Domino’s Pizza UK today reports that 94.3% of its UK orders were placed over the internet in its latest financial year, as customers shifted online during the Covid-19 pandemic. Its ecommerce sales grew by 23.9%, with those placed via its app growing by 26.2%. The business is now to focus on improving collection ahead of delivery, and on and expanding via 200 more branches.
The update came as Domino’s Pizza said sales made via its system came in at £1.3bn in the year to December 27, up 8% from £1.2bn a year earlier. Group revenue fell by 0.6% to £505.1m from £508.3m a year earlier and Domino’s reported pre-tax profits of £98.9m, up 32% from £75.1m a year earlier.
The business is now setting out a new strategic plan that aims to build on its position at a time when it expects to be competing in a fast changing and competitive food delivery market in order to become the favourite food delivery and collection brand.
In particular it aims to grow its collection business faster than its delivery business. In 2019, 31.1% of orders were collected, although during the pandemic, collection declined (-41.9%) as delivery expanded. Meanwhile, it has developed services including in-car collection and it aims to have this available at 450 shops by the end of June. It believes the appetite for collection will grow as shoppers return to work and for evolving occasions, such as sharing pizza with friends and family. At the same time, it aims to reduce the average delivery time to under 20 minutes – from just under 25 minutes currently.
Domino’s Pizza currently operates from a network of more than 1,200 stores, and the group aims to add a further 200 shops, taking its total system sales to £1.9bn from £1.6bn currently.
Domino’s Pizza chief executive Dominic Paul says: “We’ve worked successfully in partnership with our franchisees to continue to operate safely through the various lockdowns and play our part in feeding the nation during the pandemic, while supporting our colleagues and key workers. We have continued to invest and innovate across the business, launching exciting new products such as our vegan pizza and investing in technology, with our new app, in the supply chain and in marketing to further strengthen the brand.
“At the same time, we have been looking to the future, and today we are announcing a multi-year strategic plan which will drive growth across the business and deliver an exciting and profitable future for both our shareholders and our franchisees. In my first year with Domino’s, it has been clear to me that we have a great platform to build from – a uniquely powerful brand, high digital participation and outstanding people and franchisees. Our new strategy will enable us to build upon our strengths in both delivery and collection and provide our customers even better quality and value, which will drive continued strong performance. We have maintained an open dialogue with our franchisees throughout the development of this plan and, while we do not have an agreement yet, we have made an attractive offer to them which we believe will deliver powerful benefits to both them and the group.”
The pizza delivery business has this week sold its business in Sweden as part of its decision to move out of the Norway, Sweden, Switzerland and Iceland markets. Its Norwegian business sold in February 2020.