Rave Restaurant Group, Inc. (RAVE): Business Model Canvas [Dec-2025 Updated]

You're trying to figure out the engine behind Rave Restaurant Group, Inc. (RAVE), and honestly, it's not what you might expect from a pizza chain; this is a masterclass in an asset-light, franchise-heavy model. Forget owning every building; their strategy hinges on supporting partners, which explains why their total revenue for fiscal year 2025 landed at just $12.0 million, even while they kept a strong $9.9 million cash position on the books as of June 29, 2025. This Business Model Canvas distills exactly how they turn Pizza Inn and Pie Five Pizza Co. intellectual property into royalty streams and franchise fees, so stick around to see the nine building blocks that make this lean corporate structure work.

Rave Restaurant Group, Inc. (RAVE) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Rave Restaurant Group, Inc. (RAVE) relies on to scale its Pizza Inn and Pie Five brands. These partnerships are critical because the majority of RAVE's revenue comes from franchising, not direct store operation.

Domestic and international franchise partners

The franchise partners are the engine for brand presence, both at home and abroad. As of the end of fiscal year 2025 (ending June 29, 2025), the system count shows the scale of this network:

• Pizza Inn domestic comparable store retail sales increased 1.9% for the year ended June 29, 2025.
• Pizza Inn domestic unit count finished at 96 as of September 28, 2025.
• The total system as of June 29, 2025, included 117 franchised Pizza Inn restaurants and 17 franchised Pie Five restaurants.
• The overall RAVE brand saw domestic comparable store retail sales increase 0.8% for fiscal 2025.

Third-party food, equipment, and supply distributors

RAVE Restaurant Group supports its domestic and international restaurant network by arranging for the distribution of necessary items through third-party entities. This outsourcing of logistics is key to maintaining operational consistency across the system, which totaled 134 franchised and licensed units as of June 29, 2025 (117 Pizza Inn + 17 Pie Five). Franchise revenue includes income derived from supplier incentives, which are recognized as earned when underlying commodities ship.

Master Franchise Agreement partners for international growth (e.g., Egypt)

International expansion is heavily reliant on Master Franchisee partners who purchase the right to develop and operate restaurants in defined territories. Franchise revenue includes income from foreign master license agreements.

A concrete example of this partnership strategy is the international milestone achieved in the fiscal year 2025 reporting period:

International Market	Partner/Agreement Type	Key Activity/Commitment	Unit Count Context
Egypt	Al Ruwad Hospitality Services & Restaurants Management Group (Master Franchise Agreement)	Strong opening of the first Pizza Inn location in Q4 FY2025. Agreement was for seven new locations.	International unit count was 20 as of March 30, 2025.
Saudi Arabia	Unspecified Franchise Partner	Eighth unit opened in the fourth quarter of fiscal 2025.	International units are across multiple markets.

Digital marketing and e-commerce platform providers

While specific vendor names aren't public, the execution of promotions like the weekday buffet offer at $8.00 (excluding drinks) requires robust digital and in-market advertising support that Rave Restaurant Group, Inc. coordinates with external providers. Furthermore, the company's revenue stream includes advertising fund revenues, which are based on a percentage of franchise retail sales.

Real estate developers for new unit pipeline (31 stores)

The development pipeline is a direct measure of the commitment from franchisees and developers to build new locations. This pipeline is a major focus for future revenue generation through initial franchise fees and ongoing royalties.

The pipeline status as of the Fiscal Year End 2025 report was:

• Domestic store pipeline has 31 total stores under contract.
• Of those 31, 12 are under contract for the current fiscal year ending June 28, 2026.
• The Pizza Inn buffet restaurant count grew by a net of one restaurant in fiscal 2025, marking the fourth consecutive year of buffet unit count growth.

The company finished fiscal 2025 with total assets of $16,557 thousand (in thousands, USD). Finance: draft 13-week cash view by Friday.

Rave Restaurant Group, Inc. (RAVE) - Canvas Business Model: Key Activities

You're looking at the core engine driving Rave Restaurant Group, Inc. (RAVE)'s results, which as of late 2025, is heavily focused on supporting its franchised base while managing corporate overhead. The company reported its 21st consecutive quarter of profitability with fiscal year 2025 ending June 29, 2025, showing a net income of $2.7 million on total revenue of $12.0 million.

