Newly named CEO Shawn Thompson is looking to reignite growth at Tustin-based Pieology Pizzeria.
The fast-casual pizza chain, which allows guests to custom-order their pizzas with a multitude of topping, crust, cheese, sauce and other options, reports operating about 130 restaurants, including five in Orange County.
That’s roughly the same amount of stores it operated as of four years ago, according to trade industry data and Business Journal research.
After being one of the fastest-growing chains in the custom pizza industry for several years—and competing against the likes MOD Pizza and Blaze Pizza in that category—the firm took a pause in expansion around 2018, restructuring its operations to focus more on franchising than company-owned locations.
Thompson, who knows well the restaurant franchise industry, is expected to put the chain back on an expansion path.
As the former head of global operations for Toronto-based Restaurant Brands International (RBI), he oversaw one of the world’s largest quick-service restaurant companies—the nearly $18 billion-valued firm runs the Burger King and Popeyes chains, among others—with more than $35 billion in annual systemwide sales and over 28,000 restaurants in more than 100 countries.
He wants to bring RBI’s “aggressive growth mentality” to Pieology.
“I’ve always wanted to take that [mentality] to a smaller brand, something regional that you can take across the U.S. and the globe,” Thompson told the Business Journal.
Notable Backers
Pieology, which ranks No. 13 on the Business Journal’s most recent list of restaurant chains with an estimated $125 million in systemwide sales in 2020, on Jan. 26 announced the hiring of Thompson.
He fills the CEO spot that was held since 2018 by Gregg Imamoto, who left the firm around September to helm the domestic expansion plans for Japanese fast-casual chain Marugame Udon.
The udon noodle chain opened one of its first U.S. spots about two years ago at South Coast Plaza.
“We are very enthusiastic about [Thomspon’s] leadership in stewarding the evolution and growth of Pieology into the new economic environment we now live in,” Pieology founder Carl Chang said in a statement.
Chang is the older brother of French Open-winning tennis player Michael Chang, who counts OC roots and has been previously reported to be an investor in Pieology.
Other reported notable investors in the company include Andrew and Peggy Cherng, the billionaire founders of the Panda Express restaurant chain, which is based in Rosemead.
The Cherng family counts several ties to OC via homes and other investments.
Food, Haircut Chains
About a decade ago, Thompson started his restaurant career at Burger King Corp., first as the director of franchise performance before becoming a director of global operations and then division vice president for the chain in the Southeast. He moved all over the country opening hundreds of units.
He then became president of Tim Hortons USA and then moved to RBI (NYSE: QSR).
He made a career change by becoming the president of hair salon chain Supercuts, where he was responsible for 2,500 locations in North America and the United Kingdom.
However, after a year at Supercuts, the lure of custom-made pizzas brought him back to the restaurant chain industry that is his specialty.
“Everybody eats pizza,” Thompson said. “That’s why it’s one of the largest food markets” in the U.S.
Great Potential
The pizza industry generates $46 billion a year in sales in the United States and 30% of Americans eat pizza once a week, according to the company. The sector has been among the best-performing restaurant types during the pandemic, according to industry data.
Newport Beach’s Mountain Mike’s Pizza LLC, for example, recently announced that 2021 was by far the best sales year ever for the franchise. It ended 2021 with more than $250 million in total system sales, after only passing $200 million in 2020.
Established in 2011, Pieology currently operates restaurants in 20 different states and five countries. Pieology’s franchising page of its website indicates that it’s not currently looking to expand in California, Nevada, Ohio and Florida, where it has “sold out” its franchises.
The company’s franchise page says it costs on average about $500,000 to open a restaurant, which typically generates $1 million in annual sales.
Pieology has “great potential” to grow the fast-casual pizza chain, Thompson said. He didn’t specify how many stores Pieology could open in the near term.
Thompson said a key challenge is finding the right franchise partners who understand how to enter a new market while maintaining the same customer and store experience.
By exploring future partnerships and opportunities to expand Pieology operations, he plans to set up roots in strategic markets.
“Carl created an amazing brand and I look forward to bringing it to the rest of the world.”
Digital Investments
After adapting to the pandemic needs for safe dining, the pizzeria company became more delivery focused.
With the rise of online and mobile ordering, Thompson mentioned the company’s pivot to virtual investments as a source of growth for the business.
“Customers shifted well to digital transactions. You need to be where your customer wants to be,” Thompson said, noting that a customer may want to build the pizza on a screen or in person at the restaurant.
When asked about company plans for the upcoming months, he remarked that “the catalyst of change in the franchise will be looking to modernize the design and guest experience.”
“We already have a great product. Any future projects will have to remain a secret for now,” Thompson said.Â