Finem Group at Meybohm Commercial’s Post

A number of fast-food #pizza chains are shrinking or considering bankruptcy: Blaze Pizza, LLC, Pieology Pizzeria, Pie Five Pizza Co, PizzaRev, and MOD Pizza. Most of these restaurants are shutting down underperforming stores. MOD was planning an #IPO in '21, after $160M #privateequity infusion in '19, and were planning to hit 1,000 locations by '24 (they have 512 as of today) I think one takeaway is that business models that work in an environment of cheap debt have to be reimagined when interest rates double. Also--Pizza is about togetherness and 'sharing a slice' - not 'making your own'--was the concept doomed from the start? Start planning for a potential vacancy if you've got a MOD Pizza in your center. https://lnkd.in/gpqk_A-w #QSR #CCIM #retail #development #NNN Meybohm Real Estate Meybohm Commercial Properties

MOD Pizza exploring #capital structure &c &c ... odd tunnel vision in this item on one of the #fastcasual build-your-own #pizza #restaurants of yore ... In the Nation's Restaurant News piece, there's a section on Mod's steady growth of 4 to 5 years, before this current one that is, when they've closed stores and are looking at a #bankruptcy filing. The growth — 'even' through #Covid is pitched as a good thing and like, 'Wha- happened?!' when the takeaway is surely, 'they grew too fast' or tried to outrun the numbers or whatnot. There was a $160M investment pushing toward the magical 1,000 units — oh how we humans love round numbers ... why not 997? 1,008? Or why not 400, since that might be the *right* number for one of several DIY pizza pie peeps. https://lnkd.in/gkTGwHDt

MOD Pizza, which was considering bankruptcy, is being acquired by Elite Restaurant Group. The new parent company apparently specializes in "revitalizing distressed brands" (past acquisitions include Project Pie—now called Paxti's Pizza—and Slater's 50/50). MOD's decline is further evidence that fast-casual pizza chains have struggled of late. There are a lot of reasons for that, including higher costs and dwindling foot traffic. So it will be interesting to see how ERG moves forward with MOD, which was not too long ago a darling and rapidly growing brand. Things change quickly. https://lnkd.in/gWedCUhU

My views on MOD Pizza and the fast casual pizza sector in general.

MOD Pizza, once a rapidly expanding force in the fast-casual dining sector, is now contemplating bankruptcy, marking a significant turn of events in the industry. Unlike struggling competitors like Red Lobster, which faced difficulties due to strategic decisions, MOD had recovered well post-pandemic and seemed poised for growth, having amassed substantial investment and planned for an IPO. However, despite its initial success and extensive funding, MOD's expansion did not translate into sustained profitability. The chain's growth outpaced its ability to increase average unit volumes, a critical financial metric. Moreover, the fast-casual pizza market became oversaturated, intensifying competition and thinning profit margins. Private-equity involvement, while initially supportive of growth, also contributed to MOD's challenges. Investors often prioritize rapid expansion to show returns, leading to potentially risky decisions such as costly leases. These financial commitments, combined with inflation and rising operating costs, strained MOD's finances further, dashing hopes of an IPO and driving the brand towards bankruptcy. The potential bankruptcy of MOD Pizza underscores broader concerns within the industry, making investors wary and complicating future deals. As the situation unfolds, the exact reasons behind MOD's financial troubles will become clearer with the expected bankruptcy filing.

BurgerFi should have never bought Anthony's Coal Fired Pizza. If I was you I would sell that off and recalibrate. and by the way I love BurgerFi BurgerFi can take several steps to prevent bankruptcy: Improve Operations - Implement cost-cutting measures like closing underperforming restaurant locations - Focus on core markets where sales are stronger instead of weaker areas - Upgrade technology like new point-of-sale systems to improve efficiency and data tracking Menu Optimization - "Right-size" the menu by removing less popular and complex items - Introduce new menu items like chicken wings and sandwiches to boost sales mix Expand Non-Traditional Locations - Grow at airports, cinemas, and co-branded locations with other brands - These non-traditional sites provide new revenue streams Franchising Strategy - Continue opening new franchised locations while closing underperformers - Franchising provides expansion with lower capital requirements Debt Restructuring - Renegotiate credit agreement terms with lenders to avoid default - Seek additional financing or investment to improve liquidity position By executing these operational, menu, real estate, and financial initiatives, BurgerFi can stabilize sales, reduce costs, and secure funding to avoid bankruptcy. best wishes indeed

Persistent Economic Pressures, Changing Consumer Habits Send More Restaurants Into Bankruptcy https://lnkd.in/es-_g-GR Sobering operating realities for restaurants trying to survive an inflationary environment and cash-strapped consumers, with delivery services representing a catch 22. Ch. 11 bankruptcy filings have dramatically increased, offering a chance to shed non-performing restaurant leases and close locations.

