The company said that sales fell 4.4% at its core pizza chain during the first three months of its new financial year, when comparing restaurants open at least a year.

There was better news from the company's Cafe Pasta chain which reported a rise in underlying sales of 8.5%.

"The pattern of trading for Pizza Express has shown no improvement since the last quarter" of its previous financial year to 30 June 2002, the firm said.

Makeover time

It said then that many of its older restaurants were "overdue for complete refurbishment".

The firm identified tired decor as the culprit when group sales dipped 1% in its last financial year and has stepped up spending on revamping them.

But novelty-seeking Londoner diners have yet to bite.

"Negative like-for-likes continue to be seen within the M25, whilst sales in the rest of the country are showing like-for-like growth", said Pizza Express chief executive, David Page.

Competition

He said the firm is "confident" that smartening up its older restaurants will bring back customers.

The older restaurants are mainly within and around the M25 and remain "very profitable", he said.

Poor sales in the London area have dragged down overall sales, despite growth in the rest of the country.

Pizza Express was once a pioneer in persuading Britons to fork out for pizzas but it has faced increasing competition from more recent entrants to the sector.

Two of its rivals, Domino and Ask Central, which runs the Ask and Zizzi chains of pizza restaurants, have posted strong profits rises.

Pizza Express' pre-tax profits of �39m in its last financial year reflected a decline of �200,000 on the previous year.

The latest trading figures excluded the group's Gourmet restaurants, bought in February 2001, and its international outlets.