Pieology, the fast-casual pizza chain, has filed for Chapter 11 bankruptcy protection, citing a prolonged decline in performance and failed turnaround efforts. The company, which operated 130 stores in 2022, had shrunk to 45 locations at the time of the filing, including 29 franchised units, not counting 17 restaurants closed in the months leading up to the bankruptcy.
The chain’s struggles intensified when funding intended to revamp 29 underperforming stores fell through earlier this year. Founder Carl Chang said the brand was unable to secure alternative financing to carry out the needed upgrades. Following the COVID-19 pandemic, Pieology had shifted heavily toward off-premise dining, a strategy that came with high costs. In early 2024, the company began operational improvements in its company-owned restaurants, including new kitchen equipment, simplified menus, and more efficient labor deployment, which produced measurable gains in customer satisfaction, throughput, and food-cost consistency.
Pieology had planned to expand these improvements to 29 franchise-owned locations, many of which were behind on payments to the company. Negotiations in March aimed to take operational control of these stores and stabilize system-wide performance. The plan required substantial capital for equipment and store updates while offsetting short-term losses, but investors withdrew funding just before the deal was set to close. The company proceeded with the improvements anyway to avoid the franchisee’s potential collapse, but was unable to secure alternative investment, including private equity.
Without the necessary capital, Pieology’s liquidity quickly eroded, forcing the company to seek Chapter 11 protection to preserve the value of its business. The approach of acquiring underperforming locations for turnaround mirrors strategies attempted by other operators, such as Meridian Restaurants Unlimited, which also filed for bankruptcy in 2023 after failing to complete a similar plan.
The filing comes amid a wave of restaurant bankruptcies in the latter half of 2025, driven by inflation and changing consumer spending patterns. Recent filings include Bravo Brio in August, Pinstripes in September, Razzo’s Cajun Cafe, a major Freddy’s Frozen Custard and Steakburger operator, and Fat Brands, which is facing creditor pressure over $1.3 billion in debt.