Revitalizing the Pizza Franchise Sector: Can Jack Cowin and Innovative Operators Like &Pizza and Wonder Drive a Turnaround in Fast-Casual Dining?

The pizza franchise sector, long a cornerstone of the fast-casual dining industry, is at a crossroads. Despite its $50.1 billion revenue in 2024, the market faces stagnation, rising labor costs, and margin pressures. Yet, amid these challenges, a new wave of strategic repositioning and operational innovation is emerging. Visionary leaders like Jack Cowin of Domino's Pizza Enterprises, alongside disruptors such as &Pizza and Wonder, are leveraging AI, labor-centric models, and tech-driven delivery systems to redefine profitability and scalability. For investors, the question is no longer whether the sector can recover—but how these pioneers are accelerating its transformation.

The Stagnation Conundrum: A Sector in Transition

The U.S. pizza market, dominated by 74,000 pizzerias (40–60% independent), is grappling with a perfect storm: inflation-driven food cost hikes (2.4% in 2025), labor expenses rising by 4% or more for 56% of operators, and a saturated delivery landscape. While third-party platforms like Uber Eats and DoorDash offer growth potential, their high commission fees and quality control issues have left many operators wary. Meanwhile, dine-in traffic remains sluggish, with 41% of pizzerias reporting declining visit frequency.

Yet, the sector's resilience lies in its adaptability. Operators are pivoting to AI-driven marketing, automation, and vertical integration to combat stagnation. For instance, 78% of pizzerias now use online ordering, with 44% of those generating 28%+ of sales through digital channels. The key to unlocking value lies in how companies like Domino's, &Pizza, and Wonder are redefining the rules of the game.

Jack Cowin's Domino's: A Blueprint for Franchise Revival

Jack Cowin, the Australian billionaire behind Domino's Pizza Enterprises (ASX:DMP), has become a symbol of strategic reinvention. After assuming interim CEO duties in 2025, Cowin initiated a $1.2 billion cost-cutting and operational overhaul, including the closure of 205 underperforming stores in Japan. His approach centers on three pillars:

1. AI-Driven Efficiency: Domino's is leveraging AI for logistics optimization, reducing delivery times to under 30 minutes in key markets. Its proprietary delivery network, which avoids third-party platforms, provides data on customer behavior and ensures consistent service.
2. Menu Simplification: By streamlining offerings and focusing on high-margin staples, Domino's aims to boost average store earnings from $95,000 to $130,000 annually.
3. Franchisee Empowerment: Cowin's strategy prioritizes profitability over expansion, with a 3% same-store sales growth target and disciplined cost control.

Domino's stock, which fell to $180 in early 2024, has rebounded to $230 as of August 2025, reflecting investor confidence in Cowin's turnaround. The company's vertically integrated delivery model and AI-driven logistics position it as a bellwether for the sector's potential to scale profitably.

&Pizza: Tech-Driven Personalization in a Crowded Market

&Pizza, a fast-casual chain with a focus on millennial and Gen Z demographics, is leveraging AI to differentiate itself. Its strategies include:

• Hyper-Personalized Marketing: Using AI to analyze customer data and deliver tailored promotions, &Pizza has increased repeat visits by 18% in 2025.
• Automation in Operations: Kitchen display systems (KDS) and AI-powered inventory management reduce labor dependency, with 75% of operators reporting improved efficiency.
• Delivery Innovation: While cautious about third-party platforms, &Pizza is testing AI-optimized in-house delivery routes, cutting average delivery times by 12%.

By blending tech with culinary creativity—offering trending toppings like hot honey and microgreens—&Pizza is capturing a niche market willing to pay a premium for quality and convenience.

Wonder: Scaling with AI and Labor Optimization

Wonder, a delivery-first pizza chain backed by $700 million in funding, is redefining scalability. Its partnership with Logile, an AI labor planning platform, has been transformative:

• AI-Powered Workforce Management: Logile's 15-minute demand forecasting reduces labor costs by 18% and minimizes overtime, a critical factor in a tight labor market.
• Vertical Integration: Wonder's 30-minute delivery model, supported by AI-optimized courier networks, ensures freshness and speed, with unit-level profitability achieved at 50+ locations.
• Menu Innovation: Collaborations with chefs like Marcus Samuelsson add value to its “fast fine dining” concept, appealing to price-sensitive yet quality-conscious consumers.

With plans to expand to 1,000 locations by 2029, Wonder's focus on AI-driven scalability and operational discipline makes it a compelling long-term play.

The Investment Case: Balancing Risk and Reward

For investors, the pizza sector's revival hinges on three factors:

1. Operational Discipline: Companies like Domino's and Wonder demonstrate that margin improvement is achievable through cost control and AI-driven efficiency.
2. Tech Adoption: Franchises that integrate AI into marketing, labor, and delivery will outperform peers. For example, Domino's 30-minute delivery model has boosted customer retention by 25%.
3. Market Differentiation: Operators like &Pizza and Wonder are carving out niches through personalization and speed, avoiding direct competition with legacy chains.

However, risks remain. Rising food costs (projected to rise 2.4% in 2025) and labor shortages could pressure margins. Investors should prioritize companies with strong balance sheets and scalable tech infrastructure.

Conclusion: A Sector on the Cusp of Reinvention

The pizza franchise sector is no longer a “safe bet”—it's a battleground for innovation. Jack Cowin's Domino's, &Pizza's tech-driven personalization, and Wonder's AI-powered scalability are proving that even in a stagnant market, strategic repositioning can unlock value. For investors, the key is to identify operators that combine operational rigor with technological agility. As the industry evolves, those who embrace AI, automation, and data-driven decision-making will lead the charge—and deliver returns that outpace the broader market.