An investment from Panda Restaurant Group Inc. co-CEOs and co-chairs Andrew and Peggy Cherng is likely to boost the pace of expansion for the Pieology Pizzeria chain, the company’s founder said Tuesday.
In an interview with Nation’s Restaurant News, Pieology founder and CEO Carl Chang said he remains in control of the 80-unit chain with the investment from the Cherngs, who are longtime family friends, though terms were not disclosed.
But the partnership will bring to Pieology a wealth of resources from Panda Restaurant Group, the parent company of the nearly 1,900-unit Panda Express chain, including real estate, vendor relationships, buying power and general market knowledge, said Chang.
After first opening the one-off Panda Inn concept with his father, Andrew Cherng in 1983 opened a mall version of the Chinese food concept called Panda Express. His wife Peggy, then an executive in the engineering and tech world, soon joined the company to help build what has become Panda Restaurant Group, which now boasts more than $2.2 billion in annual sales. Peggy Cherng was named a 2015 Golden Chain winner by NRN.
Chang said he had been looking for the right strategic partner to help move the fast-casual pizza brand forward in what has become a very crowded niche.
Based in Rancho Santa Margarita, Calif., Pieology was the first of the build-your-own-pizza players to launch in Southern California when it opened in Fullerton in 2011, though others soon followed, including Blaze Pizza, Project Pie, PizzaRev, Pizza Studio and 800 Degrees.
Pieology has grown rapidly to include units in about 15 states, including the Southeast and the Midwest. The chain’s first unit in Hawaii is scheduled to open next month.
But Pieology has slipped somewhat in the unit-count rankings after gunning last year to be one of the first to surpass 100 units, a milestone Blaze Pizza passed in December. Chang blamed weather delays tied to the El Nino storms that have rolled through California.
Chang is the brother and former coach of tennis champion Michael Chang. He is also CEO of Redwood Real Estate Partners, which manages his family’s investments and real estate fund holdings, including retail shopping centers, office and residential properties. The Cherngs have also partnered with Redwood in some real estate deals in the past, Chang said.
With the goal of hitting 200 units before the end of 2016, Chang said the tie to the Panda infrastructure will bring game-changing potential to Pieology.
“We had a wonderful celebration together just last week that bought all senior members from both organizations and we started laying out strategic plans and synergies that they felt could help with the growth of Pieology,” he said. “It’s pretty exciting.”
There are no plans for changes to the pizza chain’s management, he said. Pieology remains committed to growing with a ratio of about 30 percent company owned units and 70 percent franchised, as it has currently.
In its most recent franchise disclosure documents last year, Pieology said its restaurants were reporting average unit volumes north of $1.5 million in about 2,000-square feet.
Last year, Pieology rolled out a new 2.0 design that he described as a more updated vision of the brand. A new website also launched in 2015, and the chain tested and began rolling out the addition of custom-build salads.
Coming in 2016 will be the launch of a new Pieology mobile app, and Chang said the company may have more news on international development.
Last year, Pieology announced its first units planned outside the U.S. in Guam and Saipan.
Contact Lisa Jennings at [email protected].
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