Multiple media sources have reported rumors of MOD Pizza considering bankruptcy. The company plans to make an announcement soon.
(StLouisRestaurantReview) Bloomberg recently reported that MOD Pizza may file for bankruptcy protection soon. A representative for MOD Pizza told Nexstar that “a turnaround plan” is in process, but other than rumors, we cannot verify this from the company’s website.
MOD Pizza operates more than 500 locations in the U.S. After the Bloomberg report, the Wall Street Journal reported that insiders had informed the outlet that specific legal and financial firms had been hired to discuss options.
MOD Pizza was founded in Seattle, WA, in 2008. They have closed 44 company-owned restaurants this year, citing that the restaurants have “sustained underperformance despite best efforts of the restaurant teams.”
There appear to be 6-7 MOD Pizza locations across the St. Louis region. It is uncertain if they are company-owned stores or franchise locations.
Their website does not confirm anything except the good news about the company, which has not been updated since August 2, 2024. The last press announcement was on January 8, 2024, and it was a self-serving statement on behalf of the company and its founders.
While there is a lack of transparency, the company is waiting on its experts for direction and exploring all options, so predicting an outcome is impossible now.
We have reported that challenges in the restaurant industry, including rising food costs, rising rent, taxes, payroll, and a lack of staff, will continue to exist, damaging and changing the industry forever.
We predict that the survivors will be small family-owned restaurants that control their costs and are less reliant on staffing outside the family. Additionally, most family-owned restaurants don’t have the funds to enter expensive real estate leases in premium locations. The damage comes from the triple net lease expense, in which landlords pass the cost of real estate taxes, insurance, special assessments, etc., onto the tenants, making budgeting impossible.
