Buddy’s Pizza, the Detroit-born chain credited with inventing the city’s square, pan-baked Detroit-style pie in 1946, is back in local hands. A group of regional investors has bought the brand from an outside private equity owner, pulling the hometown favorite closer to its roots just as the company tightens its footprint around Metro Detroit.
According to Crain’s Detroit Business, a local investment group has acquired Buddy’s from a private equity firm. The outlet reported that individual investors have not been identified and financial terms have not been disclosed. The sale, announced today, follows several years of outside investment that pushed Buddy’s beyond southeast Michigan.
Buddy’s received private equity backing in early 2018 when CapitalSpring completed a significant investment to accelerate the chain’s growth, according to Business Wire. That influx of capital helped fund openings in West Michigan and other markets. Expansion outside the Detroit area ultimately proved uneven, setting the stage for a new ownership change that returns the brand to local control.
Kentwood Closure Signals Retreat From West Michigan
The chain pulled out of West Michigan earlier this year when its Kentwood restaurant at 4061 28th St. SE closed Jan. 23, leaving Buddy’s focused on locations in and around Detroit, Crain’s Grand Rapids Business reported. Company posts at the time said the Kentwood shop struggled after the pandemic and amid higher operating costs, and that Buddy’s planned to assist employees with the transition. The closure left the chain operating nearly exclusively on the east side of Michigan.
What Local Ownership Could Mean For Buddy’s
Under local ownership, leaders could double down on the brand’s Detroit identity. Buddy’s traces its history to 1946 and lists its headquarters in Farmington Hills on the company website. Local reporting and the brand’s listings indicate Buddy’s operates roughly 19 restaurants across Michigan, most clustered in Metro Detroit, according to WRIF and the company’s site. The new investors have signaled they intend to preserve the recipe and in-restaurant experience while working to stabilize operations after years of rapid expansion and experiments outside the core market…