Pizza Express to axe 1,300 jobs as coronavirus continues to bite

PIZZA Express has said it is cutting around 1,300 jobs across its UK restaurants as the impact of coronavirus continues to hit business.

The restaurant chain is not closing any more restaurants but instead slimming down its existing team.

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The job losses are on top of the 1,100 that are already at risk after the chain announced in September that it would be closing 73 restaurants.

Pizza Express said that despite sales improving over the summer, the latest round of Covid restrictions has caused a drop in the number of diners eating out.

The industry has been hit by a national 10pm curfew for pubs and restaurants and a ban on households mixing indoors in Tiers 2 and 3 coronavirus lockdown areas.

The job cuts are expected to hit all 370 Pizza Express branches across the UK, through a round of voluntary and compulsory redundancies.

In a company statement, the chain said that it was necessary to make these changes to survive the winter months when demand is expected to fall even further.

Zoe Bowley, managing director at Pizza Express, said: “Unfortunately, the recent increase in Covid-19 cases is again causing footfall to decline across the UK.

“As this is expected to continue for some months, we sadly need to make changes that will impact more of our team members.

“Our people remain at the heart of our business and we are doing what
we can to support those who are affected.

“We believe that this difficult decision will give us more resilience through the next six months and help us to continue serving our customers in our
restaurants and at home in the years ahead.”

Capacity in Pizza Express restaurants has already been reduced by 25% since reopening in order to operate within government guidelines.

The the family favourite added that while some restaurants in out-of-town locations have continued to trade well, inner-city branches are suffering.

The drop in footfall can also be blamed on the government’s work from home guidelines.

Pizza Express said last month that the closures due to lockdown and then reopening again costs the businesses huge sums of cash.

The chain entered into a Company Voluntary Agreement (CVA) after 89% of those it owes money to voted in favour for it.

A CVA doesn’t mean a company has gone bust – instead, it allows businesses that are struggling to look for cost-cutting ways to keep going.

The restructuring plans will see rents lowered at its existing restaurants and the company’s debt pile reduced from £735million to £319million, with some of the money it owes being written off.

The chain was reported to be in financial difficulties in October 2019 after it ended the year with £1,122.5million worth of debt following a pre-tax loss of £55million.

Pizza Express is the latest in a growing line of restaurants to confirm job cuts and store closures in recent months.

On Tuesday, Revolution announced it is shutting six bars putting 130 jobs at risk.

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