By Rick Hynum and Charlie Pogacar
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Editor’s note: This article is part 1 of the Pizza Power Report 2026. You can scroll down to the bottom to navigate to the next section of the report.
About 15 years ago, Domino’s shocked the pizza industry with a frank admission: “We know our pizza sucks.” That ad campaign, in which the chain owned its flaws and unveiled a new and improved recipe, was a watershed moment in pizza history. Not only did it turn around Domino’s fortunes in dramatic fashion, it marked the beginning of Domino’s shift to a “tech company that sells pizza”—setting it on the path to becoming the world’s largest pizza chain. Since then, it has reportedly tripled its domestic sales and grown its U.S. store count by 42%.
Granted, some independent operators still look down their noses at chain pizza. But millions of consumers around the country disagree, judging by the continued explosion of chain locations nationwide. And the fact is, the leading brands have stepped up their game this year in terms of menu innovation, from Domino’s Parmesan Stuffed Crust pizza to Pizza Hut’s Crafted Flatzz and Papa Johns’ Garlic 5-Cheese Crust.
Simply put, chain pizza keeps getting better. The same goes for gas-station pizza. And, for that matter, frozen pizza. Faced with a higher level of competition and the same economic tumult that made 2024 a hard slog, some independents might feel like they’ve been holding on for dear life this year.
Pizza Power Report 2026: Pizzeria Failure Rate Is Not What You Think
Well, don’t let go, says Michael LaMarca, master franchisor of Master Pizza, headquartered in Mayfield Village, Ohio. He just opened Master Pizza’s 14th store in mid-October. And he’s exactly the kind of clear-eyed optimist this year’s Pizza Power Report calls for.
“I really think the industry is in a good position,” LaMarca says. “Maybe not good shape, but a good position. The restaurant industry is definitely having some turbulent times with higher costs and the labor market. But what makes pizza stand out more than other segments, I believe, is that pizza is in really high demand right now. I think the outlook is strong and positive.”
The fact that customers want pizza any way they can get it—even from a gas station—speaks to its perennial and widespread appeal. According to the American Bakers Association’s 2025 Bakery Playbook, 86% of Americans have eaten pizza or flatbread in the past year. Among Generation Z consumers, more than 40% say they eat pizza most days, every couple of days or at least once a week. And not just for lunch or dinner—they crave it for breakfast or as a snack across dayparts.
“Pizza is so beloved,” LaMarca says. “People have a passion for pizza. You can go to any Facebook group and ask, ‘What’s your favorite pizza?’ and 500 messages will come up, with people arguing back and forth. You don’t see that with hamburgers or steaks.”
According to IBISWorld’s “Pizza Restaurants in the U.S.—Market Research Report” in June 2025, U.S. pizza restaurant revenue will reach $49.6 billion this year. Illustrating LaMarca’s point about pizza’s rising popularity, more non-pizza restaurants are adding it to their menu, striving to improve their margins and to meet consumer demand for customizable and social foods. “Still, demand for pizza restaurants has persisted, despite and somewhat because of the high inflation and economic uncertainty….and the number of pizzerias continues to rise,” the report states.
And independents are perched in the catbird seat, says Loren Padelford, chief revenue officer at Slice, a technology platform for independent pizzerias with a network of more than 15,000 shops across all 50 states.
“The era of the chains is over, and the era of indie pizza is in full swing,” Padelford asserts. “The ability for an independent pizzeria to have the same technology, supply chain leverage, marketing and support that have been the exclusive domain of franchises and chains is now here, and the best owners are jumping in with both feet….More shops are opening than ever before, and more are staying open. This is the greatest time in the last 100 years to open an independent pizzeria.”
Snapshot of the U.S. Pizza Industry (2025)
Total Pizzerias: 75,736*
Estimated Revenue: $49.6 billion (down by estimated 0.3%)*
86% of Americans ate pizza/flatbread in the past year**
40% of Gen Z consumers eat pizza at least once a week**
*Source: IBISWorld **Source: American Bakers Association
Click here to read part 2 of PMQ’s Pizza Power Report 2026: Pizzeria Failure Rate Is Not What You Think
