 Peter Boizot started the first PizzaExpress in London in 1965.
Today it is a household brand in casual dining with approximately 350 restaurants across the UK. PizzaExpress also lends its brand to a range of products distributed through supermarkets in the UK.
Under TDR's ownership, PizzaExpress was merged with ASK Central in 2004 to create a leading casual dining group with 500 restaurants throughout the UK operating under the PizzaExpress, ASK and Zizzi brands and more than 30 million customer meals served per annum.
Transaction
In June 2003, TDR led the public-to-private takeover of PizzaExpress alongside co-investor Capricorn Ventures. A year later it was merged with ASK Central to form Gondola Holdings. In this transaction, TDR creatively secured a highly competitive financing package resulting in half of the equity requirement of the competing bids. The entry valuation was very attractive as a result of public market perception that the company's sales were in long-term decline.
In 2005, we floated Gondola Holdings on the LSE. We retained a significant shareholding in the listed company until the business was taken private by Cinven in 2007.
Investment Overview
PizzaExpress is a popular UK brand with a highly profitable operating model, which was improved under TDR ownership by initiatives such as new menu development, introduction of a mystery customer programme linked to staff incentives, and improved performance management.
There was also opportunity to refocus the company on the core UK restaurant operations to drive profitable growth. We instituted a controlled new opening programme focused on high return investments and also closed certain loss-making restaurants.
We recruited a new PizzaExpress management team headed by Harvey Smyth from Pret a Manger.
The add-on acquisition of ASK Central presented complementary consumer offers to PizzaExpress and opportunities to consolidate back office operations and achieve supply chain savings.
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