Who Owns Donatos Pizza?

Donatos was re-acquired by Jim Grote and Jane Grote Abell so the business could grow on the values and culture it was founded.
In 1999, Donatos was purchased by McDonald’s in an attempt to enter the pizza industry. A majority interest in Donatos was repurchased by Jim Grote and daughter Jane Grote Abell in 2003 as McDonald’s sought to refocus on its core business.

Are Donatos and Red Robin the same company?

-based Red Robin has been adding the Donatos brand to its restaurants since 2018 in one of the industry’s more unique cobranding arrangements. Red Robin said on Monday that it plans to add the pizza concept to 120 more restaurants this year, bringing the total to more than 200 by the end of 2021.

Did Mcdonalds buy Donatos?

McDonald’s Corp. said Tuesday that it agreed to purchase Donatos Pizza Inc., a Midwestern chain of 143 restaurants–a move analysts viewed as an effort by McDonald’s to grab a bigger bite of the dinner market.

When did McDonald’s buy Donatos?

In May 1999, McDonald’s Corp. announced it bought Donatos Pizzeria, a 143-unit chain it called the ‘gold standard’ for pizza in America.

Who bought Red Robin?

Private equity firm Vintage Capital Management LLC offered on Thursday to buy Red Robin Gourmet Burgers Inc. for $40 per share, according to regulatory filings. Vintage, which said it was the third largest shareholder in the Greenwood Village, Colo.

How old is Jane Grote?

Jim Grote, 70, and his daughter, Jane Grote Abell, 46, are the only family members currently working for the company. Abell, who is chairman, owns about 20% of the company; Grote owns 70%. The rest of the shares are owned by other family members and a few employees.

Who is Jane Grote married to?

Jane and her husband Tom reside in Bexley. Jane has 1 son and 2 daughters and Tom has 3 sons.

How many Donatos Pizza locations are there?

Now with over 375 locations in 22 states, Donatos and its franchise partners operate more than 170 traditional restaurants in Ohio, Indiana, Kentucky, Virginia, West Virginia, South Carolina, Alabama, Tennessee, Georgia, Pennsylvania, and Florida.

How much does a Donatos franchise cost?

What Does a Donato’s Pizzeria Franchise Cost? To buy a franchise with Donato’s Pizzeria, you’ll need to have at least $150,000 in liquid capital and a minimum net worth of $500,000. Franchisees can expect to make a total investment of $461,000 – $667,000.

How did Donatos get its name?

When Jim Grote purchased the original Donatos restaurant in 1963, he chose to keep the business’ name. The decision was less of a business strategy and more of a business philosophy. ‘Donatos’ is a Latin phrase that roughly translates to ​​’to give a good thing,’ according to the restaurant.

Is Donatos in Texas?

Donatos comes to Texas.

Does Mcdonalds own Chipotle?

While the Golden Arches initially took only a minority stake, by the time Chipotle went public in 2006, McDonald’s owned more than 90% of the company. McDonald’s no longer owns any shares of Chipotle (something it must also now regret), but the impact on Ells’ ownership stake was permanent.

Is there a Donatos Pizza in Las Vegas?

Donatos Pizza Delivery Menu | Order Online | 9600 S Eastern Ave Las Vegas | Grubhub.

Is Donatos Pizza coming to Knoxville TN?

August 25, 2020 | QSR Magazine | Original Article Donatos Pizza is headed to Knoxville. The fast-casual pizza chain once owned by McDonald’s and famous for its Edge-to-Edge toppings, has signed an agreement for the development of three area restaurants.

Who Owns Donatos Pizza

1. Who is the owner of Donatos Pizza?
2. McDonald’s was impressed with the brand and decided to purchase Donatos with the goal of expanding the brand countrywide.
3. Donatos was re-acquired by Jim Grote and Jane Grote Abell in order for the company to continue to flourish on the foundation of its founding ideals and culture.

Is Donatos a restaurant that is owned by Red Robin?This year, Red Robin hopes to expand Donatos to an additional 100 Red Robin locations around the country.Donatos’ expansion in 2021 and 2022 might add another 150 restaurants every year, increasing the total number of Donatos locations to around 425 of Red Robin’s 560 locations.

• Donatos’s cautious approach has given way to eagerness.
• Do you know if McDonald’s owned Donatos pizza?
• Donatos, a family-owned business that briefly was bought by McDonald’s Corp.

(NYSE: MCD) before being sold back to its owners in 2003, had seven locations in Central Florida until closing its doors in the Orlando region in 2008, as previously reported by OBJ.Who is the President and CEO of Donatos Pizza?Kevin King has been appointed as the new president of Donatos, the firm said on Friday.CEO Tom Krouse, who has served as president and CEO since 2010, will step down to allow King to take over the position.

When did Mcdonalds own Donatos?

McDonald’s Corporation stated in May 1999 that it had acquired Donatos Pizzeria, a 143-unit chain that it referred to as ″the gold standard″ of pizza in America. As soon as Jim Grote signed the document, he made the American businessman’s dream come true: to establish a firm from the ground up, build it, and then sell it to a behemoth in the sector for a large sum of money.

Who bought Red Robin?

According to regulatory documents, the private equity company Vintage Capital Management LLC made an offer on Thursday to purchase Red Robin Gourmet Burgers Inc. for $40 per share, which was accepted. According to Vintage, which claimed to be the third largest stakeholder in the company based in Greenwood Village, Colo.

How much does a Donatos franchise cost?

What does it cost to own a Donato’s Pizzeria franchise? To be eligible to purchase a franchise with Donato’s Pizzeria, you must have at least $150,000 in cash capital and a net worth ranging from $500,000 to $850,000, respectively. It is expected that franchisees would make a total investment of $461,000 – $667,000. They also provide funding through a third party.

Who is Jane Grote married to?

In 2015, Jane launched her first book THE MISSING PIECE: Doing Business the Donatos Way. Jane and her husband Tom dwell in Columbus. Together they are parents of Tony, married to Hannah; Brianna; Tori; Kenny; Charlie; and Joey; with three grandsons, Roman, Lucas and August.

How did Donatos get its name?

When Jim Grote bought the original Donatos restaurant in 1963, he decided to preserve the name of the establishment. Rather than being driven by a business plan, the choice was driven by a business philosophy. A Latin term, ″donatos,″ means ″to give something nice,″ and according to the eatery, it basically translates to ″to provide something good.″

Is Donatos a publicly traded company?

