You might’ve seen the empty windows at your local MOD. Or maybe you noticed the "permanently closed" sign on the door of the spot where you used to grab an 11-inch Maddy after work. When a chain that was once the fastest-growing restaurant in America starts disappearing from suburban strip malls, people start talking.
So, let's get into it. Is MOD Pizza going out of business? The short answer is no, not entirely—but it’s definitely not the same company it was two years ago. MOD isn't dead, but it’s been through a financial meat grinder. After nearly hitting a wall and filing for bankruptcy in mid-2024, the chain was snatched up by a new owner in the final hour. Now, it’s in a "restructuring phase," which basically means closing a lot of stores to save the ones that actually make money.
The 2024 Near-Death Experience
Last summer was rough. By July 2024, the rumors were flying that MOD was days away from a Chapter 11 filing. They had hired high-powered lawyers and financial advisors—the kind you only call when the bank account is dry.
Then came the "bailout."
Elite Restaurant Group, a company out of Southern California, stepped in and bought 100% of MOD Pizza's equity. This deal essentially saved the brand from total liquidation. Elite is known for buying "distressed" brands—think of them as the house flippers of the restaurant world. They’ve done this before with spots like Marie Callender’s and Patxi’s Pizza.
But a buyout doesn't mean everything goes back to normal instantly. It means the new bosses are looking at the books and cutting anything that isn't profitable.
Why are so many MOD Pizza locations closing?
If you've noticed your favorite location is gone, you’re not imagining things. The chain has been "rightsizing," which is corporate-speak for closing dozens of underperforming shops.
- In early 2024, they shuttered 26 locations in one go.
- By the time the acquisition was finalized, that number had climbed to 44 closures.
- Fast forward to early 2026, and reports are still trickling in about one-off closures, like the Ashburn, Virginia, location that recently shut down after a decade in business.
The problem? They grew too fast. Back in 2019, MOD was flush with cash—we're talking $160 million in equity financing. They had this massive goal to hit 1,000 locations. But then the world changed. Office workers stopped going out for lunch as much. Rent got more expensive. Wings and chicken concepts started stealing the fast-casual spotlight.
Basically, MOD built too many stores in places where they couldn't pay the bills.
👉 See also: Finding Comfort at Smith Family Funeral Home Benton AR: What Most Families Get Wrong About Local Care
What it’s like inside the stores now
Honestly, the vibe has shifted. While the original founders, Scott and Ally Svenson, built the brand on a "social mission"—hiring people with past convictions or developmental disabilities—the new ownership under Elite is much more focused on the bottom line.
There's been a massive push to refranchise.
Historically, most MOD Pizzas were company-owned. Elite wants to change that. They hired National Franchise Sales to help sell off those corporate-owned stores to independent operators. The idea is to offload the risk. If a local owner runs the shop, they might be more efficient than a distant corporate office in Bellevue, Washington.
📖 Related: What Really Happened With Kristin Cabot Resigns From Astronomer
But for the "Squad" (what they call their employees), it’s been a period of high anxiety. There have been reports of managers getting very short notice about closures—sometimes just a couple of days.
The "Build-Your-Own" Slump
It’s not just a MOD problem. The whole fast-casual pizza category is feeling the heat.
- Inflation: That $8 pizza from five years ago is now $13 or $14.
- Delivery Fatigue: Pizza is usually a delivery game, but MOD was built for the "walk-the-line" experience. When people started ordering more DoorDash, the thin-crust, "fast" model faced stiff competition from giants like Domino’s who already had the delivery tech figured out.
- The Middle-Class Squeeze: When money is tight, people either eat at home or go for the cheapest possible option. MOD sits in that middle ground that is currently getting hit the hardest.
Is your local MOD safe?
If you live in Texas, you’re probably fine. That’s their biggest market with over 100 units.
However, if your local store is always empty during the Tuesday lunch rush or sits in a high-rent area with declining foot traffic, it could be on the chopping block. The strategy now is "quality over quantity." They’d rather have 400 highly profitable stores than 600 stores where half are losing money.
📖 Related: GL Group of Texas: What Most People Get Wrong About This Laredo Logistics Powerhouse
Actionable steps for MOD fans
If you want to keep your local MOD around, here is what you can actually do:
- Use the App: Most chains prioritize stores with high digital loyalty engagement.
- Check the Status: Before driving out, check the official MOD website's store locator. They are updating it frequently as they "optimize" their footprint.
- Don't wait for an IPO: Those plans were shelved years ago. This is now a private turnaround play.
The brand isn't going out of business tomorrow, but the era of seeing a MOD Pizza on every street corner is over. They are shrinking to survive. If they can figure out how to make the refranchising model work, the "Redwood" and "Casper" pizzas will stay on the menu for a long time. If not, they might become another cautionary tale of growing too big, too fast.
Next Steps for You: Check the MOD Pizza app for any "store relocation" or closure notices in your specific zip code to see if your local spot is part of the 2026 restructuring.