Yes, even more California culture is coming to Texas. On May 8, Sacramento pizza chain, appropriately named "Pizza Guys", announced their intent to expand into Texas. The chain, which offers budget-friendly options for pizza customers, is currently looking for franchisees in the Lone Star State. In all, the plan is for 66 DFW storefronts, 17 Houston storefronts, 26 San Antonio storefronts, and 23 Austin storefronts.

This is a substantial move for Pizza Guys that serves as a tremendous vote of confidence for both DFW and the state as a whole. Despite being over 35 years old, Pizza Guys currently has only 85 locations, almost entirely within California (Portland has two locations and Las Vegas has one). The Metroplex alone would almost double that number, with the total Texas locations more than doubling that number.

Shahpour Nejad, co-founder of Pizza guys, spoke optimistically of the plan:

We look forward to partnering with new franchisees all across Texas who can help share our delicious food and embrace Pizza Guys in their community.

West Coast pizza? This picture makes me cautiously optimisticSource: Pizza Guys

Regardless of your preferred style of pizza, we can all agree that strong retail activity in the state is a great sign for the market (hopefully we can also agree that NYC style > Chicago style). Covid led many diners to choose to carry out rather than dine in, strengthening restaurants such as pizzerias that can easily prepare their food to go. The expansion of carryout-capable restaurants should be a relief to retail asset managers everywhere, hopefully offering diversification and a different risk profile from more traditional retailers or sit-down restaurants.

Retail asset managers should keep an eye out for tenants such as a Pizza Guys franchise. While a pizzeria isn't quite the same as a high-end grocery anchor, adding one to a tenant mix can provide both less volatile cashflows and a more attractive sales proposition in the event of disposition.