Digital dominates for Domino’s as online orders drive bulk of sales

Nearly 80% of Domino’s sales were made online during the first quarter of the year as customers increasingly chose to engage with it without even speaking to a member of staff.

Orders through its digital platforms climbed 16% for the three months to 1 April, representing 79% of total sales. Overall UK sales rose 11% year-on-year and 7% on a like-for-like basis.

The company’s investment in technology is clearly paying off for the business after Q1 revenues grew to £285m.

Domino’s GPS tool is also now live in 541 stores, generating valuable labour efficiencies for franchisees and an improved customer experience. Additionally, it has completed its supply chain centre in Warrington. 

UK CEO David Wild poured cold water on suggestions that its performance might have suffered from the severe weather that hit struck in March, stressing that it was offset by strong New Year sales and the timing of Easter.

“The year has started well, with continued good growth in all of our markets. In the UK, customers are responding very positively to our clearer value proposition, with strong scores for value for money and overall satisfaction,” he said. “We have also made excellent operational progress, with the rapid roll-out of GPS continuing. I am encouraged by our international operations, which are gaining scale as more customers grow to love our great tasting pizzas.”

Domino’s Pizza Group holds the master franchise agreement to own, operate and franchise Domino’s stores in the UK, Ireland, Switzerland, Luxembourg and Liechtenstein. It also has a controlling stake in the holders of the Domino’s master franchise agreements in Iceland, Norway and Sweden, as well as an associate investment in Germany.

It currently runs 1,203 stores across six markets, including 1,054 stores in the UK. 11 new stores opened during the last quarter, including nine in the UK.

The chain expects to open between 65 and 75 UK stores during 2018.

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