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Mod Pizza acquired by Elite Restaurant Group

Mod Pizza acquired by Elite Restaurant Group
Mod Pizza acquired by Elite Restaurant Group

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Diving certificate:

  • Mod Super Fast Pizza Holdings has been acquired by Elite Restaurant Group, the pizza chain said in a press release Wednesday. Elite acquired 100% of the company’s equity as part of the transaction. The purchase price was not disclosed.
  • Mod has been working on a plan to optimize its portfolio, refresh its brand and improve the guest experience, the company said.
  • The deal will help Mod avoid bankruptcy, which reported last week that Mod Pizza in view ofEarlier this week, the Defense Ministry said in an emailed statement that it was exploring all options to strengthen its capital structure.

Diving insight:

In addition to working on improving the business, Mod Pizza has made some leadership changes this year. Beth Scott became CEO in January, succeeding co-founder Scott Svenson. Her restaurant experience includes working at Cooper’s Hawk and Fleming’s. The chain also hired Jennifer Anderson as its CMO following her tenure as CMO at Raising Cane’s Chicken Fingers.

“MOD has an outstanding culture and passionate, loyal guests and employees,” said Michael Nakhleh, president and owner of Elite Restaurant Group, in a statement. “We recognize the inherent value this represents and look forward to helping MOD write the next chapter of its story.”

Nakhleh and Elite Restaurant Group have a history of acquiring struggling restaurant brands. In 2018, the company bought 12-unit Noon, a Mediterranean brand, and turned it into Daphne’s, another 20-plus-unit Mediterranean concept it acquired earlier that year. In 2019, it bought Project Pie and Gigi’s Cupcakes, 68 units

In January, Mod said it had more than 540 locations systemwide, but that number may have declined due to the closure of several stores.

In the first quarter, the chain closed poorly performing locations and paid severance packages to employees who could not be transferred to another location. Reports stated that the number of store closures was over two dozen, but the chain did not confirm this to Restaurant Dive.

“We have occasionally closed unprofitable units, which is the normal course of business for any company our size,” the company said in a statement emailed to Restaurant Dive in April.

Before the recent difficulties, Mod was a successful provider. In 2019 received equity financing of $160 million Investment led by Clayton, Dubilier & Rice, after which it was decided to accelerate growth and reach 1,000 units in five years. However, this goal was never achieved, as the chain has not yet gone beyond 600 units. In 2021, it filed a confidential draft registration with the US Securities and Exchange Commission. for a planned IPObut that never happened.

The company reported net income of $4.2 million in 2023, down about 6% from nearly $4.5 million in 2022, according to the company’s 2024 franchise disclosure document filed in Wisconsin. The chain is mostly corporate-owned and has 465 open stores and 87 open franchise units at the end of 2023. Its largest market is Texas, where it has over 100 units.