President and Chief Executive of California Pizza Kitchen (CPK), Frederick Hipp, has resigned, following concern by the group’s founders over the company’s aggressive expansion plans.

Founders and co-chairmen Rick Rosenfeld and Larry Flax have resumed control of the restaurant chain and will assume chief executive duties at the company they formed in 1985.

During talks with investors and analysts, Rosenfeld says California Pizza Kitchen’s focus on meeting specific expansion targets was worrisome and expressed concern that the growth strategy had forced the company to open restaurants in sites sparsely populated or in venues which did not perform well.

When Hipp joined CPK in January 1998, he oversaw a major expansion of the chain, committing the company to an annual growth rate of 20% and in April said the chain would open at least 22 restaurants this year, and 17 to 24 next year. Rosenfeld and Flax say they will stick with Hipp’s plan to open 22 new restaurants this year but will lower the goal for 2004 to 10 to 12 new sites.

“We’re not going to push exponential growth” says Rosenfeld. “Going into 2004, we’re not going to let a specific growth dictate our strategy. We’re going to let the strategy dictate our growth.”

The Los Angeles-based company, which operates over 150 CPK’s in the US and in six countries worldwide, has lowered its earnings estimates for 2003.

Details: www.cpk.com