Taking Italian to the Chinese - Pizza Express Expansion Strategy

With the success of Pizza Hut, Dominos and Papa Johns, it seems that consumers in China have an appetite for Italian fast food. But is there enough demand to make the market opportunity sufficiently attractive for a more mid-market brand such as Pizza Express? This superb article in the Telegraph features an interview with Justin Kennedy, the owner of the Pizza Express franchise in Hong Kong and Shanghai.

An opportunity for Kenndy to open the first Pizza Express in Shanghai arose five years ago when a suitable retail location became available. But growth since then has been slow - just one more outlet opened. Is now the time that that the rate of organic growth can be accelerated as the rising incomes of a Chinese middle class make the Pizza Express product more affordable? The growth objective seems to be pretty modest - up to about 10 restaurants in the next few years.

Lots of interesting material in the article. The trading format has essentially been imported directly from the UK - there seems to be little reflection of local tastes and preferences.

Growing the brand in China also seems to have its fair share of headaches - not the least finding suitable trading locations and also recruiting staff with suitable skills and experience.