I have been following The Pilgrims’ Progress ever since brothers James and Thom Elliot opened their first bricks and mortar restaurant in Soho’s Dean Street in 2013. It was an audacious move, launching opposite a Pizza Express (and not just any site, but one that opened in 1976, and which is home to a famous jazz club) that encapsulated perfectly the pair’s somewhat devil-may-care approach to business back in their salad days. What was created as a bit of fun - albeit with some solid business aspirations – (the launch party was a raucous affair) has grown into one of the industry’s biggest success stories of the past decade, with the brothers now operating 25 sites across the country and having achieved B Corp status for their pizza business.
The news then that it is being bought by L’Osteria, the Germany-based Italian casual dining brand backed by investor McWin, comes as little surprise. Back in October last year Pizza Pilgrims announced that it had appointed advisors to explore strategic and investment options and one investor immediately sprung to mind – McWin. Here’s an investor that has been more active than most in the UK restaurant industry over the past couple of years, backing brands including Gail’s, Big Mamma (another B Corp company) and Sticks ‘n’ Sushi, and which already has a pizza brand in its portfolio in L’Osteria, an operator with more than 200 restaurants across 10 European countries including Germany, France, Austria, Switzerland, France and Luxembourg. It is an obvious fit.
The deal also makes perfect sense for a brand like Pizza Pilgrims, which is looking to break into new territories. Under McWin’s ownership, L’Osteria has expanded its presence across Europe. Big Mamma too has made more of its international expansion plans, including a possible move to the US, since taking on McWin’s money and it’s likely that similar noises on overseas expansion will soon come from the Pizza Pilgrims’ camp. As Thom Elliot told our sister publication MCA: “The opportunity of going into Europe has always been something we’ve been excited about,” and having the backing of a pizza company that has a proven track record for this will be invaluable.
There are also a number of other compelling reasons why the deal makes sense. Bringing in McWin will herald an end to the company’s ‘very long tail of investors’, according to Thom, which include institutional investor Imbiba, and give it a single investor voice that will no doubt provide some much-needed clarity as it looks to grow beyond its borders. This will likely mean that any plans to revive its by-the-slice pizza brand Slice will be scuppered in favour of focusing on what has made Pizza Pilgrims successful, namely its pizzas and its vibe.
Of course, with any deal of this scale there are other considerations to be had, and this is what makes it so interesting. The brothers have long been obsessed with expanding but not to the detriment of the business – back in 2018 they spoke passionately at a Restaurant event about wanting to ‘roll out with soul’ and this has been a theme that they have returned to on numerous occasions. This approach has meant staying true to their desire for fun and has included things such as the opening of a ‘Nutelleria’ outside its Kingly Court pizzeria, and incorporating a football pitch into its Brighton restaurant.
Having known James and Thom for over a decade, I can say that there is no nicer duo running restaurants at this moment in time. James’ enthusiasm, personability and his skills as a raconteur make him the life and soul of any gathering while Thom (the self-confessed geekier brother) has a geniality and sharp wit that marks him out as one of the most interesting people in the room. Together they make a powerful, passionate and very knowledgeable pair that has won the hearts and minds of customers and industry professionals alike. James is also front and centre in the brand’s social media presence, where their exploits, whether they be visiting suppliers, opening restaurants or just describing what they do, prove very popular.
How successfully the brothers’ personality can be translated to new markets will be the making or breaking of Pizza Pilgrims
How successfully this personality can be translated to new markets will, I believe, be the making or breaking of Pizza Pilgrims as it looks to retain its soul while growing, and how the business under McWin tries to achieve this will be under scrutiny. Should the brand move into markets such as Germany or France, it will find itself potentially going head-to-head with L’Osteria, and the personality of the Pizza Pilgrims brand will be a key point of difference. The brand’s restaurants are typified by the brothers’ sense of fun, a love of football (and foosball) and a desire to create different spaces that reflect their personalities and how these quirks and eccentricities will be welcomed in other markets will be of great interest. It’s good to hear that any initial expansion internationally will most likely be through company-owned sites as this is the only way their message can truly be communicated.
Expansion is often – and sometimes rightly so – viewed with scepticism, and the history of the UK’s restaurant sector is full of examples of brands that have lost their way as they have scaled up, with money men putting profits before product. McWin is one investor that is said to not take this approach, and that fills me with optimism, because if any duo deserves even greater success, then it’s the Elliots. Let the pilgrimage continue.