Uncle Maddio's Pizza Franchise Files For Bankruptcy

The competitive pizza sector of the franchise industry is growing increasingly cutthroat, as evidenced by a recent Restaurant Business report stating that Uncle Maddio’s parent company Ignite Brands has filed for bankruptcy protection.

According to the article, filings show the company has about $1.5 million in secured debt. The news comes as Uncle Maddio’s is in the midst of a steep decline in revenue and units; just three years after the brand received an investment from private equity firm S&S Group and stated it was “on track to have 300 restaurants open in five years,” the brand has gone from having 42 open locations in 2015 to just 29 in 2018, according to Technomic Ignite data cited in the article. Uncle Maddio’s system sales also declined 14% last year, the same data revealed.

Despite its bold claims in 2015, the company has fallen short of growth projections as other players in the fast-casual pizza space have caught fire. The article notes that competitor MOD Pizza grew to more than 400 locations and approximately $400 million in annual system sales last year, while Blaze Pizza is now operating 300 locations and counting as its aggressive expansion plan successfully plays out.

Read the full story here.