When a low-cost dining option closes down, you know the economy may be suffering. Usually, when times are tough, cheaper chains do well.In the current economy, even fast-food chains including McDonald’s have admitted that they’re losing customers and need to focus on value. McDonald’s CEO Christopher J. Kempczinski addressed one key sales problem during his company’s second-quarter earnings call.”Overall QSR traffic in the U.S. remained challenging as visits across the industry by low-income consumers once again declined by double digits versus the prior year period. Reengaging the low-income consumer is critical as they typically visit our restaurants more frequently than middle- and high-income consumers,” he said.McDonald’s is not alone in seeing fewer low-income customers. Domino’s Pizza has seen changing consumer behavior as well.“Delivery is a tougher value right now in this value-conscious world,” said Domino’s CEO Russell Weiner during the chain’s earnings call. “And so, the choice isn’t going to another restaurant. Most of the time, it’s eating at home.”Papa John’s and Pizza Hut executives have made similar comments.

Little Caesars has closed locations

Little Caesars fans in multiple states have seen locations of the popular chain close.

One location in Nebraska posted signs on its door explaining the shutdown, KSNB reported.

“Dear customers, unfortunately we have had to close temporarily due to delays in employee payments. We appreciate your understanding and support. We hope Little Caesars resolves our situation soon.”

It’s unclear whether the payment issue is corporate or franchise-related.

Little Caesars confirmed the closures, but did not give a reason for them.

These are not the only Little Caesars locations that have closed in 2025.

Pizza is generally considered affordable.

Image source: Shannon O’Hara/Getty Images

Little Caesars closures in 2025

• Nebraska: North Platte: Closed indefinitely after management resignations and unpaid wages.

  Kearney, Grand Island, Columbus: Closed around the same time; online ordering unavailable.

  Hastings: Remains open.

• Virginia & North Carolina: 13 locations closed, affecting about 220 employees.
• Albany, Georgia: Last remaining location in the area permanently closed.
• Ireland (Rathfarnham, Dublin): Little Caesars restaurant closed after 35 years due to rising costs.

More Restaurants:

• Cracker Barrel closing 14 company-owned restaurants amid backlash
• Beloved sandwich chain closes restaurants, bakeries
• Restaurant chain closed 50% of locations in Chapter 11 bankruptcy

Pizza Hut, Domino’s, Pie Five and Mod Pizza close locations

Little Caesars is not the only pizza chain that has closed stores in 2025.

• Domino’s Pizza Closed over 200 unprofitable stores globally, including 172 in Japan and others in Europe and Australia.
• MOD Pizza: 27 locations closed across 11 U.S. states and D.C.
• Papa John’s: Experienced a decline in visits from lower-income customers in North America, contributing to same-store sales drops and some location closures.
• Pie Five:Reduced its presence from 100 locations in 2017 to just 17 in 2025.

• Reason: Focus on profitability; underperforming locations closed.

• Reason: Declining sales, high interest costs, and unfavorable leases from previous expansion.

New report has more bad news for pizza chains

Annual sales volume across all top 1,500 chain restaurants will reach $478 billion this year, representing a 2.8% increase on a nominal basis, according to a report from Technomic. That’s down from 3.1% growth in the previous year.

The only year the growth numbers was worse was in 2020 during the Covid pandemic, when sales dropped by 8%.

Technomic’s restaurant forecast highlights

• The chicken category, projected to grow 6.9%. This is compared to about 9% last year.
• Sales at Mexican restaurants are expected to grow by 6.2% in 2025, versus 8.6% in 2024. 
• The one category expected to grow faster than in 2024 is coffee/beverage, with an expected 4.4% increase versus about 3.3% last year.
• The burger sector is projected to grow by 0.4%.
• The sandwich sector is projected to grow by 0.3%.
• The pizza sector is projected to fall by 0.2%. 

• These three categories remain stagnant after growing combined sales by less than 1% in 2024.

“All told, the economic signals remain mixed, and this likely reflects the heightened degree of uncertainty among both consumers and businesses. Until the fog clears, the economic outlook will be somewhat muted,” the association notes, projecting ‘somewhat dampened growth’ throughout the second half of 2025 and into 2026,” the National Restaurant Association told Nation’s Restaurant News.

Related: 34-year-old casual dining chain files for Chapter 11 bankruptcy