[Food] Pizza Express on the brink?

[cloud]

I used to be a member of the Pizza Express club years back, a loyalty scheme where you got free pizzas, pizza on your birthday and regular vouchers. Since that folded, they have gone downhill.

 

[BNthree]

On a seperate note is Deliveroo really that popular? My local Chinese still only accepts cash, let alone has online ordering and a moped outside. We have the occasional Chinese or Indian in but if I 'Can't be bothered to cook' we will go out. Getting out the house is part of the fun. Is that in the minority now?

Judging by the legions of mopeds buzzing around Brighton & Hove in the evening the answer is yes! Admittedly they might not all be just Deliveroo but those services are hugely popular.

In fact Deliveroo (and all those similar services) are often to the detriment of the eat in customers as the restaurant has service agreements to get order done in a certain amount of time so the restaurant prioritises the deliveries over the eat in customers. If there are a lot of deliveries ordered you'll be sat at the table for a long time as your food is lowest priority.

 

[BNthree]

Think a lot of these long established restaurant chains have had a bit of trouble adjusting to the huge amount of competition that has sprung up over the last 20 or so years. Seems to be more "casual dining options" than ever and the old chains can't just rely on their reputations like they used to. Then they get bought out by a private equity firm and bingo! Down the chute they go.

 

[Knocky's Nose]

In fact Deliveroo (and all those similar services) are often to the detriment of the eat in customers as the restaurant has service agreements to get order done in a certain amount of time so the restaurant prioritises the deliveries over the eat in customers..

Spot on, I've noticed this. Uncle Sams in Eastbourne is one. Since they've thrown the doors open to Just Eat and Deliveroo you end up waiting three times longer for your takeaway if you turn up in person. I don't blame them, as it's clearly been a great shot in the arm for their business - but it's annoying to the point I may as well just save my own time and order from Deliveroo or Just Eat.

 

[Bozza]

I'm not going to knock chains across the board and I do get, particularly for parents with kids, knowing that a certain place will consistently serve up something your kids will enjoy and eat is a great thing. For that reason, Wagamama is our noodle joint of choice - we visited the one in Brighton on Sunday in fact.

However when it comes to pizza in Worthing, you have to walk past Fiordilatte to go to Pizza Express. Fiordilatte is a fantastic independent, run by Italians serving up wonderfully authentic pizza at a really good price point. To walk past that to go to Pizza Express is a massive shame - you truly are missing out.

 

[Iggle Piggle]

Judging by the legions of mopeds buzzing around Brighton & Hove in the evening the answer is yes! Admittedly they might not all be just Deliveroo but those services are hugely popular.

In fact Deliveroo (and all those similar services) are often to the detriment of the eat in customers as the restaurant has service agreements to get order done in a certain amount of time so the restaurant prioritises the deliveries over the eat in customers. If there are a lot of deliveries ordered you'll be sat at the table for a long time as your food is lowest priority.

Uber eats and the like haven't made it to where I live yet as I'm a bit in the sticks albeit I've noticed them whenever I go to a city centre. I guess it works for Pizzas and stuff but I'm surprised at the market for luke warm chips and burgers. It also puzzles me that if you live in a city centre why they are so heavily used. You'd hardly get your Duke of Edinburgh finding the nearest fast food eatery (unless you have a massive hangover in which case it is perfectly understandable)

I do get Street food though. Can be fresh, healthy, quick and cheap.

 

[Justice]

Every time we eat out in a chain everyone tseems including us has a voucher or code on their phone.

 

[Weststander]

It depends on where you draw the line regarding positive cash flow. I haven’t looked to see if it’s actually generating free cash, but given where bonds are trading, I would guess not.

You’d have to be a pretty awful company to report an operating loss so pretty much all businesses generate some amount of cash. It’s the cash costs below the operating line that causes the problems. This can be capex, interest, leases, tax, working capital etc. Here these are so big,the company can’t pay down debt and it’s liquidity is coming under pressure. The only reason a business ever goes bust is because it runs out of cash.

So yes, this will be a debt/equity swap but that doesn’t do anything for the onerous lease payments. My guess is they will try and reduce the heavy fixed cost base by closing some shops down.


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Looking at their accounts in recent years, before these new interest payments, they’re profitable and generate net cashflow. Underlined by the fact that they pay corporation tax each financial year.

I only mentioned the leases as an idea that they might use this debt restructure, as an opportunity to try to negotiate rents downwards. As others are doing eg Debenhams. Also to point out that there are no significant tangible assets to strip, as they don’t own estate.

