Other pizza chain operators have shown mixed results.

Japan-based Saizeriya, which operates extensively in China through subsidiaries, has slowed its expansion pace. As of December, its operations in the Chinese market totaled 627 restaurants, with a net addition of 69 stores during the year, down from 81 in 2024.

The deceleration comes amid weakening operational metrics. While sales posted single-digit growth in 2025, operating profit declined by double digits across key markets.

Some indicators improved — such as a 4 percent same-store sales increase in Guangzhou and a rebound in Beijing operating profit.

Meanwhile, the sector's dominant player Pizza Hut is pursuing a different path, focusing on premiumization and experiential dining. The chain recently introduced its higher-end "Pizzeria" concept in Beijing, opening outlets in the Xisi and Yansha areas.

The format emphasizes Neapolitan-style wood-fired pizzas, featuring open kitchens and imported ovens. The concept is positioned as a hybrid of dining and cultural experience, targeting urban consumers and tourism traffic.

"The launch of Pizza Hut Pizzeria at Xisi is a model of localization innovation for an international dining brand," said Jia Feiyue, head of the Beijing Food and Beverage Industry Association.

The competitive dynamics are unfolding against a backdrop of rapid market expansion.

According to a report by 36Kr, China's pizza market reached 48 billion yuan in 2024 and is projected to exceed 77 billion yuan by 2027, implying a compound annual growth rate of about 15.5 percent. The market remains relatively concentrated, with chain operators gaining share as consumers increasingly favor standardized quality and convenience.

Younger consumers — particularly those born after 1990 and 2000 — are driving demand, especially in first to third-tier cities.

At the same time, consumption patterns are evolving. Pizza is shifting from a novelty product to a more regular dining choice, with greater emphasis on quality, health and customization, according to the report.

Surveys show that 43.9 percent of consumers want more flexibility in choosing ingredients, while 36 percent prioritize uniqueness and 31.5 percent seek innovative flavors that depart from traditional recipes — trends that are pushing brands to invest more in product development and differentiation.

wangzhuoqiong@chinadaily.com.cn