From sturdy unit efficiency to new franchise alternatives, Mellow Mushroom’s 2025 outcomes set the stage for a high-momentum 2026.
Atlanta, GA (RestaurantNews.com) Mellow Mushroom, the psychedelic pizza franchise identified for its imaginative pizzas, hand-tossed stone-baked dough, and distinctive ambiance, spent 2025 centered on restaurant operations. Work centered on kitchen execution, back-office effectivity and visitor engagement infrastructure. These initiatives carry into 2026, throughout which the corporate expects to be bullish on renewals and new restaurant progress.
Digital Kitchen Rollout
Over the past 12 months, about one-third of eating places moved onto a digital kitchen platform. Implementation occurred location by location to align with every restaurant’s structure and workflow. The platform is already exhibiting enhancements in pace of service, order accuracy and meals high quality, significantly when dine-in and off-premise orders overlap throughout peak hours.
“It’s not new in eating places, nevertheless it was new for Mellow,” mentioned Ahsan Jiva, govt vice chairman of technique and transformation. “We’ve seen double-digit positive factors in our three most necessary metrics, that are meals high quality, accuracy and pace of service. As well as, we added on a visitor messaging system that retains company with digital orders apprised of the standing of their order because it strikes by means of the kitchen.”
Jiva mentioned the system is averaging greater than $2.7 million in AUV, with top-quartile franchise places reaching $3.8 million.
Prototype Updates and Again-Workplace Testing
A brand new back-office system accomplished a pilot in 2025. The hassle is meant to cut back administrative friction for operators and enhance consistency in reporting and day by day processes whereas giving time again to the restaurant administration employees to deal with visitor and employees expertise.
Mellow Mushroom additionally continued work on its new “Quick-Advantageous” prototype in Grant Park outdoors Atlanta, its first absolutely counter-service mannequin. The restaurant opened in November 2024 and accomplished its first full 12 months of operation in 2025. Applications launched round that format in 2025 included frozen drinks, catering and lunch. The “Quick-Advantageous” prototype is performing past expectations in gross sales and EBITDA. Moreover, the model will open its second Quick-Advantageous restaurant in Newnan, GA, in 2026, capitalizing on its early success with the primary Grant Park location.
Gross sales and Possession Exercise
In response to Jiva, the system ended 2025 with a rise in constructive same-store gross sales. Daypart work continued by means of the 12 months, with a deal with constructing site visitors outdoors peak intervals.
Possession transitions additionally elevated. Some longtime franchisees exited, and the corporate acquired sure places in choose circumstances as a part of its refranchising technique.
“Lots of our franchisees have been with us for 20 to 30 years, they usually had been able to exit,” Jiva mentioned. “There was super worth in Mellow Mushroom buying these places as corporate-run eating places, so we will proceed to serve these communities with the sort of expertise our company have come to anticipate.”
Visitor Engagement Programs
Advertising techniques had been enhanced throughout 2025, and a buyer knowledge platform was launched late within the 12 months. The platform is meant to centralize transactional knowledge to permit for higher visitor segmentation and buyer outreach with greater ranges of personalization. Extra testing and refinement are deliberate in 2026 as the corporate continues to broaden use circumstances and broaden its use throughout the system.
2026 Improvement Priorities
Mellow Mushroom franchising is planning strategic progress in precedence markets with a conservative purpose of extra 5-8% progress with new restaurant openings. Greater than 20 renewals are within the pipeline, and the renewal charge is above 98%, underscoring the affinity and profitability of this franchised model.
“What we don’t wish to do, like plenty of different manufacturers, is progress for progress’s sake,” Jiva mentioned. “We would like to have the ability to develop with franchisees which are invested of their group, that care about high quality and that care about operating issues the appropriate manner.”
Precedence markets embody Florida, the Carolinas, Virginia and Tennessee. Early efforts are additionally starting in choose Rust Belt markets. A location in Danville, Virginia, was lately signed as that market continues to see momentum.
App and Loyalty Program
As a part of its subsequent part of visitor engagement, Mellow Mushroom plans to launch an app and a proper loyalty program in late 2026. The rollout is meant to offer company a single place to order, obtain provides, observe rewards, and take part in exclusives. This system can be anticipated to help extra constant, focused communication as the corporate expands use of its buyer knowledge platform.
About Mellow Mushroom
Based in Atlanta, Georgia, in 1974, Mellow Mushroom has been serving up recent, stone-baked pizzas in an eclectic, art-filled atmosphere for over 50 years. Every location is regionally owned and operated, with distinctive restaurant designs that replicate the creativity and character of the communities they serve. Recognized for his or her hand-tossed, stone-baked pizzas, craft cocktails, and vast choice of beers, Mellow Mushroom is greater than a pizza restaurant – it’s a gathering place that conjures up loyalty and group. To be taught extra about franchising alternatives, go to MellowMushroom.com/franchising/.
Contact:
Chad Cohen
Mainland
786-417-5769
ccohen@hellomainland.com