Franchise system support and operational training

A major activity is supporting the domestic and international restaurant network, which includes arranging food, equipment, and supply distribution via third-party distributors. The system as of June 29, 2025, consisted of 117 franchised Pizza Inn restaurants and 17 franchised Pie Five restaurants, plus one licensed Pizza Inn Express kiosk. The Pizza Inn buffet count grew by a net of one restaurant in FY2025, marking the fourth consecutive year of buffet unit count growth. The company is clearly investing in its core asset, as early Pizza Inn reimage projects are returning measurable gains, citing average post-reimage sales lifts of roughly 7-8% with an average return on investment in the mid-50% range on completed stores.

Brand marketing and value promotion development (e.g., I$8 deal)

Marketing is a critical activity, especially for driving traffic to the Pizza Inn brand. The execution of the I$8 deal promotion-allowing guests to dine at buffets for $8.00 excluding a drink purchase all day on weekdays-was a highlight. This value strategy drove a 30.6% sales lift and a 34.7% traffic increase at participating locations. For Pizza Inn stores that did not participate, a summer salad bar promotion still yielded same store sales growth over 5%. The new online ordering platform rolled out systemwide also contributed by delivering double-digit growth in online sales.

Menu innovation and supply chain management

Menu innovation is ongoing to broaden occasions and help ticket size. This includes a renewed focus on desserts and new baked pastas. The supply chain management activity is executed by arranging distribution through third-party distributors for the entire restaurant network. The Q1 fiscal 2026 results, ending September 28, 2025, showed Pizza Inn domestic comparable store retail sales increasing by 8.1%, while Pie Five domestic comps decreased by 9.1%. This contrasts with Q4 FY2025, where Pizza Inn domestic comps were up 6.3%.

Franchise sales and new unit development

Development visibility improved, with management indicating approximately 30 signed Pizza Inn buffet development agreements in early 2025. This forward supply is meaningful for a system of this size and skews toward the highest-return format. The company's focus is on protecting and gradually expanding the core buffet footprint while pruning lower-return Delco/Express and kiosk units.

Corporate expense management for profitability

Disciplined management of corporate expenses is clearly a key activity, contributing to the company's 22nd consecutive quarter of profitability as of Q1 fiscal 2026. For the full fiscal year 2025, Income before taxes increased by over 17% to $3.6 million, despite total revenue decreasing slightly to $12.0 million. The company finished FY2025 with an Adjusted EBITDA of $3.6 million, a $0.4 million increase from the prior year. The table below shows a snapshot of related expenses from the FY2025 reporting period, which you should interpret in the context of the overall financial performance.

Expense Category (FY 2025)	Amount (in thousands, based on context)
Franchise expenses	3,397
Depreciation and amortization expense	182
Interest (income) expense	(354)

Total expenses were managed down in Q2 2025, with total expenses down $88 thousand from the prior year's second quarter.

Rave Restaurant Group, Inc. (RAVE) - Canvas Business Model: Key Resources

You're looking at the core assets that power Rave Restaurant Group, Inc.'s operations as of late 2025. These aren't just line items on a balance sheet; they are the engines driving the business model.

Established brand names: Pizza Inn and Pie Five Pizza Co.

The longevity of Pizza Inn, which started in 1958, provides deep-rooted consumer recognition. Pie Five Pizza Co. represents the newer, fast-casual segment focus. These two distinct brand identities are critical for market segmentation.

Intellectual property (recipes, operating manuals, trademarks)

The proprietary nature of the recipes and the detailed operating manuals are essential for maintaining brand consistency across the franchise system. Trademarks for both Pizza Inn and Pie Five Pizza Co. protect the brand equity.

Corporate management team and franchising expertise

The team's experience in franchising is a key resource, enabling the company to grow without bearing the full capital expenditure of company-owned locations. This expertise is vital for supporting the franchisee network.