We keep our commitment to you, your associates, and the people in your community, and we deliver on it. Founded by a family of entrepreneurs in a private firm, Donatos respects its Franchise Partners as though they are members of the same family. Our mission is to build goodwill through the use of our products and services, as well as our principles and people.

How much did Donatos sell for?

McDonald’s will incur a short-term loss as a result of the sale of Donatos and the closure of the remainder of its partner brand locations outside of the United States, resulting in a fourth-quarter charge of 23 to 28 cents per share, or about $300 million to $360 million.

How many Donatos Pizza locations are there?

Doing business in 22 states, Donatos and its franchise partners operate more than 170 conventional restaurants in states such as Ohio; Indiana; Kentucky; Virginia; West Virginia; South Carolina (including Charleston); Alabama; Tennessee; Georgia; Pennsylvania; and Florida (including Orlando).

Can you ship Donatos Pizza?

Gahanna-based Donatos Pizza Parcel, a new service announced this week by the company, will carry four take-and-bake pizzas anywhere in the continental United States for the price of $85 (including shipping).

Is there a Donatos Pizza in Las Vegas?

Delivered pizza from Donatos Pizza, located at 9600 S Eastern Ave in Las Vegas, is available through Grubhub.

Which company owns Burger King?

RBI owns four of the world’s most popular and iconic quick service restaurant brands: TIM HORTONS®, BURGER KING®, POPEYES®, and FIREHOUSE SUBS®. RBI is a subsidiary of the Royal Bank of Canada. Each of these independently owned and run companies has been providing service to its customers, franchisees, and communities for many years.

Why is Red Robin called Red Robin?

In the 1940s, Sam’s Tavern opened its doors in Seattle, a college town known for its wild parties. The song ″When the Red, Red Robin (Comes Bob, Bob Bobbin’ Along)″ was one that Sam enjoyed singing as part of a quartet, and it was this song that inspired Sam to rename the successful burger shop to Sam’s Red Robin.

Is there a Donatos in Texas?

Donatos comes to Texas.

How do I cancel a Donatos order?

Alternatively, you can contact us at 1-800-DONATOS (1-800-366-2867).

How many pieces of pepperoni are on a large thin crust pepperoni pizza?

Thin Crust Pepperoni Pizza – Extra Large from Domino’s (8 Slices) MyFitnessPal allows you to keep track of your macronutrients, calories, and more. Joining is completely free!

Why is Donatos Pizza so good?

The mix of ingredients we utilize, as well as the way the pepperoni is cured and cooked, all contribute to the ability of the pepperoni to cup, resulting in the unique crispy texture you will find on all Donatos pepperoni pizzas and calzones.

What is Donatos mission?

Donatos’s Mission and Promise include the responsibility of being a good neighbor. In reality, the name Donatos is derived from the Latin phrase ″to provide a good thing.″ This entails giving back to the communities in which we operate. Making pizzas is a lot of fun.

What kind of cheese is on Donatos Pizza?

Cauliflower crust topped with fresh baby spinach, savory plant-based sausage, roasted garlic, and four delectable cheeses: fresh Mozzarella and Asiago, aged, smoked Provolone, and Romano. 10″ Cauliflower Crust

What is Columbus pizza?

Columbus style, also known as square cut, party cut, or tavern cut, is a type of pizza that is baked on a thin crust, covered in toppings from edge to edge, and then cut into smaller squares.

Who is the owner of Donatos Pizza?

Jane Abell

How long are Donatos subs?

Donatos Pizza Prices

Food	Size	Price
Gluten Free Cheese Pizza	Medium (12″)	$13.59
Sub
Big Don Italian Sub		$6.19
Big Ham and Cheese Sub		$6.19

Who has cauliflower pizza crust?

• The following seven restaurants serve crustless pizza: Giovanni’s Pizza, Lou Malnati’s Pizzeria, Marco’s Pizza, Mazzio’s Pizza, Noble Roman’s Craft Pizza and Pub, Papa Murphy’s Take ‘n’ Bake, Pizza King, and Papa Murphy’s Take ‘n’ Bake.

Can you buy cauliflower pizza crust at Walmart?

Cali’flour Foods is a brand of Cali’flour. 1 pound Cauliflower Pizza Crust, Plain, 9.75 ounces, 2 Crusts Walmart.com (http://www.walmart.com/) Walmart.com is a retailer that sells goods and services to consumers.

What is cauliflower pizza crust made of?

Cauliflower Crust: What You Need to Know Cauliflower: You will need a huge head of cauliflower that is 6′′ – 7′′ in diameter and weighs around 2.5 – 3 lbs. In order for cauliflower pizza dough to come together, an egg must be used as ″the glue.″ Cheese: As the cheese melts during the baking process, it aids in the binding of small bits of cauliflower together to form a crust.

Is cauliflower crust healthier than regular pizza crust?

Every product is unique in its own way. The calories in certain cauliflower crusts are greater, and they may have the same amount of carbohydrates as a thin, 100 percent whole-wheat pizza crust. Alternative crusts that are heavy in calories will not assist you in your weight reduction efforts, as calories are the factor that has the most direct influence on weight.

Can you eat cauliflower crust pizza on keto?

Cauliflower pizza crust is a wonderful gluten-free, low-carb, and keto pizza dish that uses cauliflower as the crust. Cauliflower, eggs, cheese, and a few seasonings are combined in a flattened disc and cooked until the crust is golden brown. You can either freeze it for later use or top it with fresh toppings for a nutritious supper preparation.

How many carbs are in a 10 inch cauliflower pizza crust?

Other than being gluten free and low in sugar, our pizzas do not include any processed flour and have just 14g net carbs and 18g protein, unlike most other pizzas.

What is the best store bought cauliflower pizza crust?

Trader Joe’s

Is cauliflower pizza crust really low carb?

Pizza with a cauliflower crust that is incredibly crispy and tastes exactly like conventional pizza, but with only 4 grams of net carbohydrates per slice! So, who’s up for losing a few pounds this season? Cauliflower pizza is fantastic since it is low in carbohydrates and includes no flour at all.

Is cauliflower crust high in carbs?

Keep an eye on your carbohydrate intake. A single slice might contain anything between 2 and 29 grams of fat. That’s a wide range, especially considering that cauliflower is low in carbohydrates (a cup has 5 grams). What is the reason for the difference? Crusts may contain carbohydrate-rich ingredients such as rice or brown rice flour, sugar, tapioca starch, and corn starch.

Is cauliflower pizza high in carbs?

