Donatos Pizza has closed seven restaurants in Orlando, Fla., as the pizza chain pursues a different strategy for expansion.
The company-owned locations opened in 2001, when Donatos was part of McDonald’s Corp., and they were larger, dine-in restaurants. Donatos is converting most stores to feature open kitchens and smaller dining areas.
In Orlando, “the physical assets themselves, and the sites they’re in are totally inconsistent” with the company’s current direction, said Tom Santor, a Donatos spokesman. He called the closings a “kind of unwinding” of past decisions.
The buildings also represented a big investment, said Jane Grote Abell, Donatos president. Each one cost $1.7 million to $1.8 million to build.
The restaurants employed between 130 and 140, and every employee will get a severance package, Santor said. Some managers might be moved to Donatos restaurants in other markets.
Donatos previously had closed four stores in the Orlando area.
No more closings are planned, Abell said.