MOD Pizza Grows in 2020 Despite COVID Challenges

    Industry News | February 26, 2021

    MOD Pizza

    The MOD Rewards loyalty program grew to over two million members in 2020.

    MOD Pizza announced 2020 year-end results reflecting significant growth in digital sales, continued expansion of its store base and a deepening of its commitment to make a positive social impact amid an unprecedented year for the restaurant industry.

    MOD reported the following key business highlights for fiscal 2020, year over year:

    • System-wide sales of $461 million, a 5 percent decline
    • Company net revenue of $388 million, a 1 percent decline
    • Digital revenue up nearly 275 percent with digital transactions increasing 216 percent, representing approximately 40 percent of sales
    • MOD Rewards surpassed two million members, nearly doubling in the past year
    • Opened 22 net new locations; finishing the year with 490 stores system-wide
    • Welcomed one new franchise operator and added 13 previously franchised locations to the company-owned portfolio
    • Donated more than 200,000 meals to those struggling with food insecurity, granted over $750,000 to Squad members in crisis and launched several key initiatives to advance the Company’s commitment to building a more equitable and diverse workplace

     

    “While our very strong start to 2020 was disrupted by the pandemic, resulting in an initial dramatic decline in sales followed by a gradual recovery, I’m incredibly proud of the way our team responded to these unprecedented and uniquely challenging times. During the uncertainties of the past year, we drew strength and resilience from our purpose. As a result, not only did we successfully manage through the crisis, but we improved the business in multiple ways that will help us emerge from this crisis stronger than ever,” says Scott Svenson, co-founder and CEO, MOD Pizza. “We therefore enter 2021 with immense optimism about the future as we look forward to the opening of our 500th location and a pipeline of operational improvements and innovations that will further enhance the Squad and customer experience.”

    MOD’s digital revenue, which accounted for approximately 40 percent of sales in 2020, was driven by enhanced in-app features including delivery, the introduction of curbside ordering and pick-up, and the on-boarding of new delivery partners. MOD expanded its delivery capabilities by integrating UberEats and Postmates, in addition to its initial delivery partner DoorDash, while adding delivery as an option for in-app ordering. In April, MOD also introduced curbside pickup, which will remain a permanent option at most MOD locations.

    The MOD Rewards loyalty program grew to over two million members in 2020 and was a key driver in the company’s digital response to the disruption from COVID-19. Rewards members accounted for over 20 percent of system-wide sales and were a reliable source of demand amidst the recovery from the pandemic. 

    Despite the incredible challenges presented by the pandemic, MOD successfully opened 22 net new stores in 2020 – 19 company-owned and three franchise locations. In addition, in July, the Company acquired 13 existing MOD franchise locations in North Carolina and, in December, MOD welcomed a new franchise partner (DBMC Restaurants, LLC) to introduce MOD to Louisiana, Mississippi and Tennessee, and expand its footprint in Alabama.

    MOD will begin to reaccelerate its expansion in 2021 with dozens of new locations expected to open, including its 500th store by mid-year.

    MOD continued to lean into its purpose – to serve people in order to contribute to a world that works for and includes everyone. To this end, MOD rolled out several key initiatives throughout the year:

    Recognizing the heightened issue of food insecurity, MOD stepped up to provide additional support:

    “Operation Hunger,” delivered over 10,000 hot meals to the most vulnerable in local communities and provided more than 180,000 meals (in partnership with Generosity Feeds) to backpack programs and foodbanks.

    “Project Purpose” provided over 10,000 pizzas and salads to homeless shelters in partnership with the City of San Jose. 

    MOD’s annual Spreading MODness week in November raised money for 46 local and regional food banks and backpack programs. 

    During National Nurses Week, MOD surprised 10,000-plus nurses and front line workers with hot pizzas delivered to their workplaces. 

    Via the MOD “Bridge Fund,” the company supported Squad members in crisis through over $750,000 in emergency grants. The company also expanded its Squad meal benefit program to include a free meal for employees and all immediate family members at any time.

    To address the racial and social unrest of June 2020, the Company developed employee listening forums and launched an employee resource group (ERG) to support black employees and people of color at MOD. The Company also donated $75,000 to the Equal Justice Initiative, an organization focused on ending mass incarceration, excessive punishment, and racial inequality in the United States’ judicial system.

    The “MOD the Vote” campaign encouraged voter engagement ahead of the 2020 election, providing useful voter information and resources, plus paid time off for Squad members to vote. 

    MOD signed the “Delivering Jobs” Pledge to further its efforts to foster an inclusive and diverse workplace. With this commitment, MOD joins a coalition of companies committed to creating one million new employment and leadership opportunities for people with autism, and other intellectual and developmental differences by 2025.

    News and information presented in this release has not been corroborated by QSR, Food News Media, or Journalistic, Inc.