The Untold Truth Of Round Table Pizza

The legend of Round Table starts with the founder, Bill Larson. A former Navy veteran who drifted between odd jobs, it was a brief stint at a San Mateo pizza joint that inspired him to start his very own business. To get the venture up and running, he sought out a loan of $2,500. But in order to pay back the funds, a little more than dough was required. In a profile from the San Francisco Examiner, the young upstart claims he used his parents' furniture as collateral to lay down the loan, having no idea their son had used their possessions to make the deal (via SFGate). 

While certainly not an ideal scenario, the act paid off because in 1959 the first Round Table Pizza opened for business and garnered a dedicated following of fans who wanted to get in on the pizza business. By the early 1970s, he'd amassed a number of shops before later selling stock to investors impressed by his ingenuity. Not bad for someone with under a year of pizza-making expertise!

Compared to chains like Little Caesar's or Papa Murphy's, a pie from Round Table is definitely more expensive. Part of the higher price point, however, can be traced to the high-quality ingredients that go into each pie. Toppings are delivered fresh and prepared each day by employees, whether it be chopping produce or grating the cheese (via Orange County Register). For the cheese, the brand uses a trio of whole-milk mozzarella, provolone, and cheddar produced with microbial enzymes, a process breaking down animal proteins that's friendly to dietary restrictions. Most notable is the pizza dough, which is rolled by hand with employees sometimes rolling dough for nine hours. To Bob Larson, this is a point of pride for the establishment. "No other pizza chain has that, not Pizza Hut, not Domino's. These are craftsmen. This is why we're more expensive. I truly believe it makes a big difference in the pizza, and my customers agree" (via Round Table's website). 

Customers continue enjoying the fruits of Larson's labor, as his original recipes for the dough and red sauce are still used today. Plus, its signature move of loading on the toppings to the crust would kick off the trend of gourmet pizza as we know it. By that margin, Round Table was certainly ahead of its time. 

In the age of massive conglomerate buyouts, employee ownership seems practically unheard of in the restaurant industry. But Round Table stands out as a tasty exception to the rule. Before the pizzeria was swallowed up by hungry corporate firms in the new millennium they were once an employee-owned operation. 

Larson had sold a chunk of the company stock to investors back in the late-1970s, and those same investors took their earnings into the next decade to give employees a piece of the pie. They eventually introduced the Employee Stock Ownership Plan, a common practice allowing workers control through company stock that's transferred into interest over time. In the case of Round Table, interest would be directly funneled into retirement accounts for participating employees, who would have to complete 1,000 hours of work or retain a year of employment to qualify for the program (via Pizza Today). By the year 1992, employees had achieved total ownership. In fact, up until their eventual acquisition by major conglomerates (Global Franchise Group in 2017, FAT Brands in 2021), they were one of the largest employee-owned chains in the country.

In this day and age, any brand whose flagship location is still standing remains an anomaly. Not so for Round table. Not only has the Menlo Park brick-and-mortar stuck around, but the business has stayed afloat into the 21st century. Referred to as "Round Table Pizza No. 1" by those in the know, the castle-like fixture on 1225 El Camino Real continues slinging pies and salads to this day. Should you walk through its hallowed doors (perhaps for a Maui Zaui and some Garlic Parmesan Twists), you'll find the dining room adorned with mementos of the chain's founder, as well as old menus and furnishings from around the time of the official opening. Case in point: the infamous redwood round table that spawned the name. 

It's also become something of a tourist attraction, too. In a profile from the SFGate, Bob Larson reveals pizza-lovers will make the trek to Menlo Park specifically to visit the restaurant and snap photos of the building's brick exterior. It may not be a museum yet like the first McDonald's in San Bernardino, but with enough time we think the potential is there.

Every big brand has its brush with financial struggle at some point in time. It's just a part of business. But during the Great Recession in the early 2010s, it seemed no one was safe. Following a $65 million loan taken out from Prudential Insurance and General Electric Capital, Round Table filed for Chapter 11 bankruptcy in early 2011. The funds, which were to be used for international expansion, came during one of the worst economic declines in modern history and resulted in the brand forfeiting millions in debts and assets. A low blow to the already plummeting profits they experienced at the time. 