A look at the nutritional information for Cauliflower Pizza Crust. Cauliflower pizza crust has 16 grams of carbohydrates, which is a minimal amount. When compared to our deep dish, gluten-free, original, and slim crusts, cauliflower crust falls somewhere in the middle of the road in terms of carbs and fat. It has the same amount of carbs as a deep dish, which has 15 grams.

Is Caulipower pizza crust Keto friendly?

After that, your body will transform into a fat-burning machine! Reduced hunger, increased mental stamina, an improvement in general vitality, and quick weight reduction are some of the benefits of this treatment. As a result, I present to you Cauliflower Pizza. A fantastic supper that is sure to wow, and it is completely keto-friendly.

Can I eat pizza on keto?

Yes, pizza may be eaten on a ketogenic diet; however, Boyer advises using cauliflower crust (which can be produced at home or purchased frozen) mixed with almond flour instead of carb-laden pizza dough to achieve this.

Is cauliflower pizza from Costco Keto?

Riced cauliflower may be used to make a variety of delicious keto dishes, including rice bowls, pilafs, pizza crusts, and more.

Can you eat cauliflower on a keto diet?

Cauliflower and broccoli have nutritional profiles that are very comparable. Because it has just 1.5 grams of net carbohydrates per half cup, it is an excellent cruciferous vegetable to select if you are following a ketogenic diet, according to Dixon.

Donatos Pizzeria Corporation – Company History

Address: 1 Easton Oval, Suite 200 Columbus, Ohio 43219, United States of America Telephone:(614) 416-7700 Toll Free:800-366-2867 Fax:(614) 416-7701 Email: [email protected]

Statistics:

