Emerging brands: PizzaRev
With the intention of diversifying its investments beyond sports-themed restaurants, Buffalo Wild Wings (BWLD) has invested in PizzaRev, a California-based fast-casual pizza restaurant, and R Taco, a Texas-based fast-casual taco restaurant.
PizzaRev, a fast-casual pizza chain based in Los Angeles, is owned and operated by Pie Squared Holdings. In 2013, Buffalo Wild Wings had bought a minority stake in Pie Squared Holdings, and in 2017, it will have the right to acquire a majority stake in Pie Squared Holdings. As of December 2015, Pie Squared Holdings operated 19 restaurants and franchised ten. Of those 19 company-operated restaurants, BWLD operates two restaurants in Minnesota and has the right to operate more in other states.
The major pizza chains operating in this market include Domino’s Pizza (DPZ), YUM! Brands’ (YUM) Pizza Hut, and Papa John’s (PZZA). Notably, DPZ forms 0.25% of the holdings of the iShares Russell Mid-Cap Growth ETF (IWP).
PizzaRev restaurants allow customers to craft their own pizzas, choosing from a variety of ingredients at the cost of one pizza. Under the “Craft Your Own Pizza” concept, customers can choose the type of crust they want, in addition to sauces and toppings. But the company targets health-conscious crowd with its menu by including all-natural ingredients, gluten-free pizza dough, and toppings like fennel seeds and arugula.
Now let’s see what else BWLD is doing in the fast-casual space.