Restaurant sector gloom takes a slice out of Pizza Express profit
Pizza Express has fallen victim to the gloom which has enveloped the casual dining sector, with first half profits shrinking.
The company blamed a drop in earnings of nearly one-tenth on “industry-wide cost pressures” in its key home market.
Pizza Express, founded in 1965, runs 480 restaurants across Britain and 148 abroad in Asia and the Middle East.
Read more: China expansion and UK troubles take a slice out of earnings at Pizza Express
The figures
Core earnings fell eight per cent to £32.4m, while sales rose three per cent.
Sales in the UK and Ireland were largely flat, with only a 0.5 per cent rise, while international sales rose 11.5 per cent.
Why it’s interesting
Britain’s casual dining sector has struggled against rising business rates, rents and employment costs.
Restaurants like Pizza Express have also been forced to adapt to a consumer trend towards ordering food on delivery apps such as Deliveroo and Just Eat, rather than eating out.
In May, Jamie Oliver’s restaurant chain became a high-profile casualty of the sector’s malaise as it fell into administration.
Other restaurants such as Gourmet Burger Kitchen and Carluccio’s have been subject to insolvency proceedings in the last 18 months.
Read more: Pizza Express losses widen amid strain on casual dining sector
What Pizza Express said
Chief executive Jinlong Wang said: “Costs across the sector continue to rise and this offset the revenue growth.
“We will continue to maintain our focus on cost control, further improving productivity and efficiency, and are taking a measured approach to expanding our estate.”