RAVE RESTAURANT GROUP, INC.

Rave Restaurant Group, Inc.

Overview

Rave Restaurant Group, Inc. franchises and licenses pizza restaurant concepts under Pizza Inn and Pie Five. The company supports franchised and licensed units through third-party food, equipment, and supply distributors. It also develops non-traditional, fast-casual, and express formats, operates ghost kitchens, and manages international growth through master licensing.

Brands and concepts

• Pizza Inn
  • Franchised formats: Buffet Units (dine-in and related services), Delco Units (delivery/carryout, production-focused), Express Units (non-traditional, quick carryout), and Pizza Inn Ghost Kitchen Units (online delivery only).
  • PIE Units (Pizza Inn Express kiosks): 0 licensed PIE Units as of June 28, 2026; no plans to open PIE Units in the foreseeable future.
• Pie Five
  • Fast-casual, customizable pizzas with dine-in service, sides, and beverages, operating primarily in traditional restaurant formats.
• Ghost kitchens
  • Pizza Inn Ghost Kitchen Units operate inside Pie Five restaurants and serve online orders via third-party delivery; they do not offer dine-in, carryout, or catering.
• International
  • Master licenses exist for Pizza Inn and Pie Five in applicable markets. The company is not actively marketing Pie Five master licenses internationally at present.

Unit counts (as of June 28, 2026)

• Total franchised Pizza Inn restaurants: 109
  • Domestic: 91 total (80 Buffet Units, 4 Delco Units, 7 Express Units, 0 Ghost Kitchen Units)
  • International: 18
• Total franchised Pie Five units: 13
• Licensed PIE Units: 0

Geography

• Domestic Pizza Inn restaurants are concentrated in the southern United States, with domestic shares approximately:
  • North Carolina ~21%
  • Texas ~18%
  • Arkansas ~11%
  • South Carolina ~10%
• International Pizza Inn activity is focused largely in Saudi Arabia and nearby Middle Eastern countries, with small outliers (3 restaurants in Honduras and 2 in New Zealand).

Business model and operations

• Franchising and development
  • Franchisees must meet Pizza Inn and Pie Five operational standards, pay franchise fees, contribute to marketing funds, and pay ongoing royalties.
  • Express and Delco Units have distinct site and operational requirements within the Pizza Inn system.
• Distribution and supply
  • Franchisees and licensees purchase food and supplies from authorized distributors. The company provides sourcing, quality assurance, and R&D support.
  • The network uses multiple distribution centers and third-party suppliers. Certain proprietary items (for example, cheese, dough flour, specific spices) are restricted to authorized suppliers; non-proprietary items can come from multiple sources.
  • The company monitors supply chain risk and negotiates pricing arrangements up to a year in advance for high-volume products.
• Marketing and branding
  • Franchisees contribute a portion of sales to national and regional marketing funds that support print, digital, PR, TV/radio, in-store materials, and store openings.
  • Local store marketing materials and programs support promotions and new openings.
• Training and standards
  • The company provides initial and ongoing training for franchisees and staff, including in-restaurant training for the first two openings.
  • Standards cover menu items, ingredients, materials, services, and branding to maintain consistency.
• Intellectual property
  • Trademarks include “Pizza Inn” and “Pie Five,” registered in the U.S. and several foreign markets, with indefinite duration subject to renewal and continued use.
• International development
  • Master licenses typically grant development rights for defined territories on 20-year terms with a 10-year renewal option. Master licensees may open restaurants themselves or sub-license to others, subject to company approval, with shared fees and royalties.
• New unit development outlook
  • The company planned continued expansion of Pizza Inn domestically and internationally and evaluated further Delco and Buffet expansion in international markets during fiscal 2027. It does not plan active expansion of PIE Units.

Operations and corporate details

• Employees: 24 full-time employees as of June 28, 2026.
• Headquarters and facilities
  • Corporate office: 19,576 square feet.
  • Average annual lease payments: about $18 per square foot.
  • Current lease began January 2, 2017 with a 10-year term; the company deferred half of base rent for June 2020–May 2021.
  • The company plans to relocate its corporate headquarters in January 2027 within the Dallas market and is negotiating a new lease.
• Cybersecurity and governance
  • The company maintains an information security program, conducts third-party risk assessments, requires employee security training, and assigns board-level oversight to the Audit Committee.
• Legal proceedings
  • A dispute arose in August 2026 involving the CEO’s complaint about workplace harassment and a requested independent investigation. A potential Texas Workforce Commission claim was mentioned, and Hagan Law Group is conducting an investigation. The company is reviewing information and will respond after the investigation.