Australian market drives Domino’s growth in 2012
Digital and product innovations helped the pizza brand grow profits by 25.7% to $26.9 million.
Store Growth
During the fiscal year 2011 – 2012 ending July 1, Domino’s opened 24 new stores in Australia and New Zealand, raising to 559 stores its combined presence in both countries, or representing more than 60% of the brand’s 908 total stores worldwide.
Europe also proved to be a robust market with the pizza franchise adding 38 new stores across the continent, with particular focus on France, Belgium and The Netherlands.
“Solid performances across the European and Australian and New Zealand markets” helped deliver the sterling results, said Ross Adler, Chairman of Domino’s in an annual report message, as the pizza franchise pursued a two-pronged strategy for growth.
Digital Evolution
“Embracing technology and improving our core product offering were two significant strategies” Mr Adler said. “Our commitment to investing for the future and enhancing the customer experience saw Domino’s exceed sales expectations, particularly in a challenging economic environment.”
In Australia, this technological push came in the form of new online ordering platforms. Mobile ordering has been a particularly popular method, with 40% of online orders now made via mobile.
Domino’s Australia also recently launched its Facebook ordering and dedicated Catering tool for large groups, which directly tap into the brand’s strong Facebook following with 716,000 “Likes”.
These new online ordering systems are not only providing Domino’s with increased sales, but also direct feedback from customers on how to tweak menu offerings and boost delivery speeds.
“At the completion of an online order, customers can provide real-time feedback about their ordering experience and product directly to the store. This tool has already helped to significantly improve product quality and service times,” said Mr Adler.
New Product Development
Same store sales in Australia and New Zealand are up 6.6% for the year, part of which Domino’s attributed to its recent push to make healthier and tastier pizzas.
In June it re-launched its Good Choice Range, which includes three 97% fat free full-size pizzas topped with fresh vegetables and lean proteins on a Thin’n’Crispy base. It also introduced its first low-card crust option which contains just roughly 25% of the carbs found in its traditional crust.
Domino’s also launched a Cheesier Pepperoni with 34% lower fat pepperoni and 30% lower fat mozzarella cheese.
Alongside these healthier offerings, which have been able to draw in new customers, Domino’s also developed a “new and improved” Classic Crust that became a hit among longtime fans.
“The new crispier, fluffier and tastier Classic Crust was our biggest core product improvement in recent years,” said Mr Adler.
Future Plans
The pizza brand expects online sales to reach 60% of total Australian sales by June 2013 and 50% of this through mobile. “We will undertake significant development to further enhance our competitive advantage and remain at the forefront of technology,” said Mr. Adler.
New products are also in the pipeline and should be ready to launch in the next fiscal year. “Intensive time and planning has already gone into our product development for the next 12 months and I am excited by what we will launch in 2012-13.”
