Domino’s results could serve as industry bellwether.
J.P Morgan have published their analysis of Domino’s Pizza Enterprises Ltd (DMP) 1H14 results and among the highlights, includes the phenomenal growth in the on-line sales channel.
As they note:
The upgrade of online ordering tools to HTML5... has allowed for faster and more efficient ordering. Almost 60% of orders come from digital, with half of these from mobile. DMP also launched a new Campaign Management platform which has reduced on-going maintenance and operational costs of the website.
But it isn’t just customer convenience that is driving the move to digital – it also makes sense from a bottom line perspective, by assisting in margin growth.
Although Domino’s is widely regarded as being at the forefront of this technology, there are lessons in their success for others in the industry. QSR will be exploring these lessons in more detail in a series of articles over the next month.
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