Strong cash position of $9.9 million as of June 29, 2025

Liquidity is a definite strength. As of the fiscal year-end on June 29, 2025, Rave Restaurant Group, Inc. reported cash and short-term investments totaling $9.9 million. This was comprised of $2.9 million in cash and cash equivalents and $7.0 million in short-term investments on that date. That's solid footing for a company of this size.

Asset-light corporate infrastructure

The model leans heavily on franchising, which keeps the corporate infrastructure lean relative to system-wide sales. The unit count breakdown as of June 29, 2025, clearly shows this structure:

Brand Segment	Unit Type	Unit Count (as of June 29, 2025)
Pizza Inn	Franchised Domestic Restaurants	95
Pizza Inn	Franchised International Restaurants	22
Pie Five Pizza Co.	Franchised Domestic Units	17
Pizza Inn	Licensed PIE Units (Kiosks)	1

This structure means the company primarily collects franchise fees and royalties rather than absorbing all operational costs for every location. For context, the total system included 117 franchised Pizza Inn restaurants and 17 franchised Pie Five Units as of that date. The company also reported a cash and short-term investment balance of $10.6 million by September 28, 2025, showing continued balance sheet strengthening early in the next fiscal year.

You should review the latest Q1 2026 filing to see if the management team has adjusted its capital allocation strategy based on that September 28, 2025, cash balance. Finance: draft 13-week cash view by Friday.

Rave Restaurant Group, Inc. (RAVE) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Rave Restaurant Group, Inc. (RAVE) over the competition right now, late in 2025. The value propositions are clearly split between the established, value-focused Pizza Inn and the fast-casual Pie Five concept, though the latter is facing headwinds.

Affordable, all-you-can-eat pizza buffet (Pizza Inn)

For Pizza Inn, the value proposition centers on high-volume, low-price access to a wide variety of food. This is concretely demonstrated by their value-driven promotions. During the third quarter of fiscal 2025, Rave Restaurant Group, Inc. tested a promotion called I$8 at Pizza Inn, which allowed guests to dine at the buffets for just $8.00 all day on weekdays. This focus on price point clearly resonated with the budget-conscious consumer base, as Pizza Inn domestic comparable store retail sales increased by 2.5% in that same quarter. To be fair, this strategy is driving results, with nineteen Pizza Inn locations reporting their highest sales weeks since at least 2018.

Fast-casual, customizable, personal-sized pizzas (Pie Five)

Pie Five offers customization and speed in a fast-casual setting, focusing on personal-sized pizzas. However, this segment is currently struggling to deliver consistent value perception, as evidenced by Pie Five domestic comparable store retail sales decreasing by 5.6% in the third quarter of fiscal 2025 compared to the prior year period. Still, there are bright spots, with three Pie Five restaurants achieving their highest sales weeks since at least 2018, suggesting that localized execution or format adjustments are working for some franchisees.

Value-driven dining for budget-conscious consumers

The overarching theme across the value proposition set is affordability, especially as consumers navigate ongoing economic uncertainty. The success of the Pizza Inn I$8 promotion is a key indicator here; the company noted that this specific test resulted in over twenty percent year-over-year sales increases in the locations where it was run. This shows Rave Restaurant Group, Inc. is actively tuning its offering to meet the demand for value, which is critical for maintaining customer traffic. The company has managed to deliver profitable operating results for 20 consecutive quarters as of Q3 2025, which speaks to their ability to manage costs while offering competitive pricing.

Here's a quick look at the unit footprint supporting these value propositions as of March 30, 2025, following the Q3 2025 reporting period:

Brand Segment	Domestic Unit Count (as of Mar 30, 2025)	International Unit Count (as of Mar 30, 2025)	Q3 2025 Domestic Comp Sales Change
Pizza Inn	98	20	+2.5%
Pie Five	19	Not specified	-5.6%

Multiple formats: buffet, express, delivery, and ghost kitchens

Rave Restaurant Group, Inc. supports its value propositions through a flexible operational structure that caters to different consumer needs for convenience and access. The formats currently in use include:

• Buffet restaurants offering dine-in, carryout, and catering.
• Delivery/carry-out units focused purely on off-premise orders.
• Express units, which include Pizza Inn Express kiosks in non-traditional outlets.
• The company is also developing opportunities in the ghost kitchen space to capture delivery-only demand.

