Rave Restaurant Group, Inc., through its subsidiaries, engages in the operation and franchising of pizza buffet, delivery/carry-out, express restaurants and ghost kitchens domestically and internationally under the trademark Pizza Inn and franchise domestic fast casual restaurants under the trademarks Pie Five Pizza Company or Pie Five.
As of June 30, 2024, the company had various franchised Pizza Inn restaurants, franchised Pie Five Units, and licensed PIE Units. The domestic franchised Pizza...
Rave Restaurant Group, Inc., through its subsidiaries, engages in the operation and franchising of pizza buffet, delivery/carry-out, express restaurants and ghost kitchens domestically and internationally under the trademark Pizza Inn and franchise domestic fast casual restaurants under the trademarks Pie Five Pizza Company or Pie Five.
As of June 30, 2024, the company had various franchised Pizza Inn restaurants, franchised Pie Five Units, and licensed PIE Units. The domestic franchised Pizza Inn restaurants were comprising Buffet Units, Delco Units, Express Units and Pizza Inn Ghost Kitchen Unit. As of June 30, 2024, there were some international franchised Pizza Inn restaurants. Domestic Pizza Inn restaurants and kiosks were located predominantly in the southern half of the United States, with Texas, North Carolina, Arkansas and Mississippi.
Concepts
The company operates and franchises restaurant concepts under two distinct brands: Pizza Inn and Pie Five.
Pizza Inn
The company franchises Buffet Units, Delco Units, Express Units, and Pizza Inn Ghost Kitchen Units under the Pizza Inn brand. Additionally, it licenses PIE Units under the Pizza Inn brand. Buffet Units and Delco Units feature crusts that are hand-made from dough made fresh in the restaurant each day. The company's pizzas are made with a proprietary all-in-one flour mixture, real mozzarella cheese, and a proprietary mix of classic pizza spices. In international markets, the menu mix of toppings and side items is occasionally adapted to local tastes.
Buffet Units offer dine-in, carryout, and catering service and, in many cases, also offer delivery service. Buffet Units offer a variety of pizza crusts with standard toppings and special combinations of toppings in addition to pasta, salad, sandwiches, appetizers, desserts and beverages, including beer and wine in some locations, in an informal, family-oriented atmosphere. The company occasionally offers other items on a limited promotional basis. Buffet Units are generally located in free standing buildings or strip center locations in retail developments near offices, shopping centers and residential areas. The current standard Buffet Units are between 2,100 and 4,500 square feet in size and seat 120 to 185 customers. The interior decor is designed to promote a casual, lively, contemporary, family-style atmosphere. Some Buffet Units feature game rooms that offer a range of electronic game entertainment for the entire family.
Delco Units offer delivery and carryout service only and are typically located in shopping centers or other in-line retail developments. Delco Units typically offer a variety of crusts and some combination of side items. Delco Units occupy approximately 1,200 square feet, are primarily production facilities and, in most instances, do not offer seating. The decor of the Delco Unit is designed to be bright and highly visible and feature neon lighted displays and awnings. The company has attempted to locate Delco Units strategically to facilitate timely delivery service and to provide easy access for carryout service.
Express Units serve its customers through a variety of non-traditional points of sale. Express Units are typically located in a convenience store, food court, college campus, airport terminal, travel plaza, athletic facility, or other commercial facility. They have limited or no seating and solely offer quick carryout service of a limited menu of pizza and other foods and beverages. An Express Unit typically occupies approximately 200 to 400 square feet and is commonly operated by the operator or food service licensee of the commercial host facility.
PIE Units serve customers through a non-traditional, licensed, pizza-only model called Pizza Inn Express. Like Delco Units and Express Units, the PIE Units are primarily production-oriented facilities and, therefore, do not require all of the equipment, labor or square footage of the Buffet Unit.
Pizza Inn Ghost Kitchen Units primarily serves customers online through third-party delivery companies and are located in a Pie Five restaurant. Dine-in, carryout, or catering services are not offered. The company has attempted to strategically locate Pizza Inn Ghost Kitchen Units in areas where Pie Five restaurants are presently located, but Pizza Inn is not.
Pie Five
Pie Five is a fast-casual pizza concept that creates individualized pizzas which are baked in its specially designed oven. Pizzas are created at the direction of its customers who choose from a variety of freshly prepared and displayed proprietary and non-proprietary toppings, cheeses, sauces and doughs. Customers can also get freshly prepared side salads, also made to order from its recipes or at the customer’s direction. A variety of soft beverages are available, as well as beer and wine in some locations.
Traditional Pie Five restaurants typically occupy leased, in-line or end-cap space of between 1,800 and 2,400 square feet in retail strip or multi-unit retail space. With seating for 65 to 85 customers in most units, and patio seating where available, Pie Five restaurants primarily serve lunch and dinner to families, adults and kids of all ages. Pie Five restaurants typically are in high traffic, high visibility urban or suburban sites in mid to large-size metropolitan areas. Sales are predominantly on-premises though carry out and delivery are offered as well.
