spotlights two divergent trends in the restaurant sector: the rapid rollout of AI‑driven ordering tools and the distress facing legacy pizza brands. Starbucks unveiled a ChatGPT plug‑in that tailors drink suggestions to a customer’s mood, attire and weather, while Little Caesars announced a similar pizza‑ordering app, signaling the first wave of conversational AI in quick‑service ordering. Key data points include AI’s ability to push personalized recommendations—examples ranged from a chai latte for a depressed user to an iced peach green tea for someone feeling “stabby.” Meanwhile, Jersey Mike’s reported a 3.2% volume increase to 1.37 million units, added 238 locations last year and plans further expansion into Canada and the UK under Blackstone’s ownership, fueling speculation of an upcoming IPO. The hosts highlighted operational nuances such as a surge in franchise unit transfers at Jersey Mike’s and the uncertainty over how much brand control exists over AI‑generated suggestions. They also noted that pizza chains like Papa John’s and Pizza Hut are deep in due‑diligence with private‑equity buyers as the overall pizza market contracts, pressured by omnichannel delivery platforms that erode their historic home‑delivery monopoly. Implications are clear: AI could become a new front‑line sales channel, reshaping how consumers discover and order food, while private‑equity owners must balance growth ambitions with market realities. For struggling pizza brands, ownership changes may be a last‑ditch effort to revive sales in a fragmented, delivery‑driven landscape.

Original Description

Why are pizza chains having problems?
This week’s episode of the Restaurant Business podcast The Week in Restaurants looks at the potential sales of Pizza Hut and Papa Johns, and what it means about both chains and the sector at large.
We also look at Starbucks and Little Caesars, both of which announced ChatGPT apps last week that could get AI more involved in the actual ordering decisions. 
Jersey Mike’s had another good year in 2025 and we talk about what that means about its potential IPO.
This week’s Technomic Talks segment features Senior Principal Rich Shank, who talks about menu prices and whether the economy is driving them up this year. 
On Tech Check, Senior Tech Editor Joe Guszkowski talks Toast and the drive-thru. 
Want more from Jonathan Maze?
Tik-Tok @jonathandmaze
Want more from Lisa Jennings?
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Want more from Joe Guszkowski?
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