MOD Pizza plans further expansion despite posting losses

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US brand MOD Pizza says it is aiming to open a further seven UK sites this year, despite posting losses of £6.9m in 2018.

In the full year to 30 December 2018, the 10-strong chain saw turnover increase to £5.36m, up from £3.68m in 2017.

However, following on from the £11m in losses it reported in 2017, the ‘build your own’ pizzeria group posted a £6.9m loss for the full year period.

In a strategic report, finance director Rob Murray writes that the losses reflected the costs of the support team, pre-opening, deprecation costs, marketing investment, and impairment charges on two original trial restaurants.

MOD Pizza opened four restaurants during 2018, and ended it with a total of nine locations in operation.

Regarding the new openings, the strategic report adds that the focus will be “quality rather than quantity” and the actual number of openings could be lower or higher.

MOD Pizza was launched by Seattle Coffee Company founder Scott Svenson in 2008 and is one of the fastest growing chains in the US, with over 390 locations.

The group made its international debut in Leeds in 2016 with the backing of Carphone Warehouse founder Sir Charles Dunstone – who also backs Five Guys in the UK.

In March MOD Pizza opened its 10th UK restaurant in Coventry.

However, in May it appointed Savills to market the leasehold interest of its flagship site in London’s Leicester Square after less than three years of trading.

At present, though, the site on 17-18 Irving Street remains open.