• McDonald’s Corporation wholly owns this subsidiary company. Donato’s Pizza, Inc. was founded in 1963 as a for-profit corporation. 5,000 people work at the company. Sales totaled $197 million (2002) 722110 is the NAIC code for this company. Restaurants with a full range of services Company Perspectives: Donatos was started by Jim Grote while he was a sophomore in college. His attitude was straightforward: ‘To produce the greatest pizza possible while treating people in the manner in which I would like to be treated.’ Jim developed a relationship of trust with his clients and a sense of goodwill in the community. And, despite the fact that Donatos has developed and expanded into more than 170 communities, Jim’s philosophy has remained constant throughout the years. Important dates include: The year is 1963, and James Grote purchases a pizza shop named Donatos. Donatos introduces the notion of franchising in 1991. Donatos is bought by the McDonald’s Corporation in the year 1999. Munich, Germany welcomes the first Donatos restaurant in 2002. History of the company: It is a subsidiary of McDonald’s Corporation, and it is a segment of the fast-food giant’s speciality cuisine business. It was founded in 1982. Donatos runs around 200 pizza restaurants, including franchised locations, in the United States and Canada. The firm’s restaurants are located in seven states, spanning a limited slice of territory ranging from Michigan to Alabama, and are owned by the corporation. In Munich, Germany, a single Donatos unit is in operation. Known for spreading its toppings to the edges of its pizza, this business is well-known in the food industry. Donatos’ menu now offers sub sandwiches and salads, in addition to pizza. The restaurant business provides delivery and carryout services, as well as a dine-in telephone ordering system at some locations. Origins Donatos received strength from James Grote, who had served as its head for a long period. Grote, who was born and raised in Columbus, Ohio, began baking pizzas while still in high school in the late 1950s. When he wasn’t in school, he worked at a pizza shop named Cy’s, where he developed his business philosophy. Grote was employed by two partners who performed night shifts on a rotating basis. Restaurant Business magazine published an article by Grote on April 15, 1998, explaining that ″one was sparse, while the other was generous.″ ″There were a lot of people in the store on the nights that the generous guy worked. They were aware of which night they wanted to attend, of course ″He went on to say more. Grote’s lesson was more in-depth. He saw that the mood of Cy’s altered depending on which partner was working, and that it shifted from ″pleasant″ to ″nasty″ every other night as a result. ″I determined that when I had my own establishment, there would be a set of ethics and beliefs, that you should always treat people the way you want to be treated,″ Grote said in an interview with Restaurant Business. Grote’s early job experience established in him a drive for consistency in both product and management, which he applied to his later career. For a brief moment, it appeared as though Grote might have the opportunity to put his entrepreneurial ideas to the test before graduating from high school. Cy’s was Grote’s place of employment for three years. When he was in the eleventh grade, his two bosses approached him about the possibility of purchasing the pizzeria. Grote attempted to borrow money for the purchase from his father, who worked as a butcher, but the senior Grote refused, believing that pizza was a passing trend that would pass quickly. Following the failure of his initial effort to become a restaurateur, Grote enrolled at Ohio State University, where he remained for a little more than a year before the chance of being a pizza shop owner arose once more. While still a sophomore in college, Grote discovered that Donatos had been put on the market for sale. Grote was successful in his second effort at ownership, borrowing $1,300 from his father and the owner of a plumbing company in order to purchase Donatos. Grote’s foray into the restaurant industry had a homey feel to it, as did his first attempt. His mother assisted him in the preparation of the pizzas, and he kept a 100-pound sack of flour in her kitchen to ensure that she had enough flour to create pizza dough. She also produced the meatballs and sausages for the restaurant, using meat that she obtained from her husband, who worked as a butcher. The company fared successfully, gaining a large enough following in Columbus to support further development. Despite the fact that Grote subsequently expanded Donatos, he did not consider his first success to be a reason to take urgent action. His worry about the consistency of his product, which arose during his time at Cy’s, caused him to be hesitant about expanding. It was important to him that a pizza cooked at one Donatos would be identical to a pizza made at another Donatos before proceeding. He discovered that duplication was tough to achieve since it required more than just various restaurants operating from the same recipe. In the end, Grote felt confident enough to grow, but his satisfaction with the consistency issue did not inspire him to embark on an aggressive expansion frenzy. Donatos expanded slowly, and the company did not expand beyond of the Columbus region for more than two decades. As Grote’s chain evolved, it gradually gained the characteristics that distinguish it today. Provolone cheese was used in place of mozzarella in Grote’s recipe. He topped his pizza all the way to the edge of the plate. Instead of cutting the pie pieces into triangles, the squares were used. However, according to the Grote family, the most essential characteristic of Donatos’ pizzas was the high quality standards to which they were held during the manufacturing process. The rule of thumb was to maintain consistency throughout the whole pizza-making process. The weight of the meat compensated for the tiny disparity in the number of slices of pepperoni on top of a Donatos pepperoni pizza, as shown in this illustration. According to James Grote’s son, Tom Grote, in the October 12, 2001 issue of the Philadelphia Business Journal, whether there were 105 slices or 106 slices, the weight was nearly always the same, measured to ″within a thousandth of a pound,″ regardless of how many slices were used. In the 1990s, the economy grew. Over the course of its first quarter-century in business, Donatos established itself as a staple of the Columbus market place. Grote, who was assisted in the operation of the business by his children and extended family, established more than a dozen pizza eateries in his home town of St. Louis. It was finally decided to expand outside of Columbus
• Nevertheless, Grote was concerned about losing continuity in the process. By the early 1990s, he was certain that the Donatos model could be successfully implemented in other countries. The refining of a dough system was one of the most significant issues that had been handled in order to allow for regional growth. According to an article published in the April 15, 1996 issue of Nation’s Restaurant News, Grote utilized a ″low-temperature dough″ to make his pizza. The dough was rolled at a commissary and kept at zero degrees Fahrenheit until it was sent to the Donatos units, where it was baked. Grote felt confident in his ability to maintain product consistency and was ready to develop his business more aggressively. In 1991, he established a franchising scheme and began entering into agreements with potential franchisees. The firm’s development was aided through franchising, which enabled the company to reach a total of 30 locations throughout the system by the end of 1992. By the end of 1993, Donatos had a total of 41 locations in operation. Towards the middle of the 1990s, Grote was gearing up to launch Donato’s most aggressive growth effort to yet. By the end of the year, the firm, which produced an estimated $80 million in revenue in 1995, had grown to include approximately 100 outlets. It was estimated that there were around twice as many company-owned restaurants as there were franchised restaurants in operation in 1990, a ratio that the firm wanted to reverse by the late 1990s. With this in mind, the firm set out to build a chain in which 70% of the restaurants were owned by franchisees and 30% were controlled by the corporation. As a result of this expansion, a new position was created in 1996: vice president of franchise development. A more efficient operations system was also implemented, and the firm hired several new members to its management team who were experienced in managing growth. A new advertising campaign, centered on the phrase ″Best pizza on the block,″ was also launched. Donatos positioned itself as ″the local favorite,″ according to the slogan of a marketing campaign designed to aid the chain’s expansion into other locations. For the year 1996, the corporation aimed to establish 41 additional restaurants, with just eight of them being owned by the company. The company expanded into a number of new areas during the next two years, opening an average of 25 new stores per year during that time period. Units were established in Indiana, Michigan, Kentucky, Tennessee, Alabama, and Georgia, both as company-owned and franchised operations. The firm did not accomplish its target of a 70 percent to 30 percent franchise-to-company-owned ratio, although it did open more franchise units than company-owned restaurants. By 1998, system-wide sales were expected to have reached $130 million, with 80 company-owned Donatos and 60 franchise units contributing to this amount. McDonald’s Corporation purchased the company in 1998. The corporation was being closely scrutinized as it moved through with its expansion in 1998. Following a visit to Grote’s business by McDonald’s Corporation management in May of that year, the company decided to conduct an internal investigation. On the prowl was the fast-food behemoth, whose own system-wide annual sales topped $32 billion and which was attempting to mimic the three-pronged approach of Tricon Global, which owned Pizza Hut, KFC, and Taco Bell among other brands. Pizza was an obvious option for McDonald’s management as a new business venture since it was the fastest-growing section of the industry, according to company officials. It is reported that they conducted extensive research, examining the operations of 61 different pizza establishments, before making their final decision. Grote’s phone rang one day in November 1998, and he answered it. On the other end of the phone line, Pat Flynn, executive vice-president of McDonald’s, informed Grote of his company’s strong interest in the Donatos franchise. Following that, Flynn traveled to Columbus, Ohio, to meet with Grote. Later, Grote agreed to sell Donatos’ 146 units to McDonald’s for an undisclosed sum, a few weeks after he was approached. Donatos became a wholly owned subsidiary of McDonald’s following the completion of the transaction in July 1999. Grote relinquished control of Donatos after 36 years as the company’s president and chief executive officer. Grote’s power over the firm did not diminish as a result of the company’s acquisition by McDonald’s, though. Bill Rose, a former senior vice-president for Southeast and Central Asia at McDonald’s, has been entrusted with day-to-day management of Donatos. Grote was given the title of chairman, but he was much more than a ceremonial presence at Donatos. McDonald’s made its initial foray into the pizza section of the food market in the early 1990s, when it began providing slices of pizza at several thousand of its hamburger franchise locations. The experiment was a failure. McDonald’s management understood they required the assistance of someone who had prior expertise in the preparation and sale of pizza during their second incursion. They went to Grote for help, relying on his extensive industry knowledge to assist them in their diversification efforts. Having become a McDonald’s subsidiary, Donatos was poised for rapid development as the twenty-first century dawned on the company. A few months after Flynn initially approached Grote, McDonald’s announced that it had invested $20 million in Chipotle Mexican Grill, a chain of 22 Mexican restaurants situated in Denver, Colorado. A second acquisition was finalized in April 1999, when McDonald’s completed the purchase of Aroma Ltd., which was situated in London and operated 22 locations that offered coffee and sandwiches. McDonald’s specialty food business was founded by the merger of three subsidiaries: Donatos, Chipotle, and Aroma. It was a tiny component of the firm’s operations in Oak Brook, Illinois, but it was projected to grow significantly in the future years as the corporation expanded its operations. At initially, the parent corporation focused its emphasis primarily on the growth of the Chipotle restaurant chain, but industry observers predicted that Donatos would eventually profit from the massive financial resources of McDonald’s. It was claimed in the October 15, 1999 edition of Restaurant Business that McDonald’s expected to establish 75 additional Donatos locations during its first full year of ownership and planned to increase the expansion rate in subsequent years, according to unidentified sources in the autumn of 1999. Of particular intrigue were allegations that McDonald’s was considering expanding the Donatos restaurant franchise to other countries, according to Reuters. Donatos changed its name not long after establishing its new period of ownership and management. It was in 2000 that the formal name of the firm was changed from Donatos Pizza Corporation to Donatos Pizzeria Corporation, which reflected the change in décor at the company’s locations. During the course of the year, 22 new restaurants opened around the country, with the majority of them in Atlanta, Cleveland, and Indianapolis. With the opening of 42 new Donatos locations, the company’s rate of growth nearly doubled in 2001 compared to the previous year. There were 186 restaurants in operation in seven states as of August 2001, with plans to expand the chain’s geographic reach in the near future. More than a year later, the firm announced that it will build five Donatos restaurants in Philadelphia, which would act as a springboard for further expansion throughout the northeastern United States. While preparing to celebrate its 40th anniversary, Donatos paused the speed of its expansion while it experimented with a different pizzeria concept. When it comes to new restaurant openings in 2002, Donato’s and another part of McDonald’s specialty food business, Boston Market, both launched fewer locations than they had in previous years. However, Donato’s did make a major geographic expansion throughout the year. In November 2002, a Donatos made its debut in Munich, Germany, marking the beginning of what might be a series of abroad units. Throughout the United States, the corporation was testing a dine-in telephone ordering system that included a phone at each table. According to a Donatos executive quoted in the July 22, 2002 edition of Nation’s Restaurant News, ″Whenever they are ready to order, or whenever they need somebody, all they have to do is pick up the phone.″ As Donatos planned for the future, it was anticipated that the company would grow even more. With the formation of McDonald’s specialty food division, the company hoped to expand each of its non-hamburger restaurants. Donatos, backed by the massive financial resources of its parent business, was anticipated to reap the benefits of McDonald’s drive for continued expansion. Donatos wanted to build on the heritage of success created by their grandfather, James Grote, in the years to come, with the help of several Grote family members employed across the organization. Domino’s, Inc.
• Papa John’s International, Inc.
• And Pizza Hut are the company’s primary competitors. Further Reading: Ball, Brian R., ″Donatos Prepared to Take a Slice of Atlanta,″ Atlanta Journal-Constitution. Business First-Columbus, January 16, 1998, p. 1
• Freeland, Peggy Frank, ″Knapp’s, Donatos Aim for Family Image,″ ″Knapp’s, Donatos Aim for Family Image,″ ″Knapp’s, Donatos Aim for Family Image.″ 42
• Suzanne Kapner, Business First-Columbus, December 4, 1998
• Business First-Columbus, December 4, 1998
• ″Donatos Pizza Takes the ‘Middle Road’ to Growth,″ Nation’s Restaurant News, April 15, 1996, p. 4
• Koenig, Bill, ″Donatos Pizza Takes the ‘Middle Road’ to Growth,″ Nation’s Restaurant News, April 15, 1996, p. 4
• ″An Indianapolis-based pizza chain has filed a lawsuit against a competitor for defamation.″ ″Donatos Builds for the Future with High-Visibility,″ Nation’s Restaurant News, April 6, 1998, p. 3
• -, ″McDonald’s Offers Franchisees New Slice with Donatos Purchase,″ Nation’s Restaurant News, October 15, 1999, p. 50
• Mehegean, Sean, ″Family Dough,″ Restaurant Business, October 15, 1999, p. 50
• Zuber, Amy, ″Donatos Builds for the Future Nation’s Restaurant News, May 17, 1999, p. 1
• Nation’s Restaurant News, May 17, 1999, p. 1
• Nation’s Restaurant News, May 17,