 

[beorhthelm]

Spot on, I've noticed this. Uncle Sams in Eastbourne is one. Since they've thrown the doors open to Just Eat and Deliveroo you end up waiting three times longer for your takeaway if you turn up in person. I don't blame them, as it's clearly been a great shot in the arm for their business - but it's annoying to the point I may as well just save my own time and order from Deliveroo or Just Eat.

have you mentioned to the outlet? if they dont know its impacting their established customers, they dont know theres a problem.

failing that, order giving the outlet as the address for delivery

 

[Bakero]

Every time we eat out in a chain everyone tseems including us has a voucher or code on their phone.

To make the customer feel like they're getting a good deal when in reality they're still paying £13 quid for a pizza and a bottle of beer.

 

[Jam The Man]

I'm not going to knock chains across the board and I do get, particularly for parents with kids, knowing that a certain place will consistently serve up something your kids will enjoy and eat is a great thing. For that reason, Wagamama is our noodle joint of choice - we visited the one in Brighton on Sunday in fact.

However when it comes to pizza in Worthing, you have to walk past Fiordilatte to go to Pizza Express. Fiordilatte is a fantastic independent, run by Italians serving up wonderfully authentic pizza at a really good price point. To walk past that to go to Pizza Express is a massive shame - you truly are missing out.

Concurred! Fiordilatte is absolutely the ‘go-to’ pizzeria in Worthing now. Good price, good quality and really decent extra toppings portions.

 

[Goliath]

Concurred! Fiordilatte is absolutely the ‘go-to’ pizzeria in Worthing now. Good price, good quality and really decent extra toppings portions.

Went there a few weeks ago and pizza wasn't as good as before.Maybe just a one off.

Pizza express don't actually make pizzas.They put dough together with tomatoe and cheese and claim them to be pizzas but they are not.

In Brighton VIP,Fatto a Mano,Franco Manco,Nuposto.

 

[Spiros]

Concurred! Fiordilatte is absolutely the ‘go-to’ pizzeria in Worthing now. Good price, good quality and really decent extra toppings portions.

Another absolutely satisfied Fiordilatte customer here.

 

[CheeseRolls]

I went in Burger Brothers with my eldest, before the Villa Cup game. It was the first time and I suspect the last. £25 for two burgers all be it doubles and we both agreed afterwards, singles would have been more sensible. Tiny place rammed with queueing customers and moped riders. I can see why someone might prefer to take the risk on a cold one arriving, versus the hassle of queueing. I would also add I could make quality burgers for about 10 people with drinks at home for around the same price.

I don't think anyone has mentioned dark kitchens yet. These are fast food restaurants that exist only to serve mobile delivery customers. They have no tables, you can't turn up and order and they may well churn out food from the menus of several competing restaurant groups/franchises. They can be in cheaper rental areas and difficult to find, because it doesn't matter. As long as the brand has good recognition and a relationship with a delivery partner, it has all it needs to trade.

 

[beorhthelm]

I went in Burger Brothers with my eldest, before the Villa Cup game. It was the first time and I suspect the last. £25 for two burgers all be it doubles and we both agreed afterwards, singles would have been more sensible. Tiny place rammed with queueing customers and moped riders. I can see why someone might prefer to take the risk on a cold one arriving, versus the hassle of queueing. I would also add I could make quality burgers for about 10 people with drinks at home for around the same price.

I don't think anyone has mentioned dark kitchens yet. These are fast food restaurants that exist only to serve mobile delivery customers. They have no tables, you can't turn up and order and they may well churn out food from the menus of several competing restaurant groups/franchises. They can be in cheaper rental areas and difficult to find, because it doesn't matter. As long as the brand has good recognition and a relationship with a delivery partner, it has all it needs to trade.

dark kitchens are brilliant idea, solves the problem observed with delivery orders at the high street outlet.

 

[CheeseRolls]

dark kitchens are brilliant idea, solves the problem observed with delivery orders at the high street outlet.

Sure a brilliant idea, but plenty of shit consequences as well.

 

[beorhthelm]

Sure a brilliant idea, but plenty of shit consequences as well.

such as?

 

[Official Old Man]

I've been twice, using Tesco vouchers on both occasions. I noticed that every table had some voucher or another and no one paid full price. A few tap water brigade but I had the 'money no object' Italian beer at £5 for a small bottle which is, I guess, where they make their money.

 

[Mackenzie]

I like Pizza Express, I'd be disappointed if it went.

 

[Goliath]

More and more people are getting lazy and eating out even more.Houses will soon be built without kitchens so how do these places go under?With pizza express I think its because of the lack of quality in their pizzas.