Pizza Express - Next one to collapse?
Discussion
Turfy said:
JJ55 said:
Only eaten in pizza express a few times. It’s been hit & miss. The food is always fine but service & wait times have been bad on some visits. It is also expensive.
Since we discovered Franco manca’s great pizzas we’ve never been back to pizza express.
Exactly this.Since we discovered Franco manca’s great pizzas we’ve never been back to pizza express.
Better food. Better staff. 40% cheaper pizza and way, way better. Real, tasty sour dough pizza.
PE was my default choice for 20+ years but now the price and taste takes us to Franco Manca.
We used to head out to Pizza Express quite a bit and was pleased when they opened one where we leave.
However they have pushed the price of the food up beyond what I'm prepared to pay for a pizza, and their drinks are also pushing their luck. The service is not outstanding, and I'm not prepared to pay more than £60 for a average meal for three (one of these is a child meal).
However they have pushed the price of the food up beyond what I'm prepared to pay for a pizza, and their drinks are also pushing their luck. The service is not outstanding, and I'm not prepared to pay more than £60 for a average meal for three (one of these is a child meal).
I’ve always enjoyed Pizza Express and go there as a family frequently. You’d have to be mad to pay the menu prices but doesn’t everyone just find a voucher for whatever deal is running?
A quick look at their app shows it’s 2 for 1 on mains at the moment, so £7 each if a main is usually £14 or so. I’d say that’s pretty good value and with a drink and dessert you’re probably going to be about £20 each.
Perhaps they should just price the stuff sensibly and knock it off with all the stupid voucher rubbish!
A quick look at their app shows it’s 2 for 1 on mains at the moment, so £7 each if a main is usually £14 or so. I’d say that’s pretty good value and with a drink and dessert you’re probably going to be about £20 each.
Perhaps they should just price the stuff sensibly and knock it off with all the stupid voucher rubbish!
So am I understanding the private equity buy out model correctly?
Buy going concern company.
Take loads of money out of company so it is hugely in debt.
Company - carefully separate from purchasing entity - goes bust.
Use aforementioned money to buy another company.
<repeats>
Is that correct?
Or is there an intent to run them as long term businesses?
Buy going concern company.
Take loads of money out of company so it is hugely in debt.
Company - carefully separate from purchasing entity - goes bust.
Use aforementioned money to buy another company.
<repeats>
Is that correct?
Or is there an intent to run them as long term businesses?
Johnnytheboy said:
So am I understanding the private equity buy out model correctly?
Buy going concern company.
Take loads of money out of company so it is hugely in debt.
Company - carefully separate from purchasing entity - goes bust.
Use aforementioned money to buy another company.
<repeats>
Is that correct?
Or is there an intent to run them as long term businesses?
Using someone else's money which the public ultimately stand behind. Buy going concern company.
Take loads of money out of company so it is hugely in debt.
Company - carefully separate from purchasing entity - goes bust.
Use aforementioned money to buy another company.
<repeats>
Is that correct?
Or is there an intent to run them as long term businesses?
markcoznottz said:
Johnnytheboy said:
So am I understanding the private equity buy out model correctly?
Buy going concern company.
Take loads of money out of company so it is hugely in debt.
Company - carefully separate from purchasing entity - goes bust.
Use aforementioned money to buy another company.
<repeats>
Is that correct?
Or is there an intent to run them as long term businesses?
Using someone else's money which the public ultimately stand behind. Buy going concern company.
Take loads of money out of company so it is hugely in debt.
Company - carefully separate from purchasing entity - goes bust.
Use aforementioned money to buy another company.
<repeats>
Is that correct?
Or is there an intent to run them as long term businesses?
JPJPJP said:
Chipotle Mexican Grill latest accounts show that it has amassed £29m of losses on getting to 7 restaurants in the UK and isn't making money at the gross profit level.]
Being a foreign brand, is it a real loss? As often they pay license fees/other inflated fees/route through Luxembourg and all that.Roman Rhodes said:
markcoznottz said:
Johnnytheboy said:
So am I understanding the private equity buy out model correctly?
Buy going concern company.
Take loads of money out of company so it is hugely in debt.
Company - carefully separate from purchasing entity - goes bust.
Use aforementioned money to buy another company.
<repeats>
Is that correct?
Or is there an intent to run them as long term businesses?
Using someone else's money which the public ultimately stand behind. Buy going concern company.
Take loads of money out of company so it is hugely in debt.
Company - carefully separate from purchasing entity - goes bust.
Use aforementioned money to buy another company.
<repeats>
Is that correct?
Or is there an intent to run them as long term businesses?
Can't answer the second bit for Mark, but it does seem a bit like one of those odd ponzi schemes to an outsider.
