What Makes Mellow Mushroom a Strong Franchise Investment? Insights From the Panos Family’s Metro Atlanta Portfolio

The Panos family has turned Mellow Mushroom into a true family enterprise by carving out complementary lanes. Michel and Lesley, immigrants from South Africa, built a hands-on, numbers-driven base in metro Atlanta and kept every store within driving distance so they could stay present. Their adult children extend that foundation rather than duplicate it: Nicolaos drives catering and automation, Michael lives in day-to-day operations, and Gabby focuses on social and guest engagement. As Michel puts it, “People asked why I didn’t just do ‘Michel’s Pizza.’ That never appealed to me. There’s enough work in running restaurants aside from creating menus and designs — getting that right is a big deal. I don’t think you can do both: develop a franchise and run the restaurants. For me, franchising is a safer way to grow. You pay to use the system, the product, the signage — and run great restaurants.”

That division of labor shows up everywhere. Nicolaos builds systems that remove friction so managers can execute consistently across seven locations; Michael makes sure those systems translate into hospitality guests can feel. And while the back end hums, Gabby keeps the brand human and visible — answering reviews, creating local content and tying in-store moments to Instagram so regulars feel seen. “I love working with my brothers and my parents and working toward something together,” she said.

Through it all, the family guards the quirky Mellow spirit — the characters, the vibe, the dough — while pushing for smart, local growth. Their ambition is matched by bold sales goals, carefully considered guardrails, all while keeping a clear sense of identity. The result is a practical playbook for generational franchising. The founders set the culture, the next generation specializes, and together they scale while preserving what makes Mellow, well, Mellow.  

1851 Franchise sat down with the Panos family to discuss their multigenerational “lanes” approach, the systems powering seven Atlanta-area restaurants and how they preserve Mellow Mushroom’s quirky soul. Here’s what they had to say.

1851 Franchise: Frame your personal story for us. What do you want us to know?

Michel Panos: I’m an accountant by profession. I’m from South Africa — my wife and I originally — and in 1995 we left due to the violence and uncertainty at the time. We came here just before the Olympics.

My father was in the restaurant business. He had an American franchise that came to South Africa in 1969. They found my dad as someone who was successful in restaurants and had the money to take on the new franchise. My siblings and I grew up watching him run those restaurants. I went to university, got my accounting degrees, became a chartered accountant — and then went into the restaurant business anyway. My brother and I ran a steakhouse for about four years before we left.

When we arrived in Atlanta, my brother and sister — who had moved two years earlier — had found a little franchise called Mellow Mushroom and bought the Midtown Atlanta unit. We went to see it. The pizza was excellent and the place had a nice vibe. I talked to Home Grown Industries to see if there were any franchises for sale. There was one. A couple of months later, I joined the owner to do a partnership. We ended up with me buying him out — his wife wanted to move to Florida. We did the deal on March 15, 1996. That was the first one. At that stage only Nicolaos had come with us from South Africa. Gabriella was born a year later, in 1997, and Michael in 2001.

Mellow Mushroom is very different today than in 1996. It’s a much bigger organization — there were only about 25 stores when we got involved; now there are roughly 163 The dough is exactly the same, which is brilliant, and the Esperanza salad dressing is still there. A lot remains. For me, the brand’s quirkiness — the Mel dude and the wizard— makes it impossible to copy. That unique identity is important, and I’m delighted it’s coming back.

Lesley Panos: We came here from South Africa when Nicolaos was about 18 months old. We had very limited money. We’d take him to the store with us. I had a big playpen in the dish area for him. Michel was learning the business. I had to learn the business. He’s good with numbers — if you don’t know your numbers, you can’t do anything.

I did ballet my whole life. At about 15 I started high energy dance and won the South African dancing championship at 16. At 18 I auditioned to be a dancer on the Achille Lauro cruise ship. I didn’t think I’d get it, but I did. I traveled for six months — Australia, the Fiji Islands, Melbourne, Perth, Italy. Michel and I already knew each other. Later, when we were building the restaurants, we were there every day, talking to customers. People started coming back two or three times a week. They brought friends. It became a family affair and grew into two stores, then three, and suddenly we were opening more.

Nicolaos Panos: I wanted to do something outside the family first. After Wake Forest, I worked in investment banking in New York in the consumer retail space — mergers and acquisitions. Bringing that experience back home let me help our operation move faster.

Michael Panos: I started working around 15. My dad asked if I wanted a job and I said yes. He asked if I wanted to host. I said, “No, I want to learn how to make pizzas.” I was a 15‑year‑old in the kitchen with grownups. It was intimidating but cool. I loved making the food and seeing it come out fresh. Later I moved to front of house — guest interaction, serving. That appreciation for food quality carried over. When it’s made properly, it’s worth the money.

Gabby Panos: We grew up in the restaurants. I started hosting at 13, then managed, bartended — worked through the ranks for 10-plus years. I love working with my brothers and my parents and working toward something together. They set a great example of hard work. I handle social media and marketing for our stores.

1851: What did you do before franchising, and how did you decide franchising made sense for you?

Michel: Growing up in South Africa, America was the place where everything was bigger and better. All our textbooks were from America. The shining light was McDonald’s. I fell in love with McDonald’s — not necessarily the food but the story. I read about Ray Kroc at 17 or 18 and thought it was brilliant. In university, I did a thesis on franchising.

People asked why I didn’t just do “Michel’s Pizza.” That never appealed to me. There’s enough work in running restaurants aside from creating menus and designs — getting that right is a big deal. I don’t think you can do both: develop a franchise and run the restaurants. For me, franchising is a safer way to grow. You pay to use the system, the product, the signage — and run great restaurants.

