HowZAt – PizzaExpress looking to score with ZA diversification

Borrowing from cricketing parlance, the casual dining market is on something of a sticky wicket – but arguably the single most interesting aspect of the state of play is what operators are doing to get back on the front foot. For sure they need to be executing the basics of their defences bloody well - and being both effective and efficient with resource allocation and cost mitigation. But, at the same time, they need to be looking for scoring opportunities and tapping into business growth areas. This means exploring the potential of new market/new products/new formats – or in the case of ZA by PizzaExpress – all three. The theory sounds promising, but will it be a success in practice?

New market: Making in-roads in the stronger growth potential food to go market is really what underpins management thinking here. Food to go has, however, specific operational challenges and trading peaks that place differentiated demands on conventional restaurant thinking. It is also intensely competitive with many seasoned specialists and several price-led operators. Encouragingly, initial impressions of ZA are largely positive. The store is attractively designed, light and well laid out. Echoes of Pret A Manger and Starbucks exist with the self-service cabinets and product merchandising, and with the segregated purchase order and collection points for your named product.

New products: Thought has clearly gone into developing the product offer to meet specific day-part audiences, not least breakfast, time-pressured lunches and assorted snacking occasions. Selling pizza by the slice is not new in itself, but it is for PizzaExpress currently. Heating up pre-cooked pizza allows ZA to meet customer orders within a minute or so of ordering. Though at £4 a slice, there might be considered better value to be had from some of the new and tasty, pre-prepared chilled offerings, not least selected salad options.

New format: The abbreviated ZA is a clever brand identity. It is simultaneously new but also a recognisable offspring of the mother brand – an association that should accelerate customer trust and traction. Digital menu display boards are very clear and facilitate quick customer choice from across the well edited, product offer. Thinking around the customer journey is very clear with segmented workstations that at the time of visit, were well-manned – possibly too well.

The big question of course, is will it be a hit? The site location next to Fenchurch Station ensures significant passing footfall, though at the same time, a very competitive trading location. In truth, trading levels on the first Friday were steady rather than stupendous. While ZA does not have any promotional deals available in-store, free vouchers were being handed out on the street outside. These were driving trial and additional traffic, but seemed to put some extra stress on the efficiency of order fulfilment that might require some tweaks to the positioning of the heater conveyor machine. Some teething issues are to be expected, but overall this is an encouraging debut, and while the business has still to firmly get its eye in, the returns should come and additional conversions of under-performing existing PizzaExpress units follow.