TIMES.KY

Cayman Islands, Caribbeanand International News
Saturday, Feb 22, 2025

Pizza Express: We're still making dough

The popular High Street chain is fighting back against its challenges amid a wave of online support.

"It feels good to be kneaded," Pizza Express quipped on Twitter after worries it could go under prompted an outpouring of affection from diners.

In a quick piece of savvy marketing, the chain told customers: "We're still making dough", trying to reassure the legions of parents and savvy, voucher-wielding customers who had expressed concern that another family-friendly, mid-priced restaurant chain could disappear from the High Street.

Pizza Express was responding to reports it had hired advisers to negotiate with lenders over a £1.1bn debt pile.

The news saw the almost 55-year-old pizza chain become the latest High Street eatery to have its money troubles splashed across the financial pages.

But what separates Pizza Express from the likes of Jamie's Italian, which went under in May, and Carluccio's and Prezzo, which have both closed dozens of restaurants, is its customers' response to news of the financial troubles.

Some Twitter users called for the restaurant chain to be nationalised, while others encouraged people to pay full price for their pizza, rather than use the discount vouchers that have become a centrepiece of the firm's business model.


Out of fashion


Pizza Express won a place in UK diners' hearts by managing to appeal to both adults and children. Its low lighting, tall stemmed glasses, and wine bar vibe happily coexist alongside kids' meals and colouring pencils.

But more recently, it has gained popularity for its special offers, which are nearly always available.

Danny Shaw, a footwear branding consultant, wrote on LinkedIn, that this approach is backfiring.

"Pizza Express really isn't fashionable any more." Now, he says, "it's all about discount codes", and that means "it doesn't feel special".

Retail expert Kate Hardcastle agrees that the restaurant chain's relentless focus on discount vouchers and other special offers has "devalued and eroded" the once-strong brand.

On top of that, she accuses Pizza Express of cannibalising its own market by selling its pizzas through supermarkets.

Because "there's nothing very special" about the chain's restaurants, Ms Hardcastle thinks, people may choose to pay less and eat its pizzas at home.


'Nothing right with it'


She says Pizza Express falls squarely into the "middle market" category of chains that have failed to differentiate themselves from their competitors.

Those chains promote "blandness", she tells the BBC. "There's nothing wrong with it, but there's nothing right with it."

Nevertheless, the chain does appear to hold a special place in the hearts of many.

Partly, that's because of its heritage - which stretches back over half a century.


A brief history of Pizza Express


1965: Pizza Express founder, the late Peter Boizot, brought a pizza oven from Napoli and a chef from Sicily to open his first restaurant in London's Soho.

1992: Mr Boizot grew his empire over the following almost-three decades before selling it for £15m to Hugh Osmond and Luke Johnson, the man who was - until recently - chairman of Patisserie Valerie. They floated it on the stock market the next year and ultimately sold out in 1997 when it was worth £150m.

2003: It was taken private again in a £278m deal by two private equity firms who then floated it two years later - although it lasted less than a year on the public markets before it was returned to private equity hands.

2014: It changed hands again, this time to be acquired for £900m by its current owner, Chinese private equity house Hony Capital.

Analyst Peter Backman thinks the brand evokes a nostalgia in people whose parents and grandparents ate at Pizza Express restaurants. They may also have childhood memories of eating at the chain's family-friendly restaurants themselves.

"My family and I would personally miss pizza express," says Jayne Golden, who works for a bank.

Her five-year-old son was diagnosed with coeliac disease last year and she likes that the chain caters for him.

"Being able to eat there - safe in the knowledge his food is prepared in the way it should - has been a blessing to us when others restaurants have let us down," she says.

But Pizza Express is operating in a difficult environment.

Mr Backman says there is too much competition from other High Street chains.

"There are now too many restaurants chasing not enough business so each restaurant suffers," he says, blaming the economic uncertainty around Brexit for putting people off buying meals out.

He says the chain, which depends heavily on EU workers to staff its restaurants, has also struggled to hire since the referendum in 2016, which has driven up its wage bill. On top of that, Pizza Express has been hit by a hike in rates and the weak pound has made it more expensive to import ingredients.

But the firm's biggest challenge, appears to be its debt.

The interest on that £1.1bn is costing the company £93m a year, which wiped out all its operating profit last year.

In fact, the debt payments have pushed Pizza Express into the red for the last two years with a loss of £55m last year alone.


'It may not be the sexiest'


But Mr Backman thinks Pizza Express has something going for it, which many of its younger rivals - like Franco Manca and Pizza Pilgrims - do not.

"People will argue that it's the discounts that are pulling the people in but I'm not 100% convinced," he explains.

"It may not be the sexiest or the most modern," he says. But, he argues: "There is a lot of goodwill towards Pizza Express."

Newsletter

Related Articles

TIMES.KY
0:00
0:00
Close
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Italian Court's Controversial Ruling on Sexual Harassment Ignites Uproar
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
BBC Personalities Rebuke Accusations Amidst Scandal Involving Teen Exploitation
A Swift Disappointment: Why Is Taylor Swift Bypassing Canada on Her Global Tour?
Historic Moment: Edgars Rinkevics, EU's First Openly Gay Head of State, Takes Office as Latvia's President
Bye bye democracy, human rights, freedom: French Cops Can Now Secretly Activate Phone Cameras, Microphones And GPS To Spy On Citizens
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
Unilever Plummets in a $2.5 Billion Free Fall, to begin with: A Reckoning for Misuse of Corporate Power Against National Interest
Beyond the Blame Game: The Need for Nuanced Perspectives on America's Complex Reality
Twitter Targets Meta: A Tangle of Trade Secrets and Copycat Culture
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
The New French Revolution
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
×