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Popular pizza chain launches first-ever value menu
  • Trading

Pizza Hut rival dining chain files for Chapter 11 bankruptcy

  • July 24, 2025
  • Roubens Andy King
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Domino's continues to hold the advantage over Pizza Hut in total locations among pizza chains, with 21,536 global units and 7,061 U.S. restaurants, according to the company's 2025 second-quarter results released on July 21.

Pizza Hut used to be the world's largest pizza chain until 2017, when Domino's surpassed the Hut in global sales with $12.25 billion compared to $12.03 billion.

Pizza Hut reported a total of 20,225 global locations and 6,474 U.S. locations in the first quarter of 2025. It will release second-quarter results on Aug. 9.

Related: Popular pizza dining chain franchisee files Chapter 11 bankruptcy

Domino's also beat analyst projections in the second quarter for same-store sales, rising 3.4% in the quarter ending June 15, exceeding analysts' average estimated increase of 2.21%, Reuters reported.

Domino's and Pizza Hut locations:

  • Domino's: Global, 21,536; U.S., 7,061.
  • Pizza Hut: Global, 20,225; U.S., 6,474.

The dominance of Domino's and Pizza Hut has impacted a lot of smaller pizza dining chains, like Backdraughts Pizza, which can't compete with the two largest chains' sheer number of locations and their huge advertising budgets.

Fierce competition, along with rising labor and food costs, has forced many smaller pizza restaurant chains to close locations and sometimes file for Chapter 11 or Chapter 7 bankruptcy protection.

Domino's Pizza, which has the most global pizza locations, creates fierce competition for smaller chains, such as Backdraughts Pizza.

Image source: Bloomberg/Getty Images

Back Draughts Pizza files for Chapter 11 bankruptcy

Popular brick-fired pizza and craft beer chain Back Draughts LLC filed for Chapter 11 bankruptcy protection to reorganize its business on July 23.

The New Port Richey, Fla., pizza restaurant chain, whose locations are known as Backdraughts Pizza, filed its Subchapter V petition in the U.S. Bankruptcy Court for the Middle District of Florida, listing up to $50,000 in assets and $1 million to $10 million in liabilities.

The family-owned pizza chain, which opened about six years ago in a downtown Post Office building, currently operates locations in Tarpon Springs and New Port Richey, Fla., as well as the Twisted Orange Craft Cocktail Lounge in Tarpon Springs.

Pizza Chains that filed for Chapter 11 bankruptcy:

  • People First Pizza: March 26, 2025
  • Zeppe's Tavern: March 31, 2025;
  • Bertucci's Restaurants: April 24, 2025;
  • Red Door Pizza LLC: July 15;
  • Back Draughts: July 23.

Other small pizza chains also faced financial distress this year as rock and roll-themed pizza restaurant franchise Zeppe's Tavern in Newbury, Ohio, filed for Chapter 11 bankruptcy on March 31, 2025, seeking to reorganize its business.

Zeppe's Tavern consists of 13 locations in Northeast Ohio and one in Naples, Fla., according to the restaurant's website.

  • Major iconic food brand files for Chapter 11 bankruptcy
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East Coast pizza chain Bertucci's Restaurants filed for Chapter 11 protection three times in seven years, facing economic issues.

The pizza chain first filed in April 2018, and then filed a second time in December 2022, when it operated 31 restaurants. Bertucci's had 15 restaurants when it filed the third time in April 2025.

Related: Popular vodka and gin brand declares Chapter 11 bankruptcy

Even some of the largest chains were not immune from filing for bankruptcy, as People First Pizza Inc., which operated Domino's Pizza locations, on March 26, 2025, filed for Chapter 11 bankruptcy protection to reorganize its business, facing over $500,000 in disputed claims. The franchisee planned to continue operating.

Greenville, S.C.-based Little Caesars pizza franchisee Red Door Pizza LLC, which is owned by fast-food chain franchisee Red Door Brands LLC, filed for Chapter 11 bankruptcy protection on July 15 along with three affiliates, seeking to restructure their businesses.

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