Operations

Digital orders up nearly 275% at Mod Pizza

February 25, 2021

Although 2020 sales and revenue were slightly down for Mod Super-Fast Pizza's, CEO Scott Svenson was happy with the chain's 275% growth in digital sales as well as its expansion efforts.

"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," he said in a company press release. "During the uncertainties of the past year, we drew strength and resilience from our purpose."

MOD's digital revenue, which accounted for nearly 40% 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.

The MOD Rewards loyalty program grew to over 2 million members in 2020 and was a key driver in the company's digital response to the disruption from COVID-19, Svenson said. Rewards members accounted for over 20% of system-wide sales and were a reliable source of demand amidst the recovery from the pandemic.

Svenson said the chain not only managed the crisis but made operational improvements, which will help it grow.

"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," he said.

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

• System-wide sales of $461 million, a 5% decline
• Company net revenue of $388 million, a 1% decline
• Digital revenue up nearly 275% with digital transactions increasing 216%, representing approximately 40% of sales
• MOD Rewards surpassed 2million members, nearly doubling in the past year
• Opened 22 locations; finishing the year with 490 stores system-wide
• Donated more than 200,000 meals to those struggling with food insecurity.
• Granted over $750,000 to Squad members in crisis.
• Launched several key initiatives to advance the company's commitment to building a more equitable and diverse workplace

Mod Pizza was founded in Seattle in 2008 by serial entrepreneurs Scott and Ally Svenson.