Pizza Express - TDR Capital

When we acquired the business in 2003, PizzaExpress was a popular brand and a market leader in the UK casual dining sector. It operated in the premium/authentic sector of the eat-in pizza/pasta market, in a variety of locations across the UK.

Under our ownership, PizzaExpress was merged with ASK Central to create a leading casual dining group with over 500 restaurants throughout the UK operating under the PizzaExpress, ASK and Zizzi brands, and serving more than 30 million customer meals each year.

At a glance
Status: Realised
Exit Type: IPO
Deal Type: Public to Private
Sector: Leisure
Exit Date: December 2006
Initial Investment Date: June 2003
Website: www.pizzaexpress.com

Transaction

Since its listing in 1993, PizzaExpress had had a record of unbroken growth. However, by 2002 public market perception of the group had turned negative due to a significant weakening in like-for-like sales and a lack of confidence in the business’ strategy.

Due to our significant experience in the leisure sector and our operational resources, we developed a thesis and assessment of the value of PizzaExpress that differed from the market.

Alongside co-investor Capricorn Ventures, we completed the public-to-private purchase of the business in June 2003.

During TDR’s investment

Post-acquisition we kick-started a ‘back-to-basics’ operational transformation plan, which resulted in improved customer experience and sales growth, through launching a new menu, introducing mystery shopping and optimising staff incentives
In 2004 we acquired ASK, one of PizzaExpress’ main competitors, to create the clear market leader in the casual dining sector
We worked with management to strategically reposition each of the brands to drive sales, developing a co-location strategy and executing on geographical roll-out opportunities
In November 2005 we led a successful IPO of Gondola Holdings (the combined group) on the London Stock Exchange
In December 2006 we fully realised the investment