The Oath Pizza chain, known for its creative proposals and commitment to fresh ingredients, confirmed the closure of all its stores. This decision puts an end to a company that sought to stand out in the competitive U.S. market, but failed to overcome economic pressures.
With a debt exceeding US$50 million and assets barely reaching US$500,000, Oath Pizza was unable to sustain its operation. In October 2024, Next Level Pizza Inc. its parent company, initiated a Chapter 7 of the U.S. Bankruptcy Law, which orders the liquidation of all its assets.
Although at its peak the chain went on to operate 17 branches in cities such as New York, Boston and California, closures began to accelerate in 2023. By the end of 2024, the few locations that remained open are scheduled to close in 2025.
Factors Precipitating the End of Oath Pizza
Oath Pizza‘s downfall is attributed to several factors that complicated its permanence:
- A saturated market: Companies such as Domino’s and Pizza Hut dominated the sector, leaving little room for emerging chains.
- Rising operating costs: Inflation and expenses resulting from the COVID-19 pandemic severely affected the brand’s finances.
- Limited growth: Despite its presence in major cities, expansion was not sufficient to achieve stability.
- Debt problems: Financial obligations overwhelmed the company’s ability to respond.
The Food Industry Faces Challenges
Oath Pizza is not the only chain that faced closure in 2024. The food sector, especially in the fast food format, is going through a period of adjustments where small and medium-sized brands are at a disadvantage against consolidated giants.
With its focus on innovation and customizable options, Oath Pizza offered a different experience in the pizzeria market. However, economic demands and stiff competition marked the end of a brand that failed to consolidate its place in the industry. By 2025, all of its locations will have closed, leaving a lesson about the challenges of competing in saturated markets.
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