US 'too tough' for PizzaExpress

PIZZAEXPRESS is considering scrapping its fledgling US operation in the face of tough trading conditions. Such a withdrawal would be a blow for the overseas ambitions of the company, which earlier this year bought out its US franchise partner.

It would come after Belgo, now known as Signature Restaurants, pulled out of New York after failing to make its moules-frites operation work.

Belgo's decision led analysts to fret that British restaurants would never be able to crack the cutthroat US marketplace.

PizzaExpress, brought to the stock market by Luke Johnson, now chairman of Signature, is reviewing conditions at underperforming restaurants in Philadelphia and Washington DC.

'We are considering pulling out,' confirmed chief executive Ian Eldridge. 'We review our restaurants rigorously and, at times, ruthlessly,' he added. PizzaExpress has 36 restaurants outside the UK. They made a joint loss of £1.5m in the year to 30 June.

The firm bought full control of its US joint venture in a move that led to increased losses from America of £500,000 for the year.

The growing losses from the international operations reflected the company's policy of moving towards owning, rather than franchising, its overseas businesses.

In Britain, PizzaExpress is running its first advertising campaign since it was founded in 1965.