The International Directory of Company Histories, Vol. 58, published by St. James Press in 2004 is the source.

McDonald’s Poor Acquisition & The Revival of Donatos Pizza

• While working at a pizza business as a youngster, Jim Grote learned the importance of excellent customer service.
• It was his observation that one of the proprietors was liberal with the pizza toppings, while the other was stingy.
• ‘The one who produced terrific pizza and wasn’t frugal with toppings had busier evenings than the other man, who watered down sauces and stretched toppings,″ Grote says of the other pizza shop owner.
• Grote remained firm in his belief in the importance of providing excellent customer service.
• This year celebrates the 50th anniversary of Donatos Pizza, the company that he founded, expanded, sold, and then repurchased throughout his lifetime.

• Donatos now owns or franchises 155 pizza locations in seven states: Ohio, Kentucky, Indiana, Virginia, North Carolina, South Carolina, and Alabama, with the majority of them located in the state of Ohio.
• (Approximately one-third of the restaurants are owned by the corporation; the remainder are franchisees.) During the year 2012, the restaurants produced sales of $166 million.
• Jane’s Dough Foods, a company that was established in 2008, manufactures pizza shells and pre-topped pizzas.

• Jim Grote, 70, and his daughter, Jane Grote Abell, 46, are the only members of the Grote family who are now employed by the corporation.
• Abell, the business’s chairman, controls around 20% of the corporation, while Grote owns the remaining 70%.
• The remaining shares are held by other members of the family as well as a small number of workers.
• In the Columbus, Ohio, region, Donatos is based, and Jim Grote has family ties to the area.

He grew up in the city’s southernmost reaches, in a working-class neighborhood where his father worked as a buyer for a restaurant.Grote and his four siblings took work as soon as they were able to because money was short.Grote began carrying newspapers when he was approximately 10 years old, and he landed his first job as a pizza delivery boy when he was thirteen.

Pizza was still a new concept in Columbus at the time, and the firm that employed me was one of the first.Grote lacked the necessary equipment.In his own words, ″They recruited me to slice pepperoni with a paring knife and shred cheese with a grinder.″ Grote recounts the experience.By the time he was 15 years old, Grote was in charge of the business on the owner’s day of rest.When he was 16, the owner approached him and offered to sell him the shop; however, his father refused, stating that he needed to graduate high school and attend college first.When Grote was 19 years old and a student at Ohio State University, he was presented with another opportunity to purchase a pizza restaurant, this time Donatos.

It was managed by a seminarian at the time, and it was only open on Saturday and Sunday.His father and his future father-in-law loaned him $1,300 and Donatos opened its doors on June 26, 1963, under Grote’s ownership and management.Because of the restaurant’s success and the strain connected with expanding the business, Grote did not complete his undergraduate degree.A corporation that operates on moral principles In starting his own firm, Grote hoped to achieve financial independence as a result of his efforts.″It was an amazing experience for me, especially coming from such a humble background,″ he adds.

The ability to ″carry my values to work with me″ was another objective, according to the author.It was my intention to demonstrate that we could create a wonderful pizza, provide good service—that we could expand our business, generate money, and maintain our core values.Giving others respect and treating them the way you would like to be treated is a cornerstone of Donatos’ mission: ″To promote goodwill via goods and services, beliefs, and people.″ Grote quickly realized that there were two major obstacles to achieving success in the pizza business: consistency and speed.″When someone walks in, they receive a pizza, and they seem to enjoy it,″ Grote says of the experience.

