London Daily

Focus on the big picture.
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

0:00
0:00
Close
Good News: Senate Confirms Kash Patel as FBI Director
Officials from the U.S. and Hungary Engage in Talks on Economic Collaboration and Sanctions Strategy
James Bond Franchise Transitions to Amazon MGM Studios
Technology Giants Ramp Up Lobbying Initiatives Against Strict EU Regulations
Alibaba Exceeds Quarterly Projections Fueled by Growth in Cloud and AI
Tequila Sector Faces Surplus Crisis as Agave Prices Dive Sharply
Residents of Flintshire Mobile Home Park Grapple with Maintenance Issues and Uncertain Future
Ronan Keating Criticizes Irish Justice System Following Fatal Crash Involving His Brother
Gordon Ramsay's Lucky Cat Restaurant Faces Unprecedented Theft
Israeli Family Mourns Loss of Peace Advocate Oded Lifschitz as Body Returned from Gaza
Former UK Defense Chief Calls for Enhanced European Support for Ukraine
Pope Francis Admitted to Hospital in Rome Amid Rising Succession Speculation
Senate Republican Leader Mitch McConnell, at the age of 83, Declares His Retirement.
Whistleblower Reveals Whitehall’s Focus on Kabul Animal Airlift Amid Crisis
Politicians Who Deliberately Lie Could Face Removal from Office in Wales
Scottish Labour Faces Challenges Ahead of 2026 Holyrood Elections
Leftwing Activists Less Likely to Work with Political Rivals, Study Finds
Boris Johnson to Host 'An Evening with Boris Johnson' at Edinburgh's Usher Hall
Planned Change in British Citizenship Rules Faces First Legal Challenge
Northumberland Postal Worker Sentenced for Sexual Assaults During Deliveries
British Journalist Missing in Brazil for 11 Days
Tesco Fixes Website Glitch That Disrupted Online Grocery Orders
Amnesty International Critiques UK's Predictive Policing Practices
Burglar Jailed After Falling into Home-Made Trap in Blyth
Sellafield Nuclear Site Exits Special Measures for Physical Security Amid Ongoing Cybersecurity Concerns
Avian Influenza Impact on Seals in Norfolk: Four Deaths Confirmed
First Arrest Under Scotland's Abortion Clinic Buffer Zone Law Amidst International Controversy
Meghan Markle Rebrands Lifestyle Venture as 'As Ever' Ahead of Netflix Series Launch
Inter-Island Ferry Services Between Guernsey and Jersey Set to Expand
Significant Proportion of Cancer Patients in England and Wales Not Receiving Recommended Treatments
Final Consultation Launched for Vyrnwy Frankton Power Line Project
Drug Misuse Deaths in Scotland Rise by 12% in 2023
Failed £100 Million Cocaine Smuggling Operation in the Scottish Highlands
Central Cee Equals MOBO Awards Record; Bashy and Ayra Starr Among Top Honorees
EastEnders: Four Decades of Challenging Social Norms
Jonathan Bailey Channels 'Succession' in Bold Richard II Performance
Northern Ireland's First Astronaut Engages in Rigorous Spacewalk Training
Former Postman Sentenced for Series of Sexual Offences in Northumberland
Record Surge in Anti-Muslim Hate Crimes Across the UK in 2024
Omagh Bombing Inquiry Concludes Commemorative Hearings with Survivor Testimonies
UK Government Introduces 'Ronan's Law' to Combat Online Knife Sales to Minors
Metal Detectorists Unearth 15th-Century Coin Hoard in Scottish Borders
Woman Charged in 1978 Death of Five-Year-Old Girl in South London
Expanding Sinkhole in Godstone, Surrey, Forces Evacuations and Road Closures
Bangor University Announces Plans to Cut 200 Jobs Amid £15 Million Savings Target
British Journalist Charlotte Peet Reported Missing in Brazil
UK Inflation Rises to 3% in January Amid Higher Food Prices and School Fees
Starmer Defends Zelensky Amidst Trump's 'Dictator' Allegation
Zelensky Calls on World Leaders to Back Peace Efforts in Light of Strains with Trump
UK Prime minister, Mr. Keir Starmer, has stated that any peace agreement aimed at ending the conflict in Ukraine "MUST" include a US security guarantee to deter Russian aggression
×