Lesley: In South Africa we were in the restaurant business and were held up. Things were pretty bad. We decided to immigrate. We had little money but a strong work ethic. We’re aligned with corporate — follow instructions, respect the system and focus on taking care of each customer so they feel at home and get consistent food.

Nicolaos: With a good brand, franchising is a shortcut. You don’t have to make the same mistakes. There are horror stories in other systems, but we’ve been fortunate with Mellow — great food and a beloved brand in Atlanta.

Michael: I can only speak from my corner; this is the only way of restaurant operating I’ve seen. When it’s executed properly, it can be very successful. The key is execution.

1851: Tell us about your roles at Panos Restaurant Group.

Michel: We own seven Mellow Mushroom restaurants in the greater metro Atlanta area. We live in Sandy Springs and keep everything within about a 40‑minute drive.

Nicolaos: I’m responsible for catering and technology. Coming from a field where rainmakers got paid for bringing in deals, I asked how to make that work in small business. Catering lets one person buy $500 of food instead of getting 200 people to buy $2.50 slices. People with catering budgets care that the food is on time and correct. In 2018 we leaned into catering and grew, then COVID flatlined everything. By 2022 office orders trickled back. We rebuilt from the ground up with infrastructure so each store could produce the same experience. We invested in people and in the client experience: pie servers, labels on boxes, name cards showing what’s on each pizza. It seems trivial, but if you’re the person ordering, you want clarity.

The technology piece goes hand in hand. I love AI, automation and efficiency. In small business, so much is repetitive. We systemized onboarding, forms, write‑ups, invoices — everything is digitized and searchable. We also built our own app, “Caterize,” because nothing on the market solved our needs. It assigns orders to drivers, tracks when they leave and captures delivery photos. If there’s a discrepancy, we can see when food arrived. It operationalizes the tedious parts.

Michael: As an in‑store manager, I get text notifications when a new catering order comes in. At a glance I see date, headcount and contact. There’s a link to details. It’s helped us keep everything top of mind and not forget orders. Systems are great, but if nobody’s eating the food, they have nothing to do. Everyone on our team knows how to make the food and work each area. Every part of the restaurant has unique challenges. The cornerstone is the guest. My dad always says, “Make a guest’s day today.” When guests complain, most of the time it’s on us. We look at what we could have done better.

Gabby: As the social media/marketing person, I respond to Google and Yelp reviews multiple times a week to stay on top of any negative experience and share positives and opportunities for improvement with our director of operations. Instagram is our primary channel. Corporate provides photography and promotions, which I used more in the early years. Since moving back two years ago, I create more local, engaging content — trends, fun videos with our teams, employee‑of‑the‑month features. We’re piloting in‑store initiatives tied to social, like trivia‑night drink vouchers. It boosts employee pride and lets me reconnect with guests.

Lesley: When Michael started in the kitchen, at the end of his shift he’d send me a photo of his station — clean and ready for the next person. He was 16 or 17. That pride impressed me. We’re hands‑on operators. I still work Friday nights — Mellow T‑shirt, hair in a ponytail  —thanking staff, coaching and making sure people feel part of the family.

1851: What do you hope to achieve with your business? What are your plans for growth?

Michel: Running seven restaurants is a handful. Going from one to two was a big deal; from seven to eight, not as much. I’m growth‑minded and always talking to HGI about opportunities, but I won’t get on a plane to visit a store. They need to be within a 1.5‑ to 2‑hour drive. We’re hands‑on, which is why we didn’t expand to Texas.

We love Mellow Mushroom. With a lot of brands, the franchisee-franchisor can be a tenuous relationship at times, with the franchisor focused on top‑line sales and the franchisee more focused on sales and profit. However, there’s a newer generation at HGI — Ahsan [Jiva] included — who are tremendous to work with. We’re very happy with where things are.

Lesley:I’m proud looking at Michel and the kids and thinking how we survived immigration, remodels, loans — everything. We’ve stuck with Mellow almost 30 years because we truthfully care about our people. We insisted the kids get an education and choose their paths. They complement each other — different strengths. Michel and I would love to do another couple of stores if the kids want it and it fits our radius. It’s time for us to unwind a bit and let them drive the bus.

1851: What advice do you have for other people thinking about becoming franchise owners?

Michel: I truly believe in franchising. Even if you want to do your own concept one day, start in a franchise in that industry. Learn with the safety net. Developing a concept is very difficult. Use the franchise’s playbook to run great restaurants.

Lesley: Know yourself. If you want to be flattered as a chef and have total creative control, franchising isn’t for you. If you have a problem with being told what to do — seasonal LTOs, test‑kitchen items, system standards — franchising isn’t for you. Respect the work corporate puts in. If you like operating, training, and delivering consistency, franchising can be great.

Nicolaos: I’m more operator than creative. I’ll take a proven playbook 10 times out of 10. Don’t reinvent the wheel. Make sure the system is truly proven and, ideally, has something proprietary. With Mellow, the brand and the dough are unique. If a brand lacks uniqueness, it’s not the same level of franchise. With the right system, franchising is a tremendous way to build assets and wealth.

Gabby: It’s a personal decision. The more you know your skills and weaknesses, the clearer the choice becomes.

Michael: When done properly and executed well, it can be very successful. The framework is there. The question is: can you take it and execute?

To find out more information on costs to buy this franchise, please visit https://www.mellowmushroom.com/franchising/.