Domino's plans 200 additional sites as it continues to grow delivery business

By James McAllister

- Last updated on GMT

Domino's plans 200 additional sites as it continues to grow delivery business

Related tags: Domino's, Pizza delivery, Pizza, Coronavirus

Domino's UK and Ireland is planning to open an additional 200 sites as part of a new strategic plan to accelerate the growth of its delivery business.

The pizza delivery chain capitalised on its 20% share of the UK foodservice delivery market in 2020 with sales up 11.4% to £1.3bn, and like-for-like sales growth of 10.3%.

In reports underlying profit before tax of £101.2m for the 52 weeks ended 27 December 2020, having spent £9m in Covid-19 costs to support franchisees to trade safely.

The group remained open throughout the year, reporting strong growth in its delivery business that offset the significant impact Covid-19 had on collection.

On its new strategic plan, Domino’s said it has maintained 'constructive engagement' with its franchisees, and made an attractive offer in an attempt to 'reset the relationship' after a period of acrimony.

As it looks to accelerate the growth of its delivery business, Domino’s will also seek new franchisees and undertake a review of future store formats, which will 'unlock the next wave of growth in the system'.

Meanwhile, it aims to double the market share of its collection business.

As part of this it will redesign its in-store collection and food offer, and also roll out an in-car collection service, with an aim to have 450 stores offering the service by the end of June.

“We have demonstrated we have a flexible and robust business model that has been able to adapt to the uncertain and changing market conditions throughout 2020,” the company said.

“The current trends and demand expectations, in addition to the investment in capabilities we have and are making, gives us confidence in delivering further operational and financial progress in the coming year.”

Chief executive Dominic Paul said Domino’s had played its part in feeding the nation during the pandemic, while continuing to invest and innovate with the launch of a new vegan pizza and consumer app.

He said the multi-year strategic plan would deliver powerful benefits to franchisees and the group.

“As the economy begins to reopen, we have invested in our capabilities to enable us to capitalise on the substantial opportunities ahead," he added.

"I am confident that we can achieve our vision of being the UK and Ireland’s favourite food delivery and collection brand, and deliver great results for our colleagues, our customers, our shareholders and our franchisees.”

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