Major corporate pizza chains in the United States are experiencing a decline in delivery sales as third-party delivery apps broaden the competitive landscape for food delivery. Once dominant due to their proprietary delivery networks, chains like Domino’s, Papa Johns, and Pizza Hut now face intensified competition from independent pizzerias and a wide variety of other restaurants utilizing platforms such as Uber Eats and DoorDash.
Industry analysts attribute the downturn to the rapid expansion of delivery aggregators that have leveled the playing field by providing diverse eateries easy access to delivery infrastructure that was previously the exclusive domain of large pizza chains. According to JPMorgan data, delivery sales at quick-service pizza chains have fallen from approximately $19.8 billion in 2021 to $16.5 billion in 2023, representing a roughly 15 percent decline over the period.
The rise of delivery apps, which gained significant traction during the COVID-19 pandemic, initially offered a boost to some pizza brands. Papa Johns and Pizza Hut, which integrated with third-party platforms in the late 2010s, benefited from these services amid pandemic-related labor shortages by augmenting their delivery capacity without having to rely solely on in-house drivers. Domino’s, which historically maintained its own delivery system, noted in 2022 that staffing shortages had a “stark impact” on delivery sales. While labor issues have abated, the chains’ delivery sales have continued to decline.
The competitive advantage pizza chains once held through their early adoption of mobile ordering technology has diminished as independent pizzerias and other food categories now offer streamlined ordering experiences through delivery apps. Citibank analyst Jon Tower described this erosion as a shrinking “competitive moat” around the technology that once separated major pizza brands from local competitors. On platforms like Uber Eats, consumers find pizza chains listed alongside local restaurants, reducing the marketing edge of well-established brands, according to RBC analyst Logan Reich.
The shifting consumer preferences reflect a broader diversification of food delivery options beyond traditional pizza and Chinese food, which historically were among the few categories that traveled well to customers’ doors. Some consumers, such as Dimitri Pahis, a college student in New York City, now often choose alternatives like Chick-fil-A, a chicken sandwich chain that expanded nationwide delivery via DoorDash starting in 2018.
Economic pressures are also contributing to the challenges faced by chain pizza operators. Stephen Kennedy, chief marketing officer at Marco’s Pizza, highlighted that consumer expectations around delivery speed and service quality are rising amid tightening budgets, reducing patience and increasing demands for efficiency.
Despite these challenges, Domino’s CEO Russell Weiner expressed cautious optimism, attributing the company’s ability to maintain delivery volumes partly to its presence on third-party platforms that attract higher-income customers. He indicated that the delivery business could improve as economic conditions stabilize.
For occasional delivery users like Staci Fortun, a teacher in Brooklyn, the proliferation of delivery apps has expanded choices far beyond the traditional pizza and Chinese options, making it easier to explore new cuisines. As the delivery ecosystem evolves, the pizza sector continues to adapt to both changing technology and shifting consumer tastes amid a more crowded marketplace.