In this current climate, national restaurant chains are filing for bankruptcy more often than ever before, as the financial burden the pandemic has imposed on independent businesses and even corporate giants is irreparable. While many beloved chains have already filed for Chapter 11 bankruptcy, from a beloved steakhouse such as Sizzler USA to a renowned bakery like Maison Kayser, others appear to be hanging on by a thread. (To find out which restaurants are struggling nearest you, check out 9 Restaurant Chains That Closed Hundreds of Locations This Summer).
Two such establishments that are currently fighting for survival are Rave Restaurant Group's own fast-casual pizza restaurant, Pie Five as well as the pizza buffet chain, Pizza Inn. According to the parent company's most recent financial filing, the pandemic has "dramatically reduced aggregate in-store retail sales at Buffet Units and Pie Five Units" and despite increased takeout and delivery sales, it's not enough to keep both brands stable.
As a result, Rave Restaurant Group has had to cut base salaries by 20% and even furlough several of its employees. The parent company has already closed 16 Pie Five and four Pizza Inn stores this year. This isn't the first year Pie Five, which serves craft pies, calzones, and salads, has had to close locations due to poor performances. Between 2017 and 2018, the chain closed 27 locations across the United States. Currently, Pizza Five only operates in 13 states. (Related: These 5 Classic American Restaurant Chains Are Close to Disappearing)
Overall, Pie Five's total sales have dropped by over 37% this year, with same-store sales declining nearly 16% during the fiscal year. Pizza Inn's total sales while not as severe as Pie Five's also plummeted, but only marginally so by 13.7%. Same-store sales for the buffet-style pizza chain also only fell 8.8% this year.
The future of Pie Five and its sister brand Pizza Inn looks grim based on Rave's latest financial report, however, the parent company has yet to file for Chapter 11.
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