What This 65-Year-Old Pizza Chain's Bankruptcy Means For Its Restaurants

For 65 years, Mary's Pizza Shack has been serving made-from-scratch Italian fare to the folks of California. From an array of pizzas, including the meat-packed Mary's Combo, to pasta, sandwiches, and more, it's practically impossible for a customer to leave without feeling stuffed to the brim.

It all started in 1959 with one Mary Fazio, who used all of her personal savings, $700 to be exact (equal to $7,598.52 purchasing power today), to open the inaugural Mary's Pizza Shack in Sonoma County. Quickly, the restaurant became a hot spot, with guests enjoying both the fresh comfort food and open-kitchen concept, which allowed them to see everything being made before their eyes.

Although Mary's Pizza Shack experienced steady growth over the following decades, reaching 20 locations in 2014, the business's presence, at the time of this writing, is now half of that. Behind-the- scenes, Fazio's descendants are working to keep her legacy alive, and part of that process has involved filing for Chapter 7 bankruptcy. (Speaking of which, here's what really happens when you go bankrupt, and how to recover).

On September 10, 2024, Mary's Pizza Shack announced on its website and social media that it had filed for bankruptcy (joining other beloved restaurants that filed for bankruptcy in 2024). According to the company, this was the last part of a years-long process to preserve the iconic brand and restructure it from a single corporation into smaller, family-owned units. The statement said, in part, "The corporate restructuring occurred in February of 2023, and a thorough discovery process determined this is the best route to preserve Mary Fazio's, our Noni, legacy. Mary's granddaughters will acquire the brand in this process."

In response to the social media post, dozens of Mary's Pizza Shack customers expressed their well wishes for the company as it embarks on this next chapter. Wrote one customer on Facebook, "This will give Mary's the opportunity to restructure and come back even stronger. I'm rooting for you always! The best family and homemade recipes! Here's to the next 65 years!"

When making the announcement that it filed for bankruptcy (here are crucial warning signs that you're heading toward bankruptcy), Mary's Pizza Shack stressed that no restaurants are slated to close in 2024. This was much to the relief of loyal customers, as three locations shuttered their doors in January 2023 as part of the restructuring. In an official statement last year, the company shared that higher operational costs left the California pizza chain with no other choice.

As shared on Facebook, the statement read, "Unfortunately, this was a necessary action as we continue restructuring our Noni's business amidst the evolving challenges that every locally owned restaurant is tackling ... While we had hoped that these three locations would be included in this succession plan, the unchanging realities of increased food and labor costs, mixed with other compounding issues facing our industry, led to this difficult decision."

Hopefully, the remaining locations in Northern California will be able to thrive moving forward thanks to the restructuring. In fact, things are looking positive for Mary's, as its Summerfield Road space in Santa Rosa received a complete remodel in October 2023.