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Round Table Pizza restaurants in Tri-Cities are getting an unusual new owner

Kennewick-based Columbia Industries said it will close a deal this month to buy four local Round Table Pizza restaurants, including this location at 3300 West Clearwater Ave.
Kennewick-based Columbia Industries said it will close a deal this month to buy four local Round Table Pizza restaurants, including this location at 3300 West Clearwater Ave. Tri-City Herald

An established Tri-City pizza outlet will become an economic engine to help people with disabilities secure jobs under a deal announced Monday.

Kennewick-based Columbia Industries said it will close a deal this month to buy four local Round Table Pizza restaurants from Chuck Stack, a 30-year franchisee. The terms of the sale were not disclosed.

The nonprofit provides services, including job training and employment, to people with developmental disabilities and other challenges.

Brian McDermott, CEO, called the deal an extension of the Columbia Industries business model. The organization operates two for-profit businesses that employ clients while generating earned revenue to support its mission.

Columbia Industries will operate the Round Table restaurants as a wholly-owned subsidiary of Columbia Industries, CI - RT LLC, the for-profit business arm that oversees CI Shred and CI Information Management.

Columbia Industries has had good success placing clients in jobs in the hospitality industry, McDermott said.

This year, it launched Opportunity Kitchen to train clients to qualify for restaurant and related jobs.

Opportunity Kitchen students learn kitchen skills, as well as working with the public.

The first 12-14 week course began in May, with the initial four students expected to graduate this month. They could be hired to fill Round Table positions.

4 restaurant challenge

McDermott concedes taking on four restaurants is a big challenge. He said Round Table is an established local brand that echoes Columbia Industries’ core mission.

“There’s a lot of overlap and fit,” he said.

The deal is being funded with existing assets. Columbia Industries will not take on debt for the acquisition.

The organization had more than $4 million in investments at the end of 2016, according to its most recent filing with the Internal Revenue Service.

Profits from Round Table will help Columbia Industries expand its mission to provide employment services to a broader array of clients, McDermott said.

New community resource center

It intends to open a community resource center to link people with benefits and jobs later this year.

It has relied on income earned from its for-profit businesses to augment government grants since it formed CI Shred two decades ago.

“We continue to work with state and federal agencies and fund raising, but earned revenue is more important than it’s ever been,” McDermott said.

It’s unusual for a nonprofit to take over a restaurant chain, but welcome, said Lisa Leinberger, local communications manager for the Washington Hospitality Association.

“Good for them,” she said.

No current Round Table employees are paid less than minimum wage. That will not change.

Columbia Industries said Round Table’s parent company, Global Franchise Group, has approved the transfer of the franchises, subject to finalizing the transaction.

Global declined to discuss the deal.

Columbia Industries is negotiating new leases with the restaurant chain’s landlords for its restaurants at 3300 W. Clearwater Ave., Kennewick, 3201 W. Court St. in Pasco, 1769 Leslie Road in Richland and 1435 George Washington Way in Richland.

WC
Wendy Culverwell
Tri-City Herald
Wendy Culverwell writes about local government and politics, focusing on how those decisions affect your life. She also covers key business and economic development changes that shape our community. Her restaurant column and health inspection reports are reader favorites. She’s been a news reporter in Washington and Oregon for 25 years.
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