The total systemwide unit count for Pizza Inn, including all formats, stood at 98 domestic and 20 international locations at the end of Q3 2025.

Proven brand heritage since 1958

The longevity of the core brand provides a foundational layer of trust and recognition for the value proposition. Rave Restaurant Group, Inc. traces its roots back to 1958. This long history is a silent partner in the current value messaging, suggesting a time-tested model, even as the company focuses on modernizing through initiatives like digital marketing and new promotions. The company reported total annual revenue of $12.04 million for the fiscal year ended June 29, 2025, showing a stable, albeit slightly down, revenue base supporting this heritage.

Finance: draft 13-week cash view by Friday.

Rave Restaurant Group, Inc. (RAVE) - Canvas Business Model: Customer Relationships

You're looking at how Rave Restaurant Group, Inc. (RAVE) manages the connection with its customers, which is split quite distinctly between its two main brands. The relationship model is a mix of high-touch support for partners and value-driven, direct-to-consumer engagement.

Dedicated franchise support and consulting services

RAVE Restaurant Group provides numerous training programs for the benefit of franchisees and their restaurant crew managers. These programs, taught by experienced Company employees, focus on food preparation, service, cost control, sanitation, safety, local store marketing, personnel management, and other aspects of restaurant operation. Initial and certain supplemental training programs are offered free of charge to franchisees, who pay their own travel and lodging expenses. New franchisees also receive on-site support. This structure is key because the company's profitability relies on franchisee success; for fiscal year 2025, which ended June 29, 2025, the company posted a net income of $2.7 million on total revenue of $12.0 million.

The commitment to partner success is evident in the unit growth; the Pizza Inn buffet restaurant count increased by a net of one restaurant in fiscal 2025, marking the fourth consecutive year of buffet unit count growth. Management is planning for this to increase the net buffet store count for the fifth consecutive year.

Automated digital ordering and loyalty programs

While specific enrollment numbers for a dedicated loyalty program aren't public, the success of value-driven promotions suggests a strong, if transactional, digital/promotional relationship strategy is in place, particularly at Pizza Inn. The focus on value resonates with guests, as seen in the Q4 fiscal 2025 results, where the 'I ate at Pizza Inn' $8 value promotion drove a 30.6% sales lift and a 34.7% traffic increase in participating locations. This indicates a successful, albeit temporary, digital or promotional engagement mechanism driving immediate foot traffic.

Transactional service model at Pie Five (fast-casual)

The Pie Five relationship is built on speed and personalization, fitting the fast-casual mold. However, the recent performance shows a challenge in maintaining that customer connection. For the first quarter of fiscal 2026, ended September 28, 2025, Pie Five domestic comparable store retail sales decreased by 9.1%. This follows a domestic comparable store retail sales decrease of 8.4% for the full fiscal year 2025. The transactional nature of fast-casual means customer retention is highly sensitive to value and speed, and these negative comps suggest a near-term strain on that relationship.

High-touch, community-focused dining at Pizza Inn buffets

Pizza Inn emphasizes a high-touch, community-focused dining experience, often centered around the buffet. This strategy is clearly driving customer traffic and sales momentum. For the first quarter of fiscal 2026, Pizza Inn domestic comparable store retail sales increased by 8.1% year-over-year. This success is directly linked to value promotions, as the same-store sales for Pizza Inn surged by 6.3% in Q4 fiscal 2025. The brand finished Q1 FY2026 with 96 domestic units and 20 international units.

