MOD Pizza made a loss of £5.02m starting up its UK business last year, it annual accounts reveal.
The US-based pizza giant reported pre-opening numbers to 25 December 2016, which do not include any revenue but outline the extent of the initial investment needed to make the business viable.
The UK operation, which is part-owned by Carphone Warehouse founder Sir Charles Dunstone, ploughed £4.93m of capital investment into the venture prior to opening, which it said was in line with its “expectations.”
As the focus of the business during the period was the launch of new restaurants, the key performance indicator for the company was capital expenditure.
“During the period the company opened five trial restaurants in a variety of locations in order to understand how the operating model would translate to the UK market and to understand how different types of location would perform,” it said.
The £5m loss predominantly reflected the cost of the support team and pre-opening costs of opening the five restaurants.
Board member Rob Murray said the company believes its offering is well-positioned to withstand economic challenges and said it would seek to “optimise” the performance of its five existing restaurants in the coming year as well as identify sites for additional openings.”