Pie Five, the fast-casual pizza chain owned by Rave Restaurant Group, posted another round of brutal earnings Monday, with a same-store sales drop of 7.3% and a systemwide sales decrease of 22.1%, due in large part to multiple store closures.
The Dallas-based chain, which two years ago had around 100 units, finished the quarter ended June 30 with 58 stores after shuttering 15 locations in the past year, including four in the past quarter.
Sister chain Pizza Inn, which finished the quarter with 155 units, saw same-store sales grow 2.2% during the quarter. It’s the concept’s 10th-straight quarter of sales increases.
Companywide, Rave saw same-store sales decrease 0.7% for the quarter, with revenue increasing $3.1 million. Rave posted a net loss during the period of $0.8 million, compared to a net gain of $3.3 million during the same period last year.
As its sales and unit counts continue to decline, Pie Five continues to tweak its operations.
Last month, Pie Five brought in veteran restaurant executive Scott Black, who has experience with Noodles & Co., &pizza, Garbanzo Mediterranean Fresh and others, as the chain’s vice president of operations.
“To improve service consistency and operational efficiency at Pie Five, we’ve added Scott Black to the team,” Rave Restaurant Group President Bob Bafundo said in a statement. “Scott is assisting us in sharpening our distinctive service model to create a guest experience that capitalizes on the customization, approachability and speed of dining with Pie Five.”
Late last year, Pie Five unveiled a small-footprint prototype it calls “Goldilocks,” designed to boost efficiency and give the brand greater real estate flexibility.
“With our Goldilocks model, we have lowered the new store development investment as well as ongoing occupancy costs,” Bafundo said. “This strategy has begun to show positive results in improving restaurant fundamentals. Nontraditional development is surpassing projections and, as we leverage these opportunities, we expect this success to continue.”