The UK pizza delivery business, Domino's, have just announced that they're planning to expand their operations. The strategy will see the leading franchise moving further into Europe, acquiring both twelve new stores in Switzerland and an option to operate the Austrian franchise.
Domino's UK currently operates the franchises for the British (including Irish) and German markets of the global Domino's pizza delivery business. The brand has thrived and achieved record successes during the recent economic climate, as increasing numbers of people have opted to stay in with a takeaway, rather than head out to restaurants.
Domino's is now expecting to hit 800 stores by the end of the year in the UK.
The brand's spokespeople said this week that they were intending to purchase the Swiss stores for $7.3 million, with plans to open a minimum of twenty five further stores in Switzerland over the next 5 years which coincides with a major brand relaunch.
The company stated that the Domino's business model was perfectly suited to the characteristics of Switzerland - a strong economy and a population largely based in metropolitan areas, where quality and convenience were valued.
Domino's also announced that it was expecting to see a minor loss reported in 2012, due to the relocation and refurbishment of stores - however the company was confident of seeing profitability in the Swiss market, by 2014.
The news builds on the back of the brand's well-publicised success - with Domino's UK reporting £22 million pounds of first-half profits this year and committing to its earlier plans of acquiring an additional sixty stores by the end of 2012 and a further twelve outlets in Germany (where Domino's expects to see the pizza delivery market one day exceed the UK market.)
At Franchise Expo we have been incredibly impressed by the Domino's success story, which we know has inspired many other franchisors and franchisees alike. The brand shows excellent judgement and planning with its product and its expansion plans being ambitious whilst being realistic. Domino's has also invested heavily in its franchisee offer, including training and strong investment in centralised advertising and marketing, which continues to make it a highly attractive business investment for the aspiring franchisee.