For Chipotle, the UK loss looks real enough
The money is coming from the parent company in the US which turned over $1.4billion and made $91m net in the 3 months up to the end of June 2019
So it is washers really
The UK business is part of a group that includes Canada, Germany and France too
They are finding it harder than expected to get things going in the UK, France and Germany
There was a bit of accounting stuff with some IP that moved from Germany to UK, but it is clear that it is legitimately losing money in the UK and funding the loss with money it makes in the US
The money is coming from the parent company in the US which turned over $1.4billion and made $91m net in the 3 months up to the end of June 2019
So it is washers really
The UK business is part of a group that includes Canada, Germany and France too
They are finding it harder than expected to get things going in the UK, France and Germany
There was a bit of accounting stuff with some IP that moved from Germany to UK, but it is clear that it is legitimately losing money in the UK and funding the loss with money it makes in the US
Crumpet said:
I’ve always enjoyed Pizza Express and go there as a family frequently. You’d have to be mad to pay the menu prices but doesn’t everyone just find a voucher for whatever deal is running?
A quick look at their app shows it’s 2 for 1 on mains at the moment, so £7 each if a main is usually £14 or so. I’d say that’s pretty good value and with a drink and dessert you’re probably going to be about £20 each.
Perhaps they should just price the stuff sensibly and knock it off with all the stupid voucher rubbish!
Agreed.A quick look at their app shows it’s 2 for 1 on mains at the moment, so £7 each if a main is usually £14 or so. I’d say that’s pretty good value and with a drink and dessert you’re probably going to be about £20 each.
Perhaps they should just price the stuff sensibly and knock it off with all the stupid voucher rubbish!
It's great for family eating and the pizzas are always decent (especially compared to the rubbish that Pizza Hut and Dominos churn out) it will be a shame if they go under. Also, if you go to eat in a Pizza Express without getting a voucher, etc first (30 second google on your phone) then you are pretty foolish!
Johnnytheboy said:
Roman Rhodes said:
markcoznottz said:
Johnnytheboy said:
So am I understanding the private equity buy out model correctly?
Buy going concern company.
Take loads of money out of company so it is hugely in debt.
Company - carefully separate from purchasing entity - goes bust.
Use aforementioned money to buy another company.
<repeats>
Is that correct?
Or is there an intent to run them as long term businesses?
Using someone else's money which the public ultimately stand behind. Buy going concern company.
Take loads of money out of company so it is hugely in debt.
Company - carefully separate from purchasing entity - goes bust.
Use aforementioned money to buy another company.
<repeats>
Is that correct?
Or is there an intent to run them as long term businesses?
Can't answer the second bit for Mark, but it does seem a bit like one of those odd ponzi schemes to an outsider.
The sad reality of this is that now this news is out, suppliers/creditors/landlords to PE will be looking to mitigate risk. This inevitably means that the terms and credit limits will change that are afforded to PE; not in their favour!
With various credit lines pulled, PE will be forced to borrow cash to pay for goods and services they previously had nice credit terms on. stretching the cash flow/supply chain management even further.
My conclusion is that PE will cease to exist in its current form within 3-months; or less.
I have watched this type of scenario play out in dozens of businesses in the last 20-years (Maplin being the latest) and it seldom deviates from this inevitable conclusion.
With various credit lines pulled, PE will be forced to borrow cash to pay for goods and services they previously had nice credit terms on. stretching the cash flow/supply chain management even further.
My conclusion is that PE will cease to exist in its current form within 3-months; or less.
I have watched this type of scenario play out in dozens of businesses in the last 20-years (Maplin being the latest) and it seldom deviates from this inevitable conclusion.
Edited by Turfy on Thursday 10th October 10:25
PF62 said:
Turfy said:
JJ55 said:
Only eaten in pizza express a few times. It’s been hit & miss. The food is always fine but service & wait times have been bad on some visits. It is also expensive.
Since we discovered Franco manca’s great pizzas we’ve never been back to pizza express.
Exactly this.Since we discovered Franco manca’s great pizzas we’ve never been back to pizza express.
Better food. Better staff. 40% cheaper pizza and way, way better. Real, tasty sour dough pizza.
PE was my default choice for 20+ years but now the price and taste takes us to Franco Manca.
I'd also take a Burger King over an In-N-Out Burger for the same reason. Fly to California for a great burger or drive 3-miles for a BK.
JPJPJP said:
Maybe it is saved? Prince Andrew can give it a royal warrant for services rendered by its Woking branch
He did have a role promoting British business with the UKTI body and was heavily criticised for jetsetting around the world playing golf at taxpayers expense therefore it's to see he is economising by doing it in Woking.Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff