Japanese diners boost PizzaExpress

PizzaExpress plans to open more company-owned restaurants overseas following the success of its first such venture, in Tokyo. It sees potential for 50 around the world.

The company's interim results to 31 December, 1999 show that pre-tax profits climbed by 14% to £15m, a slowdown on the 40% growth recorded in the comparable period of 1998, while turnover grew by 15% to £70m.

In its first seven weeks of trading, the new Tokyo PizzaExpress served twice as many customers as a typical UK outlet, averaging weekly sales of £35,000. It was one of four new international restaurants that brought the overseas tally to 19. Unlike the Tokyo restaurant, most of these are franchised.

Established overseas franchises boosted like-for-like sales by 30% and PizzaExpress is considering opening in Spain, Greece, Hong Kong, and the Philippines

It also plans a second US restaurant in Washington DC, despite disappointing results from the joint venture restaurant it opened in Philadelphia last May, which lost it £100,000.

In the UK, the company boosted its pizza chain to 222 with fourteen new openings. Like-for-like sales grew by 2% as the restaurants attracted more, higher-spending customers.

Since the year's end, like-for-like sales have climbed by 5% and three new pizza restaurants have opened, with 15 more to follow during this second half.

The first two of 14 pasta restaurants to adopt the new Café Pasta format traded ahead of expectations, and the format has been extended to another nine restaurants. They aim to combine the best features of PizzaExpress's own Pasta di Milano chain with the Café Pasta business acquired in 1998.

by Angela Frewin