The Pie Hole

The Pie Hole was founded in 2011 by mother and son Rebecca "Pie Mom" Grasley and Matthew Heffner, using Pennsylvania family recipes passed through four generations. Matthew's wife Lindsay Hollister and friend Sean Brennan joined them in creating a rustic pie and coffee concept at 714 Traction Avenue in the Arts District of downtown Los Angeles. The menu centered on scratch made sweet and savory pies, including Mom's Apple Crumble, Earl Grey Tea Pie, Mac 'n Cheese Pot Pie, and the Mexican Chocolate, along with Fair Trade Organic coffees and espresso drinks. In 2015, the brand partnered with Fransmart to formalize franchise growth. At its peak, it operated in Southern California, North Carolina, Arizona, Japan, and Saudi Arabia, reaching three continents within roughly six years. Today, it has five total units, including three franchised locations and zero company owned units. The brand was reported as out of business as of June 3, 2024.

The Pie Hole falls within the Limited Service Restaurant category, which produced $548.9 billion in U.S. sales in 2024 and included over 159,000 locations as of 2025. The U.S. quick service restaurant market is projected to reach $330.56 billion in 2025, up from $311.54 billion, and is forecast to grow at a 7.2% compound annual growth rate to $436.07 billion by 2029. The fast casual segment most closely aligned with The Pie Hole is expected to generate $84.5 billion between 2025 and 2029 at a 13.7% CAGR. Globally, the limited service restaurant market is projected to grow from $1,281.4 million in 2025 to $2,087.3 million by 2035 at a 5.0% CAGR. Speed is rated critical by 95% of consumers ordering takeout, while 63% favor mobile ordering over traditional point of sale interactions. Mobile order ahead apps were used by 65% of QSR visitors in the most recent measurement period and by nearly 90% of consumers aged 18 to 24. Demand for higher quality, artisanal, and transparently sourced food also supports the concept's scratch production, organic Fair Trade coffee, and visible pie making. The specialty bakery and artisan food category remains fragmented and underpenetrated as a franchise segment.

The current initial investment range is $60,800 to $396,300, reflecting differences in format, geography, build out scope, and site conditions. The 2018 Franchise Disclosure Document reported $331,500 to $1,039,500, indicating that the current model may use a leaner format with lower overhead. Fast casual restaurant franchises commonly require $250,000 to $750,000, placing The Pie Hole's low end below broader category norms. The historical franchise fee was $35,000. Ongoing fees included a 6.0% royalty on gross sales and a 2.0% marketing and advertising fund contribution, for total ongoing fees of 8.0% before local marketing, technology, or supply chain costs. The agreement had an initial ten year term and a further ten year renewal option. The Pie Hole was formerly venture capital backed and remains privately held. The difference between current and historical investment figures warrants direct questions to the franchisor about the present format and fee obligations.

The operating model used a fast casual kitchen where sweet and savory pies were made in view of customers, with dough rolled on site and fillings prepared fresh. Rick and Madeliene Anaya, the first franchisees, opened the Old Towne Orange, California location in March 2016 and described the savory pies as fully made in house. They also highlighted organic coffee sourced from a certified organization of South American women farmers. The menu included hand pies, the two bite "Pie Holes" format, and hot and cold coffee drinks. The Orange location operated from 7 a.m. to midnight on weekends, covering breakfast through late night dessert while creating added staffing complexity. Franchise store designs included full kitchen remodels, customer facing production, maple butcher block tables, and repurposed wood. Corporate support historically covered recipes, marketing materials, store design, layout assistance, and ongoing operations. Co founder Sean Brennan described a servant leadership approach to franchisee development. As of January 2020, the commissary was operating at 20% of capacity, supporting planned wholesale and consumer packaged goods growth. Training addressed operations and brand standards, especially consistency in scratch production.

The "Pie Holes" product, described as stuffed and glazed two bite circles of pie, sold approximately one million units during the twelve months before January 2020. At the time, the brand had six Southern California locations, implying roughly 167,000 units per location from that product. During the holiday season as of January 2020, about 50 units per day were sold through the Goldbelly online marketplace. In January 2020, The Pie Hole expanded into wholesale, catering, consumer packaged goods, and online marketplace sales, showing the importance of revenue beyond the stores. Investors should conduct franchisee interviews and request available financial information before signing.

The Pie Hole grew from one Arts District Los Angeles location in 2011 to eight Southern California units and one North Carolina location by March 2018. By that date, it also had three Tokyo, Japan locations. In August 2018, the company signed a Saudi Arabia expansion deal with Abdulrhman Alrajhi targeting up to ten units. By February 2022, the system included two Japan locations, one Saudi Arabia location, and six Southern California units. Matthew Heffner and Sean Brennan served as co CEOs until March 2018. Edie Ames became CEO on March 26, 2018, with a mandate to expand the brand. Her executive background included The Counter, Wolfgang Puck Catering, Real Mex Restaurants, Del Frisco's Restaurant Group, and Morton's of Chicago, and she was a sitting board member of The Cheesecake Factory, Inc. The Gelson's Markets partnership placed units inside premium California grocery stores. As of February 2022, three San Diego area locations in Del Mar, Pacific Beach, and La Costa/Carlsbad were planned for Spring 2022. Despite this expansion, the brand now has five units, three franchised units, and zero company owned locations.

The historical franchisee profile points to an owner operator who values food quality, can manage a hands on kitchen, and is prepared to oversee retail, catering, wholesale, and potentially online sales. Rick and Madeliene Anaya were retirees pursuing an active second career and remodeled their kitchen and storefront while handling early morning through late night operations. Their experience reflects the intensity of the format. The first franchisees expressed interest in additional Orange County locations. Stronger historical markets included Southern California urban and suburban areas such as the Los Angeles Arts District, Hollywood, Pasadena, the Anaheim Packing District, Santa Monica specialty grocery partnerships, and the San Diego market. Urban Japan and Gulf region markets also showed interest in the artisan American baking concept. Territory availability requires direct discussion with the franchisor, and buyers should assess local demand and competitor density before selecting a market.

The investment case combines an artisan fast casual concept, four generation recipe heritage, international reach across three continents, and positioning that aligns with the fast casual segment's 13.7% CAGR and the $548.9 billion limited service restaurant market. The Loan Activity Score is 46 and is rated "Fair" in independent franchise performance analysis. The current investment range of $60,800 to $396,300 is materially below the 2018 range of $331,500 to $1,039,500, which could reflect a leaner format or an investment structure requiring close review. Buyers should speak with current and former franchisees, read the latest FDD, and model conservative unit economics before reaching a decision.