“A lot of other players are stuck in the 80’s in their thinking“ says Don Meij of Domino’s
Domino’s recently announced a 23% increase in profit. Riding the digital wave is just one of the ways they stay on top. In this interview Don Meij tells QSR Media how they plan to stay on top and what the industry needs to do to stay competitive.
QSR Media: Domino’s have stated they are investing heavily in technology, what do you have planned?
Don: We expect that online orders for Domino’s pizzas will be in excess of 50% in the next 6 months, we’re not far off that figure now. We will be rolling out 6 new platforms in the future.
Mobile continues to grow and accounts for up to 40% of all digital business. This will continue to grow with iPods, smart phones etc.
In 4 years we expect it to account for 80% of our business.
QSR Media: Going green, why are you dong this and does this has cost benefits?
Don: We’re doing it foremost because it is the right thing to do, and that is what drives Domino’s, it is the right thing for our 16000-team members.
It also has cost benefits in the long term, in the next 3 years it will reduce costs as well so there are also business reasons for doing it.
QSR Media: There is currently a review of The Fair Work Act taking place by the federal government, what reform do you think needs to take place for labour laws?
Don: The labour laws need to be more commercial. While we think that team members need to be paid well we think there are some uncommercial practices, especially penalty rates on the weekend and late at night. Some of these penalties haven’t even kicked in yet. We would like to see them abolished, as they are not reflective of today’s contemporary lifestyle where people want to eat out late and night and on the weekends.
Domino’s operates in 70 countries and we have the highest pay rates in the world. Ultimately they will increase unemployment.
QSR Media: New store openings, what areas will these be in?
Don: All over Australia and NZ with a slightly higher penetration aimed for Melbourne.
QSR Media: Undercover Boss – any long term changes as a result of this experience?
Don: This was an enlightening experience and has kept me more real about what is driving the business. It was a very positive experience that is still with me.
We made some big changes about how the business operates as a result of that programme.
QSR Media: What are some of threats to the industry?
Don: Cost is the biggest threat to the industry. Food will get more expensive overall.
For the industry more generally we perceive that a lot of other players are stuck in the 80’s in their thinking and in many aspects of their business.
QSR Media: Menu board labeling, what are your thoughts on this and is it changing what your customers are ordering?
Don: We are 100% supportive of menu board labeling; it was already in the pipeline before the legislation was introduced. We believe it is the right thing to do for our customers.
It is too early to tell if it is changing what customers are ordering, we hope it does.
The only comment I would make was the use of KJ’s as a measurement is bizarre. Australian’s understand calories, fat content etc but they don’t necessarily know what a KJ is.
QSR Media: What impact will the carbon tax have on the business?
The impact will be minimal. Utility costs are already high so it is just another cost increase.
