Chuck E. Cheese Creates New Brand for Third-Party Platform

    Company said the separate brand features an upgraded pizza.

    The outside of a Chuck E. Cheese' restaurant.

    flickr: Mike Mozart

    The brand has health and safety measures in place in anticipation of reopening.

    Customers may be ordering delivery from Chuck E. Cheese and not even realize it.

    A month ago, a Reddit user who ordered from a brand labeled Pasqually’s Pizza & Wings on Grubhub realized that the food came from the local Chuck. E. Cheese. Others across the nation came to a similar realization.

    CEC Entertainment, parent of Chuck E. Cheese, confirmed it and said Pasqually’s Pizza & Wings is named after one of the eatertainment brand’s cast of characters. The parent company said Pasqually’s pizza uses similar ingredients as a Chuck E. Cheese pizza, but features a thicker crust, extra sauce, and new blends of cheese and seasonings.

    "CEC Entertainment launched Pasqually’s Pizza & Wings, a delivery-only brand operating on its own, leveraging the operational infrastructure of Chuck E. Cheese kitchens across the nation," the company said in an email to QSR. "The inspiration was rooted in the desire to create a premium pizza while staying true to the CEC brand. Pasqually’s Pizza & Wings, named after another favorite member of Munch's Make Believe Band, shares kitchen space with the Chuck E. Cheese restaurant, ensuring high-quality, fresh ingredients."

    Applebee’s apparently made a similar move and is selling product under the name Neighborhood Wings on Grubhub. The company said it was an opportunity to test new items that aren’t on the main menu.

    The news comes as Chuck E. Cheese prepares itself to welcome customers back into its dining rooms. The bigger issues, however, is the reopening of the arcade and entertainment rooms. Merchandise and entertainment represent 56 percent of revenue.

    The brand has health and safety measures in place in anticipation of reopening.

    Temperature checks will be required for employees and customers. Employees have to to wear face masks, and guests will be strongly encouraged to do the same. Consumers must use  hand sanitizer before entering the location, and stations will be set up throughout the dining and gaming rooms.

    Instead of using a hand stamp at the kid check station, each customer will be asked to take a “kid check selfie.” Seats will be limited, and games will be spaced at a minimum of 6 feet. Some games may not be available and multiplayer games will be limited to one player. Games, restrooms, and dining rooms will be sanitized every 30 minutes. Stores will facilitate a touchless experience through payment and with prepackaged prizes. Salads will also be prepackaged because locations will close their salad bars. Parties won’t be held during regular business hours and will only be available via private reservation.

    “All of these measures are being implemented to ensure that you can have a great time in the safest environment that we can possibly provide,” said David McKillips, CEO of CEC Entertainment, in a video.

    In April, CEC formed a restructuring committee to evaluate strategic alternatives, which may include a possible bankruptcy filing.

    As of May 11, CEC, which also owns Peter Piper Pizza, said 86 company-run stores are closed due to sales performance. All other stores are open for carryout and delivery, but dining, entertainment, and arcade rooms remain closed. Twelve company-run locations have permanently closed since the end of 2019.

    CEC is in ongoing discussions with landlords to secure rent concessions such as deferrals, abatements, and reduction of future rent. The company said there’s no guarantee that it will receive enough rent concessions to prevent the permanent closure of more stores.