MOD Pizza, once the darling of the fast-casual pizza industry, has been acquired by Elite Restaurant Group following reports of financial distress.
This move marks a significant shift for the chain, which had grown to about 500 locations across North America since its 2008 founding.
The acquisition comes as businesses nationwide struggle with inflationary pressures, often linked to current economic policies.
These conditions have created a challenging environment for companies like MOD Pizza, squeezing profits and affecting consumer spending habits.
Beth Scott, who became CEO in early 2024, expressed optimism about the deal, stating, “MOD is a beloved brand with a strong following. We’re excited to work with Elite Restaurant Group to strengthen MOD’s future.”
MOD Pizza agrees to sale to Elite Restaurant Group. Fast-casual chain had been considering ‘all options’ as it faced bankruptcy pressure https://t.co/cwdxEXPufK pic.twitter.com/DLAyltaeJc
— Restaurant News (@NRNonline) July 10, 2024
Elite Restaurant Group’s founder, Michael Nakhleh, emphasized the value of MOD’s culture and customer loyalty.
However, the path to this point has been rocky.
Earlier this year, MOD Pizza closed 26 restaurants across multiple states, with significant closures in California, Philadelphia, Chicago, and Dallas.
While Scott maintained these closures primarily affected underperforming locations, the decision reflects broader economic pressures on the industry.
Rising labor costs have played a crucial role in MOD’s struggles.
READ NEXT: U.S. Business Bankruptcies Up 40% Since January 2023, Hits 13 Year High
Although Scott stated that the closures weren’t directly tied to California’s new $20 minimum wage law for fast-food workers, she acknowledged that increasing wages impacted some closed locations.
