Mod Pizza, a popular pizza chain nearing bankruptcy, has found a new owner. However, it remains uncertain whether any of its restaurants will close.
For the past two weeks, there had been speculation that Mod Pizza would file for Chapter 11 bankruptcy. The chain operates 512 locations across 28 states in the U.S. Now, it has announced that it will be owned by Elite Restaurant Group, a Los Angeles-based company known for acquiring struggling chains.
This acquisition marks Elite’s largest purchase to date. The group’s portfolio includes various brands, such as Slater’s 50/50 burger chain, family dining restaurant Marie Callender’s, Patxi’s Pizza, and Greek chain Daphne’s.
Michael Nakhleh of Elite Restaurant Group expressed confidence in Mod’s potential. “Mod has an outstanding culture and passionate, loyal guests and employees,” he said in a statement. “We recognize the inherent value this represents and look forward to helping MOD write the next chapter in its history.”
Beth Scott, CEO of Mod Pizza, described the chain as “a beloved brand with a strong following.” She added that they are excited to work with Elite Restaurant Group to secure Mod’s future.
Mod Pizza is known for its custom personal pizzas and salads but has faced challenges this year. The chain closed 44 underperforming restaurants in 2023. Concerns about bankruptcy intensified when reports surfaced on July 3 that Mod was preparing to file.
Founded in 2008 in Seattle, Mod Pizza quickly expanded within Washington and across the U.S. The chain has the most locations in Texas, with 113, followed by Washington with 72. Oregon has 32 locations, while California has 46.
The restaurant industry has struggled in recent years due to rising costs. Many chains have increased their prices, leading to a decline in customer visits. Larger chains like Applebee’s, TGI Fridays, and Boston Market have closed restaurants, while smaller chains like BurgerFi have also faced difficulties.
In May, Red Lobster filed for bankruptcy and closed nearly 100 locations. California has been particularly hard-hit, especially after the minimum wage for fast food workers increased to $20 per hour on April 1. In early June, Mexican chain Rubio’s closed 48 locations in the state and filed for bankruptcy.
Additionally, recent news revealed that nearly 150 Pizza Hut restaurants are set to close due to a financial dispute with a major franchisee. On June 14, 15 locations in Indiana abruptly shut down, leaving staff and customers in shock. A further 129 locations across Illinois, Georgia, South Carolina, and Wisconsin are also at risk of closure due to the ongoing dispute.
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