Investors led by Consortium Brand Partners agreed to acquire California Pizza Kitchen today.
- The deal values the company at just below $300 million, a source confirms to Axios Pro.
Why it matters: Pizza restaurants have struggled to sell themselves as health- and budget-conscious consumers choose to eat in more often.
Yes, but: California Pizza Kitchen's new owners believe it offers a healthier product, with greater diversification in its product mix.
- "CPK has actually always been thought of, in many ways, as the healthier balance of a lot of other restaurants," says Consortium Brand Partners' Managing Partner Cory Baker. "When you look at the grocery competitors... CPK typically competes against brands like Amy's or Newman's Own."
The big picture: California Pizza Kitchen epitomizes the bifurcating economy, whereby wealthier consumers are continuing to spend, but lower-income buyers are choosing the grocery store.
- That's especially been the case as food-away-from-home inflation outpaces that of food-at-home.
- Under Consortium, it plans to grow its grocery offerings beyond pizzas, says Baker.
California Pizza Kitchen already offers more than pizza in its stores, selling items like chicken piccata and cedar plank salmon.
By the numbers: Currently, 23% of its revenue comes from pizzas, Baker says. The company, which is profitable, is expected to finish just under $1 billion in revenue this year, roughly level with last.
- The company has 20 franchisees, and it plans to franchise more of its 120 locations. The company also debuted a line of unmanned pizza vending machines this year.
One fun thing: California Pizza Kitchen has no plans to jump on the buzzy pizza robot train.
- "We'll always explore technology where it makes sense, but pizza robots today are much more about theater than it is about efficiency," says Baker.
