Mountain Mike’s Pizza overcomes challenges, posts record year

RESTAURANTS: Record year for 230+ store chain

Mountain Mike’s Pizza is grabbing a larger slice of the ultra-competitive pizza market.

The Newport Beach-based company, which has been around for four decades but under local ownership only since 2017, reported that 2020 was its best sales year ever, with total system sales up 13.3% to $206 million and same-store sales up 7.3% over 2019. That growth was enough to push the chain up to the No. 10 spot on this week’s Business Journal list of the largest OC-based restaurant chains (see story, page 3; see list, page 21).

This year has started off even stronger, with first

quarter same-store sales up some 23% over last year.

Along with steady sales increases, Mountain Mike’s opened six new restaurants in the quarter and secured 13 new franchise commitments consisting of three multi-unit outof-state agreements to open restaurants in Utah, Idaho and Colorado. Additional franchise deals are in development in Arizona, Oregon and Nevada.

This growth comes when many traditional restaurants are closing their doors.

Chris Britt and Ed St. Geme, co-CEOs and owners of Mountain Mike’s Pizza, purchased the chain four years ago. At that time, says Britt, the duo came up with a game plan for potential downturns in the economy, but “we did not model a pandemic.”

“We are a high-quality brand with a highquality product and offer a good business model for franchisees,” Britt said. “If you have great experiences for guests, those are the restaurants that survive and thrive, and last year helped validate that.”

Digital, Takeout Boost

Factors for the company’s sales success included “continued growing in digital transactions, steady increases in average order size, franchisee execution on delivery and carryout promise times and value-added promotions,” said Mountain Mike’s President and COO Jim Metevier.

Metevier also pointed to new menu items, and continued tech enhancements, with a new app and loyalty program launching soon for the chain.

According to Britt, quick-service restaurants like Mountain Mike’s generally saw improved business from the pandemic, although some are doing better than others. Britt owes their continued success to “a strong positive element around our food, how we react to guests. It’s comfort food, it’s affordable, it’s available.”

It is indeed available. Mountain Mike’s has more than 230 locations with more on the way. Britt expects to have the best year in the brand’s history in terms of the number of new store openings in 2021.

“Franchising in general is a huge market, with millions of employees and hundreds of thousands of franchise locations,” Britt noted.

“Some of our brethren in full-service restaurants have been adversely affected, but our quick-service model has the carryout component, which feeds right into the results. Our model involves dine-in, carryout and delivery. When we had to shut down our dining rooms, which are 25% of our sales, what we have seen is our carryout and delivery business has far exceeded that removal of 25%, hence the sales increases overall.”

“With dining rooms reopening, we have 25% to 50% capacity and we are seeing those sales come back, but there has been no diminishing of carryout and delivery.”

Britt agrees that “pizza is probably America’s most beloved food and accommodates a lot of competition, with different price points and different forms. It is a fabulous food category and it’s also profitable. But with Mountain Mike’s it’s also about community.”

Juice It Up

Three years ago, Britt and St. Geme added Juice It Up to their culinary empire.

The Irvine-based smoothie and juice chain recently celebrated its 25th anniversary. Juice It Up also had strong sales last year with nearly $33 million in sales in 2020 and more locations are planned for 2021 (see story, page 3).

“Both brands have a lot of momentum,” Britt stated. “The most compelling thing that we have seen and learned is the resilience of the franchisees and their entrepreneurial spirit. They have strength and creativity. Both brands have tremendous upside opportunities going forward.”

The Review

Of course, after talking to Britt, I was hungry for a Mountain Mike’s pizza, so Britt treated me to a large pizza of my choice for lunch. Their menu boasts a variety of pizzas including create your own combo. Unlike most people, I usually skip the meat toppings, so I bypassed The Everest and Pike’s Peak (both loaded with meats) and went for the Mount Veggiemore, with mushrooms, black olives, bell peppers, artichoke hearts and sliced fresh tomatoes on classic red sauce.

Upon getting the pie home, I shoved a small piece into my mouth. This is damn good pizza. I reached for another piece, and another. No wonder Mountain Mike’s is so popular. Good pizza at a good price.

For more information, visit mountainmikespizza.com. ■

Kari Hamanaka contributed to this item.