Two major Greek food chains are at the center of separate tax fraud investigations involving estimated losses of more than €135 million ($157 million) to the Greek state and social security system, with authorities arresting more than 80 people and freezing assets linked to the alleged schemes.
The investigations involving Pizza Fan and the bakery chain To Choriatiko have uncovered suspected mechanisms for concealing sales, evading taxes and avoiding social security contributions over several years. According to Greek authorities and media reports, the estimated public revenue losses exceed €35 million in the Pizza Fan investigation and €100 million in the To Choriatiko case.
The investigations have resulted in 23 arrests in the Pizza Fan case and 59 in the bakery investigation, including individuals identified as the businesses’ owners.
Pizza Fan investigation uncovers millions in hidden revenue
The Pizza Fan investigation covers activities between 2016 and 2026, with authorities estimating that more than €150 million in taxable revenue was concealed through an allegedly manipulated ordering system.
Investigators believe certain paid orders were classified electronically as complimentary products, allowing transactions to be completed without issuing the required receipts. The system allegedly enabled those involved to monitor actual sales while excluding selected transactions from official tax records.
Police also investigated reports that undeclared cash was collected from stores during monthly meetings. Searches resulted in the seizure of approximately €1.29 million in cash, including €1.1 million reportedly discovered in a concealed compartment at the residence of the alleged organizer. Authorities also confiscated computers, luxury vehicles, motorcycles and 92 valuable watches and pieces of jewelry.
The company’s representatives have disputed the allegations, suggesting that legitimate promotional offers involving complimentary products may have been misinterpreted as concealed sales. Pizza Fan has said it is cooperating with investigators.
Bakery chain faces €100 million investigation and dozens of arrests
The investigation involving To Choriatiko centers on an extensive corporate network allegedly used to accumulate tax and insurance debts before transferring business operations to newly established companies. Investigators are examining approximately 520 companies associated with more than 200 stores, according to the latest reports.
The suspected scheme allegedly involved placing nominal managers in charge of companies without giving them effective control. Some reportedly received monthly payments of €500 to €700. The estimated losses include more than €55 million in unpaid value-added tax and approximately €45 million in social security contributions.
Authorities are also investigating the role of accountants involved in establishing and managing the companies. On October 26, prosecutors brought charges against 59 arrested individuals in the bakery investigation, involving nine alleged felonies and two misdemeanors.
Greece’s Anti-Money Laundering Authority ordered extensive asset freezes in both cases, covering bank accounts, real estate and other holdings. Payroll accounts were explicitly excluded to protect employees’ wages.
Financial investigators are continuing to examine company records and transactions to establish the final amount owed to the state and determine individual responsibility.
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