The solution? Renegotiating on debt. The pizza chain went through legal proceedings in Oakland and reached an agreement later that year outlining a 4-year repayment plan. As a result, they evaded disaster. None of the chain's 140+ franchisers would be affected by the decision, an outcome that stunned legal experts at the time. Round Table's attorney Scott McNutt described the case as a "unique bankruptcy," and "unusually successful" in the realm of financial reorganization (via The Mercury News). And it showed. As a result of the ruling, the pizza giant was able to keep most of its restaurants in business, with only 22 locations shuttering to make ends meet, as reported by The Almanac. It appears even the recession couldn't break the pizza brand.

It isn't just the pizza that draws customers to Round Table. In the age of the pizza arcade Round Table was king, providing a paradise where kids could play a round of pinball or Pac-Man to tide them over until dinner. The recent rebrand aimed to modernize the dining experience, and being no stranger to entertainment, the pizzeria decided to put a twist on what it does best. 

In 2016, a sports-bar concept called the Clubhouse was launched to provide an all-ages hangout mecca. A twist on the fun zones of yore, the "Pizza-Pub-Play" offshoot featured elevated menus with specialty burgers and craft beer, televised sports, and a sprawling arcade space. All of this, in addition to the classic pizza menu, proved a winning combo for sales. In a press release from Businesswire, they found the pub-inspired format raked in more cash than standard dine-in establishments, bringing in a solid $1.45 million compared to under one million, respectively. Which makes total sense, given its casual vibes. Some might think it's too hip, but even alongside beer-battered fries and artisanal sliders, the format appears to honor the brand's identity as a family-friendly destination, both for food and fun. 

A game day spread isn't complete without a freshly-baked pie from Round Table. But its involvement with one of America's favorite pastimes goes beyond the living room couch. In 1985, they baked their specialty pizzas for a much bigger crowd than the usual customer demands: the Super Bowl.  

That's right. January 20, 1985 was Super Bowl XIX, a famous showdown between the San Francisco 49ers and the Miami Dolphins, who both laid claim to unbeatable quarterbacks Dan Marino of the Dolphins and Joe Montana of the 49ers. It turns out the game, which took place at Stanford Stadium, was partially fueled by their pizza. In a profile from SFGate, Bob Larson revealed 500 pies were cooked up for those in the "World of Children's Dreams" halftime show featuring the U.S. Airforce's ensemble troupe Tops in Blue. Likely the chain's biggest order at the time, they did the Bay Area proud. The game resulted in the 49ers reigning supreme with a score of 38-16, and Montana declared MVP. Was it because of the pizza? Well, probably not. But the fact that they were somewhat tied to one of the planet's biggest sporting events is no small feat, and leaves you a little extra to chew on during your next takeout order.

The COVID-19 pandemic shook the service industry to its core, shuttering beloved restaurants across the country at record speed. Pizza restaurants, by contrast, prevailed for their quarantine-friendly services like carryout and delivery, and Round Table exceeded all expectations during the pandemic's peak. Besides breaking record profits during 2020's lockdown at $439 million (via Restaurant Business), they also emerged 23 restaurants strong. In June 2021, an announcement from the brand revealed more restaurants were incoming, with the goal of reaching 500 locations within 2 years' time (via Round Table's website). Add in the available property at its disposal, and the pizza giant's ascent to greater heights seems inevitable. 

FAT Brands Chief Development Officer Chris Creek commented on the chain's ability to endure the hardships posed by the lockdown, saying that "Americans continually turned to a reliable and beloved brand to help feed their comfort food cravings," according to 1851 Franchise. 

The chain hasn't announced specifics on where the new restaurants will launch, but judging by its desire to go "coast to coast," it's clear expansion is the secret ingredient to the recipe the pizza chain's perfected.