Pizza Express sales jump but costs eat into earnings

SALES at Pizza Express were higher in the first six months of the year as the restaurant chain focused on upgrading its eateries.

Total sales rose 2.6% in the 26 weeks to June 30 while like-forlike sales were up 0.2%.

Underlying earnings were down 7.7% to £32.4m, with the decline blamed primarily on rising costs in the UK.

Pizza Express is headed by Fermanagh-born managing director Zoe Bowley.

The food chain has five stores in Northern Ireland, all in the Belfast area.

It previously indicated plans to expand beyond the city.

For the British and Irish business, total sales rose 0.5% but like-for-likes fell 0.2%.

Chairman and chief executive Jinlong Wang said the company was focusing on cost control and efficiency while remaining cautious about new openings.

“We are taking a measured approach to growing our business and in the first half we opened a net two new sites,” he said.

“We are now planning to focus our capital investment on upgrading our existing estate rather than adding more sites.”

Earlier this year the group revamped its Langham Place site in London, debuting the ‘Future Express’ restaurant concept, which is designed to put greater emphasis on sociability.

Another six sites have since been refurbished, leading to what Mr Wang said was an “increased sales performance”.

Other fresh initiatives include adding more low-calorie and vegan dishes to the menu and expanding a partnership with Deliveroo.

Sales in Pizza Express’s international operations, which generate 21% of group revenue, were up 11.5%. On a like-for-like basis sales were up 0.5%.

Mr Wang said: “Throughout the first half of this year we have continued to invest in our brand proposition, develop new formats and maximise operational efficiencies.”