This Once-Bankrupt Pizza Buffet Chain Was Revived In Walmart

Bankruptcy isn't necessarily the end of the story for some restaurants. After all, it's meant to offer financial protections and allow for the restructuring of an organization so it can pay off its debts and get back in the black. Look at how Red Lobster is charting a nostalgic comeback thanks to its court-supervised turnaround. Or how a determined group of franchisees purchased Ground Round out of liquidation, saving the brand from total collapse. Buffet-style pizza chain Mr. Gatti's Pizza is another example of how Chapter 11 protections can benefit a business, though not without a little help from Walmart.

After filing for bankruptcy in 2019, Mr. Gatti's took a few beats to restructure and figure out its new identity. The regional chain, whose headquarters is in Fort Worth, Texas, eventually opted to strike up a deal with mega-chain Walmart that would allow locations to open inside its stores. These restaurants would be stripped-down versions of the typical play palaces (Mr. Gatti's is known for its arcade games), instead focusing on the menu and giving Walmart customers the convenient option to order on the Mr. Gatti's app so their meals are ready once their shopping is finished.

The announcement was made in 2024, and by 2025, Mr. Gatti's had opened in 15 Walmart locations, mostly in Texas and Oklahoma, with another 23 under construction. While no financial information has been released since the opening of these locations, the chain's ability to nearly double its national footprint through these non-traditional spaces marks a remarkable pivot for a brand once defined by large-scale buffets.

Mr. Gatti's Pizza has actually been around for over 60 years, starting in 1964 when its founder, James Eure, opened a restaurant in Stephenville, Texas. Though Eure initially wanted to focus on burgers, the pizza proved irresistible to hungry patrons, so — like any good entrepreneur — he followed the customers and pivoted. First called The Pizza Place, Eure changed the name to Mr. Gatti's Pizza in 1969, after his wife's maiden name. Following a period of rapid expansion in the American South and Southeast, Mr. Gatti's Pizza began adding arcade spaces throughout the 1980s and '90s.

Sadly, the good times couldn't last forever. After changing hands multiple times throughout the following decades, it was owner Sovrano LLC that finally filed for bankruptcy in 2019, citing financial difficulties that were already present when it acquired Mr. Gatti's Pizza in 2015 — problems the new owner was unable to fix.

After emerging from bankruptcy, Mr. Gatti's Pizza is seeing a significant resurgence. Much of this momentum stems from a strategic partnership with Walmart — a model mirroring Starbucks' presence in Barnes & Noble and Target. Building on this growth, OneRyan Global LLC — a long-time minority investor well-versed in the brand's operations — purchased a majority stake in January 2026. As of February, the chain is already executing plans to aggressively expand its footprint across Houston, Texas.