PizzaExpress to close 73 outlets in UK as Amazon steps up grocery link

A Pizza Express restaurant in Nottingham after the company announced that all of their restaurant locations in the UK have now closed to help limit the spread of coronavirus.

PizzaExpress has decided to close 73 of its 449 UK restaurants due to coronavirus lockdowns and higher costs, a move that the restaurant chain said would impact 1,100 jobs.

The company said rental costs have become unsustainable and launched a company voluntary arrangement (CVA) to improve its finances by cutting rental agreements and temporarily moving from quarterly to monthly rents.

“Hard as this process is, it will protect the jobs of over 9,000 of our colleagues,” Zoe Bowley, the company’s UK and Ireland managing director, said in a statement.

The company joins a long list of UK’s High Street restaurants chains that have closed outlets and cut thousands of jobs, seeking to restructure their businesses in the face of the pandemic.

PizzaExpress said it would seek approval for the CVA proposals from its creditors on September 4.

The group had said earlier this month that 166 of its restaurants are now open and further reopenings are underway.

Earlier this month, Chinese buyout firm Hony Capital decided to cease control of PizzaExpress, which it bought for £900m (€996m) in 2014, to creditors in a debt-for-equity swap.

Meanwhile, Amazon has stepped up its move into Britain’s grocery market, expanding its relationship with Morrisons. 

Amazon and Morrisons have had a tie-up since 2016 and have been steadily expanding their links, leading to speculation that the US group could even emerge as a possible bidder for Britain’s No. 4 supermarket chain. Both sides habitually decline comment on such market talk.

The coronavirus pandemic has seen a marked rise in demand for online groceries. Market researcher Nielsen said this week online grocery participation had grown to 14% of the UK grocery market in the 12 weeks to August 8, double its pre-crisis rate.

Amazon and Morrisons said that Amazon Prime members would as part of their subscription be able to receive same-day delivery on orders of more than £40 for no extra cost directly on the Amazon.co.uk website.

For orders worth less than £40 (€44) there will be a £3.99 (€4.42) delivery charge.

They said “Morrisons on Amazon” launched in Leeds, and will be expanded to millions of Prime members across the UK in the coming weeks.

It will offer thousands of grocery products including meat, seafood, dairy and baked goods, fruit, and vegetables. 

Prices will be the same as at Morrisons’ stores.

Orders will be picked from local Morrisons stores by Morrisons staff and delivered to customers by Amazon partners.

Prime is Amazon’s core retail proposition, costing an annual membership fee of £79 (€87)

Membership provides access to unlimited one-day delivery as well as services such as TV, movies, and music.

The Morrisons deal builds on Amazon’s move last month to begin free delivery of its own grocery service to Prime members.

Morrisons, which has a 10.2% market share in Britain, trails market leader Tesco, Sainsbury’s, and Walmart’s Asda in annual sales.