Rave Restaurant Group Inc.’s fast-casual Pie Five Pizza Co. brand reported a sharp decline in same-store sales in the second quarter ended Dec. 25, the company said Tuesday.
Dallas-based Rave, which is scheduled to open its 100th Pie Five location in Independence, Mo., on Friday, said same-store sales for the fast-casual brand fell 17.4 percent from the previous year.
"We are aggressively exploring bold new strategies that can be deployed to ultimately improve financial performance," said Scott Crane, Rave CEO, in a statement.
The company said it “continues to believe that increased competition within the fast-casual segment and general industry softness contributed to weakened trends within the Pie Five system.”
Crane added that Rave management is tackling the Pie Five sales declines.
"Over the next year we will be addressing underperforming markets,” he said, “while also improving the overall customer experience at all of our restaurants.”
Rave’s legacy brand, the buffet-oriented Pizza Inn, reported a same-store sales declined 1.2 percent in the second quarter.
Rave reported a second-quarter net loss of $7.9 million, or 74 cents a share, compared with a loss of $4.8 million, or 45 cents per share, in the same period a year ago. Revenue declined 3.4 percent, to $14.8 million, compared with $15.3 million in the prior-year period.
The company said it added eight Pie Five restaurants during the quarter, and a franchisee closed one, taking the brand’s year-end unit count to 99. The company opened the first Pie Five in 2011.
Crane added that the company sees Pie Five development possibilities in both traditional and non-traditional locations.
"Restaurant trends around the country continue to be challenging," Crane said in prepared remarks. “The Pie Five system continues to add new locations and is addressing sales trends through the testing of new sales channels and menu innovation.”
In December, Pie Five introduced an online ordering platform with Olo at company-owned restaurants in Atlanta, Chicago and Dallas-Fort Worth, and at franchised locations in Kansas City, Mo., and North Carolina. A full nationwide rollout was expected early this year.
The ordering platform, which included a new Pie Five smartphone app, integrated with Olo’s Dispatch delivery service and Pie Five’s Circle of Crust loyalty program.
Crane said Rave’s Pizza Inn buffet brand “continues to see progress through enhanced franchisee engagement and the addition of initiatives such as the new loyalty program and refreshed branding.”
Rave has nearly 300 restaurants across both brands.
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