Domino's to accelerate delivery business, eyes 200 additional stores
This follows “strong trading” throughout COVID-19.
Domino’s Pizza Group announced it recorded its highest-ever sales week and has revealed a new strategy to retain customers following a positive, delivery-led performance amidst the pandemic.
The operator said it is targeting total system sales of £1.6 to 1.9 billion per year supported by the opening of an additional 200 new stores.
On delivery, Domino's plans to roll out new digital platforms, including their mobile App that now allows group ordering, as well as launching a next generation web platform that will provide a personalised experience. New technology such as an upgraded GPS tracking solution to improve the delivery experience will also be deployed.
It has offered franchisees an enhanced food rebate mechanism to encourage growth, new store incentives, capital investment to boost technology, investment in marketing through data & insights and the establishment of national deals.
“While the engagement has been constructive we do not yet have agreement of the terms of the offer, but we remain hopeful the franchisees will appreciate the mutual benefits its acceptance would yield,” the company said in its preliminary results for the year ended 27 December 2020.
The executive team will also see a rehaul, with a new chief financial officer as well as a new Ireland chief executive.
In the year to 27 December, system sales rose 10% to £1.3 billion, whilst underlying profit before tax rose 2% to £101 million including a one-off charge of £9 million relating to COVID-19 safety measures. Net debt was cut by 26% to £171 million.
The group remains in discussions to sell the segments in Iceland and Switzerland, with the disposal of the Swedish business to complete in May 2021.
In an earlier announcement, the pizza chain said it has sold its entire shareholding in PPS Foods – also known as Domino’s Sweden, to minority shareholder Eyja fjárfestingafélag.
Domino’s will pay €2 million to the purchaser, which is owned by Domino’s Sweden director Birgir Bieltvedt.
The transaction is part of the group’s planned exit from all of its directly operated international markets, to allow for further development on its UK and Ireland businesses, which was announced in October 2019. It exited the Norwegian market just last year.
Domino’s Sweden’s underlying operating loss for the year ended 31 December 2019 was £4 million and the value of its gross assets were £9.8 million as at 30 June 2020.
