A pizza industry shakeup is in the works, it seems. Papa Johns’ executive leadership recently said it’s “open-minded” to the possibility of being acquired. Pizza Hut could be up for sale, too, as parent company Yum! Brands recently hinted. And the same goes for take-and-bake leader Papa Murphy’s.

Now add California Pizza Kitchen (CPK) to the list. In fact, that deal is reportedly done, according to a report from Reuters. And for less than $300 million.

Sources told the news service that an investor group led by Consortium Brand Partners has signed an agreement to acquire CPK, which has around 200 locations, although the buyers have not confirmed it.

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Reuters reported that Consortium Brand Partners led the deal with investment firm Eldridge Industries. Consortium Brand Partners owns companies like Outdoor Voices, an activewear brand; Draper James, a lifestyle brand founded by actress Reese Witherspoon; and home décor brand Jonathan Adler. Eldridge’s restaurant investment business, Convive Brands, owns Le Pain Quotidien and The Little Beet and will help run CPK’s stores, according to Reuters’ sources.

CPK, once a trendsetter that helped put California-style on the pizza map, has faltered since the pandemic. It filed for Chapter 11 bankruptcy in July 2020 and set about closing unprofitable locations and working to reduce its long-term debt.

On October 8, 2020, a court-supervised auction of the brand’s assets failed to attract any qualified buyers. CPK exited Chapter 11 bankruptcy in October 2020, setting the stage for its first-lien lenders to take it over from majority owner Golden Gate Capital.

In November 2024, CPK announced that it would begin franchising in select U.S. markets to accelerate revenue and unit growth.

The fact that so many legacy pizza chains are either looking for potential buyers or have already been sold suggests deep-rooted challenges with their business models, perhaps in part related to a shift in customers’ perception of value—which isn’t just about the lowest price—and those chains’ struggle to compete in an environment that’s digitally driven and delivery-heavy.

But in CPK’s case, there’s an added wrinkle: As a full-service, sit-down restaurant, it has traditionally been pricier than DELCO-focused pizza chains like Domino’s and faced increasingly stiff competition from fast-casual brands.

Additionally, as customers are cutting back on dine-in occasions, hunting for value deals and opting for frictionless food experiences, CPK might not be top of mind for many. Although CPK offers delivery and carryout, the brand could be lodged in customers’ minds as a “let’s-go-out-for-dinner” restaurant, making its traditional strength more of a liability in 2025.

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