MOD Pizza, one of the heroes of Seattle’s fast-casual restaurant scene, is reportedly exploring bankruptcy options while simultaneously looking for a buyer. After founding in 2008 as a family-owned business, it grew into a nationwide chain with 553 locations by the end of 2023. That was a significant year-over-year increase in both physical locations and revenue, which reached $699.2 million, as reported by Technomic (via Nation’s Restaurant News). But seemingly abrupt changes were afoot.

By early 2024, MOD Pizza had a new CEO and was forced to close 26 stores due to poor performance in at least 10 states and Washington DC. Five of those were in California and two were in its home base in Washington state. A new chief marketing officer was hired in April, but in early July, the Wall Street Journal reported that the company had hired financial and legal advisors to explore future options, including possible bankruptcy.

Among major pizza chains, MOD is considered one of the largest in the fast-casual category. The potential loss of the company’s profitability could be a major blow to employees and loyal customers. As part of the popular make-your-own pizza concept, MOD has found success with a modern, innovative image and a millennial-friendly atmosphere. But there’s more to MOD Pizza’s story, including its fundamental focus on positive social impact as well as a set of fundamental food-related commitments that align with the perspectives of newer generations.

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The MOD Squad approach to fast-casual pizza

Details of MOD Pizza’s current financial problems and potential solutions have not yet been disclosed. The company says it is an ongoing process with “all options” on the table, according to a MOD spokesperson. Many people are hoping for a positive outcome, including customers and employees, especially those who benefit from MOD’s commitment to “impact hiring.” The team, called MOD Squad by the company, is made up of people who often face barriers to employment, such as former prisoners and people with developmental, intellectual or physical disabilities.

A variety of community-based nonprofits are involved in MOD’s employment work, including the National Restaurant Association’s Educational Foundation and the FareStart program, which provides food-related career opportunities to help people out of poverty while feeding the community in creative ways. MOD works directly with partners who are creating social change in the food industry, including issues such as animal ethics, fair labor principles, and the environment. MOD’s fundraising projects have a wide community reach and address issues such as child hunger, mental health education, and suicide prevention.

The story continues

MOD Pizza’s competitors in the fast-casual world of “build your own” pizza also appear to be struggling, or at least needing to reorganize with new approaches. This includes reportedly closing locations of Pieology and the LeBron James-backed Blaze Pizza in 2023. More multi-location restaurant chains have filed for bankruptcy protection in 2024, including Rubio’s, and Red Lobster has filed for Chapter 11 bankruptcy. Other well-known brands are instead hoping to turn things around by closing poorly performing locations.

Read the original article on Tasting Table.