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Major Pizza Chains Struggle to Compete in New Jersey
National brands like Pizza Hut and Papa John's face fierce competition from local favorites in the pizza capital of the country.
Published on Feb. 27, 2026
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New Jersey is known for its thriving pizza scene, making it challenging for national pizza chains like Pizza Hut and Papa John's to compete. While Domino's is doing well with a 3.7% increase in same-store sales, Pizza Hut and Papa John's are closing hundreds of underperforming locations across the country, raising concerns about their future in the Garden State.
Why it matters
New Jersey's pizza culture is deeply rooted, with locals fiercely loyal to their favorite mom-and-pop shops. This makes it difficult for national chains to gain a foothold, as they struggle to match the quality and authenticity of the local competition. The struggles of these major chains highlight the strength and resilience of New Jersey's pizza industry.
The details
Pizza Hut recently announced it would be closing around 250 locations across the country, while Papa John's is closing 200 underperforming North American locations this year and an additional 100 more next year. According to Papa John's CFO and North America president Ravi Thanawala, the locations to close are those that are ten or more years old and are generating negative income. While Domino's is doing well with a 3.7% increase in same-store sales, the future of Pizza Hut and Papa John's in New Jersey remains uncertain.
- In February 2026, Pizza Hut announced it would be closing around 250 locations across the country.
- In 2026, Papa John's is closing 200 underperforming North American locations.
- In 2027, Papa John's will close an additional 100 locations.
The players
Domino's
A major pizza chain that is doing well in New Jersey, reporting a 3.7% increase in same-store sales for the fourth quarter.
Pizza Hut
A national pizza chain that is struggling to compete in New Jersey, leading to the closure of around 250 locations across the country.
Papa John's
A national pizza chain that is closing 200 underperforming North American locations in 2026 and an additional 100 in 2027, as it struggles to compete in New Jersey's pizza market.
Ravi Thanawala
The CFO and North America president of Papa John's, who stated that the locations to close are those that are ten or more years old and are generating negative income.
What they’re saying
“According to Papa John's CFO and North America president Ravi Thanawala the locations to close are ones that are ten or more years old and are generating negative income.”
— Ravi Thanawala, CFO and North America President, Papa John's (943thepoint.com)
The takeaway
New Jersey's deeply rooted pizza culture, with locals fiercely loyal to their favorite mom-and-pop shops, makes it extremely challenging for national pizza chains to gain a foothold in the state. The struggles of major chains like Pizza Hut and Papa John's to compete in this market highlight the strength and resilience of New Jersey's pizza industry, which continues to thrive despite the presence of national brands.
