News

Pizza Inn cutting 15% percent of corporate staff

December 3, 2004

THE COLONY, Texas—Pizza Inn said it is slashing staff at its corporate headquarters and Norco Restaurant Services distribution arm by 15 percent.

According to a news release, the company said the labor cuts will save $1 million annually, and that those funds will be used to lower the cost of products purchased by franchisees through Norco.

CEO Ronnie Parker called the move "a very difficult decision," but said that "the financial pressures of so many of our expenses, including cheese and other commodities" left the company little choice.

"We began a number of initiatives more than a year ago to rebuild a healthier company and chain of franchisees," Parker said in the release. "Our sales trends have improved and these expense savings will help to improve their profitability."

Comparable-store sales and revenues for its most recent quarter, ended March 28, were flat.

Pizza Inn franchises more than 400 units generating annual sales of $170 million.

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