Domino's rolls out profits jump
Pizza delivery chain Domino’s Pizza today served up a 25% increase in profits thanks to the launch of its Simpsons branded pizza and the World Cup effect.
A boom in e-commerce sales, which now account for 12% of total UK delivered pizza revenues, also boosted the company – helping it to pre-tax profits of £6.3m (€9.2m) in the first half to July 2, compared with £5m (€7.3m) last year.
Like-for-like sales at 357 established stores grew by 8%. Some 21 new stores were opened in the period bringing the total to 428 across the UK and Ireland.
Chief operating officer Chris Moore said the launch of new products such as the Football Fanatic Pizza promoted by England star Michael Owen and the Ay Carumba Fajita Simpsons pizza brought new customers to the stores and helped avoid “menu boredom syndrome” with existing customers. The campaigns were funded by a increase in advertising contribution from franchises, he said.
Mr Moore said the World Cup tournament in Germany had had a positive impact despite coinciding with the first spell of very hot weather which would normally depress sales.
“If England played late and it was raining in the UK, sales were up 50% on last year,” he said. “But on warmer days people tend to have barbecues.”
The extended hot weather works in Domino’s favour as customers eventually tire of barbecues and feel it is too hot to cook, he added.