Here's a quick look at the brand performance metrics reflecting customer reception for the most recent periods:

Metric	Period Ending Sep 28, 2025 (Q1 FY2026)	Fiscal Year Ended Jun 29, 2025 (FY2025)
Pizza Inn Domestic Comp Sales	+8.1%	+1.9% (Annual)
Pie Five Domestic Comp Sales	-9.1%	-8.4%
Total Company Domestic Comp Sales	N/A	+0.8%
Pizza Inn Domestic Units	96	Net increase of 1 unit
Pie Five Domestic Units	17	N/A

Corporate investor relations and shareholder communication

The relationship with the investment community is maintained through regular, timely disclosures. Rave Restaurant Group, Inc. reported its Fourth Quarter and Fiscal Year End 2025 Financial Results on September 25, 2025. The company achieved its 21st consecutive quarter of profitability in FY2025, with annual net income up 9.3% to $2.7 million, and diluted EPS improving to $0.19 from $0.17 the prior year. The company reported its 22nd consecutive profitable quarter in Q1 FY2026, recording net income of $0.6 million, a 22.6% increase year-over-year.

Key financial health indicators shared with investors as of late 2025 include:

• Cash and short-term investments totaled $10.6 million on September 28, 2025.
• FY2025 Net Profit Margin was approximately 22.5%.
• The company's market capitalization was reported as $40.65M as of September 25, 2025.
• The next scheduled major communication event was the 2025 Annual Meeting of Shareholders on December 9, 2025.

If onboarding new franchisees takes 14+ days, churn risk rises, but here the focus is on supporting existing operators to drive their customer traffic.

Rave Restaurant Group, Inc. (RAVE) - Canvas Business Model: Channels

The channels Rave Restaurant Group, Inc. uses to reach its customers are a mix of traditional brick-and-mortar locations, smaller format express units, and modern digital ordering avenues. The physical footprint is primarily driven by the franchised locations for both major brands.

Franchised Pizza Inn buffet and dine-in restaurants represent the core dine-in and full-service channel. This format also supports carryout and catering services, alongside delivery. The performance of this channel is tracked via domestic comparable store retail sales, which showed a 6.3% increase in the fourth quarter of fiscal 2025 compared to the prior year's fourth quarter on a 13-week versus 13-week basis. For the first quarter of fiscal 2026, this metric was even stronger at a 8.1% increase year-over-year.

The Franchised Pie Five fast-casual locations channel focuses on speed and customization, offering made-to-order pizzas ready in under five minutes. This channel has faced headwinds, with domestic comparable store retail sales decreasing by 7.2% in the fourth quarter of fiscal 2025 and by 9.1% in the first quarter of fiscal 2026, both compared to their respective prior-year periods.

The Pizza Inn Express (PIE) licensed kiosks serve as a smaller, more convenient channel, offering the iconic Pizza Inn quality in a kiosk format for fast service.

Digital reach is supported by Third-party delivery platforms (DoorDash, Uber Eats, etc.) and Company websites and mobile apps for digital ordering. Rave Restaurant Group, Inc. also operates 'Eat at Home,' which is described as a delivery-focused virtual restaurant brand, directly utilizing these digital and third-party channels to capture off-premise demand.

Here is a breakdown of the physical channel scale as of the end of fiscal 2025 and the start of fiscal 2026:

Channel/Brand Segment	Unit Count (FY End June 29, 2025)	Unit Count (Q1 FY2026 End Sep 28, 2025)
Pizza Inn Domestic (Buffet/Dine-in)	96	96
Pizza Inn International	22	20
Pie Five Domestic (Fast-Casual)	17	17

Performance metrics tied to the Pizza Inn channel show clear customer engagement:

• Pizza Inn domestic comparable store retail sales increased 6.3% in Q4 fiscal 2025.
• Pizza Inn domestic comparable store retail sales increased 8.1% in Q1 fiscal 2026.
• A specific value promotion at participating Pizza Inn locations drove a 30.6% sales lift.
• That same promotion resulted in a 34.7% traffic increase in participating locations.

The total annual revenue for fiscal 2025, which flows through these channels, was $12.04 million.

Rave Restaurant Group, Inc. (RAVE) - Canvas Business Model: Customer Segments

You're looking at the core groups Rave Restaurant Group, Inc. (RAVE) targets across its two main brands, Pizza Inn and Pie Five Pizza Company, as of late 2025. The strategy clearly leans heavily on the established Pizza Inn concept, especially its buffet format, which is showing better traction in the current environment.

