These Two Popular Pizza Chains Have Closed More Locations
Rave Restaurant Group's pizza chains Pie Five and Pizza Inn have been struggling all year. Due to a drastic drop in in-store sales at both brands, the parent company had taken the emergency measures of cutting down employee salaries and reducing the number of restaurant locations several months ago, which prompted speculations of an impending bankruptcy for the two beloved pizza destinations. Unfortunately, that possibility seems to be ever-closer. The company's latest financial filing reveals that Rave has closed several more locations of both pizza chains since September as their sales have plummeted further.
The company reported in September that they have closed a total of 20 poor-performing restaurants this year, including 16 Pie Five and 4 Pizza Inn units. Their latest financial filing ending Sept. 27, shows Rave had lost an additional 8 locations across both brands—three Pie Five and five Pizza Inn restaurants. (Related: 9 Restaurant Chains That Closed Hundreds of Locations This Summer.)
Additionally, the sales have further decreased at both brands. Buffet chain Pizza Inn's domestic same-store sales fell by 22% in the latest fiscal quarter, while the fast-casual chain Pie Five reported a decrease of 23%. In fact, the company narrowly escaped a delisting from Nasdaq for not being in compliance with the stock exchange's stockholder equity minimum of $2.5 million.
But it isn't all doom and gloom for the beloved brands with locations in 13 states and several other countries. According to the filing, Pizza Inn has seen "impressive results in driving traffic and ticket average" with their Contactless Buffet To-Go, while Pie Five sees an opportunity in menu and rewards program upgrades, both of which they are currently testing.
"We continue to work through the challenges presented by the global health crisis, but we will not be sidelined by the pandemic and are resolute in repositioning Rave for long-term success," said CEO Brandon Solano.
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