Leading franchise Domino's Pizza is looking forward to a significant boost in sales over the Olympic Games period as the events entice many thousands of Brits to stay indoors, switch on the spectacle and order a takeaway.
Chief Executive Lance Batchelor explained that Domino's is ramping up for the rush based on its experience of huge sales uplifts during the Australian Olympic Games in 2000, which saw peaks in orders around the opening and closing ceremonies.
Mr Batchelor explained that the London Games will likely create 'perfect' sales conditions for Domino's, explaining that the Sydney Games of 2000 provided Australian branches with one of their most significant ever business periods.
The UK Domino's business is represented by nearly 750 stores, which have seen a 13% increase in pre-tax profit announcements at the half-year mark, rising to £21.5 million. This has largely been attributed to the effects of Euro 2012 and the recent bad weather, both of which have seen Britons staying at home and ordering more pizzas to enjoy in front of the TV.
Sales have increased by 5.2% on a reporting like-for-like basis and this has also been boosted by increasing numbers of customers ordering pizzas via their smartphones or online. In fact, over 50% of orders are now received online and Mr Batchelor is confident that the brand could eventually be generating up to 75% of its total sales through the Domino's website and smartphone app. However, he was quick to stress that this trend wouldn't lead to a corresponding reduction in the company's high-street presence, explaining that around 30% of the franchise network's sales were from walk-in custom and that the high street continued to be a vital channel for the brand - both for sales and advertising.
Domino's is on a roll at the moment, having opened a further 23 stores in the 26 weeks up to June 24. It expects to open another 49 this year, which will create around 2,000 new jobs in the UK and Ireland, as well as Germany, in 2012.
The UK wing of the business expanded into Germany last year after gaining a controlling stake in the Domino's master franchise to operate and own the brand in Germany. Mr Batchelor said that the German business currently had ten stores and was likely to report an operational lost of £2.5 million in 2012 as the brand builds the necessary expansion infrastructure. By the end of next year, the intention is to have over 30 German retail outlets as well as a dough factory, which is being built next year and will have the capacity to service up to 200 stores.
The Domino's story continues to be inspiring and positive and at FranchiseExpo we are pleased to hear of the latest successes of this high-street brand. Domino's remains a strong and attractive proposition for budding entrepreneurs looking to manage and own their own business, particularly with the German market opening up and providing even more potential opportunities for those with the passion to succeed.
