Pizza Express - Next one to collapse?
Discussion
https://www.independent.co.uk/news/business/news/p...
Large amount of money loss for every store. Could be next?
Large amount of money loss for every store. Could be next?
Problem with Pizza Express is that there is only a certain level that you charge for pizzas and/or add value to them. Most of us would pay £30 for a dish in a decent restaurant but not many of us would pay £30 for a pizza. PE has too much real estate in prime locations charging high rents and rely on high footfall. You can bet that PE don't own any of their properties because of the business model and short term realisation of assets. I used to go to PE as a teen and it's amazing they've never bought freeholds and traded near "rent free" today.
I suspect they will do a Prezzo and close a third of their restaurants in the hope they can keep ticking along until the economy improves.
Pretty obvious to anyone that all of these casual dining chains that appeared out of nowhere over the last ten years are in trouble. The growth was not real growth, it was financed with debt and that debt is not serviceable if there is any slowdown in sales.
The only one that seems to buck the trend is Nandos, I suspect this is because people are prepared to spend £25 as a couple compared to £60 at Pizza Express for a glorified Pizza.
Pretty obvious to anyone that all of these casual dining chains that appeared out of nowhere over the last ten years are in trouble. The growth was not real growth, it was financed with debt and that debt is not serviceable if there is any slowdown in sales.
The only one that seems to buck the trend is Nandos, I suspect this is because people are prepared to spend £25 as a couple compared to £60 at Pizza Express for a glorified Pizza.
Thankyou4calling said:
It’s very easy to solve the issues at PE.
1. It’s way too expensive so drop prices
2. Too much choice so simplify the menu.
3. Drill down on costs most pertinently rent.
4. Market business as a value offering.
5. Employ staff who give a s1. It’s way too expensive so drop prices
2. Too much choice so simplify the menu.
3. Drill down on costs most pertinently rent.
4. Market business as a value offering.
t... We went to PE recently on a big retail estate. Got shown to a table, waited 15 mins for a waiter to come and take our order, got fed up and walked out. The people on the next table had been waiting for half an hour and also left. Their business model has been rubbish since I last went to one 15 years ago, it's impressive they've survived so long. They take premium premises and serve average food. They have to charge premium prices because of the premises, but the food is still average. And the name implies it's takeaway rather than premium.
I can pay as little as £5 to eat pizza that's as good if not better in two independent restaurants within 3 minutes walk from home, why would I ever go to Pizza Express?
I can pay as little as £5 to eat pizza that's as good if not better in two independent restaurants within 3 minutes walk from home, why would I ever go to Pizza Express?
It's a chain of pizza restaurants. A couple can eat there for £40 tops. They are £655 million quid in debt. This isn't about Pizza Express. It's about a different PE...private equity. Their private equity owners have loaded them up with debt while raping the business for their own benefit. Quite why anyone lends these s the money is beyond me.
s the money is beyond me.Thankyou4calling said:
It’s very easy to solve the issues at PE.
1. It’s way too expensive so drop prices
2. Too much choice so simplify the menu.
3. Drill down on costs most pertinently rent.
4. Market business as a value offering.
It's like the new owners at F &B, he said and I quote 'we are going to put the prices up and simplify the menu' Er ok mate. 1. It’s way too expensive so drop prices
2. Too much choice so simplify the menu.
3. Drill down on costs most pertinently rent.
4. Market business as a value offering.
Vanden Saab said:
5. Employ staff who give a st... We went to PE recently on a big retail estate. Got shown to a table, waited 15 mins for a waiter to come and take our order, got fed up and walked out. The people on the next table had been waiting for half an hour and also left.
Many years ago a gang of us went to that there London for a day out and we ate at a Pizza Express in Leicester Square, We ordered and it took ages to arrive (over an hour), but eventually arrived, we ate and then asked for the bill. After over 40 mins we told the manager (he was manning the till at the time) that if we didn't get the bill we'd walk out. after another 20 mins we did exactly that.t... We went to PE recently on a big retail estate. Got shown to a table, waited 15 mins for a waiter to come and take our order, got fed up and walked out. The people on the next table had been waiting for half an hour and also left. 5490 said:
I'll be honest and say I'm a fan of PE, although I'm fully aware it's a chain and wouldn't be surprised to find a Brake's lorry idling round the back. its better than the Hut and I think that is their main selling point.
