Dive Brief:
- California Pizza Kitchen has entered an agreement to be acquired by Consortium Brand Partners, Eldridge Industries, Aurify Brands and Convive Brands, according to an emailed press release.
- The financial terms of the acquisition were not disclosed, but Bain Capital is backing the transaction with a debt and equity investment. The transaction is expected to close this month.
- Convive, a multi-brand restaurant platform, will take over as global operator and master franchisor for CPK, with Jon Weber, CEO of Convive, serving as CPK’s CEO.
Dive Insight:
The sale comes after weeks of rumors, first reported by Reuters, that CPK was being acquired. The chain emerged from Chapter 11 bankruptcy proceedings in 2020 with a reduced debt load and in the control of its creditors. But CPK continued to shrink, with its footprint falling from about 240 units at the end of 2020 to roughly 120 before this acquisition.
The pizza segment as a whole has struggled following the COVID-19 pandemic. Pieology, a fast casual pizza brand, filed for Chapter 11 bankruptcy just last week, and Yum Brands is considering selling the ailing Pizza Hut after a run of quarterly sales declines.
But CPK achieved positive same-store sales growth in 2025, according to the press release, and the acquisition will support an increase in franchised development.
This positive turn follows many efforts to mitigate the sectoral problems it faces. The chain launched franchising in 2021 but struggled to attract operators until after it started refranchising corporate units in 2023. In late 2024, CPK overhauled its marketing strategy and brought on new agencies.
On the development front, the company has embraced a range of potential formats, from vending machines and non-traditional stores to virtual brands, under president Michael Beacham. In June, CPK added several salads to its permanent menu, hoping to capture consumer desire for healthier menu items.
As QSR price increases have eroded the value gap between fast food and casual dining, some casual chains have maneuvered to take advantage — Chili’s, Applebee’s, Olive Garden, First Watch, Outback Steakhouse and Texas Roadhouse all posted same-store sales growth of some kind last quarter. It’s unclear whether, and to what extent, CPK can take advantage of the casual dining renaissance, but under new ownership the brand may have a better opportunity to do so.
