For here or to go? When it comes to pizza, Mountain Mike’s believes there’s no wrong answer.
The 279-unit pizza franchise founded in 1978 near Stanford University has always courted dine-in customers. Its restaurants feature TVs, arcade games, a pizza buffet and a salad bar. It offers beer and wine. And it’s not uncommon to see an entire Little League baseball team file in for a meal.
The concept has elements of the classic pizza parlor, a restaurant genre that has become increasingly rare these days. Pizza has always been a popular takeout option, but the pandemic, and the ensuing boom in delivery, solidified it as a meal most often consumed at home rather than in a padded booth somewhere.
Even at Mountain Mike’s, about two-thirds of orders go out the door for pickup or delivery. But as the West Coast favorite expands eastward, it is highlighting its dining room as a differentiator.
“I think it’s a huge opportunity,” said CEO Jim Metevier, who lamented how disconnected Americans have become over the past decade. “We really are embracing the idea of connectivity, and you have to have a dining room to be able to do that.”
Multiple TVs invite guests to stay awhile. | Photo courtesy of Mountain Mike's Pizza
It has been a difficult few years for pizza chains with seating and table service. Last year, sales at full-service pizza and Italian chains increased just 0.8%, according to data from Technomic’s Top 500 Chain Restaurant Report. That was the worst performance of any menu segment within casual dining. It included a 10% sales decline at California Pizza Kitchen, the nation’s largest full-service pizza chain, which closed about 20 restaurants.
Mountain Mike’s was an exception to the rule. Systemwide sales rose nearly 7% in 2023, and it opened 14 new locations.
Despite the segment’s struggles, Metevier said customers still have a sense of nostalgia for the pizza parlor experience of old. It is not unusual, for instance, to hear people reminiscing about dining in at Pizza Hut, with its branded Tiffany lamps, frosted red plastic cups and salad bars. The chain began closing many of its full-service locations in 2019.
“There are a lot of people exiting the space,” Metevier said, “but yet there’s still a large demand for us to come in and fill that void.”
Besides its pizza, which is made with dough and sauce that is prepared in-house daily, Mountain Mike’s gives customers reasons to dine on-site. Each location features as many as 10 arcade cabinets intended to entertain kids (or the young at heart) while they wait for their food. In some locations, the games also provide a nice layer of added revenue, but they’re mostly there to get people to stay and engage, Metevier said.
Sports are also a draw. Mountain Mike’s is known for getting involved with local teams at all levels and is the official pizza sponsor for many of California’s pro sports franchises, including the San Francisco 49ers, Sacramento Kings and Los Angeles Angels. Customers can typically count on catching the game on one of the multiple TVs at its restaurants.
The chain has also leaned into the on-premise lunch business with an all-you-can-eat pizza buffet and salad bar on weekdays from 11 a.m. to 2 p.m. “That’s something you can’t find at a lot of places anymore,” Metevier said.
Mountain Mike's expects to have 300 locations by the end of the year. | Photo courtesy of Mountain Mike's Pizza
Its restaurants tend to be in-line locations and occupy a variety of footprints, from as small as 1,800 square feet to as large as 5,500 square feet. While many restaurant chains are shifting to smaller boxes with limited seating, Mountain Mike’s has no plans to do that.
“We’re more about a high-quality dining experience with a great pizza that people can really just take a step back to come together and enjoy life,” Metevier said.
That strategy has translated to impressive growth for the chain over the past five years. From 2018 to 2023, Mountain Mike’s total sales increased by 82% and unit count grew by 37%, according to Technomic data.
It is now looking to accelerate that growth. Mountain Mike’s has development deals in 10 states as far east as Wisconsin, and it is about to sign agreements in five more states that will take it all the way to the Atlantic coast. It expects to reach 300 restaurants by the end of this year, and could grow to 500 in the next three to five years, Metevier said.
Though it is a regional concept, it has proven viable in unfamiliar markets, he said. “What gives us confidence is, as we are opening, we’re being successful everywhere.”
Mountain Mike’s focus on dine-in has not come at the expense of its takeout business, which continues to grow. The chain launched a new app and loyalty program earlier this year and can also be found on the big three third-party delivery apps. About 44% of its orders come through digital channels.
“We’re connecting with people where they are. We’re not sitting in the past,” Metevier said. “But still, it’s all about people.”
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