Group restauranteur of the year
How does David Page do it? As chief executive of PizzaExpress, he manages a club that has turned into a hard-hitting brand while retaining its friendliness to the public. So eulogised the judges about David Page, winner of the 1996 Group Restaurateur of the Year award.
Founded in 1965 by Peter Boizot, PizzaExpress has been steered by David Page into pastures new.
The brand was a popular proposition from the start. But a clash of philosophies between Boizot and his minority shareholders forced a change in direction. One possibility was to sell off the company.
Enter Page, at that time the chain's largest franchisee with nine outlets and an enviable track record of margins of about 20%.
Page had come across Star Computer Group, a quoted company whose shares were moribund. Knowing that Boizot was seeking a way for financial restructuring, Page brought all three parties together.
The deal was clinched, and in January 1993 PizzaExpress joined the stock market through the reverse takeover of Star Computer Group. Page was appointed managing director and Boizot became chairman.
It was a marriage of convenience which served its purpose for all parties. At the end of 1993, Star bought back the computer business and PizzaExpress returned to its position as a "pure" restaurant company.
Under Page's direction, a new, leaner company emerged. Head office staffing was slashed, reducing the wage bill by £600,000 a year. Restaurant managers and staff earned bonuses if their outlets met target for wage and food costs.
At the end of 1995, the group comprised 94 restaurants, of which 56 were company-owned and 38 franchised. By February 1996, this had grown to 98 restaurants, 61% of which are company-owned. The financial results speak for themselves.
In 1994, the first full year of becoming a public company, group turnover was £24.9m, with operating profits of £4.8m. By 1995, turnover was up 23% to £30.6m, with operating profits of £6.6m. Earnings per share were up by 29%.
Earlier this year, Boizot stepped down as non-executive chairman and director of PizzaExpress, and Page became chief executive.
So to what can PizzaExpress attribute its success? The judges singled out several areas. These include: keen purchasing, good control; right control over menu ingredients, specified and distributed from a single source; excellent site-finding network, delivering good secondary pitch locations at reasonable rents and avoiding premiums; careful selection of franchisees; and a neighbourhood approach to trading that reinforces each site within its community.
But above all, it is the PizzaExpress philosophy that makes it stand out from the competition. Genuine pizza is consistently delivered at high-value prices in sophisticated settings, decided the panel.
Recent mystery shopping exercises confirm that high standards of menu product and service are being upheld across the estate. They also confirmed the brand's popularity with the "grey market", a sector that is notoriously difficult to satisfy.
But it does not stop there. PizzaExpress is on course to open 17 new restaurants by the end of the year, and is in negotiations to open 40 to 50 more. By the end of this year, it intends to have 122 restaurants, of which only 37 will be franchised and the rest company-owned and managed.
The group is also gearing up for overseas expansion, with plans to open in India and California before the end of the year. All in all, a chain to be reckoned with.
Judges
John Barnes Chairman, Harry Ramsden's; Hugh Cade Partner, Deloitte & Touche Consulting Group; David Coffer
Chairman, Davis Coffer Lyons; Frank Whittaker Group Sales & Marketing director, Sutcliffe Catering Group;
Nigel Wicking Senior consultant, BMS Bossard; Max Woolfenden Managing director, Wimpy International