Development and Operations
The company intends to expand the Pizza Inn system domestically and internationally in markets with significant long-term growth potential. The company plans to expand its Pizza Inn branded domestic restaurant base primarily through opening new franchised restaurants with new and existing franchisees. It expects to evaluate the continued development of new Pizza Inn Buffet and Delco Units in international markets in fiscal 2025.
Domestic Franchise Operations
Training: The company offers numerous training programs for the benefit of franchisees and their restaurant crew managers. The training programs, taught by experienced company employees, focus on food preparation, service, cost control, sanitation, safety, local store marketing, personnel management, and other aspects of restaurant operation. The training programs include group classes, supervised work in restaurants, and special field seminars. Initial and certain supplemental training programs are offered free of charge to franchisees, who pay their own travel and lodging expenses. New franchisees also receive on-site training from company employees to assist with their first two restaurant openings under their development agreements. Restaurant managers train their staff through on-the-job training using video and printed materials produced by the company.
Standards: The company requires franchisee adherence to a variety of standards designed to ensure proper operations and to protect and enhance the Pizza Inn and Pie Five brands. All franchisees are required to operate their restaurants in compliance with these written policies, standards, and specifications, which include matters such as menu items, ingredients, materials, supplies, services, furnishings, decor, and signs. The company's efforts to maintain consistent operations may result, from time to time, in the closing of certain restaurants that have not maintained a consistent standard of quality or operations. The company also maintains adherence to its standards through ongoing support and education of its franchisees by its franchise business consultants, who are deployed locally in markets where the company's franchisees are located.
Domestic Kiosk License Operations
Kiosk license agreements: The company’s PIE Units are typically offered for five-year initial license periods with options for additional five year renewals. PIE Unit licensees are not charged development fees, license fees, royalties, or advertising assessments. PIE Unit license agreements require that the licensee comply with standards of the Pizza Inn brand, including marketing, kiosk system configuration, and sales and sourcing of authorized products and services. The mandated products and sourcing provisions within the PIE Unit licensing agreement result in supplier rebates for the company.
Training: New licensees and their PIE Unit employees must attend and successfully complete its training program, which consists of a single day of training at the licensed location. PIE Unit managers train their staff through on-the-job training, using video and printed materials produced by the company.
Standards: The company requires licensee adherence to a variety of standards designed to ensure proper operations and to protect and enhance the Pizza Inn brand. All licensees are required to operate their kiosks in compliance with these written policies, standards, and specifications, which include matters such as menu items, ingredients, materials, supplies, services, furnishings, decor, and signs. The company's efforts to maintain consistent operations may result, from time to time, in the closing of certain kiosks that have not maintained a consistent standard of quality or operations. The company also maintains adherence to its standards through ongoing support and education of its licensees by its franchise business consultants, who are deployed locally in markets where the company's licensees are located.
International Franchise Operations
The company also offers master license rights to develop Pizza Inn and Pie Five restaurants in certain foreign countries, with negotiated fees, development schedules and ongoing royalties.
Its first franchised Pizza Inn restaurant outside of the United States. As of June 30, 2024, there were Pizza Inn restaurants operating internationally. Except for restaurants in Honduras and restaurant in New Zealand, all of the Pizza Inn restaurants operated or sub-licensed by its international master licensees are in the United Arab Emirates, Saudi Arabia and adjoining countries.
Food and Supply Distribution
The company’s franchisees and licensees purchase food and supplies directly from authorized, reputable, and experienced supply and distribution companies. The company provides sourcing, quality assurance, and research and development for both the Pizza Inn and Pie Five systems. The authorized distributors make deliveries to all domestic units from several distribution centers, with delivery territories and responsibilities for each determined according to geographical region. The company contracts with established food processors for the production of its proprietary products according to its specifications.
Marketing and Advertising
The company offers or facilitates several ways for the brand image and message to be promoted at the local and regional levels.
Pizza Inn and Pie Five franchisees contribute a specified percentage of their sales to the company to fund the creation and production of various marketing and advertising programs and materials, which may include print and digital advertisements, direct mail materials, customer satisfaction systems, social media and e-mail marketing, television and radio commercials, in-store promotional materials, related marketing and public relations services, and consumer research.
Pizza Inn and Pie Five franchisees are required to conduct independent marketing efforts in addition to their participation in the national marketing programs for each brand. The company provides franchised restaurants with access to an assortment of local store marketing materials, including pre-approved print, radio, and digital media marketing materials. The company also provides local store marketing materials and programs specifically to support new restaurant openings.
Trademarks
The company owns various trademarks, including the names Pizza Inn and Pie Five, that are used in connection with the restaurants and has been registered with the United States Patent and Trademark Office.
Government Regulation
The company is subject to Federal Trade Commission (FTC) regulations and to various state laws regulating the offer and sale of franchises.
History
The company was founded in 1958. The company was incorporated in 2011. The company was formerly known as Pizza Inn Holdings, Inc. and changed its name to Rave Restaurant Group, Inc. in 2015.
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