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MOD Pizza

MOD Pizza is an American fast-casual pizza restaurant chain based in Seattle, Washington.[3][4] Founded in 2008, MOD has more than 460 locations as of December 2024 in the United States and 2 locations in Canada.[5][6]

Concept and products

The company's name is an acronym which stands for "Made on Demand." MOD Pizza operates as a build-your-own style restaurant, where the food is made in front of the customer on-demand.[7]

History

MOD Pizza was established in 2008 in Seattle, Washington, by co-founders Scott and Ally Svenson. The Svensons previously founded the Seattle Coffee Company, a coffee company based in the United Kingdom, which they sold to Starbucks in 1998.[8] Afterwards, Scott stayed on as president of Starbucks Europe.

The Svensons also helped found Carluccio's Ltd., an Italian restaurant in the U.K.[8] After moving back to their home town of Bellevue, Washington, the Svensons started MOD Pizza after being unable to find fast, affordable healthy meals for their four sons.

James Markham, who had previously started pizza parlors in San Diego, California and Shanghai, China, was also a part of the founding team and helped develop the house recipes used by MOD.[9] The restaurant's first location was in Union Square and was followed by additional Seattle locations.[10]

By 2010, Markham had left MOD Pizza due to what he later characterized as a dispute in direction with the Svensons. He subsequently started a California-based chain set on MOD's "DIY" pizza concept called Pieology.[9]

Growth and expansion

In 2013, the restaurant chain was named one of the United States' "Top 50 Breakout Brands" by Nation's Restaurant News.[11]

By 2014, MOD Pizza had 31 locations in Washington, Oregon, California, Arizona, Colorado, and Texas. The same year the company secured $15 million in private investment.[12]

In 2015, MOD Pizza raised $40 million in new funding for a total of $70 million in investment capital to fund an aggressive national growth strategy.[13] The main investor was the private equity fund PWP Growth Equity. MOD's growth is also accelerated by the addition of several franchise partnerships.[14] The business reached the 1,700-employee milestone in August 2015.[15]

In March 2016, MOD Pizza announced that they had secured $32 million in a funding round and had plans to expand to 190 stores.[16] In June, the company opened their first international location in Leeds, United Kingdom.[17]

Additional expansion in the United Kingdom with joint venture partner Sir Charles Dunstone and his business partner, Roger Taylor, began in 2015. MOD named John Nelson, formerly of Nando's, Ltd. (U.K.), as their CEO of U.K. operations in January 2016.[18] MOD Pizza closed all nine UK locations in 2020.[19]

In its tenth year of business, MOD announced the opening of its 300th location in 2018.[20]

Closures and acquisition

On January 9, 2024 It was announced that founder Scott Svenson would be stepping down to a new role as Executive Chairperson, and Beth Scott, previously of Cooper's Hawk Winery & Restaurants would take over as CEO.[21]

In April 2024, MOD Pizza abruptly shuttered 27 restaurants permanently as part of a mass downsizing.[22]

In July 2024, rumors circulated of a potential Chapter 11 bankruptcy filing, though this never occurred. By this time, the company had closed 44 restaurants.[23] The company blamed closures on declining sales caused by the COVID-19 pandemic and rising interest costs as part of the decision.[24][25] A spokesperson said the closed stores were experiencing "sustained under-performance" and "were closed due to unfavorable lease and site decisions made during a period of rapid expansion prior to the pandemic".[23]

On July 10, 2024, MOD reached an agreement to sell itself to Elite Restaurant Group. Terms of the agreement were not disclosed.[26]

See also

  • List of pizza chains of the United States

External links

References

  1. MOD Surpasses 500-Store Milestone 17 May 2021^
  2. Mod Pizza's CEO on How to Manage Purpose and Profit 14 September 2020^
  3. Eastside Entrepreneurs Create a Family Business – 425 Magazine 425 Magazine, 7 December 2015, retrieved January 15, 2016^
  4. Eastside Fastest-Growing: MOD Pizza grabs slice of quick-service pie – Puget Sound Business Journal Puget Sound Business Journal, retrieved January 15, 2016^
  5. , MOD Surpasses 500-Store Milestone May 17, 2021^
  6. Store Locations April 9, 2025^
  7. Top-your-own pizza chains emerging fast Pizza Marketplace, January 29, 2011, retrieved January 14, 2015^
  8. Emily Canal. This Married Couple Sold Their Company to Starbucks for $90 Million, and Then Built a $131 Million Pizza Empire Inc., 23 January 2018, retrieved 23 January 2024^
  9. Rick Hynum. Fast-casual pioneer James Markham blazes a bold new trail into pizza's future. Pizza Magazine, October 2013, retrieved January 18, 2015^
  10. Eastside Fastest-Growing: MOD Pizza grabs slice of quick-service pie Puget Sound Business Journal, July 19, 2013, retrieved January 14, 2015^
  11. Nora Caley. Breakout Brands: MOD Pizza Nation's Restaurant News, January 28, 2013^
  12. MOD Pizza raising $15M in expansion effort The Seattle Times, March 18, 2014, retrieved September 26, 2024^
  13. MOD Pizza snags $40 million for plan to go national The Seattle Times, March 5, 2015, retrieved January 15, 2016^
  14. Mod Pizza c.2014 CNTV November 4, 2014, retrieved January 15, 2016^
  15. MOD Pizza Reaches Hiring Milestone and Continues to Spread Its Unique Culture Across the Country Yahoo Finance, 12 August 2015, retrieved January 15, 2016^
  16. Coral Garnick. Mod Pizza brings in another $32M, plans to double store count Puget Sound Business Journal, March 16, 2016, retrieved June 8, 2016^
  17. Coral Garnick. Mod Pizza continues its rapid rise, makes international debut Puget Sound Business Journal, June 8, 2016, retrieved June 8, 2016^
  18. MOD Pizza appoints new UK CEO www.fastcasual.com, 8 December 2015, retrieved January 18, 2016^
  19. Sophie Witts. MOD Pizza closes its UK restaurants The Caterer, 22 October 2020, retrieved 24 January 2022^
  20. Jeff Gelski. Funding to Help MOD Pizza Open More Locations January 9, 2018, retrieved 2024-07-11^
  21. MOD Pizza Appoints Beth Scott as Its New CEO, Welcoming the Restaurant & Hospitality Veteran Business Wire, January 8, 2024, retrieved September 26, 2024^
  22. Sophia Lesseos. Mod Pizza shuts down 27 stores nationwide: Wage hike suspected for California closures KMPH, April 3, 2024, retrieved July 3, 2024^
  23. Michael Bartiromo. MOD Pizza "exploring all options" amid bankruptcy rumors 2024-07-08, retrieved 2024-09-26^
  24. Reshmi Basu. Restaurant Chain Mod Pizza Prepares Potential Bankruptcy Bloomberg, July 3, 2024, retrieved July 3, 2024^
  25. Jonathan Maze. MOD Pizza is reportedly considering a bankruptcy filing Restaurant Business Online, July 3, 2024, retrieved July 4, 2024^
  26. It's a MOD world: Pizza company saved from bankruptcy, for the moment 2024-07-11, retrieved 2024-07-11^