PizzaExpress to build on success of Tokyo

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.

This new strategy was revealed in the company's interim results to 31 December, 1999. Group pre-tax profits climbed by 14% to £15m - a slowdown on the 40% growth recorded in the comparable period of 1998 - and turnover grew by 15% to £70m.

In its first seven weeks of trading, the new Tokyo PizzaExpress regularly served twice the number of customers of its British equivalents, averaging weekly sales of £35,000. It was one of four new international restaurants that brought the company's overseas tally to 19.

Established overseas franchises boosted like-for-like sales by 30% and PizzaExpress is negotiating moves into new territories such as Spain, Greece, Hong Kong and the Philippines

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

Back in the UK, the company boosted its pizza chain to 222 with 14 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 in 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 a further nine restaurants. They are designed to combine the best features of PizzaExpress's own Pasta di Milano chain with the Café Pasta business acquired in 1998.

by Angela Frewin