Texas-based pizza chain Mr. Gatti’s continues to expand in the years following its 2019 bankruptcy filing. After restructuring its debt, a partnership with Walmart helped accelerate the brand’s expansion into new markets. Its focus on mixing entertainment with food has also contributed to the recovery in the last six years.
What Went Wrong for Mr. Gatti’s in 2019
The longtime pizza chain faced bankruptcy on January 4, 2019, when its Sovrano LLC, its parent entity made a Chapter 11 filing. The proceedings took place in the U.S. Bankruptcy Court for the Northern District of Texas.
Case records showed that Mr. Gatti’s faced over $32 million in secured debt at the time of filing. According to Pizza Marketplace, the company clarified that it entered the proceedings to meet its financial obligations.
Additional case details on Bankruptcy Observer showed that both assets and liabilities were between $10 million and $50 million. The company had further listed creditors in the range of 100 to 199.
Court filings added that this case was being jointly administered with the parent company. The most recent filing in the case was recorded on September 17, 2020, under case number 19-40070.
Rebuilding After Bankruptcy
After the bankruptcy, Mr. Gatti’s shifted its emphasis to franchise development. According to FSR Magazine, in 2023, the pizza brand had sold 86 franchises in a timeframe of three years. In addition, it then planned to open 60 of those by the end of 2026.
The brand has also leaned into its identity beyond pizza, offering arcade games and family-oriented entertainment. CEO Jim Phillips said the company’s family entertainment concept surpassed pre-pandemic sales in 2023. It grew to nearly 70 locations across the Southeast, offering signature pizzas alongside family entertainment centers.
In another press release shared by Pizza Today, on February 18, 2026, the company announced plans to expand in Houston as part of the growth strategy. Mr. Gatti’s seeks franchise operators for new locations, focusing primarily on the Family Entertainment Center format. Pizza, arcade games, and party spaces are set to be the highlights at these outlets.
The announcement highlights the pizza chain’s continued expansion, with over 234 active and planned locations across Texas and Southeastern U.S.
Why Walmart Became a Game-Changer
Following its success with entertainment-based dining, the pizza chain decided to navigate convenience dining through its deal with Walmart in 2024.
According to another PR Newswire report, the Texas-based pizza brand partnered with the retail giant to open 92 restaurants inside Walmart stores across Texas, Louisiana, Kentucky, and Oklahoma. Mr. Gatti’s expected the plan to unfold across the four states in Q4 of 2024.
After the Walmart agreement was signed, the pizza chain said its total pipeline would exceed 230 locations that were either already operating or planned for future opening.
CEO Jim Phillips said that the Walmart deal would accelerate the pizza chain’s expansion into new markets while strengthening its presence in existing ones. It also marked a notable change in the company’s growth trajectory, providing access to high-traffic retail locations.
The rollout began in November 2024 with 12 locations across Texas and Oklahoma. Another 23 stores were under construction and slated to open in early 2025.
Recent Ownership Change
In January 2026, the company underwent a major ownership change. Led by G. Brint Ryan, OneRyan Global LLC purchased a controlling stake in the pizza brand.
This deal marked the complete shift of the pizza chain into a fully franchised system, as the last corporate-owned store was sold. Brint Ryan was appointed the Chairman and Amanda S. Ryan became Vice Chairwoman. However, the existing leadership team, including CEO Jim Phillips, still remain.
Mr Gatti’s Pizza was founded in 1964 in Stephenville, Texas, as “The Pizza Place” by James Eure. It was rebranded after relocating to Austin in 1969. Through close to six decades, the company developed into a regional pizza chain with a focus on dine-in and family entertainment formats.
The pizza chain has successfully transformed through severe financial challenges, shifted to a fully franchised model, and expanded its family entertainment roots to become well-positioned for a sustainable future.