Budget-conscious families and social groups

This segment is primarily served by the Pizza Inn buffet concept. The value proposition is concrete here; for instance, the Pizza Inn 'I ate at Pizza Inn' promotion drove a 30.6% sales lift and a 34.7% traffic increase in participating locations. Furthermore, a specific value offer allows guests to dine at the buffets for $8.00 excluding a drink purchase all day on weekdays. This focus on affordability is key, especially when the fast-casual segment, Pie Five, saw domestic comparable store sales drop 7.2% in the fourth quarter of fiscal 2025.

Consumers in small-town and suburban US markets

The Pizza Inn brand, founded in 1958, has a strong historical tie to these areas, emphasizing a 'hometown pizza place' vibe. Domestically, as of June 29, 2025, RAVE Restaurant Group, Inc. had 96 Pizza Inn domestic units, with 79 of those being Buffet Units. The overall domestic Pizza Inn segment showed resilience, with domestic comparable store retail sales increasing 0.8% for the full fiscal year 2025. In the fourth quarter of fiscal 2025, Pizza Inn domestic comparable store retail sales grew even stronger at 6.3%.

International consumers via master franchise agreements

RAVE Restaurant Group, Inc. is expanding its Pizza Inn footprint internationally, which includes 22 franchised Pizza Inn restaurants as of June 29, 2025. This growth is being driven by master franchise agreements, such as the one in Egypt which is set to open its first location in Cairo during the fourth quarter of 2024 as part of a seven-store agreement. The company plans to evaluate the continued development of new Pizza Inn Buffet and Delco Units in international markets in fiscal 2026.

Fast-casual diners seeking quick, customized meals

This group is the target for the Pie Five Pizza Company concept, which pioneered customizable pizzas baked in under five minutes. While the concept aims for speed and personalization, its domestic performance lagged behind Pizza Inn in the recent period. As noted, Pie Five domestic comparable store retail sales decreased 7.2% in the fourth quarter of fiscal 2025 compared to the prior year. As of June 29, 2025, there were 17 franchised Pie Five Units domestically.

Franchise entrepreneurs seeking established restaurant concepts

These are the business partners RAVE Restaurant Group, Inc. seeks to expand its system with, leveraging franchise fees and royalties for revenue. The pipeline for future growth is clearly defined. The company has 31 total new domestic stores under contract, with 12 specifically planned for the fiscal year ending June 28, 2026. Additionally, Q2 fiscal 2025 results indicated 30 new buffet restaurants under development agreements for Pizza Inn. The total system count as of June 29, 2025, included 117 franchised Pizza Inn restaurants and 17 franchised Pie Five Units.

Here's a quick look at the unit counts and recent sales performance by brand as of the fiscal year end 2025:

Segment Detail	Unit Count (as of 6/29/2025)	Q4 FY 2025 Domestic Comp. Sales Change	FY 2025 Annual Net Income
Pizza Inn Domestic Buffet Units	79	+6.3%	$2.7 million (Total Company)
Pie Five Domestic Units	17	-7.2%
Pizza Inn International Units	22	N/A

The Pizza Inn Franchising segment accounts for the majority of the company's revenue, and geographically, the majority of revenue comes from the United States.

Rave Restaurant Group, Inc. (RAVE) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Rave Restaurant Group, Inc.'s operations, focusing on what it costs to keep the corporate engine running and support the franchise system as of late 2025. We need to see where the dollars are actually going.

Lean corporate overhead and administrative expenses reflect a continued focus on efficiency. For the full Fiscal Year 2025, total general and administrative expenses came in at $5.2 million. This was a slight reduction, down by $0.1 million compared to the $5.3 million reported in fiscal year 2024. Honestly, that's a disciplined move. The primary driver for this reduction was lower recruiting fees, even with slight increases in salaries.

Franchise support and training costs are captured in the Franchise Expenses line item. For the entirety of Fiscal Year 2025, these expenses totaled $2.592 million. This is down from $2.828 million in the prior fiscal year, suggesting either fewer new franchisee onboarding events or optimized support structures.

For General and administrative costs, efficiently managed, we can look at the quarterly trend to see the ongoing discipline. In the third quarter of fiscal 2025 (ended March 30, 2025), G&A was $1,302 thousand. By the first quarter of fiscal 2026 (ended September 28, 2025), this figure was reported at $1,378 thousand. Management has emphasized this disciplined management of corporate expenses, especially when paired with positive comparable store sales growth.

