Rave Restaurant Group, parent company of fast casual Pie Five and buffet chain Pizza Inn, continues to struggle amid the pandemic, according to its latest financial filing.
“The COVID-19 pandemic has resulted in dramatically reduced aggregate in-store retail sales at Buffet Units and Pie Five Units, modestly offset by increased aggregate carry-out and delivery sales,” the company said in its annual report, filed late Monday.
Rave said it has furloughed employees, reduced base salaries by 20% and reduced expenses during Q4, but that “future results of operations are likely to be materially adversely impacted.”
The company closed 16 poor-performing Pie Five units during fiscal 2020 as well as four Pizza Inn stores. The company has closed its two company-owned Pie Five locations.
Pie Five’s total sales decreased 37.4% year over year, with same-store sales falling 15.7% during the fiscal year.
Pizza Inn’s total sales fell 13.7%. The buffet chain’s same-store sales declined 8.8% year over year.
In July, Rave received a delisting notice from Nasdaq, warning that the company was no longer in compliance with the financial market’s standard minimum of $2.5 million in stockholder equity to continue being listed.
Pie Five, which had 73 units in 2018, saw same-store sales fall 21.4% for the quarter ended March 29.
Last fall, Dallas-based Rave brought on Brandon Solano as CEO to attempt to turn the company around.