Pizza Express said it was recommending a �263m offer from Mr Johnson, who put the bid together with the group's former chief executive Ian Eldridge.

But the news sparked interest from investment firms TDR Capital and Capricorn Ventures, who said they may make a higher offer for the chain.

The bid interest follows a troubled year for Pizza Express, once the darling of the restaurant industry but which has been hit by increased competition and a slowdown in trading in London.

Back to life

Pizza Express's woes were further demonstrated on Thursday when it said sales had continued to weaken in the past few weeks.

Earlier this month the group reported an 18% fall in profits for the six months to December 2002, blaming competition - particularly from the pub sector - and a slump in tourist numbers since September 11.

We believe passionately in its future Luke Johnson

Mr Johnson left the company in 1999 and is currently head of Signature Restaurants, another restaurant group which had suffered falling profits and which was taken private by management at the end of 2002.

Signature's portfolio includes the Belgo mussels-and-chips chain and a cluster of London eateries including The Ivy and Le Caprice.

Mr Johnson said: "Our intention is to develop the (PizzaExpress) brand using our experience gained elsewhere in the industry."

"We firmly believe that the business has outstanding staff and great untapped potential and, notwithstanding the challenging trading environment, passionately believe in its future."

Rival offers

Mr Johnson made his offer through Venice Bidder, a new company formed by ABN Amro Capital and the independent directors of Pizza Express.

We're anxious that if TDR has to come up with a higher bid, they do so relatively urgently Nigel Colne, Pizza Express chairman

They had agreed an offer of 367p in cash for each Pizza Express share - a premium of 11% on the group's closing price on Wednesday.

But TDR Capital and Capricorn Ventures stepped in with news that they had spoken to independent directors of Pizza Express and could thwart the Venice offer.

"(We) are considering whether to make an offer for Pizza Express at a premium to the offer price announced by Venice Bidder," said the two companies in a statement.

Lengthy wait?

PizzaExpress's menus have failed to excite

The restaurant chain's chairman Nigel Colne said any rival bids would have to be made soon.

"We're anxious that if TDR has to come up with a higher bid, they do so relatively urgently," Mr Colne told Reuters.

However, a spokesman for TDR Ventures told BBC News Online: "We will not be hurried into any move that we might make."

Under current takeover rules, TDR will have 60 days to counter any offer that Venice Bidders proffers.

"We will definitely not make any move until we have seen the offer document from Venice Bidders and if we make any move it will be in accordance with normal timetables," added the spokesman.

Buying on the cheap?

Analysts said Mr Johnson's offer was higher than had been expected. But they said he would still be getting the company cheaply.

"I think we're still at the bottom of the range in terms of valuation," said James Wheatcroft, an analyst at Investec Securities.

Investors welcomed the bid speculation, with Pizza Express shares leaping 14% to 378p in Thursday's trading.

Possible takeover discussions began last year and speculation had focused around a management buy-out headed by the chief executive David Page.

Its former owner Hugh Osmond, who is now considering a bid for the Six Continents pub and hotel group, also attempted to buy Pizza Express last November.