″When they return, they expect to be served the same delicious pizza they had before.″ Grote devised a technique for weighing toppings for each size of pizza, for example, to ensure that each pizza had the precise quantity of toppings it needed.Another difficulty was that as company grew, consumers had to wait longer for their pizzas, which caused frustration.Customers would be sent to the restaurant in front of his home, where they would wait for him.She recalls that when she was a youngster, ″people from the restaurant were often around our house,″ as she puts it.″We had clients in our living room every night of the week.″ ″I had no idea that other individuals did not grow up in such manner.″ As a result of their residence’s proximity to the pizza parlor, they were able to view the store’s neon sign, which had blinking arrows.

″Every every night, the lights in our bedroom would blink,″ Abell recalls.Dad would drag us out of our rooms, and we’d walk down to the sign late at night in our jammies to stand under it.It was his way of saying, ‘One day, you’re going to see Donatos all over the world.″ but only if we are capable of doing it and becoming the best, if we are able to promote kindness and uphold good morals.’ According to Abell, these are some of his earliest experiences, which explains why he feels emotionally tied to the firm.

Donatos had 17 locations by the early 1990s, and the company was continuing to grow.Grote searched for methods to increase the efficiency and uniformity of his work throughout the process.One bottleneck was the process of putting on the pepperoni.There are 100 pieces on a large pepperoni pizza from Donatos, for example.Grote invented a machine that would slice pepperoni over a pizza, a gadget that eventually led to the establishment of a new restaurant equipment company, the J.E.Grote Co., in 1972.

Despite the fact that Grote’s four children grew up surrounded by and working at the family company, Grote did not want them to feel forced to continue working there as adults if it was not their passion.While attending Ohio State, Abell worked for Donatos Pizza & Pasta.When she graduated with a bachelor’s degree in organizational design and communication, she immediately went to work training managers at the family business.She subsequently rose to the position of ″chief people officer.″ Toby Grote graduated from Miami University two years before she did, and he was a good friend of hers.He was promoted to the position of chief operating officer.A fresh avenue for growth has opened up.

• McDonald’s approached Donatos out of the blue in 1999, and the rest is history.
• The hamburger behemoth was attempting to broaden its appeal.
• As part of its expansion plans, Chipotle and Boston Market chicken restaurants were added to the mix.
• A pizza chain was also on the table.
• McDonald’s had conducted a countrywide search for the pizza restaurant that produced the greatest pizza and had the most repeatable procedures.
• The winner was selected after a rigorous evaluation process.

According to Grote, his immediate reaction was, ″Are you kidding?Are you serious?″ That’s my little one.″We have no intention of selling our home.″ ″My father had no emotion on his face,″ Abell recalls.″It was a really emotional experience for me, and my brother was quite enthusiastic about it.″ ″I said to myself, ‘This is insane: this is our family company, and we would never sell it.’ When it came to expanding the business, the family had been debating their options—by 1999, they had over 140 restaurants in five states—but the prospect of selling had never been mentioned.Jane and Tom Grote, together with their father Jim Grote, traveled to Chicago aboard McDonald’s private plane to discuss the prospect.

In addition, Jim Grote and the children’s mother were no longer married, and she was no longer active in the company.They were thrilled with McDonald’s corporate culture as well as the company’s ambitions for Donatos, which they found to be innovative.In the words of Chuck Kegler, a partner in the legal firm of Kegler Brown Hill & Ritter, which has been dealing with Donatos since the 1980s, the choice to sell was ″very difficult.″ In a lot of ways, their passion for their people, their community, and the way they operate business made things more difficult.Kegler recalls asking Grote about his long-term goal for the firm, to which Grote responded that he wished to sell Donatos pizza all over the world; Kegler was taken aback by this response.That aim necessitated the acquisition of a ″substantial amount of cash,″ which made the prospect of selling to McDonald’s more tempting, according to Kegler.In Abell’s estimation, it took roughly three months for the couple to come to the conclusion that they were ready to sell.

Their only qualm is this: ″Can we be purchased by the world’s largest restaurant while maintaining our culture?″ As a result of the transaction, Grote’s children, who all owned stock in Donatos, were free to pursue other interests if they so desired.Kyle, one of his sons, purchased a ranch in Colorado.Despite the selling of the firm, Grote and his other three children remained active with it.

Katie Grote, Grote’s daughter, worked for McDonald’s for a short period of time before leaving to explore other interests and relocating to Florida.Tom, too, stayed for a few years before heading off to business school in New York City.While Donatos was owned by McDonald’s, Tom Krouse, who is currently the business’s president and CEO, was hired from Wendy’s to head up the firm’s marketing operations while the company was owned by McDonald’s.During this time, Krouse says, ″we were altering the idea, we were expanding restaurants fast, and we were adding a lot of employees.″ ″Even if the product remained unchanged, the rate at which change occurred in the environment around it was extremely rapid.″ When McDonald’s purchased Donatos in 1967, Roger Howard, then 14 years old, worked as a floor sweeper and mop at Donatos.He recalls that the transaction generated a great deal of anxiety for employees.According to Howard, ″we always worked for the family and we were always aware of what was expected of us.″ Despite the fact that everything worked out in the end, ″there was a lot of uncertainty when McDonald’s came in.″ When McDonald’s bought Donatos, Howard had been serving as the company’s vice president of operations for almost five years.

1. He stayed throughout the whole of the McDonald’s era.
2. As a result, ″for a man who hadn’t even left Columbus, I ended up traveling a ridiculous amount of miles,″ he recalls.
3. Four years later, the stock of McDonald’s had plummeted following the bursting of the dot-com bubble.
4. The business’s new CEO determined that the company should return to its roots in hamburgers.

Donatos was on the market for purchase.″We’ve got to get this company back,″ Grote recalls his daughter’s reaction.Our personnel are still on the ground.These individuals will be out of work, and there are those who have been with us since the beginning.″ Grote was less enthusiastic about the concept.His feelings about doing it again were mixed.

1. ″I wasn’t sure I wanted to,″ he admits.
2. Abell, on the other hand, ″made it happen with her eagerness.″ Grote and Abell each contributed a sum of money toward the purchase of the firm.
3. Their off-day meetings with Krouse and other consultants were held on their days off to strategize a reacquisition strategy for the firm.

When Abell and Grote purchased the firm in December 2003, they were confronted with a massive turnaround effort.There were 75 buildings that were vacant at Donatos, and the company was losing millions of dollars every year.During his visits to stores, Abell concentrated on people and products.

Krouse was involved in the development of the company’s long-term strategy.They didn’t change anything about the products.″The turnaround occurred as a result of our people regaining their compassion,″ Abell says.At the present time, Donatos is governed by an advisory board that comprises members Grote, Abell, Abell’s brother Tom Grote, and the company’s financial adviser.Chuck Kegler continues to provide legal and strategic guidance to the company’s top executives.Grote stepped down from his day-to-day responsibilities in late 2010, and Abell took over as chairman of the board.

