The parent of the Chuck E. Cheese’s pizza-and-games chain has added an expansion vehicle to its fold with the purchase of the 147-unit Peter Piper pizza concept.
In announcing the acquisition, CEC Entertainment noted that Peter Piper has focused intently in recent years on updating its technology and cultivating a following among Hispanics. “We are eager to build on this foundation,” said CEC CEO Tom Leverton.
He also commented that Peter Piper would facilitate the company’s plan to open stores at an accelerated clip. Arizona-based Peter Piper is concentrated in the Southwest and California, while Chuck E. Cheese already has a national presence.
With the deal, CEC now operates or franchises 722 pizzerias.
Development costs for the two brands are very close, according to a variety of online franchise-sales sites. Each requires an investment of up to $1.8 million, with a franchise capital requirement of $800,000 for Chuck E. Cheese’s and $750,000 to $1 million for Peter Piper.
Games like Skee-Ball and shows featuring robotic characters are an essential part of the Chuck E. Cheese’s concept. Most Peter Piper restaurants feature a game room.
CEC did not disclose what it paid Acon Investments, a private-equity firm, for Peter Piper. CEC is owned by the private-equity firm Apollo Global Management.