Prezzo, the TPG Capital-backed group, has become the latest high-profile company in the eating out sector to show signs of strain in a challenging market. We look at data from MCA’s Eating Out Panel and Menu Tracker to assess how the company has been performing against the wider casual dining market.

Reports that Prezzo has brought in advisors ahead of a potential restructure may not be a surprise to many in the sector, given the warning signs over the past year. The group placed 27 sites on the market last summer, and is now thought to be facing the prospect of closing or selling another 50 underperforming restaurants.

Analysis of the core Prezzo brand through MCA’s authoritative Eating Out panel offers little cause for comfort. Its NPS scores were trailing the wider chain restaurants market in December 2016 and the gap has only widened over the past year.

We analysed NPS scores at dinner across the major brands. For the year ending December 2016 Prezzo scored 29, against a sector-wide average of 32. At the same point a year later the sector average had edged up to 33, while Prezzo fell to 26. However, it should be pointed out that this was still higher than at least two of its main competitors.

Despite heavy discounting throughout the second half of 2017, EOP data shows that the brand’s value-for-money NPS score actually fell over the year, from 8.0 (out of 10) to 7.7. Over the same period the sector average also fell – from 7.9 to 7.8.

Looking at core NPS scores, Prezzo is not far behind the average sector but has lost points for each metric. Again, it should be stressed that it is not only major brand to do so.

On atmosphere/environment Prezzo’s score fell from 8.3 to 8.1, compared to 8.1 to 8.2 for the sector. On friendly service, the dip was again from 8.3 to 8.1, while the sector average was flat at 8.4. Finally, Prezzo’s food quality/taste dropped from 8.6 to 8.4, amid a wider picture of scores up slightly from 8.4 to 8.5.

MCA’s Menu Tracker data shows that Prezzo passed on a price rise of 1.5% between Autumn/Winter 2016 and 2017 for same-line dishes (22 dishes). The group also significantly reduced its product count this year - from 121 to 83 dishes - with the brand removing V.I.P options of its pizza dishes.

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