MOD Pizza closed 27 locations nationwide, including five in California and two in New Jersey. One location in Texas was closed only 18 months after its opening. The seemingly abrupt decision left former workers and fans confused.
California locations were closed before the wage hike
MOD Pizza, which stands for Made on Demand, closed five California locations days before April 1, when the new $20 minimum wage hike went into effect. However, MOD spokesperson Rick Van Warner confirmed that the wages were not the reason for closing.
There are still more locations across the Golden State
The spokesperson explained that it was a coincidence to close five locations 8 days before the wage increase. He noted that the pizza chain has 53 restaurant units left working in the Golden State.
Nationwide closings
The closings happened statewide, with MOD Pizza closing three locations in Philadelphia, another three in Chicago, and three in Dallas. The company also closed three restaurants in Washington, D.C. Two units closed in Wisconsin, two in Seattle, and one each closed in Florida, Oklahoma, Virginia, and Oregon.
Closing underperformers
The popular pizza chain began its journey in Seattle in 2008. By December 2023, MOD Pizza had 560 across the States. According to the spokesperson, closing underperforming restaurants was part of the business, and it was inevitable.
What about employees?
According to Van Warner, the workers were offered relocations or severance pay. However, one Clovis employee said everyone was in the dark until two days before the closing. Two other former workers confirmed the story, though they did not reveal their identities due to non-disclosure agreements.
California workers believed it was due to the wage hike
The Clovis workers, 15 in total, thought that the real reason for closing five California locations was the wage hike. However, MOD Pizza had a great year behind, with domestic sales of $732 million, over 10 percent more than in 2022.
Massachusetts worker also spoke up
According to a report from the Wisconsin State Journal, Fitchburg employees were allegedly left with the paycheck. It’s been said that on March 19, before California closings, the general manager said there would be an emergency meeting the following day. The workers were reportedly told they would get paid if they completed their paperwork.
Conflicting reports
One worker reportedly received $1,300 in severance pay, while other sources said another received $2,000. One location that closed, Flower Mound in Texas, was open for around 18 months. The restaurant’s manager confirmed that the location did not get enough customers.
One of the best places to work
In 2015, the Fortune magazine listed MOD Pizza as one of the best places to work in retail. The pizza chain came in 7th spot. The pizza chain got the Impact Award for Job Creation and Workplace Development from Seattle Business Magazine the same year. This made these abrupt closings so confusing.
No longer in New Jersey
Cherry Hill and Marlton locations in New Jersey were also reportedly closed almost without notice. According to a Facebook post, New Jersey workers were also given only two days to leave their employment. Some commented that one of the locations had recently been remodeled.
MOD offers jobs without barriers
In 2023, the fast-casual chain started a new initiative to bring jobs to everyone, including incarcerated workers and those with intellectual and developmental disabilities. Since 2022, the pizza chain has been working with the Hospitality Opportunities for People ReEntering Society (HOPES), a pilot program.
The changing face of the fast food industry
In the past months, we have heard about many locations closing and opening while companies work on improving their business models and making them more in tune with post-pandemic consumers. Recently, Outback Steakhouse revealed closings and planned openings with modernized infrastructure and updated looks.
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