Problems deepen for onetime fast-casual leader

pie five pizza exterior

A 17.4% free fall in same-store sales for the Pie Five fast-casual pizza chain tripped franchisor Rave Restaurant Group into a header at the end of 2016, leaving the two-chain company with a quarterly loss of $7.9 million on revenues of $14.8 million.

Rave lost $4.8 million in the same three-month stretch of 2015.

The company attributed Pie Five's problems to fierce competition in the fast-casual market and "general industry softness."

The results were the glum financial news from Pie Five, once a pacesetter in the fast-casual pizza market. Rave’s new CEO, Scott Crane, said his team is developing “bold new strategies” to stem the damage, and mentioned the specific step of reviewing underperforming markets.

He also revealed that Pie Five is exploring “new sales channels,” but did not provide details.

Rave’s older brand, the venerable Pizza Inn chain, posted a comparable-store loss of 1.2% for the quarter ended Dec. 25.

Pie Five added seven restaurants during Rave’s fiscal second quarter, bringing the chainwide store count to 99.

 

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Consumer Trends

Fast food has lost its reputation as a cheap meal

Years of price hikes are driving consumers to grocery stores and even full-service restaurants, which are now viewed by some as a better deal.

Financing

Here’s what an activist investor could push Starbucks to do

The Bottom Line: With the coffee shop chain reportedly talking with an activist investor, here’s a look at some of the potential changes they might demand.

Financing

Panera apparently wants to go it alone again

The Bottom Line: The bakery/café chain is reportedly planning to sell Caribou and Einstein Bros. restaurant concepts three years after forming Panera Brands.

Trending

More from our partners