On cusp of bankruptcy, Mod Pizza chain is bought by L.A. company

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On the cusp of bankruptcy, Mod Pizza, with more than 40 locations in California and 500 across the country, has been acquired by Elite Restaurant Group.

After teetering on the edge of bankruptcy, fast-casual restaurant chain Mod Pizza was acquired this week by Los Angeles-based Elite Restaurant Group, the company said. Prior to the announcement of the deal, a spokesperson for Mod said the pizza chain was “actively working toward strategic alternatives that would avoid a Chapter 11 filing.” . Founded in Seattle in 2008, Mod Pizza has more than 40 locations in California and 500 across the country.

Their portfolio includes Patxi's Pizza, Daphne's California Greek, and Slaters 50/50, a burger chain. Jim Salera, a restaurant industry analyst at Stephens, said the $20 hourly minimum wage for fast food workers that recently went into effect in California is likely raising salaries across the board, not just for the lowest paid workers. Labor costs for restaurants could go up significantly as the minimum wage increase triggers a chain reaction, he said.

 

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