I think they think of themselves as better than 'Hut', but in my limited experience they're not, and they are more expensive.Ate at PE Westfield (Stratford) on sat evening - queue to get seated (although often the case there on a sat evening at all eateries).
Seated & served quickly; starters arrived before the drinks, 15 mins later for pizza. Saw a couple of people leave before being served though. Staff were fine.
Food did seem more expensive than I remembered (doughballs expensive, £15+ for pizza, £7.25 for 660ml Peroni - although that's about norm). Probably 12 months since I'd been in one and being a sat no vouchers accepted.
Not been in Pizza Hut for years so can't compare.
Food was fine, prefer Prezzo pizza's as far as chain restaurants go though.
Seated & served quickly; starters arrived before the drinks, 15 mins later for pizza. Saw a couple of people leave before being served though. Staff were fine.
Food did seem more expensive than I remembered (doughballs expensive, £15+ for pizza, £7.25 for 660ml Peroni - although that's about norm). Probably 12 months since I'd been in one and being a sat no vouchers accepted.
Not been in Pizza Hut for years so can't compare.
Food was fine, prefer Prezzo pizza's as far as chain restaurants go though.
Vanden Saab said:
5. Employ staff who give a st... We went to PE recently on a big retail estate. Got shown to a table, waited 15 mins for a waiter to come and take our order, got fed up and walked out. The people on the next table had been waiting for half an hour and also left.
Hell yes this. t... We went to PE recently on a big retail estate. Got shown to a table, waited 15 mins for a waiter to come and take our order, got fed up and walked out. The people on the next table had been waiting for half an hour and also left. I used to like Pizza Express; it was a bit pricey but you felt looked after, and the food was decent. The last two times I've walked out before being fed. They've gone do far downhill that I'm surprised they're still in business at all.
easytiger123 said:
It's a chain of pizza restaurants. A couple can eat there for £40 tops. They are £655 million quid in debt. This isn't about Pizza Express. It's about a different PE...private equity. Their private equity owners have loaded them up with debt while raping the business for their own benefit. Quite why anyone lends these s the money is beyond me.
This!!s the money is beyond me.Another company loaded with debt by a private equity firm. The company itself turns a profit apparently but not enough to cover its debt which is over £1bn according to some reports.
Joey Deacon said:
I suspect they will do a Prezzo and close a third of their restaurants in the hope they can keep ticking along until the economy improves.
Pretty obvious to anyone that all of these casual dining chains that appeared out of nowhere over the last ten years are in trouble. The growth was not real growth, it was financed with debt and that debt is not serviceable if there is any slowdown in sales.
The only one that seems to buck the trend is Nandos, I suspect this is because people are prepared to spend £25 as a couple compared to £60 at Pizza Express for a glorified Pizza.
It would be a shame to see Pizza Express go as they were part of the wave (along with the likes of Berni Inn) that made eating out much more accessible to people back in the 60s and 70s. I agree that the main problem is, as another poster has said, the problem is the "other PE" - private equity - buy it, leveraged to the gunwhales, in the hope you can flip it in 3 - 5 years, which is when you get Pizza Express opening on retail parks staffed by people who don't care, whereas some of their older sites are in fantastic buildings staffed by enthusiastic people.Pretty obvious to anyone that all of these casual dining chains that appeared out of nowhere over the last ten years are in trouble. The growth was not real growth, it was financed with debt and that debt is not serviceable if there is any slowdown in sales.
The only one that seems to buck the trend is Nandos, I suspect this is because people are prepared to spend £25 as a couple compared to £60 at Pizza Express for a glorified Pizza.
Nando's seems like a great model - dirt cheap ingredients that need glueing together. For them to be able to knock out a chicken dinner for those prices, just have a think about what the back end of their supply chain must look like.
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