Pizza Express shrugs off UK slump with surge in Asian market
PIZZA Express sales jumped 14.1pc in the past year as appetite for Italianstyle pizza among diners in Asia helped counter a “challenging market environment” in the UK.
The British restaurant chain said group sales reached £488m in the 52 weeks to June 26, boosted by 18 new UK restaurants and 17 in its rapidly growing Asian markets.
Pizza Express, which has a range of supermarket products in addition to its restaurants, posted £100.3m in earnings before interest, taxes, depreciation and amortisation, up from £100.2m, but did not reveal pre-tax profits.
Despite launching a range of supermarket pasta and gluten-free pizzas, and a delivery tie-up with takeaway app Deliveroo, the chain failed to stem a decline in sales in its home market, where it owns around 450 restaurants.
Like-for-like sales in its British and Irish arm dipped 1.3pc against a tough backdrop for bricks-and-mortar eateries, which have been hit by lacklustre demand from diners as well as the costs of the new minimum wage.
“This has been a more challenging year for the UK casual dining sector,” said chief executive Richard Hodgson, who added that Pizza Express was “in good stead” to weather a slowdown.
“Our new pasta range in Waitrose in particular is proving popular,” said Mr Hodgson, a former Morrison’s and Waitrose commercial boss. “We have ex- panded into the fast-growing ‘freefrom’ market with a gluten-free pizza in Sainsbury’s.” Deliveroo is being used in 200 restaurants, and is being trialled in Hong Kong, where it has 17 restaurants.
Mr Hodgson added that China is a “significant growth opportunity” after it opened restaurants in Guangzhou, Beijing, Shanghai and Shenzhen, with more openings in the pipeline. Pizza Express has stepped up its footprint in Asia since its £900m sale to Chinese private equity group Hony two years ago.