Operations

Pie Five, Pizza Inn keep shrinking

Parent company Rave Restaurant Group continues to close units as sales keep declining at its fast-casual and buffet brands.
Pie Five
Photograph: Shutterstock

Rave Restaurant Group, parent company of fast casual Pie Five and buffet brand Pizza Inn, continues to close units as sales keep declining.

The Dallas-based operator on Tuesday reported total revenue of $2.4 million for the quarter ended June 27, down 22.5% from 2019.

Rave ended the quarter with 135 Pizza Inn locations and 33 Pie Five units. That’s down from 155 Pizza Inn restaurants in 2019 and 58 Pie Five stores in 2019.

Same-store sales for the company fell 2% for the 52 weeks ended June 27, compared to the same period in 2020. Pizza Inn’s comparable sales fell 1% during that period, while Pie Five’s tumbled 6.2%.

“We are pleased that the heroic efforts of our franchisees and team members have resulted in our fifth consecutive quarter of profitability,” Rave CEO Brandon Solano said in a statement. “Our maniacal focus on cost control and relentless consumer-facing innovation is paying off with improving sales and consistent earnings despite the pandemic and the latest variant.”

Solano noted that the quarter capped Rave’s longest streak of positive income in nearly a decade.

During the quarter, Pie Five debuted Parmesan Crunch Stuffed Crust Pizza and Pizza Inn this month added a House Pan Pizza.

“We continue to focus on driving same-store sales with innovation and strong operations,” Solano said.

Rave’s stock fell nearly 5% Tuesday on the earnings news, tumbling to $1.17 per share. Earlier this year, Rave cleared its second Nasdaq delisting notice in six months. The operator had run afoul of the stock market’s $1 minimum price bid requirement.

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