Food & Beverage

MOD Pizza reports 5% systemwide sales decline for 2020, boosts digital revenue

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March 1, 2021

MOD Super-Fast Pizza Holdings LLC reported a 5% decline in systemwide sales, to $461 million, and a 1% net revenue decline, to $388 million in fiscal 2020, according to an earnings release.

Digital revenue rose 275% as digital transactions increased by 216%, representing about 40% of sales.

MODS Rewards exceeded 2 million members, doubling last year's number, and accounted for over 20% of systemwide sales.

The company opened 22 locations — 19 company-owned and three franchise locations — for a total of 490 stores systemwide.

The company welcomed one new franchise operator and added 13 previously franchised locations to the company-owned portfolio.

In July, the company acquired 13 existing MOD franchise locations in North Carolina and, in December, welcomed a new franchise partner (DBMC Restaurants, LLC) to introduce MOD to Louisiana, Mississippi and Tennessee, and expand its footprint in Alabama.

"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," Scott Svenson, co-founder and CEO, MOD Pizza, said in the release. "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."

The company's digital revenue 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 company will re-accelerate its expansion in 2021 with dozens of locations expected to open, including its 500th store by mid-year.