Mountain Mike's Pizza Franchisee Files for Bankruptcy Amidst Chain's Expansion

Rogue Fare LLC, a franchisee operating five Mountain Mike’s Pizza restaurants in Oregon, filed for Chapter 11 bankruptcy on July 1. The filing lists assets between $0 and $50,000 and liabilities ranging from $1 million to $10 million. The company's locations include two in Medford, and others in Klamath Falls, Grants Pass, and Roseburg.

Court documents indicate that Rogue Fare's largest creditors are First Bank of the Lake, owed over $2.9 million, and First Internet Bank of Indiana, owed over $1.5 million. The franchisee did not specify the reasons for its bankruptcy filing.

This situation arises as the broader pizza industry faces challenges, including rising ingredient costs and declining sales. Mountain Mike's Pizza itself was identified earlier this year as the sixth most overpriced pizza chain in the United States. Major competitors have also announced closures; Papa John’s plans to shut down hundreds of underperforming locations by 2027, and Pizza Hut is closing 250 restaurants as its parent company reviews its business strategy.

Franchisees across the fast-food sector are contending with inflation, supply chain disruptions, and increased labor costs. Additionally, the pizza market is experiencing heightened competition, with a recent report indicating that Mexican restaurants and coffee shops now outnumber pizza establishments.

In contrast to industry-wide contractions, Mountain Mike’s Pizza has been pursuing an aggressive expansion strategy. The chain opened 24 new locations last year and plans to open an additional 25 this year, including its first in Las Vegas. The company, founded in 1978, was acquired by Levine Leichtman in 2017 and subsequently sold to its current owners, Chris Britt and Ed St. Geme, in 2022. At the time of that sale, the chain had 245 locations; it now reports over 300.

Mountain Mike’s Pizza has expanded its presence across several states, including Arizona, Idaho, Nevada, Oregon, Utah, Colorado, Texas, Washington, and Wisconsin. Future growth is planned for Florida, Oklahoma, Arkansas, Tennessee, Virginia, and further expansion into New Mexico, Kansas, Missouri, Georgia, North Carolina, and South Carolina. The estimated startup investment for a Mountain Mike's franchise, including fees and working capital, ranges from $356,000 to $994,000.