Nearly everyone loves pizza, but it’s such a popular food that competition across all areas of the business has become intense.
It seems like a new frozen pizza brand comes out every month, and chains like Bertucci’s, which has closed many restaurants under its current Chapter 11 bankruptcy filing, has struggled to compete with cheaper chains like Domino’s and Papa Johns.
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Even Domino’s, which boasted a 20-year streak of United States same-store sales increases, posted some stunning results earlier this year.
“In the company’s first-quarter earnings report for 2025, it revealed that while its revenues increased by 2.5% year-over-year, its U.S. same-store sales declined by 0.5% during the quarter,” The Street’s Patricia Battle reported.
That’s a very small drop, but it shows that no company can increase sales forever, even if it seemed like Domino’s (DPZ) could. Domino’s CFO Sandeep Eddy explained the drop.
“Same store sales declined 0.5%, which was slightly below our expectations. We benefited from 1.8% of pricing, which was inclusive of high-single-digits in California. This was more than offset by negative traffic and a slight decline in our mix due to a higher carryout business that carries a lower ticket than delivery. Our carryout business comps were up 1%, while delivery was down 1.5% in the quarter. Our delivery business continues to be impacted by macro pressures that are impacting the low-income consumer,” he shared during the chain’s first-quarter earnings call.
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Papa Johns also struggled in the first quarter.
“North America comparable sales were down 3% from a year ago as domestic company-owned restaurants were down 5% and North America franchised restaurants were down 2%,” it shared in an earnings release.
Even Pizza Hut was not immune, as its U.S. same-store sales dropped by 7% in the first quarter as well.
All the big players in the pizza space have struggled this year.
Image source: TheStreet/Getty
Popular pizza chain offers unique restaurants
Mellow Mushroom has offered its own take on pizza, wings, and other bar food classics for 50 years. The chain has a national footprint, but maybe not a national reputation.
The chain described its business on its website:
“Since 1974, we’ve been your deliciously unique neighborhood pizza place. A special joint where all 5 senses are stimulated. Originally established in Atlanta, Georgia near Georgia Tech’s campus on Spring Street, three college friends banded together to open their first Mellow restaurant with one common passion: the art of pizza baking. Our 70s-inspired trippy vibes, coupled with the delicious flavors of hand-crafted stone-baked pizzas and unique local beers, quickly made Mellow an Atlanta favorite, the perfect place to relax and unwind,” it shared.
Mellow Mushroom offers a higher-level pizza experience than Domino’s, Papa Johns, or Pizza Hut. It’s a sit-down restaurant that also offers an impressive array of beers along with its food menu.
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The chain operates over 160 locations across 17 states.
“Each location environment feels unique from the last, featuring original psychedelic artwork and locally-influenced designs. But it’s not just the colors or art on the walls the make us this way, it’s the food,” the company shared. “The quality of our signature dough recipe – comprised of the original 1974 combination of five carefully curated ingredients, an unforgettable Mellow red sauce, and premium mozzarella cheese sprinkled with fresh parmesan all make for the perfect first and last bite.”
Multiple Mellow Mushroom locations are closing
Mellow Mushroom uses a franchise model, so one location (or more) closing does not reflect on the health of the chain. In addition, the company is not public, so it’s hard to know if these closures are indicative of a larger problem.
One long-standing location in Decatur, GA recently shared its plan to close.
“It is with a heavy heart that I announce the closure of Mellow Mushroom Decatur,” the owner announced on Facebook. “It has been an absolute pleasure working in this community and we will miss being able to be your go-to pizza place! We love you all and thank you for the years of joy you have brought to our Mellow team.”
In addition, a location in Denton, Texas, also shared closure plans on Facebook. That location had been in operation for 17 years.
Many posts on the Denton Record-Chronicle Facebook page noted that the local Mellow Mushroom had service issues.
“I liked going to this place, but the wait times were always loooonnng and the service was mediocre usually,” Brock Davies shared.
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Scott Morse was less nice.
“Oh no! Where will I wait 2 hours for a pizza now,” he posted.
A Mellow Mushroom in Tempe closed in June as well. The chain shared a letter acknowledging that shutdown.
“After many great years serving this community, Mellow Mushroom Tempe will be closing our doors for good [on] Sunday, June 15th,” the company wrote.
The chain also closed its only Colorado location in downtown Denver in March. Its Austin, Texas location shut down on May 1 after losing its lease.
