Rave's Expansion Continues
Pizza Inn continues to build on its successful expansion strategy with new multi-unit franchise agreement in Tennessee and North Carolina.
The Dallas-based chain, a subsidiary of Rave Restaurant Group Inc. (NASDAQ:RAVE), inked the deal with its franchise business consultant, Dion Firooznia. Operating under the name D2 Restaurant Group, Firooznia and his team plan to open six buffet restaurants in Tennessee and North Carolina, with the first opening anticipated in Elizabethton, Tennessee, by the end of 2021.
Rave franchises and licenses Pie Five Pizza Co. and Pizza Inn restaurants, and Pizza Inn Express kiosks, domestically and internationally.
Founded in 1958, Pizza Inn is an international pizza chain featuring traditional and specialty pizzas, as well as freshly made pastas, sandwiches and desserts. Pie Five is a leader in the rapidly growing fast-casual pizza space. Pizza Inn Express, or PIE, is developing unique opportunities to provide freshly made pizza from non-traditional outlets.
"Once I learned about the concept and value of the Pizza Inn brand, I wanted to be part of what's happening here," Firooznia said in a press release announcing the deal. "I have always wanted to be a franchisee, and I am confident in my ability to find and train good leaders to manage restaurants. The leadership is taking this company in the right direction, and I'm excited about the product innovation and great quality."
Firooznia started his career as an hourly employee at Carl's Jr. Restaurants as a teenager, the chain reported. He worked through the ranks at CKE Restaurants and moved to Hardee's Food System before opening his own restaurant concept in Germany.
Firooznia was instrumental in leading the turnaround for Bojangles' Restaurants, was responsible for 110 company-owned stores and opened 79 restaurants during his 15-year tenure, according to the statement. He was an operating partner for 14 Qdoba Mexican Eats Restaurants in North Carolina before joining Pizza Inn in 2020.
"Dion immersed himself in the Pizza Inn brand over the last year and helped franchisees grow their business and improve standards," Mike Burns, chief operations officer of Rave Restaurant Group, said. "His proven management track record and experience reviving restaurants make Dion the perfect leader to re-establish Pizza Inn's roots in North Carolina and Tennessee. We are confident Dion will set the standard for operating high volume, buffet restaurants in at least six locations across different markets."
Firooznia will open his first Pizza Inn in Tennessee, followed by a second location in North Carolina in the spring of 2022.
"Everywhere we go right now in Elizabethton, we feel the love and the residents tell us how excited they are that Pizza Inn is coming back," he added. "The value of our hometown pizza buffet is unmatched: 12-15 fresh pizzas, a great salad bar, a delicious pasta bar and desserts at an affordable price."
The result has been nothing but positive: for the first quarter of 2022, which ended on Sept. 26, 2021, Rave recorded net income of $285,000 compared to net income of $76,000 for the same period of the prior year.
We will continue to innovate with new products and offers for our customers as we close out this calendar year and look forward to 2022, Solano said in a statement.
This article first appeared on GuruFocus.