• Krouse was promoted to the position of president and CEO.
• Officials at Donatos claim that sales and earnings are higher than they were during the McDonald’s era of competition.
• Donatos made $10 million more in the year after the family’s purchase of the firm from McDonald’s, according to the family’s claims.
• Krouse appreciates the notion that the firm may readily invest in a new plant if the need arises, without having to worry about meeting quarterly expectations on Wall Street.
• In contrast, he argues, ″having worked for publicly traded organizations, I appreciate the importance of delivering results.″ Despite the fact that this is his first time working for a family business, Krouse adds, ″I don’t think I’ve ever felt more comfortable in my own skin.″ ″I wasn’t truly a member of the family, but I believe in and understand the goal and ethos of this firm,″ says the author.
• Disseminating principles throughout the community Those who are acquainted with the Grotes are struck by the family’s moral principles.

1. Howard, for example, recalls being bewildered as a teenager by the company’s attitude, which states that ″as soon as a client hung up the phone, we entered into a contract with them to take care of them,″ rather than simply receiving an order, was confusing.
2. ″I always felt that was strange,″ Howard recalls of the situation.
3. Nevertheless, he quickly realized what Grote was referring to: ″We simply made a promise to the customer: we’re going to produce the greatest pizza and bring it there on time.″ When Howard was around 18 years old, a drunken client left him a $10 tip for a pizza he had delivered.
4. At the time, that was a significant sum of money.

″Because I was young, I planned to keep it.″However, when I returned to the store, Jim told me that I had to take it back,″ Howard recalls.After his wife died away in 2006, Howard was able to witness the Grote family’s dedication for the first time in many years.He did not want to return to his previous employment after taking a leave of absence to be with his wife during her dying months.″ ‘You’ve lived here your whole life,’ Jim and Jane both replied to me.’You tell us what you want to do,’″ Howard responds in response to the question.

He made the decision that he wanted to be a business owner, so they sold him a franchise to open a store.His first business has been a success, and he has lately expanded by opening a second location.Family members claim that their dedication extends to the wider community.

1. ″Every single shop makes a pledge to their customers that they would be good neighbors,″ Abell explains.
2. Donatos stores, for example, sponsor local sports teams and collaborate with schools and other non-profit organizations in their respective communities.
3. Abell, who serves on the board of directors of the local chapter of Goodwill Industries, collaborates with the organization and a local homeless shelter to place homeless people to work.
4. Donatos has gained the employment of six people as a result of the program.
5. A champion for the city’s south side has been appointed by the mayor, and Grote has been donating both money and time to assist in the development of homes as well as the establishment of a learning and development center that will provide job training opportunities.
6. Grote and Abell’s leadership, according to Kegler, serves as an example to others.

As Kegler explains it, ″when they reach out, other people want to participate.″ ‘If it has the endorsement of the Grote family and Donatos, then people are more willing to donate and want to be a partner,’ says the author.The firm is devoted to preserving its own cultural identity.Abell explains it this way: ″We don’t have to be the quickest or the largest, but we think that we are on a path toward something.″ Margaret Steen is a writer living in Los Altos, California, who works as a freelancer.

• Family Business Magazine has copyright protection through 2013.
• No part of this article may be posted on the internet or copied in any form, including photocopy, without the prior written permission of the publisher.
• For information on reprinting, please contact Bwenger at [email protected].

About Us

• Donatos was established in 1963.
• Donatos was created by Jim Grote, a 19-year-old resident of Columbus, Ohio, who borrowed $1,300 and had a vision for a company that placed the needs of its customers first.
• 1974 The Commissary Kitchen has officially opened its doors.
• The Donatos centralized kitchen debuted with the purpose of providing an uniform product at all of the company’s restaurants.
• Donatos opens its first franchise location in 1991, and the Dough Innovation Center opens its doors the following year.

• A Donatos franchisee launched the company’s first store in Zanesville, Ohio.
• Donatos constructed its patented, world-class Dough Innovation Center the same year, allowing the company to better assure product consistency.
• 1999 McDonald’s has acquired the company.

• McDonald’s was impressed with the brand and decided to purchase Donatos with the goal of expanding the brand countrywide.
• 2003 Founders has repurchased the company.
• Donatos was re-acquired by Jim Grote and Jane Grote Abell in order for the company to continue to flourish on the foundation of its founding ideals and culture.
• The Undercover Boss for 2013 Donatos celebrated their 50th anniversary with the help of Jane Grote Abell, who appeared on season 5 of Undercover Boss to promote the company.

Start a free trial of CBS All Access or log in to your existing account to watch the whole episode.2015 The Continuum Is Missing The publication of Jane Grote Abell’s book The Missing Piece: Doing Business the Donatos Way marked the beginning of the new millennium.It chronicles the tale of a traditional American family company, as well as the fundamental lessons she has learned from her four decades of experience expanding Donatos into the franchise it has become.

Continued Expansion in 2019 Currently, there are more than 160 Donatos restaurants operational, and we are searching for multi-unit operators to assist us in expanding the brand into new markets.

Red Robin is going big with Donatos Pizza

• Photograph courtesy of Shutterstock This year, Red Robin wants to aggressively expand Donatos Pizza to more of its locations in the hopes that the sub-brand would become a big profit generator in the wake of the epidemic.
• Red Robin, situated in Greenwood Village, Colo., has been incorporating the Donatos name into its restaurants since 2018, resulting in one of the industry’s most unusual cobranding relationships.
• Red Robin said on Monday that it expects to expand the pizza idea to 120 additional locations this year, increasing the total number of locations with the pizza concept to more than 200 by the end of 2021.
• Red Robin’s 400 company-operated stores and more than a third of the chain’s almost 550 total locations would be represented by this acquisition.
• This is an unusual cobranding agreement between a casual eating company and another idea, and it is worth noting.

• As a result of the agreement, Red Robin will be able to enhance its burger-centric menu with premium pizza options that are popular with the chain’s core audience and will provide the firm with another great takeaway alternative.
• Red Robin anticipates that it will be able to produce $60 million in yearly pizza sales and a profit of more than $25 million by 2023, according to the company.
• Red Robin’s CEO, Paul Murphy, stated in May that the chain’s stores that served Donatos Pizza outperformed those that did not serve the pizza by 300 basis points in the first quarter.

