Passionate staff members and customized salads give MOD Pizza added fuel for growth, the fast-casual pizza operator says.
Founded in 2008, Bellevue, Wash.-based MOD Pizza has grown quickly, leading the Next 20 in growth of U.S. systemwide sales and units.
MOD Pizza posted a 220.8-percent increase in U.S. systemwide sales, to $64.8 million, for the year ended December 2015, ranking No. 1 among Next 20 chains. The chain also ranked No. 1 in unit growth, adding 61 restaurants, to total 92 units in the Latest Year, an increase of 196.8 percent over the Preceding Year. Estimated average unit volumes were $1 million, rising 7.2 percent over the Preceding Year.
“The real key to our success is identifying great individuals to work in our stores, our MOD Squaders, if you will, and the experience they provide in our stores every day,” Chris Schultz, MOD Pizza senior vice president of operations said.
Those staff members, hired for what Schultz called their passion, produce a high level of customer-crew engagement.
“For us, it’s not a transaction; it’s an experience,” Schultz said.
The company also has each general manager identify a community charity “that is near and dear to our MOD Squaders’ hearts,” Schultz said. “They are actively involved with that charity from the first day.”
MOD Pizza started 2015 with 31 restaurants and added 61 units through the year. “At the end of this year, we will be close to a 190 locations, including five locations in the U.K.,” he said. The company has already opened one restaurant in Leeds, as well as 50 units in the United States.
Restaurants range from 2,500 square feet to 3,500 square feet, with seating for 50 to 100 customers, Schultz said. The menu includes customizable salads in addition to pizza.
In March, MOD Pizza raised $32 million in a funding round led by its existing private-equity investor, PWP Growth Equity. PWP, managed by Perella Weinberg Partners, also led a $45 million funding round a year ago for the operator. MOD Pizza has now received $106 million from PWP and other investors.
MOD Pizza has restaurants in 18 states. Ohio and Kansas are two target markets.
Keys to Success
Commitment to hiring the right people: “We really look for a passion for what they do,” said Chris Schultz, MOD Pizza senior vice president of operations. “They need to have a passion for life and passion for service.”
Pledges to help charities in local community: Each new location selects a neighborhood charity to devote fundraising and other efforts.
Private-equity funding: MOD Pizza has received two rounds of funding that total $106 million for expansion.
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