Edit ModuleShow Tags
Edit ModuleShow Tags

Giordano's moving past bankruptcy and into expansion


Published:

Only four years after applying for Chapter 11 bankruptcy in 2011, Giordano’s Pizzeria is headed toward accelerated growth, as a result of a combination of new management and old recipes. According to the pizza chain’s VP of Franchise Development Eric Brown, the filing was not a failure of Giordano’s product but rather a series of questionable business decisions on the part of the brand’s first owners. “Giordano’s pizza never suffered, it was a casualty of some bad real estate deals,” he said. “They got in over their heads.”

Victory Park Capital—the investment group that bought Giordano’s off the auction block in 2011—has been able to begin to turn the company around without significant changes to the Giordano’s brand. The new owners’ first priority was to bring on new leadership (including the company’s current CEO Yorgo Koutsogiorgas) and chefs to enhance and expand the menu. Victory Park reassured Giordano’s franchisees “that their business [was] going to be solid with this ownership change,” Brown said.

After establishing a stronger foundation, and keeping the restaurant’s famous stuffed pizza (NOT deep-dish, Brown stressed) as the menu’s “star,” Giordano’s has been able to focus on growth instead of simply staying afloat. The new executive team has been working “to expand the brand outside of [the] core market,” Brown said.

Expansion applied not only to locations outside of the brand’s home base of Chicago, but to the menu as well. Brown believes the restaurant’s inclusion of pastas, salads and sandwiches is a large part of its success in the last four years, because these options help to remove the veto vote.

Giordano’s newest company-owned location opened on July 15; Denver is slated to be next. The chain is also scouting Phoenix, Arizona; Houston, Texas; New York; and Northern California as viable markets. 

Edit Module
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit ModuleShow Tags


Covers everything from good news to bad judgment

About This Blog

The latest news, opinions and commentary on what's happening in the franchise arena that could affect your business.

Laura MichaelsLaura Michaels is editor of Franchise Times. She can be reached at 612.767.3210, or send story ideas to lmichaels@franchisetimes.com.
 
Beth EwenBeth Ewen is senior editor of Franchise Times. She can be reached at 612.767.3212, or send story ideas to bewen@franchisetimes.com.
 
Nicholas UptonNicholas Upton is restaurants editor at Franchise Times. He can be reached at 612.767.3226, or send story ideas to nupton@franchisetimes.com.
 
Mary Jo LarsonMary Jo Larson is the publisher of Franchise Times Magazine and the Restaurant Finance Monitor.  You can find her on Twitter at
 twitter.com/mlarson1011.
 

Archives

Categories

Feed

Atom Feed Subscribe to the Franchise Times News Feed »

Recent Posts