Pizza Express vies for bigger slice of China market

British restaurant chain Pizza Express plans to more than quadruple its outlets in China over the next five years, aiming for 100, as it makes a foray into the mammoth market where a clutch of rivals including Pizza Hut and Papa John's Pizza have already secured a strong foothold.

Richard Hodgson, chief executive of Pizza Express, announced the expansion plan in Shanghai last week.

Pizza Express was bought out by mainland private equity group Hony Capital for £900 million (HK$11.25 billion) in July, and Hony chief executive John Zhao is keen on bringing other established foreign brands and services to the mainland despite signs of an economic slowdown.

Hodgson said Pizza Express was in the process of identifying appropriate locations in first- and second-tier mainland cities to build a "bigger pipeline" for its Chinese businesses.

"What we are trying to do is ensure we don't rush. It's not a numbers game," he said. "We try to build a great brand."

Hony's acquisition of Pizza Express coincided with a food scandal in Shanghai when a local subsidiary of US meat supplier OSI was found to have mixed expired meat with fresh produce and then forged production dates before selling the goods to big-name restaurant chains including McDonald's and KFC.

Zhao said overseas acquisitions of premium brands and services could create a new growth engine for the mainland's slowing economy.