Specific line items for Marketing and advertising fund expenditures and Technology and digital platform maintenance costs are not broken out separately in the readily available summary financial statements, so we stick to the consolidated expense categories we can verify.

Here is a breakdown of the key verifiable cost components for Rave Restaurant Group, Inc. for the most recent full fiscal year and the latest reported quarter:

Cost Component	Fiscal Year Ended June 29, 2025 (in thousands)	Q1 Fiscal 2026 (in thousands)
Total General and Administrative Expenses	$5,200	$1,378
Franchise Expenses	$2,592	$1,037
Depreciation and Amortization Expense	$140 (Nine Months Ended March 30, 2025)	$42

You can see the scale of the fixed corporate costs versus the variable franchise support costs. The depreciation figure shown is for the nine months ended March 30, 2025, which was $140 thousand, while the Q1 2026 depreciation was $42 thousand.

The cost structure is heavily influenced by the franchise model, which shifts a significant portion of operating costs to franchisees. Key elements impacting the cost base include:

• Franchise Expenses for FY2025: $2.592 million.
• General and Administrative Expenses for FY2025: $5.2 million.
• The decrease in G&A from FY2024 to FY2025 was $0.1 million.
• Q1 FY2026 Operating Income was $752 thousand on total costs and expenses of $2,461 thousand.

Finance: draft 13-week cash view by Friday.

Rave Restaurant Group, Inc. (RAVE) - Canvas Business Model: Revenue Streams

You're looking at the core of Rave Restaurant Group, Inc. (RAVE)'s financial engine, which is heavily weighted toward franchising. The structure is designed to generate recurring, high-margin revenue streams from its established brands, primarily Pizza Inn.

Total revenue for fiscal year 2025 was $12.0 million. This figure is a direct reflection of the performance of the franchised units, as the company operates on an asset-light model.

The primary revenue components, as detailed by the segment reporting for FY2025, are:

• Pizza Inn Franchising revenue: $10.79 million
• Pie Five Franchising revenue: $1.2 million
• Corporate administration and other revenue: $0.053 million

The revenue streams are contractually defined, requiring franchisees to remit payments based on their gross sales. While the exact percentages for RAVE's specific royalty and advertising fund contributions for FY2025 weren't explicitly broken out in the latest filings I can access, the structure mandates these payments, which are bundled into the franchising segment revenue.

Here is a table summarizing the FY2025 revenue composition based on the available segment data:

Revenue Source Category	FY 2025 Revenue (Millions USD)	Percentage of Total Revenue
Pizza Inn Franchising	$10.79	89.63%
Pie Five Franchising	$1.2	9.93%
Corporate Administration and Other	$0.053	0.44%

The franchise agreements for both brands require specific payments that map directly to your outline points. For instance, the Pizza Inn franchise segment generated 89.63% of the total revenue, which is the pool from which royalties, fees, and advertising contributions flow.

The key revenue mechanisms that make up the franchising income are:

• Franchise royalties (percentage of gross sales): This is a continuing payment based on franchisee sales performance.
• Franchise fees from new unit openings: These are upfront, one-time payments received when a franchisee signs a new unit agreement.
• Advertising fund contributions from franchisees: These are mandatory contributions, typically a percentage of gross sales, directed into a pooled marketing fund managed by Rave Restaurant Group, Inc.
• Revenue from company-owned restaurant operations (minimal): This is the smallest component, as the model prioritizes franchising.

To give you a sense of the scale of the operations driving this revenue, as of the end of fiscal year 2025 (June 29, 2025), the system consisted of:

• Pizza Inn franchised restaurants (domestic and international): 117 units
• Franchised Pie Five restaurants: 17 units
• Licensed Pizza Inn Express kiosks: 1 unit

The Pie Five franchise fee structure, for example, has an initial investment component that includes a franchise fee ranging from $42,000 to $44,000, which is the initial franchise fee component of the revenue stream. Franchisees are typically required to sign a 10 year contract initially.