Rave Restaurant Group, parent company of Pie Five and Pizza Inn, continues to shrink, according to its latest quarterly financial report.
The operator finished its Q1, which ended September 27, with 146 Pizza Inn units and 39 Pie Five restaurants. Last year, buffet concept Pizza Inn had 155 locations and Pie Five had 58 restaurants.
“We continue to work through the challenges presented by the global health crisis, but we will not be sidelined by the pandemic and are resolute in repositioning Rave for long-term success,” CEO Brandon Solano, who took over the company a year ago, said in a statement.
Pizza Inn’s same-store sales fell 22% in Q1. Pie Five’s same-store sales tumbled 23% during the period.
Dallas-based Rave’s total revenue fell more than 65% year-over-year, falling to $1.9 million.
Pizza Inn brought back its Contactless Buffet To-Go and said it is seeing “impressive results in driving traffic and ticket average.”
Pie Five is testing menu upgrades and said its rewards program is helping drive return traffic and third-party delivery utilization.
Last quarter, Rave said it had furloughed employees, reduced base salaries by 20% and reduced expenses but warned that “future results of operations are likely to be materially adversely impacted” by the pandemic.
In July, Rave received a delisting notice from Nasdaq, warning that the company was no longer in compliance with the market’s standard minimum of $2.5 million in stockholder equity to continue being listed. The operator reported last month it had cleared that delisting warning from at-the-market sales of its stock.
The company had a cash balance of $2.9 million as of Sept. 27, with $3.8 million of gross proceeds from previous sales of common stock, it said in its Q1 filing.