Competition in the pizza dining sector is fierce, as major chains overexpanded in recent years, squeezing smaller local and regional chains.
Major pizza chains are making a huge correction after realizing their mistakes in opening too many locations.
Pizza chains close 100s of stores
Pizza chain Papa John’s announced in its fourth-quarter earnings call that it will close 300 underperforming restaurants, including 200 by the end of 2026. The company did not reveal a deadline for closing the remaining 100.
Papa John’s also said it would cut 7% of its workforce.
Pizza Hut‘s parent Yum! Brands in February said that it would close 250 underperforming locations as part of its Hut Forward plan in the first half of 2026.
In some cases, pizza chain franchisees file for bankruptcy protection to reorganize, hoping to turn their business around to avoid closing locations.
Crust Pizza franchisee files for Chapter 11 protection for two restaurant locations.
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Crust Pizza franchisee files bankruptcy
A Texas-based Crust Pizza dining chain franchisee has filed for Chapter 11 protection to reorganize its two restaurant locations.
The Spring, Texas-based franchisee owners John and Amy Reno operate Crust Pizza locations in Magnolia, Texas, and the Houston Heights neighborhood, according to Community Impact.
Bankrupt franchisee entity AJ Reno Enterprises LLC, which does business as Crust Pizza Magnolia, and the other franchisee entity Swing Zone LLC, which does business as Crust Pizza Heights, filed Chapter 11 petitions to reorganize their franchises on March 27 in the U.S. Bankruptcy Court for the Southern District of Texas in Houston, Inforuptcy reported.
The franchisee had not indicated in the petition why it needed to file for bankruptcy protection.
The debtors listed up to $100,000 in assets and $1 million to $10 million in liabilities in their petition, according to Bankruptcy Observer.
Lloyd A. Lim of law firm Kean Miller LLP represents the debtors in the Chapter 11 cases.
AJ Reno Enterprises opened its second Crust Pizza franchise in Magnolia on Feb. 29, 2024, according to Community Impact.
Chain expected sustained growth
“Our dedicated real estate and development teams meticulously vet each potential location to guarantee sustained growth and ample customer flow,” Amber Pritchard, Crust Pizza’s director of marketing, said after the Magnolia location opened in 2024, according to Community Impact.
“The city of Magnolia and its vibrant neighborhood perfectly aligned with our vision, making it an ideal fit for expanding our presence,” Pritchard said.
Other Crust Pizza franchisees have filed for Chapter 11 protection in the last year, including JRCP Restaurants LLC, dba Crust Pizza Golsing Pi., located in Gosling Pines, Texas, which filed for Chapter 11 protection on Nov. 18, 2025. Chain is not affiliated with AJ Reno Enterprises.
The pizza chain had high hopes, as its website stated that its goal was to establish 130 locations by the end of 2025, which did not happen.
Crust Pizza wants to open 250 locations
Crust Pizza plans to expand into Florida, North Carolina, South Carolina, Tennessee, Arkansas, and Oklahoma, with a goal of opening “250 stores in the next nine years,” CEO Carl Comeaux said in a press release in April 2025.
Crust Pizza is a Chicago-style, quick-service pizza dining chain that was established in 2011 in The Woodlands, Texas, by childhood friends Mark Rasberry and Clint Price, and has grown to 37 locations in Texas and Louisiana, with four new locations set to open soon, according to its website.
The chain offers a variety of pizzas, pastas, sandwiches, bone-in and boneless wings, salads, and starters.
Restaurant offers kids’ and wine deals
The pizza chain also offers middle-of-the-week promotions, such as Kids Eat Free Tuesday, for dine-in only, and Wine Wednesday, which offers half off all wine orders, also dine-in only.
Related: Major steakhouse chain closes more locations, no bankruptcy