Famous pizza chain on the verge of bankruptcy

The latest headlines from our correspondents across the US delivered directly to your inbox every weekday.

Keeping you updated on the latest headlines from across the United States.

Popular US fast-food chain Mo’s Pizza is on the verge of bankruptcy after a wave of restaurant closures, according to a new report.

The fast-casual pizza chain, which operates in 28 U.S. states, is preparing to file for possible bankruptcy and could enter court protection as soon as next week, Bloomberg reported, citing people familiar with the matter.

However, the situation with Mod Pizza is fluid and plans could change, anonymous sources told the newspaper.

The company is known for its customizable, on-the-spot personal pizzas and has more than 500 locations across the United States since opening its first restaurant in Seattle in 2008.

Mod Pizza had revenues of $700 million last year and was once one of the fastest-growing restaurant chains in the country.

In 2019, it planned to operate 1,000 locations across the United States by 2024, according to Restaurant business.

Instead, the chain — which hired a new CEO in January, replacing co-founder Scott Svenson — closed 26 underperforming locations in April, and more appear to have closed their doors since then.

A Mod Pizza spokesperson said: Independent: “We have a brand that guests love, a passionate team, and a strong transformation plan in place that is making progress.

“We are working hard to improve our capital structure and are exploring all options to achieve this. As this is an ongoing process, it is inappropriate to speculate on an outcome.”

This comes on the heels of similar financial struggles faced by other fast-food restaurants, including Olive Garden and Red Lobster.

The struggling seafood chain has faced serious financial damage due to its $20 “endless shrimp” offer that proved unexpectedly popular with customers, and is said to have cost the company millions of dollars in the past year.

It declared bankruptcy in May.

An industry expert previously said, Independent Red Lobster’s collapse signaled the end of the “martini lunch,” as consumers abandon fast-casual dining in favor of faster or upscale options.

The biggest shift in consumer behavior — opting for more “fast food,” or full-service dining experiences — is pushing mid-range — or fast-casual — restaurants like Mod Pizza, Red Lobster, or Olive Garden — away from these restaurants, said Dennis Gemberling, founder and director of hospitality industry consulting firm Perry Group International.

The truth is that full-service restaurants… [are] “This process has become more specialized for the after-work crowd, or on holidays and so on,” Mr. Gemberling said. Independent.