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Few chains were harder hit by COVID-19 than California Pizza Kitchen. In the blink of an eye, dine-in sales dropped nearly 80%, forcing the company to close the roughly 50 locations that didn’t offer off-site dining. Just a few months later, California Pizza Kitchen filed for Chapter 11 bankruptcy. The owners tried to sell but didn’t even receive any qualified bids. Instead, they went to work getting out from under $400 million debt.
California Pizza Kitchen emerged from bankruptcy in November with $220 million of debt off its books, ready to turn things around. To spur on its revitalization, the brand focused on continuing its menu innovation, investing in technology, and expanding its off-premises business. The changes helped sales climb back to pre-COVID levels the very next year.
One of the company’s main priorities now is expansion. In December 2021, California Pizza Kitchen announced the launch of its first-ever domestic franchise program. “For the first time in our 35-year history, we’re eager to engage new domestic franchisee partners that share a passion for creating memorable dining experiences and expand our reach to bring CPK to even more diners nationwide,” Giorgio Minardi, the brand’s executive vice president of global development & franchise operations, said in a statement. The company also has eyes on expanding its global reach. In March of 2022, California Pizza Kitchen announced plans to open new locations in Costa Rica and Chile, which would increase its international restaurant count to approximately 50.
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