• Furthermore, the purchase signifies a significant growth in Donatos’ presence, which now has 168 locations, indicating that the Red Robin arrangement would more than quadruple the number of sites where its menu will be offered.
• The Midwest, specifically Ohio, is where the majority of the company’s operations are based.
• Red Robin has expanded its presence in places such as New Mexico, Utah, Nevada, Oregon, and Washington this year as a result of its collaboration with the company.
• Later this year, it will be expanded to include Red Robin outlets in Maryland, Virginia, and California, among other places nationwide.

Donatos CEO Tom Krouse stated in a statement that the company’s cooperation with Red Robin has enabled it to expand its distribution network across the country.″What better way to expand than with a likeminded, family-friendly partner who can assist us in bringing Donatos to the rest of the pie-loving nation outside of the Midwest?″ says the CEO.Members make our journalism possible by contributing to it.

Become a Restaurant Business member now to take advantage of special perks, such as unrestricted access to all of our content and discounts on products and services.Please register here.

Want breaking news at your fingertips?

Get access to the most up-to-date information about the restaurant sector. Sign up to receive SMS messages from Restaurant Business with breaking news and insights that are relevant to your company’s brand.

Newsletter

Get the latest news and information from Restaurant Business delivered directly to your email. Become a member

McDonald’s to Buy Chain of Pizza Restaurants

• Earlier this week, McDonald’s Corp.
• announced that it had agreed to buy Donatos Pizza Inc., a Midwestern pizza chain with 143 locations-a move that experts believe is an attempt by McDonald’s to gain a larger share of the supper market.
• The financial parameters of the transaction, which is anticipated to finalize by the end of July, were not disclosed.
• The pizza restaurant, which is located in Columbus, Ohio, generated sales of over $120 million last year and is best known for serving pizzas with toppings that extend all the way to the edge of the pizza pie.
• He launched the company in 1963, and it will continue to be managed as a stand-alone firm by his family after the merger.

• McDonald’s Chief Executive Jack Greenberg said in a statement released on Tuesday that the transaction ″represents a tremendous long-term opportunity to learn more about another quick-service market sector.″ The purchase of Donatos comes less than a year after McDonald’s acquired a minority ownership in the 16-unit Chipotle Mexican Grill business located in Denver for an undisclosed sum.
• That was the firm’s first-ever equity investment in a different restaurant concept, and it was a successful one.
• Then, just a few weeks ago, McDonald’s announced that it had acquired Aroma Ltd., a British chain of cafés known for its coffee and sandwiches.

• However, the purchase of the bigger Donatos chain, which owns and franchises restaurants, looks to be McDonald’s most significant venture outside of the hamburger business to date.
• Some analysts believe it is a wise decision on their part.
• According to Robert L.
• Sandleman, a restaurant industry analyst headquartered in Brea, ″Many fast-food companies that aren’t in the pizza or chicken categories are searching for methods to grow their supper business.″ It makes sense for a burger company to try to figure out how they can fill more seats at dinner because pizza and chicken are more popular at supper than at lunch.

Sandleman cites Tricon Corp., the parent company of Taco Bell, Pizza Hut, and KFC, as an example of a corporation that has found a way to capture both the lunch and evening audiences by focusing on their respective strengths.The Oak Brook, Illinois-based company McDonald’s is the world’s largest restaurant chain, with more than 12,000 stores in the United States and almost as many locations in other countries.Restaurant sales in the United States total $244 billion every year, or around 7% of total restaurant sales in the country.

According to Sandleman, ″McDonald’s continues to be the unquestioned ruler.″ ″They have the most locations, and convenience is still a very essential factor when it comes to deciding where individuals will spend their time.McDonald’s is also by far the largest breakfast participant, which provides customers with another another reason to patronize the restaurant.″ Nonetheless, McDonald’s attempts to expand its market share have been mostly unsuccessful in recent years.As an illustration, consider the recent failure of the Arch Deluxe sandwich, which was said to have cost $100 million to design and advertise.McDonald’s began rolling out new facilities and phasing away the famous warming tins, which could keep batches of burgers warm for up to 10 minutes, last year, as part of its ongoing transformation.Bun warmers, high-tech holding rooms to keep cooked meats hot and moist, and a computer system that will allow crew members to forecast what clients will buy are all included in the new kitchens.As part of its reaction to franchisee complaints that executives were becoming increasingly isolated, McDonald’s announced its first-ever corporate staff reductions and moved key executives to five regional headquarters, including Irvine, in 1998.

ANALYSIS: Grote’s got Donatos Pizzeria back, but now what?

• The sagas of two pizza restaurants, Donatos Pizzeria and California Pizza Kitchen, are strikingly similar in that both were acquired by and sold to corporate behemoths at the same period.
• McDonald’s Corporation stated in May 1999 that it had acquired Donatos Pizzeria, a 143-unit chain that it referred to as ″the gold standard″ of pizza in America.
• As soon as Jim Grote signed the document, he made the American businessman’s dream come true: to establish a firm from the ground up, build it, and then sell it to a behemoth in the sector for a large sum of money.
• Then, on December 15, McDonald’s announced that it had sold Donatos Pizzeria—again to Grote, and for a figure that many feel was far less than what McDonald’s paid him for it in the first place.
• Despite the fact that McDonald’s, with its 182 locations, had gone from being the ″gold standard″ to being ″fool’s gold,″ Jim Grote had yet again won the race.

• Bizarre?
• Yes.
• Nonetheless, it has happened before in the pizza industry, but on a much larger and more weird scale than this.

• Recall the story of California Pizza Kitchen’s ascent, sale, and sale again, and again, and again.
• Founded

Steve Coomes, Editor

• When CPK was founded in 1985 by attorneys Larry Flax and Rick Rosenfield, it had grown to 25 locations by 1992, when the duo sold the bulk of the firm to PepsiCo for a $100 million profit (60 times cash flow at the time).
• The men received a monetary settlement of $40 million, kept a 24 percent stake in the firm, and continued to serve as co-CEOs.
• Please, everyone, take your jaws out of your laps and look at me.
• PepsiCo, on the other hand, did what only a business with more money than restaurant expertise could do: it rushed to build CPK in order to extract a rapid and syrupy-sweet return from its ludicrous investment.
• In only four years, it added 65 units to the system, but the quick expansion caused many of them to become ill as a result of the rapid increase.

• When CPK started bleeding on PepsiCo’s balance sheet in 1997, the company decided to amputate it rather than suture the hole in its financial statement.
• Flax and Rosenfield, on the other hand, were adamant.
• Given their legal expertise, the guys pointed out a provision in CPK’s initial selling contract that said the pizza business could