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Cici’s Pizza, the chain famous for advertising its $ 5 buffets even in areas where there are no Cici restaurants, struck a deal with its main lender after filing for bankruptcy.
The Plano, Texas-based pizza place filed for bankruptcy on Monday and will sell to D&G Investors, Restaurant Business reported. D&G acquired $ 82 million in debt from Cici’s previous lenders last month.
The growing popularity of food delivery has been a problem for Cici, especially as the COVID-19 pandemic has forced many diners across the country to stay at home. The chain has mainly relied on an in-person all-you-can-eat buffet model, the company said in a court case, according to the report. Before the COVID-19 pandemic, restaurant customers represented 86% of Cici’s business.
In some locations in Cici, buffets made up around 99% of revenue, according to the court record.
Cici’s Pizza made a deal to sell to its main lender after declaring bankruptcy. (iStock)
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The besieged pizza brand has changed hands four times in less than 20 years, QSR Magazine reported. The most recent change of ownership before this dates back to 2016.
There are only 318 Cici sites in 26 states. That’s half the number of restaurants in the chain 10 years ago, according to Restaurant Business.
The company had also tried to make itself more efficient before filing for bankruptcy, QSR reported. Cici’s transferred more restaurants to franchisees and planned to close one of the three distribution centers.
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Those plans were in the works when COVID-19 began to spread, causing the company to breach its credit agreement, according to the report.
The brand could pivot as customer habits change. According to reports, Cici’s has seen digital ordering and delivery grow 300% faster than restaurant traffic. And since pandemic closures forced dining rooms to close, Cici’s has been able to negotiate rent with its landlords and switch to focus on its take-out and delivery options.
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