California Pizza Kitchen Is Now Franchising in the U.S.

California Pizza Kitchen (CPK) is expanding into U.S. franchising for the first time as it looks to drive growth, according to an article posted to Restaurant Business. The casual-dining chain, known for its inventive pizzas, aims to open about 75 new domestic locations over the next five years through franchising. Currently, CPK operates 131 locations across 27 states, with 17 of those licensed in airports. Although CPK has extensive international franchising experience, its U.S. footprint has been almost entirely company-operated. The brand’s first domestic franchise partner is Sundine LLC, a Las Vegas-based operator of Del Taco and Jack in the Box. Sundine will take over three existing CPK locations and develop six new ones in Las Vegas and Utah, a new market for the brand.

Michael Beacham, president of CPK, believes franchising is the best way to expand the brand’s reach. “We resonate with so many different age groups, so many different markets, but we’re not in enough locations to be able to reach everybody,” Beacham said. “The best way forward for us is to have fantastic partners in parts of this country that we probably wouldn’t be investing our capital to build our corporate estates further.” The company plans to add three to four franchise partners annually, focusing initially on existing markets, while California locations will remain under corporate ownership.

Founded in 1985 in Beverly Hills, California, CPK made a name for itself with creative pizzas like the BBQ chicken pizza. However, the brand has faced challenges, including a 10% drop in sales last year and the closure of over 20 stores. Full-service restaurants, particularly in the pizza segment, have struggled with inflation and changing consumer habits. Despite these headwinds, Beacham is optimistic, noting that less than 30% of CPK’s sales come from pizza, with many customers choosing salads and entrees.

CPK’s strategy also includes introducing smaller restaurant formats to reduce costs while keeping a full-service experience. The brand will continue to focus on menu innovation and explore new growth avenues like virtual brands and expanded frozen food products. “I think you’re gonna see over the next year us emerging in a lot of different ways,” Beacham said. “In our mind, it’s not a comeback, because we haven’t gone anywhere. But we do know this brand is in tremendous growth mode right now and we’re very excited about the next couple years.”

Read the original article here.

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