Some great news for a pizza chain many were worried about recently. Key Takeaways: - MOD was acquired by Elite Restaurant Group. Elite has a history of buying financially troubled restaurant brands over the years. - This comes after MOD was considering Chapter 11 filings last week. - The fast casual pizza segment has struggled post covid - most meals don't conform to the timeline of mobile delivery because the process is different than a Domino's, Pizza Hut, etc. - Year to date, 44 underperforming restaurants have shuttered, all company owned, and it’s not clear whether more will close. If you'd like a clear picture of your tenants success we have a subscription software that can track visitor counts and rank your tenant competitively across the state and country. Feel free to contact us to unlock additional insights on other brands! Sam Noe 972.755.5208 sam.noe@marcusmillichap.com John Paine 972.755.5279 john.paine@marcusmillichap.com

We have a couple of new Pizza Hut Listings. They’re right in the price point range that is the highest targeted by investors in the current market. $1,000,000 - $3,000,000 QSR’s make up 77% of 2024’s QSR transactions. Another interesting fact: pizza accounts for about 10% of all food service sales in the United States which equates to approx. 3 billion pizzas consumed every year. Check out our 2 Ohio Pizza Hut Listings, OM links below. - 6.00% Cap Rate - Absolute NNN Lease - Options to Extend to 2073 - Strong Franchisee Guaranty Painesville, OH - $1,278,950 - https://hubs.la/Q02S3k650 Minerva, OH - $1,176,133 - https://hubs.la/Q02S3hbH0

Alicia Kelso Nation's Restaurant News tells us - "Nearly 33% of the Top 500 chains experienced a net decrease in 2023 and those closures have continued in 2024" Sales from the Top 500 restaurant chains grew by 7.8% in 2023, according to recently released Technomic, Inc. data. Further, the domestic footprint of the Top 500 chains increased by 1.8% in 2023 to a total of more than 233,000 restaurants. This marked the highest rate of new location growth since 2016. That doesn’t mean it was all rainbows and butterflies for the industry, however. Much of the unit growth was paced by a handful of players, like Jersey Mike's Subs, 7 Brew Coffee, and Crumbl, while much of the sales were driven by higher prices. And, as the overall count of Top 500 locations grew, nearly 33% of ranked chains experienced a net decrease in locations in 2023 — an uptick in chain closure rates versus both 2022 and 2021. All told, there were 17 chains that experienced a double-digit unit count retrenchment from 2022 to 2023, including: Church's Texas Chicken’s closed 13% of its system last year, going from 925 in 2022 to 805. California Pizza Kitchen is also 13% smaller, ending 2023 with 140 locations. TGI Fridays is over 20% smaller, and now counts about 230 restaurants. O'Charley's closed nearly 55% of its system in 2023 and now has just 64 locations. Corner Bakery is nearly 25% smaller, finishing 2023 with just over 100 locations after filing for bankruptcy in February last year. Boston Market retrenched by nearly 68% in 2023, going from nearly 350 restaurants in 2022 to just 91. UNO Restaurants, LLC is over 10% small...Clickthru to get the rest... https://lnkd.in/e-ERcvzt #QSR #Entrepreneur #Restaurants #Franchise #Franchising #FranchiseChat Chainformation Altir Industries, Inc. Ned Lyerly Joe Caruso Michael (Mike) Webster PhD Anders Hall Jonathan Martin Michael Scherr Delaney Hetzer Dr. John P. Hayes, CFE Au Bon Pain Joe's Crab Shack Grand Lux Cafe Quiznos Fuddruckers Romano's Macaroni Grill Red Lobster Tijuana Flats Tex-Mex Rubio's Restaurants, Inc.  Captain D's Potbelly Sandwich Works Swig Hawaiian Bros Island Grill CAVA Dutch Bros Coffee Gen Korean BBQ House Salad and Go Smalls Sliders Savvy Sliders Mo' Bettahs Kura Sushi USA