If your name isn’t Domino’s, it’s tough to be a pizza place right now.
Just look at their two primary rivals: Pizza Hut and Papa Johns. The former has seen sales decline for eight consecutive quarters and might be facing jeopardy. The latter is currently undergoing a major turnaround effort to win back patrons after a grim two-year span.
Part of this push for Papa Johns involves bringing back the Pan Pizza—an item that hadn’t graced their menu for a decade.
“The pandemic, to some extent, burned people out on having a lot of pizza,” commented Robert Byrne, senior director of consumer research at Technomic. Instead, customers, particularly younger diners, are gravitating toward more “interesting” fare like fried chicken or specialty beverages.
Pizza also no longer reigns supreme for delivery. The surge in popularity of third-party delivery apps like DoorDash or Uber Eats in recent years has enabled customers to browse and choose from a wider array of dishes, he added.
All of this has created headwinds for the major pizza chains. Industry-wide sales are anticipated to remain flat at $31 billion through 2025, according to Technomic data.
For consumers, price trumps quality—even if Papa Johns claims to have the superior product or Pizza Hut appears to offer more toppings, he noted. Furthermore, the chains have hiked prices recently due to rising commodity costs.
“It’s still pizza,” Byrne told CNN. “The appeal is the lower price point.”
Domino’s has grasped this: its $9.99 “Carryout Deal” last summer proved successful, allowing the chain’s sales to climb 5.4% in the most recent quarter.
Papa Johns’ issues extend beyond pricing strategy, Byrne pointed out, citing a perceived lack of menu innovation. The chain’s CEO, former Wendy’s executive Todd Penegor, was brought aboard in 2024 to elevate its offerings and potentially engineer a major reversal.
Penegor began by streamlining the menu, dropping non-core items, and then recalibrating restaurant ovens to ensure a higher quality bake.
His next major focus is innovation, starting with the Pan Pizza announcement on Wednesday. The chain is hoping this nostalgic offering will draw back customers who feel current competitor versions fall short.
“They remember what pan pizza used to taste like, which isn’t in today’s category,” Shivram Vaidyanathan, Papa Johns’ VP of Marketing, told CNN. “We didn’t want to just be the best pizza, but genuinely be the best pan pizza, period.”
The 12-inch pizza, topped with six cheeses stretching to the edge and capable of holding up to seven toppings, launches on February 3rd for $11.99.
Papa Johns’ sales dipped 3% in the last quarter. The chain is counting on the Pan Pizza not only to attract new customers but also to give existing patrons another compelling reason to choose them over rivals, Vaidyanathan noted.
Byrne suggested the new pizza has the “potential” to boost sales and ideally, foot traffic, which has fallen nearly 6% year-over-year.
However, he cautioned that Papa Johns has substantial work ahead on sides and appetizers. The chain’s periphery assortment is purchased less frequently than competitors’.
“The new pizza has an added price point they are charging for it, so from a consumer standpoint, there’s a little more risk involved,” he said. Cheaper appetizers and sides, conversely, represent a “low-risk venture” for drawing people back in.
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