THINKING OUTSIDE THE BOX BOOSTS PROFIT FOR DOMINO'S
Written on the 14 February 2013
DOMINO’S Pizza has reported a $14.5 million net profit after tax for the first half of the financial year, up 15.7 per cent from the same period last year.
Domino’s CEO and managing director Don Meij says that the business has continued to follow its strategy from last year, with a continued focus on driving digital platforms and innovation.
More than half of the online orders are now being placed via mobile devices in Australia and New Zealand and the Facebook following has topped one million fans.
Meij says that the pace of technology development means the business must continually innovate to stay at the cutting edge.
The company has also announced the acquisition of 15 new stores in New South Wales and the Australian Capital Territory from franchisee Nick Knight, who will join the management team as the corporate operations manager for Australia.
“As a fast-growing company it’s always important to increase the depth of talent on our team,” Meij says.
“Nick was our largest franchisee and comes from a similar background to myself.”
Expansion in Europe continued with 19 new stores opened in the Netherlands, bringing the total to 364 outlets in France, Belgium and the Netherlands.
Despite a tough financial climate in Europe, Meij says the company’s growth in the region is actually speeding up, with more sites available.
The forecast for new stores opening in the full 2013 financial year has been upgraded to 80, 60 per cent of which will be in Europe.
In Australia and New Zealand, Domino’s has kept its attention on quality, service and image.
“This includes our store refurbishment program with 18 stores being refurbished during H1 13 including 16 stores with our new ‘Entice’ image,” Meij says.
The original diamond logo was replaced with a single tile in August 2012 as part of the brand’s cleaner, more modern image.
Meij says the reaction to the new store design has been very positive and it is a way to bring pizza theatre to the customers and showcase high quality ingredients.
“The most extreme version of this is the Surfers Paradise store,” Meij says.
“Their figures are 50 per cent higher than a traditional store on a weekly basis.”
Expansions to the menu include the Chef’s Inspiration pizza range designed with gourmet ingredients and additional dessert options.
The pizza experts have also taken a cue from burger menus with the launch of their latest product, Pizza Sliders, a pack of four individually sized pizzas.
Shareholders will be paid an interim fully-franked dividend of 15.5 cents per share, up 19.2 per cent on the dividend paid in the first half of the 2012 financial year.