Mellow Mushroom is planning new restaurant development of around 5-8% in 2026, alongside more than 20 franchise renewals.
It followed a year centred on operational execution across its US system.
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The US-based pizza chain reported a renewal rate above 98% and said priority development markets for the coming year include Florida, the Carolinas, Virginia and Tennessee.
Early development activity has also begun in selected Rust Belt markets, and a new location in Danville, Virginia, has recently been signed.
Around one-third of restaurants moved onto a digital kitchen platform during the year, with implementation carried out on a site-by-site basis to suit individual layouts and workflows.
According to the company, the platform has delivered improvements in speed of service, order accuracy and food quality, particularly during periods when dine-in and off-premises orders overlap.
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By GlobalDataRestaurants using the system are reporting average unit volumes of more than $2.7m, with top-quartile franchise locations reaching $3.8m.
A new back-office system also completed a pilot phase in 2025.
The initiative aims to cut operators’ admin work, standardise reporting and daily processes, and free managers to focus more on staff and the guest experience.
Mellow Mushroom continued testing its “Fast-Fine” prototype during the year.
The fully counter-service format opened its first location in Grant Park, Atlanta, in November 2024 and completed its first full year of operations in 2025.
During the year, the site introduced frozen beverages, catering and lunch programmes.
The company said the format is exceeding expectations in both sales and EBITDA, with a second Fast-Fine restaurant scheduled to open in Newnan, Georgia, in 2026.
System-wide performance in 2025 included positive same-store sales growth, supported by initiatives aimed at driving traffic outside peak trading periods.
The year also saw increased ownership transitions, with some long-standing franchisees exiting the system and the company acquiring selected locations as part of a broader refranchising strategy.
On the guest engagement side, the brand enhanced its marketing systems and launched a customer data platform late in 2025.
The platform is designed to centralise transactional data to support guest segmentation and more personalised outreach, with further testing and wider system adoption planned for 2026.
As part of its longer-term guest engagement strategy, Mellow Mushroom plans to launch a mobile app and a formal loyalty programme in late 2026.
The initiative is intended to bring ordering, offers, rewards and customer communications together within a single platform.
Mellow Mushroom strategy and transformation executive vice president Ahsan Jiva said: “It’s not new in restaurants, but it was new for Mellow. We have seen double-digit gains in our three most important metrics, which are food quality, accuracy and speed of service. In addition, we added on a guest messaging system that keeps guests with digital orders apprised of the status of their order as it moves through the kitchen.”
