Pizza Express, one of the UK’s best-known casual-dining brands, is poised to receive a £30 million lifeline from its shareholders, according to reports from Sky News.
Bain Capital, the private equity firm, is believed to be spearheading the funding to ensure the business can refinance its £335 million bond due for repayment next year. The deal has yet to be finalised, and Cyrus Capital Partners, another major bondholder from Pizza Express’s 2020 restructuring, may also play a role.
The investment comes as the restaurant chain, which operates roughly 350 UK and Irish outlets, faces a challenging environment. The industry is bracing for additional cost pressures when National Insurance payments rise in April, in tandem with a higher minimum wage. Hospitality leaders warn these changes may curb investment and put further upward pressure on menu prices — a concern given that consumers have already faced steadily rising costs in recent years.
Pizza Express’s recent history has been defined by ownership changes and heavy debt. Though it saw explosive success from the 1990s into the early 2000s, a series of takeovers left it saddled with a £1.1 billion debt pile. Interest costs reportedly hit £93 million a year, contributing to a pre-tax loss of £350 million in 2019.
Since then, the chain has closed dozens of restaurants, reduced headcount, and embarked on a refurbishment drive to recapture the ambience of its heyday. Latest publicly available figures show revenue rose to £367 million in 2023, though the company still posted a pre-tax loss of £6.4 million.
Research from CGA indicates that sales at top UK hospitality businesses in January were 1.3% lower year-on-year. Rising costs, supply chain pressures, and changing consumer habits have combined to weigh on the sector. More restaurants could be forced to raise prices to absorb new labour expenses, potentially testing customers’ willingness to keep dining out.
Meanwhile, Pizza Express’s ambitions for expansion or acquisition — it considered taking over The Restaurant Group (parent of Wagamama) in 2023 but withdrew — may be constrained by market headwinds. The firm hopes that new investment and an ongoing image refresh will foster resilience against a rapidly evolving casual-dining landscape.
Neither Bain Capital nor Pizza Express has commented on the reported deal, but if the funding package is agreed, it could secure the brand’s position as it navigates the prospect of higher taxes and operating costs in the months ahead.
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Pizza Express eyes £30m bailout as tax hikes threaten casual dining sector