UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
     PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Date  of  Report  (Date  of  earliest  event  reported)  SEPTEMBER  22,  2005

                                 PIZZA INN, INC.
             (Exact name of registrant as specified in its charter)

          MISSOURI                    0-12919               47-0654575
(State or other jurisdiction  (Commission File Number)    (IRS Employer
 of incorporation)                                     Identification No.)

                 3551 PLANO PARKWAY, THE COLONY, TEXAS     75056
          (Address of principal executive offices)          (Zip Code)

Registrant's  telephone  number,  including  area  code  (469)  384-5000

                                 NOT APPLICABLE
          (Former name or former address, if changed since last report)

Check  the  appropriate  box  below  if  the  Form  8-K  filing  is  intended to
simultaneously  satisfy the filing obligation of the registrant under any of the
following  provisions  (see  General  Instruction  A.2.  below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)

[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act  (17  CFR  240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act  (17  CFR  240.13e-4(c))


ITEM  7.01     REGULATION  FD  DISCLOSURE.

     Pizza  Inn,  Inc.  elects  to  disclose  the  information  in the letter to
shareholders furnished as Exhibit 99.1 to this report and incorporated herein by
reference  through  Form  8-K  pursuant  to  Regulation  FD.

ITEM  9.01     FINANCIAL  STATEMENTS  AND  EXHIBITS.

     (C)     EXHIBITS.


                     EXHIBIT NO.     DESCRIPTION OF EXHIBIT
                     -----------     ----------------------
99.1      September  15,  2005  letter  to  shareholders  from  Timothy P. Taft,
- ----     -----------------------------------------------------------------------
President  and  Chief  Executive Officer of Pizza Inn, Inc.  (furnished herewith
- ----  --------------------------------------------------------------------------
and  incorporated  herein  by  reference)
- -----------------------------------------



                                   SIGNATURES

     Pursuant  to  the  requirements of the Securities Exchange Act of 1934, the
registrant  has  duly  caused  this  report  to  be  signed on its behalf by the
undersigned  hereunto  duly  authorized.

                                                 Pizza  Inn,  Inc.

Date:  September  22,  2005                       By: /s/ Rod J. McDonald
                                                  Name:   Rod J. McDonald
                                                  Title:  Corporate Secretary
                                                          and General Counsel

September  15,  2005

Dear  Shareholder:

This  letter  has  one purpose and that is to reshape your understanding of your
Pizza  Inn  investment.  After the bankruptcy in the early 1990s until recently,
the business model for this company revolved around the franchisee.  Some in the
industry  would describe it politely as "leveraging your earning opportunities;"
our  franchisees  on  the other hand would say we were existing off their backs.

We  found  and/or created ways to make money from them in every way imaginable -
from  commissions on media to proprietary grocery items - from kitchen equipment
to  charging them to attend their own franchise convention.  We did this because
we  were  focused  on  the short-term and as a consequence we created a business
model  for  our  franchisees  that  was  not  as  healthy as it could have been.

We geared ourselves toward "selling" franchises and ignored the possibility that
many  existing  franchisees  might  not  make  it.  Those times are gone and our
energy today is focused on creating long-term success for our current and future
operators,  which  we believe, should build a solid future for the brand and our
shareholders.

In  the  coming quarters, you may see our earnings dip as we prune our system of
poor operators and finally address fundamental business issues.  But, we believe
you  should  also  see  improving unit-level economics for our operators when we
ignore  opportunities  to  pass costs onto them.  We will work to create systems
and  processes dedicated to providing relief on all P&L pressure points and as a
result  should  expect  to  see fewer closings because of "failure".  We will be
excited  to  share  with  you  the  results of our new prototype restaurant, the
future  face  of  Pizza Inn, as the company and our franchisees develop existing
markets  toward  media  efficiency.

We  are  dedicated  to creating a new foundation for our future - a firm footing
built  on  concrete  versus  sand.  I  believe we will be successful in creating
long-term  shareholder  value  because  we  are focused on doing what's best for
Pizza Inn.  In turn, our franchisees will have the best chance for short-term as
well  as  long-term  success.

Please be assured that your management team is confident in our ability to right
this ship and we believe it begins with forthright communication.  On a personal
note, I am excited about what is possible and I'm available to meet with you any
time you find yourself in our area.  I would welcome the opportunity to show you
our  vision  of  the  future.

Be  well.

Pizza  Inn,  Inc.


/s/ Timothy P. Taft
Timothy  P.  Taft
President  &  CEO