Domino's targets 1,200 stores through ‘fortressing' strategy
The chain says it will not impact sales from existing stores.
Domino’s in has revealed its plans to reach 1,200 stores between 2025 to 2028 through “fortressing”, a multiple-store strategy where restaurants are placed close enough to customers to shorten delivery times and maintain the freshness of its pizzas.
In a presentation to investors, the 825-strong pizza chain says it has a 43.8% share in the country's QSR pizza market, whilst having a 3.6% share in the overall $29.7bn QSR market.
Fortressing, Domino’s says, will lead to incremental sales from carry-out customers, additional delivery customers from lower delivery time, reduced labour costs, higher brand consideration and a lift in marketing ROI.
The pizza chain also explained that fortressing will not impact pickup sales from existing stores, whilst expecting new stores to improve sales and growth. In FY19, Domino's says existing stores earned $842.7m whilst new stores - those that opened after 30 June 2013, earned $326.3m in FY19.
Domino’s has employed its fortressing strategy in other markets, subject to much discussion whether new stores are cannibalizing existing locations. Its US business, for example, has been rolling out stores for the last 12 months, opening almost 250 stores between July and September.
