Iconic pizza chain’s franchisees shut down restaurants

The pizza restaurant sector has battled rising operating costs since before the Covid-19 pandemic, which forced some businesses to reorganize and restructure debt.

Increased food and labor costs driven by rising inflation took their toll on the pizza dining industry. The average cost of food increased by 29%, and labor costs rose by 31% from 2019 to 2024, according to the National Restaurant Association.

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Menu prices also increased, as average prices rose by 27.2% from February 2020 to June 2024.

Add fierce competition to the equation, and the economic challenges can force restaurants to restructure their businesses out of court, reorganize in a Chapter 11 bankruptcy, sell assets, and sometimes permanently shut down.

In some cases, pizza chains or their franchisees will file for Chapter 11 bankruptcy to reorganize and continue as a going concern.

East Coast pizza chain Bertucci's Restaurants has used the bankruptcy court successfully to reorganize and remain in business, as it filed for Chapter 11 protection three times in seven years.

Bertucci's filed for Chapter 11 bankruptcy the first time in April 2018 to sell its assets, and it operated 31 restaurants when it filed for bankruptcy protection in December 2022. Bertucci's filed for bankruptcy a third time on April 24, 2025, and had 15 remaining restaurants in its chain when it filed.

Major pizza franchisee files for bankruptcy

Franchisees of major pizza chains also filed for bankruptcy protection to sell or close locations. Huge Pizza Hut operator EYM Pizza L.P. filed for Chapter 11 bankruptcy protection in July 2024 and sold 77 of its restaurants at a bankruptcy auction.

Legendary Buddy's Pizza, which claims to have invented the iconic square-shaped Detroit-style pizza, closed its Portage, Mich., location, suffering lingering effects from the Covid pandemic, supply chain disruptions, staffing shortages, and rising costs of inflation. The company did not file for bankruptcy.

Buddy's Pizza currently operates 15 full-service pizza restaurants throughout Michigan, and another five carry-out only locations.

CiCi's Pizza franchisees close locations in Alabama and Florida.

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CiCi's Pizza franchisees close locations

Finally, CiCi's Pizza chain franchisees in Alabama and Florida have closed several restaurant locations, but also have not filed for bankruptcy protection.

The pizza chain's Alabama franchisee Buckshot Enterprises LLC recently closed three locations in Florence, Northport, and Huntsville, Ala., Tuscaloosa Thread reported.

The three locations were reportedly closed, according to social media posts and signs on the businesses' doors.

More bankruptcy:

The Florence location reportedly closed permanently in mid-June, the Northport restaurant's last day of operation was on June 29, and the Huntsville location has not been confirmed as closed, but the business's phone was not operating during normal store hours.

Calls to all three Alabama locations were not answered.

Another longtime CiCi's location in Uptown Center in North Naples. Fla., closed on June 9 after operating for almost 20 years, Gulfshore Business reported.

The local franchisee reportedly decided not to renew his franchise agreement with the national restaurant chain, since he didn't want to commit to another 10 years.

If the franchisee renewed his agreement, he would have to bring his 20-year-old store up to the company's latest specifications, which would be costly.

Franchisee Philip Santucci was unsuccessful in trying to find someone to take over the franchise. He said a transaction was a hard sell, since the business and all its equipment are 20 years old, and it would be expensive to remodel the restaurant and buy new equipment.

Santucci was the original general manager when the restaurant opened in 2004, and he bought the franchise five years ago in 2019 before the Covid-19 pandemic. The restaurant recovered from the pandemic in about two years.

The restaurant owner, however, said it was time for him personally to move on.

CiCi's Pizza, founded in 1985, has about 270 locations in 22 states, according to its website.