Popular pizza franchisee files for bankruptcy despite two years of national expansion

Dough deficit.While this popular pizza chain has recently opened dozens of new locations, the crust could not cover the costs for one franchisee.

Last week, Rogue Fare LLC, which operates five Mountain Mike’s Pizza restaurants throughout the state of Oregon, filed for Chapter 11 bankruptcy.According to court papers, the petition, which was filed in the US Bankruptcy Court for the District of Oregon in Eugene on July 1, listed assets between $0 and $50,000 and debts between $1 million and $10 million.Rogue Fare operates two locations in Medford, Oregon, where the LLC is based, as well as restaurants in Klamath Falls, Grants Pass, and Roseburg.

Per the petition, the debtor’s largest creditors include First Bank of the Lake, which is owed over $2.9 million, followed by First Internet Bank of Indiana, which is owed over $1.5 millionThe debtor did not provide a reason for filing for bankruptcy in its petition.However, rising pizza prices have led to a decline in industry sales over the past few years.

Earlier this year, Mountain Mike’s was ranked as the 6th most overpriced pizza chain in the US.In February, Papa John’s announced that hundreds of underperforming restaurants would cease operations by the end of 2027, describing the locations as primarily franchise-owned, more than a decade old, and generating less than $600,000 in annual sales volume (AUV).Meanwhile, Pizza Hut announced earlier this year that it would close 250 locations as its parent company completes a strategic review of the business, and warned that it could sell the chain.Not only are franchisees across the fast-food industry facing severe headwinds from inflation, supply chain expenses, and labor costs, but pizzerias nationwide are facing stiff competition.A recent Wall Street Journal report found that pizza restaurants are now outnumbered by Mexican restaurants and coffee shops.Unlike its better-known competitors, which are closing up shop across the country, Mountain Mike’s has bee...