California Pizza Kitchen to Grow in Nevada and Utah
California Pizza Kitchen (CPK) has partnered with multi-unit restaurant operator Sundine LLC to expand its presence in Nevada and Utah. It's CPK's first big franchising deal in the U.S. - and it couldn't come at a better time.
The casual dining chain, known for its inventive pizzas, has struggled in recent years to keep stores open. Since emerging from bankruptcy in 2020, CPK's total unit count in the U.S. has dropped from 168 in 2021 to just 148 at the end of last year, according to franchise disclosure documents. Only 15 of those are franchised locations.
But CPK is betting that experienced operators like Sundine, which runs 85 franchised Del Taco, Jack in the Box and other restaurants, can help turn the tide. "Aligning with top-tier operators like Sundine, in key markets outside of California, is not just about building new restaurants," said CPK President Michael Beacham. "It's about ensuring the continued long-term equity of our brand."
Sundine will acquire three existing CPK locations in Las Vegas and open six new restaurants across Nevada and Utah in the coming years. CPK said it's part of a strategy to partner with a "select group" of seasoned operators in target markets each year, granting them exclusive development rights.
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The company is already in talks with potential partners in Florida, the Mid-Atlantic and along the East Coast, with a goal of selecting three to four franchisees annually. It's a vote of confidence in CPK's highly flexible store formats, which range from 750-square-foot kiosks to 6,000-square-foot restaurants.
"We are fully confident in the continued growth of this brand," said Sanjiv Bhagat, CEO of Sundine, calling his family "loyal" CPK diners.
Still, CPK faces stiff headwinds. Casual dining has struggled in 2024, with some chains closing stores or seeking bankruptcy protection. TGI Fridays has closed scores of stores and filed for Chapter 11, and Denny's is shuttering over 150 locations. Even pizza-focused brands have struggled mightily in the past year, with Mod Pizza, Oath Pizza, Papa Johns and more all facing sales slides or bankruptcies.
But if CPK can find the right partners and the right locations, its franchise push just might provide the lifeline it needs to stage a comeback.