Rave Restaurant Group CEO Accuses Board of Discrimination, Harassment in Pay Dispute

By Elias Schisgall

Rave Restaurant Group's chief executive, Brandon Solano, is accusing the company's board of directors of discrimination and harassment after it failed to meet his requests for a higher salary.

The company, which operates the Pie Five Pizza and Pizza Inn brands, disclosed Solano's complaint in a Thursday filing with the Securities and Exchange Commission. It said it takes claims of harassment and discrimination seriously and has engaged the Hagan Law Group to lead an investigation.

According to the filing, Solano emailed the chairman of the company's audit committee on Aug. 31 to "formally complain about workplace harassment and discrimination by RAVE Restaurant Group's Board of Directors, the Compensation Committee members, and Chairman Mark Schwarz."

Solano's email claimed that he was denied salary increases given to other employees based on his race and national origin, according to the filing.

He said he had received threats, intimidation and harassment, leading to the company's failure to increase his base salary, per the filing. He asked the board to conduct an independent investigation and said he had filed a complaint with the Texas Workforce Commission.

Rave said in the filing that it had agreed in October 2025 to increase his base salary to $370,000 a year from $350,000. It said that days before his complaint, Solano emailed Schwarz, the board chair, requesting that his total compensation--spanning a base salary, bonuses, and equity compensation--be increased further in fiscal 2027 and grow to $2.3 million in fiscal 2029. Solano also asked to be appointed to the board.

A day later, Schwarz communicated by phone that he felt Solano's request was a "non-starter," according to the filing. Solano's total compensation amounted to $780,252 in fiscal year 2025, including his $350,000 base salary.

The company also said it hadn't received any notification from the Texas Workforce Commission about a complaint by Solano.

Rave said any currently pending legal actions or claims are thought to be covered by insurance or wouldn't have any material adverse effect on its annual results of operations or financial condition.

Neither the company nor Solano immediately responded to requests for comment.

The company on Thursday reported a fourth-quarter profit of $800,000, which it said was a 6.2% decrease from the same period a year earlier. Earnings per share were 6 cents.

Revenue rose 8.8%, to $3.4 million.

Pizza Inn domestic comparable sales fell 2.8%, and Pie Five comparable sales fell 17%.

The stock slipped 15%, to $2.33, midday Thursday and is down 29% this year.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

September 24, 2026 15:01 ET (19:01 GMT)